]Passed in 2008 and effective in 2009, the Mortgage Disclosure Improvement Act (MDIA) changed the way lenders provide loan disclosures and ensures that consumers receive clear, accurate information before closing on a mortgage.
### Key features of the MDIA
– **Early Truth-in-Lending disclosure:** Lenders must provide a Truth-in-Lending (TIL) statement within three business days of application.
– **Waiting period:** Borrowers must wait at least seven business days after receiving the initial TIL before closing, giving them time to review their loan terms.
– **Re-disclosure triggers:** If the annual percentage rate (APR) changes beyond set tolerances, lenders must issue a new TIL at least three days before closing.
– **Enhanced transparency:** The act expands timing requirements for adjustable-rate mortgages and reverse mortgages.
### Why it matters
The MDIA gives consumers time to compare loans and ask questions. By slowing the closing process slightly, it reduces last-minute surprises and encourages lenders to be more accurate with their estimates.
### Related resources
– [Mortgage Employment Index](/mortgageemploymentindex/)
– [Mortgage Lender Ranking](/mortgagelenderranking/)
– [Mortgage Servicer Ranking](/servicerranking/)
– [Statistics](/statistics/)
– [Mortgage Fraud Index](/fraudindex/)
