Pursuant to the findings of our state-specific disclosure audit this year, the following changes will be made to five of our Texas-specific disclosures:
1. The language and format of “TX Mortgage Banker Disclosure” (Cx2999; required by Tex. Fin. Code Ann. §157.007) and the “Disclosure of Multiple Roles in a Consumer Real Estate Transaction” (Cx3581; required by Tex. Fin. Code §156.303[a]) will be updated to match the model “Required Disclosure Form” and “Disclosure of Multiple Roles – Service as Loan Originator and Realtor” documents published by the Texas Department of Savings and Mortgage Lending on their website (http://www.sml.texas.gov/ResidentialMortgageLoanOriginator/rmlo_mb_forms.html);
2. The text of “TX Insurance Notice to Applicant” (Cx3715), required under Tex. Fin. Code Ann. §343.104 to be given in connection to a lender’s offering of credit life, disability, or unemployment insurance on a prepaid single premium basis, will undergo some minor text edits to make the document conform to the exact language of Tex. Fin. Code Ann. §343.104; and
3. The language and format of the “TX Notice of Penalties for Making False or Misleading Statements” (Cx12309; required under Tex. Fin. Code §343.105) and the “TX Notice of No Oral Agreements” (Cx3682; required under Tex. Bus. & Com. Ann. §26.02[e]) will also be updated to match the sample “Notice of Penalties for Making False or Misleading Statements” and model “Certain Loan Agreements Must be in Writing” published by the Texas Department of Banking on their website (http://www.banking.state.tx.us/bnt/banks_home.htm#bnknotice).
The text of the legal references cited above may be accessed for free at http://www.statutes.legis.state.tx.us/.
These changes will take effect on November 26, 2011.
November 22, 2011