New Tennessen Disclosure Required on Step Up Loans
Borrowers must receive a privacy act notice, called the Tennessen Warning, due to state regulations. This disclosure is already included in the Start Up and MCC Subsidy Recapture forms currently in use, but must now be disclosed for Step Up loans.
Effective for new Step Up loan commitments on or after Monday, June 9, lenders must provide a copy of a Tennessen Warning to borrowers. This disclosure:
This new form is for Step Up loans only.
- Must be given to Step Up borrowers prior to closing
- Does not require borrower signature
- Does not need to be included in the loan file