MRG Document Technologies (MRG), a provider of mortgage technologies to banks, credit unions and other lenders, announced that its eConsent electronic disclosure delivery system is now available to help lenders comply with changes to Regulation Z that take effect July 30 to implement the Mortgage Disclosure Improvement Act of 2008 resulting in an expansion of the Truth in Lending (TIL) disclosures.
The new changes expand the scope of TIL disclosures for mortgage transactions to include the need for disclosures for refinances and for mortgage loans on dwellings other than borrower’s primary residence, in addition to the disclosures already required for purchase and initial construction loans.
Revised disclosures are required if the annual percentage rate (APR) changes to outside of the tolerance during the loan process. As a result of re-disclosure, lenders must delay closings for three additional days, for a total of six days, while they wait for borrowers to receive the revised disclosures. By using MRG’s eConsent, lenders have verifiable proof that borrowers received re-disclosures on the day they were delivered if the borrowers consent to the re-disclosure. MRG supplies the lenders with verifiable reports of when the borrower actually consented; this can shorten the disclosure delivery time, with closings occurring three days after delivery date instead of six.
“Speeding up the closing process is a benefit to both lenders and borrowers. For lenders, it locks in interest rates, prevents borrowers from switching to another lender and generates interest sooner,” said Marsha Williams, an attorney at MRG. “By delivering the revised disclosures electronically, borrowers close their loans sooner.”
MRG offers a browser-based system for the preparation and delivery of compliant document packages, electronic disclosures, loan modifications and other services for mortgage lenders, banks and credit unions nationwide. MRG guarantees that its products are in compliance with the most recent legislative and regulatory changes.
For more information, visit www.mrgdocs.com.