DALLAS, TX – December 17, 2010 – (RealEstateRama) — MRG Document Technologies (MRG), a provider of mortgage document preparation software and compliance technology to banks, credit unions and other lenders nationwide, has developed the forms needed for compliance with upcoming 2011 regulations that mandate changes to both the Truth in Lending Act (TILA) and risk-based pricing disclosures. Both updates are meant to provide consumer clarification in regards to loan decisioning and final terms.
By Jan. 31, 2011, lenders must implement the updated TILA disclosure that provides borrowers with certain information about interest rates and payment changes, in a tabular format, as well as a statement that consumers are not guaranteed to be able to refinance their transactions in the future. The interest rate and payment summary tables replace the payment schedule previously required as part of the TILA disclosure for mortgage transactions.
The risk-based pricing provisions of the Fair and Accurate Credit Transactions Act of 2003 take effect Jan. 1, 2011 and require lenders to provide borrowers with a notice containing the credit score disclosure and additional context for the credit score disclosure. Along with an explanation of credit score basics, such as how it is determined and the affect it can have on obtaining credit, this notice also informs borrowers how their credit compares with other consumers.
“At MRG, we specialize in keeping our clients ahead of the curve in regulatory compliance,” said Marsha Williams, an attorney and chair of the National Mortgage Compliance Practice Group at MRG. “2011 will bring significant regulatory changes to the mortgage industry beginning in January and it is vital that lenders have the material they need for compliance well before mandate deadlines in order to adjust their processes and train their staffs. MRG guarantees the accuracy of the updated TILA and risk-based pricing disclosures and is prepared to assist lenders with the implementation of these new lending practices.”
About MRG Document Technologies
Since 1980, Dallas-based MRG Document Technologies (MRG) has provided a variety of mortgage technology products including closing documents, loan modifications, electronic disclosures, fraud prevention and imaging integration to approximately 350 mortgage lenders, banks and credit unions throughout the United States. For more information about MRG, visit www.mrgdocs.com.