The ConformX FHA Informed Consumer Choice Disclosure Notice, Cx41, has been edited to add the following sentence to the footer: “*For case numbers assigned on or after April 18, 2011, 15-year mortgages require a downpayment in excess of 22 percent in order to avoid making monthly mortgage insurance premiums.”
The related existing section of the model “INFORMED CONSUMER CHOICE DISCLOSURE NOTICE” attached to ML 00-46 is no longer an accurate statement under the post-April 18, 2011 rate structure: “If you have a 15-year mortgage and make a downpayment in excess of 10 percent, you will not have to make monthly mortgage insurance premiums.”
However, ML 99-23 states that this section of language is mandatory. The additional sentence has been added since: “A mortgagee, however, may include additional elements in an informed consumer choice disclosure notice to better reflect the mortgagee’s products or to provide information that the mortgagee believes is meaningful and helpful to the mortgagee’s customers.”
DocuTech’s Compliance Department has contacted FHA regarding this issue and they have advised they will be modifying their model form in the near future. DocuTech’s form will print this additional lanugage as permitted by FHA until the model form is revised.
This edit will take effect on the evening of June 27, 2011.
June 24, 2011