What does the Mortgage Disclosure Improvement Act (MDIA) primarily focus on?

The Mortgage Disclosure Improvement Act (MDIA) primarily addresses the timing and delivery requirements for initial disclosures that a lender must provide to a borrower. This act was established to ensure transparency and to protect consumers in the mortgage process by mandating that borrowers receive important information about their loan terms early in the application process. By specifying these timelines, the MDIA aims to prevent surprises and allow consumers ample time to understand the key elements of their mortgage before proceeding.

Ensuring that borrowers receive disclosures at specific times enhances their ability to make informed decisions about their mortgage options. This focus on timing and delivery helps to create a more transparent lending environment, setting clear expectations for both borrowers and lenders.

The other choices—such as advertising requirements, regulations regarding loan repayment penalties, and standardization of mortgage loan programs—are not the primary focus of the MDIA. While these topics are important within the broader scope of mortgage regulation, the MDIA is specifically concerned with the timelines surrounding disclosures, making it an essential piece of consumer protection legislation.