Texas Senate Bill 1124 (2011 Tex. Sess. Law Serv. Ch. 655), a behemoth act of state legislation of over 70 pages in length, “relating to licensing and regulation of certain persons involved in residential mortgage lending pursuant to the Texas Secure and Fair Enforcement for Mortgage Licensing Act of 2009,” will become effective law on September 1, 2011.
This bill, inter alia, amends some of the terminology used in connection with the disclosure requirement found in Tex. Fin. Code §156.004. Previously, the disclosure specified the terms of the relationship between the borrower and a mortgage broker. This section has now been amended by striking out references to “mortgage broker” and replacing it with “residential mortgage loan originator,” which effectively requires the disclosure to be given by both brokers and lenders.
DocuTech has taken pro-active steps to ensure that its version of this disclosure has been modified to comply with this change. Cx3883 (TX Mortgage Broker/Loan Officer Disclosure) will begin printing for both brokers and lenders in Texas initial disclosure packages on September 1st.
Also being revised are DocuTech’s Cx5104 and 5106 documents (TX Conditional Approval Letter and TX Conditional Qualification Letter, respectively). These documents are provided per Tex. Fin. Code §156.105 and 7 Tex. Admin. Code §§80.22 & 81.2. There are two versions of each of these forms: one to be provided by a “Residential Mortgage Loan Originator” and the other by a mortgage banker or residential mortgage loan originator.
The official disclosures of both versions (four in all) are provided on the Texas Department of Savings and Mortgage Lending website. DocuTech has incorporated the language from both versions into Cx5104 and 5106, with the appropriate version printing dependent on whether the client is acting as a lender or as a broker in the transaction.
These changes will take effect on Thursday, September 1, 2011.
August 30, 2011