Cx4303 is provided in connection with home equity line of credit loans (HELOCs) due to the following requirement:
“Prior to any licensee [under the Minnesota Regulated Loan Act] taking a lien upon the borrower’s homestead, as defined in chapter 510, as security for any open-end loan pursuant to subdivision 2, the borrower shall be provided with a statement in substantially the following form, in boldface type of a minimum size of 12 points, signed and dated by the borrower at the time of the execution of the contract surrendering the homestead exemption, immediately adjacent to the listing of the homestead property: ‘I understand that some or all of the above real estate is normally protected by law from the claims of creditors, and I voluntarily give up my right to that protection for the above listed property with respect to claims arising out of this contract.’” (Minn. Stat. Ann. § 56.125)
Since this document is to be given to the borrower “at the time of the execution of the contract surrendering the homestead exemption”, we will be re-configuring Cx4303 to print only in Closing document packages.
We will also be tweaking some of the text of the document by removing the first paragraph (which is not a part of the state-prescribed text) and re-placing the legal citation below the state-prescribed text. The title that appears on the document will be changed from “Minnesota Homestead Disclosure” to “Minnesota Homestead Exemption Waiver Statement.”
These changes will take effect on July 31, 2013. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
July 24, 2013