In our August, 2008 issue, we mentioned that although the Washington model disclosures - the Disclosure Summary - Fixed Rate Loans (WADSF.MSC) and the Disclosure Summary - Variable Rate Loans (WADSV.MSC) -- were in draft form, DocMagic was making them available anyway, because Substitute House Bill (SHB) 2770 arguably required a disclosure of material terms since its effective date of June 12, 2008.

On November 5, 2008, the Washington Department of Financial Institutions (DFI) approved a final version of WAC 208-600-200 and two model disclosures that become effective December 5, 2008. The disclosures are required for all residential mortgage loans in the State of Washington pursuant to SHB 2770.  Lenders may add more information to DFI's model forms for their own use if it is accurate, clear, uses simple language, and fits on the one-page form.

The model disclosures are also known as the WA Material Terms Disclosure Summary and Understand Your Home Loan Application Disclosure. You may view DFI's model disclosure rules and the model forms on DFI's website here. 

The Washington Disclosure Summary - Fixed Rate Loans (WADSF.MSC) and the Disclosure Summary - Variable Rate Loans (WADSV.MSC) will continue to select for both predisclosure and closing loan packages when the origination type is a lender or broker; the property type is not commercial property, vacant land and lots, or multifamily; and the occupancy status of the property is owner-occupied or a second home.  Furthermore, WADSF.MSC will return in fixed rate loan packages, and WADSV.MSC will return in variable rate loan packages.  Although DFI's rule no longer requires that the Fixed or Variable Rate model disclosure must be the first document to be provided to the borrower, these disclosures will continue to be placed first in the stacking order or document tree of the Washington loan packages.  Both of these forms will replace the Basic Facts About Your Mortgage Loan (WABFAYML.MSC) disclosure.

If you have any questions regarding the contents of this article, please contact the Compliance Department.

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