DocuTech’s “TX Important Notice to Home Loan Borrowers” (Cx3591) will be updated to match the form provided by the Texas Office of Consumer Credit Commissioner on their website (http://www.occc.state.tx.us/pages/Legal/Laws/reg/rule_apps/App139.pdf).
This notice is required to be given in connection with a Texas home loan, with an interest rate of 12% or more a year, pursuant to the requirements of Tex. Fin. Code §343.102. The loan must also be a first lien secured by a primary residence (including a manufactured home).
Although Ibid. §302.001(b) limits the interest rate of Texas loans to 10% a year, making it seemingly impossible for a loan with an interest rate of 12% or more to be created, this section of the Texas Finance Code is pre-empted by the Federal Depository Institutions Deregulation and Monetary Control Act (“DIDMCA”; codified as 12 USCA §§1735f-7 & 1735f-7a) and regulations made pursuant thereto (12 CFR §§590 et seq.) in connection with Federally-related loans which, to summarize, includes nearly all types of loans (see 12 CFR §590.2[b]).
These changes will take effect on May 23, 2012. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
May 16, 2012