This document is provided pursuant to 13 different state laws which generally allow for the collection of advanced fees (i.e. fees paid before closing), if an agreement or disclosure is provided specifying such fees and whether they are refundable or not (and if refundable, under what conditions). Cx3751 is also provided for such reasons, though it is specific to Connecticut.
Traditionally, only application, appraisal, and credit report fees have been listed on these forms. In order to better accommodate the various practices of our clientele, we will be modifying the document so that it can list additional fees.
A new section will appear under the three traditional fees and will contain the hardcoded text “Other Fees:” Under this caption, Fields 40320, 40322, and 40324 (Third Party Fee Amounts), which discloses a description additional third party fees collected before closing, will print if they contain a value. A corresponding dollar amount for the fee and fields specifying the refund conditions for each (Fields 40325 through 40327) will also appear after the description, in tabular format similar to the traditional fees. For Cx2783, the total amount of the fees will be calculated at the end of this section and incorporate the dollar amounts for all fees listed.
There are two exceptions to this change. One is for the Arizona-specific version of Cx2783, when “Lender is a Broker?” equals either “Yes” or is not set. This is due to the restrictions set forth in Ariz. Rev. Stat. Ann. § 6-906(c) concerning the collection of fees by mortgage brokers. The other is for Illinois, due to the restrictions set forth in Ill. Admin. Code tit. 38, § 1050.1335(a). These versions of the document will continue to print as they are now.
These changes will take effect on April 16, 2014. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
April 9, 2014