The Mortgage Loan Disclosure Statement (MLDS) is required under Business and Professions Code 10240 to be provided by a California Bureau of Real Estate (CalBRE) licensed Mortgage Broker to a mortgage loan Borrower, disclosing maximum costs and expenses associated with obtaining a loan. The MLDS is required for all property types and must be provided within three (3) days of the Broker receiving the Borrower’s loan application.
CalBRE licensed Brokers are permitted to use RE 882 (long form) or RE 883 (short form) to comply with MLDS requirements for traditional mortgage products and RE 885 form for nontraditional mortgage products.
Beginning October 3, 2015, a Loan Estimate signed by the Borrower(s), along with a separate CA Addendum to Loan Estimate, will fulfill the requirement for an MLDS.
loanDepot Wholesale (LDW) requires CalBRE licensed Brokers to provide proof of compliance with CA code 10240, by submitting a copy of documentation to satisfy Option 1 or 2 as described below:
Option 1: Broker to provide LDW with a copy of the specific MLDS form for all loans
a. Form RE 882 (long form) or RE 883 (short form) for all products (excluding Interest Only Products)
b. Form RE 885 for the Interest Only Products
Option 2: Broker to provide LDW with a copy of the Loan Estimate AND a copy of the signed CA Addendum to Loan Estimate, both signed by the Borrower(s).
If the Borrowers do not sign the Loan Estimate and/or the separate disclosure is not provided, then the Borrowers should have been provided a Mortgage Loan Disclosure Statement within the required three-day timeframe.
Sample forms are provided on the State Specific Disclosure Matrix in the LDW Portal.