Form Re 885 - Mortgage Loan Disclosure Statement/good Faith Estimate
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6MORTGAGE LOAN DISCLOSURE STATEMENT – GOOD FAITH ESTIMATE
NONTRADITIONAL MORTGAGE LOAN PRODUCT (ONE TO FOUR RESIDENTIAL UNITS (RE885)
INFORMATIONAL SHEET
WHEN TO USE THIS FORM
NONTRADITIONAL LOAN PRODUCTS – THIS FORM MUST BE USED WHEN THE LOAN PRODUCT
BEING OFFERED TO THE CONSUMER ALLOWS THE BORROWER TO DEFER REPAYMENT OF
PRINCIPAL OR INTEREST AND IS SECURED BY A 1 TO 4 UNIT RESIDENTIAL PROPERTY WHETHER
OWNER OR NON-OWNER OCCUPIED.
Commissioner’s Regulation 2842 defines a nontraditional loan product as “a loan that allows borrowers to
defer repayment of principal or interest. Such products include, but are not limited to, interest only loans where
the borrower pays no loan principal for a period of time and payment option loans where one or more of the
payment options may result in negative amortization. A “nontraditional loan product” does not include reverse
mortgages or home equity lines of credit (other than simultaneous second lien loans).”
If the loan product is NOT a nontraditional loan product the RE882 or RE883 form may be used.
PROPERTY SECURING THE LOAN – This form is used only when the real property securing the nontraditional
loan is a 1 to 4 unit residential property whether owner or non-owner occupied. When the property securing the loan
is NOT a 1 to 4 unit residential property the RE882 or RE883 may be used.
TIPS ON COMPLETING THIS FORM
Page 1 – Compensation to Broker (Not Paid Out of Loan Proceeds) – This section is completed to disclose any
compensation received by the broker from a lender in the form of a yield/spread premium, service release premium
or any other rebate or compensation.
Page 2 - Section III – If the “Initial Adjustable Rate” box is checked, complete sections IV through XI. If the “Fixed
Rate ” box is checked and the loan has an interest only or negative amortization payment feature skip sections IV
through IX and complete section X and XI as appropriate.
Page 3 – Certification – If any or all of the columns on page 4, section XIX, with the exception of the last column
“Proposed Loan”, in the Typical Mortgage Transactions portion of the form are not completed, the broker MUST
read and complete the Certification on page 3.
Page 4 - Section XIX – Comparison of Sample Mortgage Features (One to Four Residential Units) – Use the
“Instructional Guide for Nontraditional Loan Disclosure (Page 4)” found on the DRE Web site at
www/dre.ca.gov/frm_forms.html and go to Mortgage Lending Brokers. If the broker does not offer one or more
comparison loan products, the box “not offered” should be checked for that particular loan product. However, the
broker must provide the required information in all columns except those for which the broker has executed the
CERTIFICATION on page 3 of the RE885.
DO NOT LEAVE ANY LINES OR SPACES BLANK.
After completion, the form must be signed by the broker or broker’s representative and provided to the borrower
within THREE (3) DAYS OF RECEIVING THE BORROWER’S COMPLETED WRITTEN LOAN
APPLICATION.
A COPY OF THE FORM SIGNED BY THE BORROWER MUST BE RETAINED BY THE BROKER FOR A
PERIOD OF THREE (3) YEARS.
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