In order to comply with TILA regulations, lenders must collect and maintain the name of each borrower involved in the loan as well as all relevant contact information. This includes full name, address, phone number, email address, and any other required identification information.
Lenders must collect accurate documentation of the borrower’s income in order to ensure they are able to repay the loan. This includes pay stubs, W-2 forms, bank statements, and other relevant financial documents.
3. Social Security Number.
The borrower’s social security number is required for identity verification purposes as well as for credit reporting. In some cases, other forms of identification may be accepted in lieu of a SSN.
4. Property Address.
The lender must collect the address (and possibly the deed) to the property that is being purchased. This is necessary for assessing the estimated value of the home and determining if any additional costs such as title search fees will be required.
5. Property Value.
The estimated value of the property must be determined in order to calculate the loan-to-value ratio (LTV). This is a critical component of the underwriting process and helps lenders ensure that they are not taking on too much risk.
6. Loan Amount.
A detailed breakdown of the loan amount requested by the borrower must be provided in order to complete the underwriting process. This should include the principal, interest rate, and other fees associated with the loan.
7. Mortgage Term and Interest Rate.
The lender must provide clear information regarding the mortgage term (length of time) as well as the interest rate being offered. This is important for determining monthly payments as well as total costs associated with the loan.
8. Closing Costs.
The lender must also provide a comprehensive list of all closing costs that will be required in order to complete the loan process. This includes fees such as title searches, appraisals, and other related services.
9. Property insurance premiums and payment amounts, if applicable.
If the loan requires any form of property insurance, the lender must provide an accurate estimate of the premium and payment amounts to be charged. This is necessary for providing a complete cost breakdown to the borrower.
10. Cost associated with other required services such as appraisals, title searches, etc.
The lender must also provide detailed information regarding any additional fees associated with services such as appraisals, title searches, or other required services. This ensures that the borrower is aware of all costs associated with their loan.
11. A detailed list of all fees being charged by the lender, including origination fees, points, etc.
The lender must provide a comprehensive list of all fees associated with the loan in order to comply with TILA regulations. This includes any and all points, origination fees, closing costs, or other related charges.
12. A good faith estimate of the total monthly payment due on the loan.
The lender must provide a good faith estimate of what is due each month and how much of the payment is for principal and interest. This helps the borrower understand what their monthly payments are and how long it will take to pay off the loan.
13. Disclosure of any pre-payment penalties associated with the loan.
The lender must also provide details regarding any pre-payment penalties associated with the loan. This ensures that the borrower is aware of any potential costs they may incur if they decide to pay off their loan early.
14. Finally, the lender must provide a clear explanation of all terms and conditions associated with the loan.
In order to meet all TILA regulations, the lender must provide a detailed explanation of all terms and conditions associated with the loan. This includes information such as loan duration, late payment fees, prepayment penalties, and more.