Pursuant to our yearly audit of state-specific disclosures, the following changes (and new additions) to our library will be made:
New Document: PA Commitment Agreement (Cx19064)
Pursuant to the varied provisions of Pa. Stat. Ann. tit. 41, § 303 and 10 Pa. Code §§ 7.5 & 46.2(k)(3) we will now be providing an “upon request” Commitment Agreement in packages for loans secured by property in Pennsylvania. These laws do not require a Commitment, but provide certain advantages if one is issued (e.g. an interest rate on a loan may still be charged, if committed to, even if a law which takes effect between the time of commitment and closing prohibits such rate).
Once requested, this document will print under the following conditions:
- Document Package Type = Initial Disclosure
- Lender is a Broker? = No
- Mortgage Loan Commitment = Yes
- State Code = Pennsylvania
Print Configuration Changes: PA Application Disclosure (Cx3738)
This document is provided pursuant to the provisions of 7 Pa. Cons. Stat. Ann. § 6121(10), which states the following:
“[A licensee shall do the following:] Refund all fees, other than those fees paid by the licensee to a third party, paid by a consumer when a mortgage loan is not produced within the time specified by the mortgage broker, mortgage lender or mortgage loan correspondent at the rate, term and overall cost agreed to by the consumer. This paragraph shall not apply if the failure to produce a mortgage loan is due solely to the consumer’s negligence, his or her refusal to accept and close on a loan commitment or his or her refusal or inability to provide information necessary for processing, including employment verifications and verifications of deposits. The licensee shall disclose to the consumer, in writing, at the time of a loan application which fees paid or to be paid are nonrefundable.”
We will be modifying the print conditions of this document to the following:
- Document Package Type = Initial Disclosure
- Lien Position = Allow Any
- State Code = Pennsylvania
Print Configuration Changes and Content Updates: PA Optional Insurance Notice (Cx1027)
Provided pursuant to Pa. Stat. Ann. tit. 63, § 456.512(f)(2), Cx1027 follows the prescribed format of the statute and is required to be provided before a lender sells “credit life, accident and health or unemployment insurance products in conjunction with a covered loan other than where the insurance premiums are calculated, earned and paid on a monthly or other regular periodic basis.”
We will be modifying the configurations for this document so that it will print under the following conditions as a standard document:
- Document Package Type = Closing
- Document Package Type = Initial Disclosure
- Credit Life, Accident and Health and Unemployment Insurance = [Any of the seven options]
- HCL – State = True
- Loan Amount Greater Than 100k = No
- Upfront Credit Insurance = Yes
- State Code = Pennsylvania
In addition, we will be removing the eSign functionality in the Credit Insurance Cancellation portion of the document. This is to prevent automatic cancellation of Credit Life, Accident, and Health insurance purchased in conjunction with the loan.
Content Updates: Anti-Coercion Insurance Disclosure (Cx2778), Pennsylvania-version
We will be updating the phrase “the lender” in the first paragraph to “a person”, in order to more closely match the language of applicable laws. We will also be updating the citations on the document to the following:
7 Pa. Cons. Stat. Ann. § 6123(5)
18 Pa. Cons. Stat. Ann. § 7309
Pa. Stat. Ann. tit. 40, § 310.76(a) & (b)
Content Updates: PA High Cost Loan Disclosure (Cx3590)
Outside of minor edits to the citation on the form, the only change being made is the removal of the lender’s signature line, since such is not required under Pa. Stat. Ann. tit. 63, § 456.512(a)
Print Configuration Changes and Content Updates: OK Insurance Notice to Obligor (Cx3324)
Cx3324 is given to comply with the model language in Okla. Stat. Ann. tit. 14A, § 4-113, which lists conditions that must be met before a creditor can sell Credit Life, Accident, and Health insurance in connection with a loan. Similar to the changes to Cx1027, we will be removing the eSign functionality in the credit insurance cancellation portion of the document to prevent unintentional cancellation of the purchased credit insurances.
In addition, we will be modifying the configurations for this document so that it will print under the following conditions as a standard document:
- Document Package Type = Initial Disclosure
- Credit Life, Accident and Health and Unemployment Insurance = [Any of the seven options]
- HCL – State = True
- State Code = Oklahoma
These changes will take effect on September 23, 2015. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
September 17, 2015
DRs 159630 and 169599