Posted on: 05th Apr, 2007 03:26 pm
is it necesssary to use a Mortgage Loan Disclosure Statement in CA?
Rothfield,
In California as per state laws ( Business and Professions Code Section 10240(c) ) it is necessary to use the Mortgage Loan Disclosure Statement (MLDS).
A Good Faith Estimate cannot be used as a substitute for this Mortgage Loan Disclosure Statement. In case it is necessary to use a GFE for the loan transaction, California Department of Real Estate has a Mortgage Loan Disclosure Statement/Good Faith Estimate (MLDS/GFE).
This MLDS/GFE meets all state disclosure requirements as well as federal Good Faith Estimate requirements.
In California as per state laws ( Business and Professions Code Section 10240(c) ) it is necessary to use the Mortgage Loan Disclosure Statement (MLDS).
A Good Faith Estimate cannot be used as a substitute for this Mortgage Loan Disclosure Statement. In case it is necessary to use a GFE for the loan transaction, California Department of Real Estate has a Mortgage Loan Disclosure Statement/Good Faith Estimate (MLDS/GFE).
This MLDS/GFE meets all state disclosure requirements as well as federal Good Faith Estimate requirements.
The federal GFE is a one page statement while the MLDS is a 2 page statement and has been divided into 3 main sections; which are, Summary of Loan Terms, General Information about Loan and Deductions from Loan Proceeds.