Neb. Rev. Stat. § 76-239.01 requires any person, firm, or corporation lending money for financing construction, secured by a mortgage of record, to notify the borrower in writing that it is the responsibility of the borrower or his contractor to apply the loan proceeds to payment of lawful claims for labor and materials furnished for improvements.
Nebraska Construction Loan Notice (Cx4669) is used to fill this requirement, and currently prints in Nebraska Initial Disclosure packages when the Loan Purpose is “Construction Only” and “Construction to Permanent”. In order for it to print under applicable conditions, “Loan Proceeds Used for Construction or Repair/Remodeling” will be used to trigger the document instead. This trigger is set to “Yes” under any of the following conditions:
- “Loan Purpose” = “Construction Only” or “Construction to Permanent”;
- “New Construction?” = “Yes”;
- “Refinance Loan: Purpose of Refinance” = “Home Improve[ment]”;
- “FHA Section Code” = “203k”; or
- “Rehabilitation/Renovation Yes/No” = “Yes.”
When “Loan Proceeds Used for Construction or Repair/Remodeling” is set to “Yes,” the document will print in Nebraska Initial Disclosure packages.
These changes will take effect July 19, 2016. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.