What is redisclose?

In the context of financial transactions, rediscloure refers to the act of providing updated or revised disclosures to a borrower or borrower's agent during the loan application process. This often occurs when there are changes to the terms of the loan or information presented in disclosure documents, such as interest rates, closing costs, or other fees. Redisclosure is required under federal law, primarily the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), which mandate that lenders must provide borrowers with accurate and complete information about the transaction and associated costs. The purpose of redisclosure is to ensure that borrowers have a clear understanding of the terms and conditions of their loan and can make informed decisions about accepting or rejecting the offer. Failure to provide accurate and timely redisclosure can result in penalties for lenders and legal issues for borrowers.