Mortgage lenders must disclose loan costs and obtain borrowers’ signatures

People making mortgage loans must give borrowers an itemized closing statement signed by every borrower and the broker, lender, or closing representative. These rules cover first mortgages and additional mortgages on the same property, including loans arranged through agents or brokers. A federal closing disclosure satisfies these requirements if it includes all required loan details and the required state late payment penalty language. A separate state disclosure is unnecessary when the federal disclosure includes everything state and federal law require. The law took effect June 10, 2026. Borrowers receive the statement at closing.

Loan holders must provide requested account and payoff statements and promptly release the lien, their legal claim securing the loan, when the mortgage is fully paid. The borrower, a later owner of the property, or their authorized agent can access the retained closing statement. Account statements require a written borrower request. Payoff statements require the borrower’s written request or authorization and go to the borrower or a person they choose. Payoff statements are free except for actual courier or expedited mail costs that the borrower requests and authorizes after receiving the price. Brokers or lenders must keep a completed, signed closing statement available at reasonable times until the debt is fully paid. The account statement deadline starts when the written request arrives. The payoff statement deadline starts when the written request or authorization arrives.

Licensed mortgage businesses must keep records of residential mortgage loans handled in their business. The requirement covers loans people applied for and loans the business arranged, made, or serviced. The 36-month recordkeeping period runs from the date of the final entry.