Questions and Answers

The early TILA disclosures, sometimes called the “good faith estimates,” must be given within three business days of receiving a written application. These disclosures are required only if both the following are true: the transaction is a “residential mortgage transaction” and the transaction is subject to RESPA.  

A residential mortgage transaction occurs when the creditor takes a security interest in the consumer’s principal dwelling to finance the acquisition or initial construction of that dwelling. A loan is subject to RESPA if it is secured by a lien on residential real property on which there is a one- to four-family structure or there will be with use of the loan proceeds. There are exemptions for business and agricultural loans, loans secured by property over 25 acres, temporary financing, etc.