The requirements of the Affiliated Business Arrangement Disclosure are promulgated in 12 C.F.R. § 1024.15(b)(1) as follows:
“The person making each referral has provided to each person whose business is referred a written disclosure, in the format of the Affiliated Business Arrangement Disclosure Statement set forth in appendix D of this part, of the nature of the relationship (explaining the ownership and financial interest) between the provider of settlement services (or business incident thereto) and the person making the referral and of an estimated charge or range of charges generally made by such provider (which describes the charge using the same terminology, as far as practical, as section L of the HUD–1 settlement statement).”
The corresponding “Affiliated Business Arrangement Disclosure Statement Format” is contained in 12 C.F.R. § 1024, App. D.
After reviewing Cx11413 (Affiliated Business Disclosure) against the “Affiliated Business Arrangement Disclosure Statement Format”, and to comply with the timing requirements of the disclosure given in 12 C.F.R. § 1024.15(b)(1), DocuTech will now provide Cx11413 in all Initial packages when the print trigger 60475 “Print ABA Disclosure” = Yes. Also, for ease in completing Cx11413, new ABA fields have been created as follows:
- Section: This is to give you notice that LENDER NAME AND EXTENSION has a business relationship with:
- Field: Affiliated Business Arrangement Provider Name 1 through 6
- Section: The nature of the relationship (and percentage of ownership interest) is:
- Field: Affiliated Business Arrangement Nature of Relationship
- Section: Sections A and B – Provider and Settlement Service
- Field: Affiliated Business Arrangement Required to Use Provider 1 through 6
- Section: Sections A and B – Provider and Settlement Service
- Field: Affiliated Business Arrangement Settlement Service 1 through 6
- Section: Sections A and B – Charge or Range of Charges:
- Field: Affiliated Business Arrangement Charge or Range of Charges 1 through 6
- Section: Beneath Section B: (included for any additional Lender conditions or provisions)
- Field: Affiliated Business Arrangement Additional Information Text
These document changes will take effect on November 21, 2014. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
November 14, 2014
DR 157727 & 160132