In order to mitigate confusion arising from certain balloon loan verbiage contained in DocuTech’s Private Mortgage Insurance disclosures (Cx29, 862 and 4668), these disclosures will be changed to only print this verbiage if the subject loan contains a balloon payment.
Specifically, the following changes will be made:
1. The “Balloon Mortgages with Refinance/Modification Options” subtitle and the last sentence in Clause 1 of the section entitled “Borrower Requested Cancellation of PMI,” both in “PMI Disclosure – Fixed Rate” (Cx29) and “PMI Disclosure” (Cx862), will only print if the subject loan has a balloon payment;
2. The second sentence in the section entitled “Automatic Termination of PMI” in Cx862 and the last sentence of the same section in Cx29 will also only print if the subject loan has a balloon payment; and
3. All “if applicable” references to balloon loan on all three disclosures (including Cx4668, which is used only for balloon loans) will be removed, due to irrelevancy.
These changes will take effect on November 30, 2011.
November 28, 2011