Cx3847 is provided in Initial Disclosure packages for loans secured by property in Rhode Island, pursuant to the provisions of R.I. Gen. Laws §§19-9-5 & 19-9-6. The following changes are being made to this document in order to make it more streamlined and easier to understand:
1. The first paragraph will be rewritten as follows:
“We, the Lender, require that a title attorney search the title of the subject property of your loan, and/or we require a policy of title insurance. You, the Borrower(s), have the right to select your own title insurance company/title attorney, or allow the Lender to make the selection for you. In the case of title insurance, if the title insurance company/title attorney is selected by the Lender, the title attorney will extend to you an offer, at the usual premium rate, for an owner’s policy title for the real estate. If you select the title insurance company/title attorney, they must meet certain rating and financial standards set by the Lender. In either case, you are responsible to pay for the title insurance costs.”
2. A caption, “Please check one of the following:” will print before the first and second checklist of options, in order to clarify that the borrower may only choose one option in each checklist;
3. References to “title agent/attorney” will be changed to “title insurance company/title attorney,” to match the language set forth in the statutes; and
4. The format of the citation will be changed to meet Blue Book standards.
These changes will take affect September 29, 2012. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
September 21, 2012