What does the Mortgage Disclosure Improvement Act require lenders to do?

The Mortgage Disclosure Improvement Act (MDIA) mandates that lenders provide borrowers with specific loan disclosures within three business days of receiving a loan application. This requirement aims to ensure transparency and informed decision-making for borrowers by giving them essential information about the terms of their loans early in the process. The disclosures include critical details such as the loan's annual percentage rate (APR), finance charges, and other key terms, allowing borrowers to better understand the financial implications of their mortgage before moving forward.

The emphasis on timely disclosure helps prevent surprises later in the loan process, fostering a more trustworthy relationship between lenders and borrowers. It is a significant part of the push for consumer protection in the mortgage industry, ensuring borrowers have adequate time to review the terms before proceeding.