Mortgage Disclosure Improvement Act (MDIA)

The Mortgage Disclosure Improvement Act (MDIA) is a U.S. law designed to enhance transparency in the mortgage process. Enacted in 2008, it requires lenders to provide borrowers with clear and timely information about loan terms, costs, and potential risks. Importantly, it mandates that borrowers receive crucial disclosures, including the Loan Estimate, at least three business days before closing on a mortgage. This gives borrowers time to review and compare options, helping them make informed decisions about their home financing. Overall, MDIA aims to protect consumers by ensuring they understand their mortgage agreements better.