Pursuant to a periodic review, it came to our attention that 26-C DCMR § 1116.2(e) requires:
“The following additional information shall be included in, or attached to, a mortgage loan application if available at the time of the application:
(e) Disclosure as to whether the loan may result in a balloon payment…”
Due to this requirement, we have added a provision on the Uniform Residential Loan Application (Cx4193) that triggers the applicable disclosure, depending on whether the subject loan has a balloon payment or not. When there is a balloon payment on the loan, the following statement will appear on the URLA Continuation Sheet:
“The loan you are applying for has a balloon payment. [D.C. Mun. Regs. tit. 26-C, § 1116.2(e)]”
If the loan has no balloon payment, the statement will instead say:
“The loan you are applying for does not have a balloon payment. [D.C. Mun. Regs. tit. 26-C, § 1116.2(e)]”
This change will be in effect on December 20, 2018. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.