In real estate finance, a mortgage loan disclosure statement is a document provided to a prospective borrower that outlines the material terms and costs of a proposed mortgage loan. The statement is prepared on a form approved by the Real Estate Commission and is intended to ensure transparency in mortgage lending.
By law, a mortgage loan broker must furnish this disclosure statement to the borrower before the borrower becomes legally obligated to complete the loan, for loans of a statutorily prescribed amount. The disclosure enables the borrower to review and understand key loan terms, fees, and conditions, helping the borrower make an informed decision before proceeding with the transaction.
