Yes! You can use AI to fill out Form MB-009E, Investor/Lender Disclosure Statement

Users often enter the common street address in the 'Legal Description of Property' field in Part I. This happens because the legal description is a complex string of text (e.g., Lot/Plan/PID) that isn't readily available or easily remembered. An incorrect legal description can render the mortgage unenforceable as it won't be registered against the correct property title, creating a massive financial risk. To avoid this, always copy the legal description exactly from the property's title search document; AI-powered tools like Instafill.ai can help by extracting this precise data from source documents to ensure accuracy.

The LTV calculation in Part K requires manually adding prior encumbrances to the new mortgage amount and dividing by the property value. Mistakes are common due to incorrect arithmetic or transcribing the wrong values from other sections of the form. An inaccurate LTV gives the lender a false sense of security or risk, potentially leading to a poor investment decision. Using a tool that automates calculations, like Instafill.ai, prevents these errors by linking fields and performing the math automatically based on the provided formula.

When listing prior encumbrances in Part K, people frequently confuse the current 'Amount Owing' with the 'Maximum potential indebtedness allowable'. For a line of credit, the current balance might be low, but the maximum limit is much higher, which is the true figure that affects priority and risk. This error significantly understates the total debt secured against the property, leading to a flawed LTV calculation. Always verify these amounts against official mortgage statements or the title search to ensure accuracy.

In Part J, users often enter the same value for both 'Term' and 'Amortization,' especially if they are unfamiliar with mortgage jargon. The term is the length of the current contract (e.g., 5 years), while amortization is the total time to pay off the loan (e.g., 25 years). This mistake leads to incorrect calculations for the 'Balance on maturity' and misrepresents the loan structure, creating confusion about when the final balloon payment is due. It's crucial to understand that for most non-fully amortized loans, these values will be different.

Calculating the final balloon payment due at the end of the term (Part J) requires a complex financial formula based on the loan amount, interest rate, payment, and amortization period. Manual calculation is highly prone to error, leading to an incorrect figure on the disclosure. This misinforms the lender about the refinancing risk and the final amount they are expected to receive at maturity. Using financial calculators or automated form-filling software is the best way to ensure this figure is accurate.

In Part I, a user might check 'Appraisal' as the basis for valuation but then fail to provide the appraiser's name, the appraisal date, or attach the report. Alternatively, the 'Valuation Amount' entered may not match the figure in the attached appraisal or sale contract. These inconsistencies undermine the credibility of the valuation and prevent the lender from verifying the property's worth, which is a cornerstone of the investment decision. Ensure all related valuation fields are filled and consistent with the source documents.

In Part D, when disclosing a borrower's past defaults, filers may write a generic note like 'late payment' without providing dates, amounts, or resolution details. This lack of specificity prevents the lender from properly assessing the borrower's creditworthiness and the risk of future defaults. To avoid this, provide a full, clear history of any default; this information should be detailed in the borrower's credit report or mortgage history, which can be reviewed for completeness.

When a mortgage is to be administered by a third party (Part H), filers sometimes check 'Yes' but leave the fee description blank or fail to attach the fee agreement. This omits crucial information about ongoing costs that will reduce the lender's net return on investment. Lenders may be unpleasantly surprised by these deductions later. To prevent this, always provide a complete description of all administration fees or attach the full agreement as required.

In the 'Attached Documents' checklist (Part L), it is common for the preparer to tick a box for a document like an appraisal or credit report that they intend to include but forget to actually attach. This simple oversight leads to an incomplete disclosure package, causing processing delays while the lender requests the missing information. Before submitting, double-check that every document indicated on the checklist is physically or digitally included with the form.

Forgetting to sign or date the form in Part M (Broker Certification) or Part N (Lender Acknowledgement) is a frequent and critical error. An unsigned or undated form is legally invalid and fails to prove that the disclosure was properly made or received, which can have serious compliance consequences. AI-powered form filling tools like Instafill.ai can flag mandatory signature and date fields to prevent submission of an incomplete document. If the form is a non-fillable PDF, Instafill.ai can convert it to a fillable version with clearly marked signature fields.