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Question: Under what circumstances is an Anti-Steering Loan Disclosure required to be provided to an applicant?

Answer:

An Anti-Steering Disclosure is required when a licensed mortgage broker originates a loan and will be compensated by the lender. The Anti-Steering Disclosure is not required on retail loan transactions or where the consumer pays the mortgage broker’s compensation.

1026.36(e)(3)(i) sets forth what must be contained in the Anti-Steering Disclosure:

• The loan originator must obtain loan options from a significant number of the creditors (generally 3 or more) with which the originator regularly does business and, for each type of transaction in which the consumer expressed an interest, must present the consumer with loan options that include:

1. The loan with the lowest interest rate;
2. The loan with the lowest interest rate without negative amortization, a prepayment penalty, interest-only payments, a balloon payment in the first 7 years of the life of the loan, a demand feature, shared equity, or shared appreciation; or, in the case of a reverse mortgage, a loan without a prepayment penalty, or shared equity or shared appreciation; and

• The loan with the lowest total dollar amount of discount points, origination points or origination fees (or, if two or more loans have the same total dollar amount of discount points, origination points or origination fees, the loan with the lowest interest rate that has the lowest total dollar amount of discount points, origination points or origination fees).