California
The California Mortgage Loan Disclosure Statement (RE 882): what borrowers should expect
When a California real estate broker arranges a loan secured by real property, the broker gives the borrower a Mortgage Loan Disclosure Statement on DRE form RE 882. It lays out estimated costs, all broker compensation and the loan terms before the borrower becomes obligated.
By Neeli Khanna, designated officer and broker. Published . 3 minute read.
DRAFT — pending counsel review
This page is a working draft. Our attorneys have not reviewed it yet, and it may change before it is final.
Key takeaways
- The statement is a state-required disclosure, not a loan approval or a commitment to lend.
- It sets out estimated borrower-paid costs, all broker compensation including any paid by the lender, and the loan terms.
- Corin's process is to hold loan documents until the borrower has signed the statement.
- This article is general information, not legal advice.
What the statement is
The Mortgage Loan Disclosure Statement, on form RE 882 of the California Department of Real Estate, is the written disclosure a licensed broker gives a borrower on a loan the broker arranges. On every loan Corin arranges that is secured by real property, you receive a Mortgage Loan Disclosure Statement (DRE form RE 882) no later than three business days after we receive your completed written loan application, and in every case before you become obligated on the loan.
The point of the form is to put the cost and the terms of the loan, and the broker's compensation, in front of the borrower in a standard format before the borrower commits.
What it contains
The statement covers the main facts of the transaction:
- Estimated maximum costs the borrower will pay, such as appraisal, escrow, title, notary and recording
- All compensation the broker will receive, including any paid by the lender
- The loan amount, interest rate, term, payments and any balloon payment
- A statement that credit insurance is not required and that the broker will not use broker-controlled funds, where that is the case
- The broker's name, license number and licensed address
- A notice that the figures are estimates
Who signs and what you receive
Each borrower signs the statement, and so does the broker or a licensee acting for the broker. The borrower receives an exact copy. Electronic signature is acceptable with the borrower's consent to sign electronically, and the broker keeps a copy for three years.
Corin never accepts, holds or disburses loan funds. The statement describes the costs and compensation of the transaction; it does not mean Corin is the lender.
How Corin handles it
Corin's process treats the statement as a gate. We do not deliver a loan commitment or loan documents to a borrower before the statement is signed, and a deal does not move to closing without a signed statement on file. Because rules and forms change, an attorney reviews our disclosure process, and this article stays in draft until that review is complete.
If you are comparing brokers or lenders, ask each one when you will receive the statement and what compensation it shows.
Frequently asked questions
Is the Mortgage Loan Disclosure Statement a loan approval?
No. It is a disclosure of costs, compensation and loan terms. It is not a commitment to lend.
When do I receive it?
After the broker receives a completed written loan application and before you become obligated on the loan. Corin's disclosure sets the outer limit at three business days after a completed application.
Does the statement apply to every Corin loan?
It applies to loans Corin arranges that are secured directly or collaterally by real property. Your advisor will confirm whether it applies to your transaction.
Keep going
Sources
- California Business and Professions Code sections 10240 and 10241
- California Department of Real Estate form RE 882
This article is general information, not legal, tax or investment advice. Program rules change by notice; confirm current terms with a lender.
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