Monthly Payment Loan Disclosures

Monthly Payment Loan Disclosures
Monthly Payment Loans require separate disclosures from the first mortgage. Due to the implementation of the TILA/RESPA Integrated Disclosure rule (TRID) on August 1, 2015, the type of disclosure(s) required depends on the borrower’s loan application date. 
Loans with application dates prior to August 1, 2015 require a separate:
  • Good Faith Estimate
  • Initial Truth in Lending
  • Final Truth in Lending
  • HUD-1
Loans with application dates on or after August 1, 2015 require a separate:
  • Loan Estimate
  • Closing Disclosure
In addition to the required disclosures, Monthly Payment Loans should adhere to all other industry-standard documentation requirements.
For all interest-free, non-amortizing loans such as Deferred Payment and Deferred Payment Plus loans, lenders should consult their compliance departments regarding disclosures and follow industry-standard guidelines, processes, and timelines for these downpayment and closing cost loans.
U.S. Bank Servicing Fee Applies to Monthly Payment Loan Only
U.S. Bank Home Mortgage’s $175 servicing fee applies only to the Monthly Payment Loan.  Lenders should not apply the servicing fee to Minnesota Housing’s Deferred Payment Loan or Deferred Payment Loan Plus. 
June Webinars
Join us for our next Webinar series:
Monthly Underwriter Conference Call
Thursday, June 4 from 9:00-10:00 a.m.
Join our staff on monthly conference calls with underwriters to discuss program eligibility requirements. Email questions and topics you would like to discuss ahead of time to mnhousing.solution@state.mn.us.
Agency Closed for Memorial Day
Minnesota Housing will be closed on Monday, May 25 in observance of Memorial Day. Lenders will be unable to lock new loans between 5:00 p.m. on Friday, May 22 and 10:00 a.m. on Tuesday, May 26.
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