Bulletin W1284 – Anti-Steering Disclosure Process
This bulletin is about the Anti-Steering Disclosure process.
- CMS requires that the Broker provide the Anti-Steering Disclosure effective immediately on Lender Paid transactions
- If the disclosure is not included at time of submission the Underwriter will condition the loan appropriately as PTD condition
- The Safe Harbor Certification will no longer be a required document
- The Submission Forms have been updated and will be posted to the website on Monday October 1, 2012
- The Underwriter and Account Manager must monitor the file in the event that the loan moves from Borrower Paid to Lender Paid to ensure compliance
- The Anti-Steering Disclosure must contain:
- Form must be entitled Anti-Steering Loan Options Disclosure
- Must be signed by all borrowers listed on the Note and must be presented to the borrower(s) at the time the Loan Originator has sufficient information to complete the disclosure
- Must contain the following options:
- The loan with the lowest interest rate
- The loan with the lowest interest rate without negative amortization, a prepayment penalty, interest only payments, a balloon payment in the first seven years of the life of the loan, a demand feature, shared equity or shared appreciation.
- The loan with the lowest total dollar amount of origination points or fees and discount points
- The loan options must be an accurate reflection of the circumstance at time of disclosure
- The Broker is required to disclose loan options for each “type of transaction” in which the consumer expressed an interest.
- When completing the disclosure the Broker needs to present loan options for which the consumer likely qualifies and include loan options from a significant number of lenders which the Broker regularly does business with.
- A sample Anti-Steering Disclosure has been created and is posted to the website and can be found at:
- Broker Center/Documents and Forms/Useful Forms
- Form is PDF fillable
- The posted Anti-Steering Disclosure is a sample only
- To ensure that the Broker’s Anti-Steering Disclosure meets all of the requirements and internal CMS Checklist has been created and provided to Associates
- Subject Matter Expert:
- Steve Netter
Director of Compliance