New Disclosure - State of Washington

The Washington State Department of Financial Institutions has adopted rules requiring a one page disclosure summary. Effective December 5, 2008, Provident Funding will be including the one page disclosure summary in all initial disclosures and loan documents for owner-occupied and second home purchase and refinance transactions. The rules require that Provident Funding also send revised disclosures each time any of the following changes are made:

• The loan program is changed.
• The loan amount is increased by 5%.
• The interest rate is increased.
• The APR fees are increased by $500.
• A change in whether the loan is escrowed for taxes and/or insurance (whether to include in or exclude from the payment).

In addition, the WA DFI rules require that the disclosures are mailed at least three days before the final rescission day for a refinance or at least three days before the signing of a purchase or non-rescission loan. Please keep this in mind when entering fees at registration and ordering loan documents, requesting loan changes, scheduling closings and managing lock expirations.

Sample forms can be found on the WA DFI website and by clicking on these links:

Fixed Rate Loan Disclosure
Variable Rate Loan Disclosure

Posted 1/7/2009 @ 4:35 PM | Mortgage