What is a requirement under the Mortgage Disclosure Improvement Act (MDIA)?

Under the Mortgage Disclosure Improvement Act (MDIA), one of the key requirements is that initial disclosures must be provided to borrowers within three business days of receiving their loan application. This requirement is designed to give borrowers important information about the mortgage process early on, ensuring transparency and helping them make informed decisions.

The MDIA emphasizes the importance of timely communication regarding loan terms, costs, and other critical information. By mandating that borrowers receive these disclosures within a specific time frame, the Act aims to protect consumers and enhance their understanding of the mortgage options available to them, thus fostering a more informed borrowing environment.

The other options do not accurately reflect the requirements set forth by the MDIA, making the choice about the three-business-days timeline a cornerstone of the Act's intent to improve borrower protections and transparency in the mortgage process.