Regulations, Forms, and Acronyms... Oh My!

Regulations, Forms, and Acronyms... Oh My!

Thursday, February 22, 2024

If you’ve gotten a home loan in the past 13 years, you’ve probably grumbled about the amount of paperwork you have to sign. We understand - it’s a lot, and your hand cramps up by the end. The 2008 mortgage crisis was caused by a few bad apples, and everyone is paying the price.

What you may not know is the large number of regulations that the mortgage industry has to follow, including specific forms we need to provide. We usually call these forms by their acronyms, and I thought it would be interesting to share a couple of them with you:

• LE = Loan Estimate. This form gives estimated details about the mortgage loan you have requested, including loan amount, interest rate, monthly payment, and closing costs.

• CD = Closing Disclosure. This form gives the final details about your mortgage loan and is similar to the LE but is more detailed.

In addition to acronyms for forms, we have acronyms for certain rules and regulations we have to follow. To name a few:

• ATR/QM = Ability-to-Repay/Qualified Mortgage

• TRID = TILA-RESPA Integrated Disclosures

      o TILA = Truth-in-Lending Act

      o RESPA = Real Estate Settlement Procedures Act

• HMDA = Home Mortgage Disclosure Act

Luckily, you as the consumer do not need to remember these acronyms! The mortgage loan officers at Bruning Bank are specially trained to ensure we follow all rules and regulations while making sure the home loan process is as seamless for you as possible. We know it feels like a lot at the time, but we promise that everything we ask you for is to ensure we stay in compliance with the above-mentioned regulations, in addition to others.

If you are considering purchasing, building a new home, or pulling equity out of your existing home, contact one of our mortgage loan officers and we would be happy to help you. We’ll try not to bore you with those acronyms! 

- Michaela Nielsen, Mortgage Loan Officer (NMLS #894658)