Disclosures in Financing 8

Lender/Purchaser Disclosure Statement , State of California Form RE 851A Form RE 851A is provided by the California Department of Real Estate Mortgage Lending. It serves as a Disclosure Statement Summary. It is divided into ten parts:
1) Broker Information - States Brokers name, real estate license id number, business address, and phone number.
2) Broker Capacity In Transaction - Identifies the specific brokers role / capacity in the given transaction.
3)Transaction Information- Explains the terms of the loan including interest rate,type of amoritization,payment frequency, etc.
4)Multi-Lender Transaction- This section contains the anticipated closing date, estimated lender costs, name/address of escrow holder. The servicing and loan-to-value information is defined in legal terms on this section
5) Servicing Arrangements-If the intended loan is to be serviced by a real estate broker the client must be notified within (10) days if the broker makes any advances on senior encumbrances to protect the security of the note.
6) Borrower Information- A short form 1003 loan application form
7) Property Information- Identification of property which is security for note.
8) Appraisal Information- This is basically the estimate of fair market value determined by an independent appraiser
9)Encumbrance Information- information provided concering senior encumbrances against the property against the property.
10) Loan to Value Ratio - This is the numerical computation of the amount borrowed versus the amount owed on the property. It includes a broker verification and acknowledgment of receipt.