Texas security instruments contain a non-uniform covenant titled: “Purchase Money; Owelty of Partition; Renewal and Extension of Liens Against Homestead Property; Acknowledgment of Cash Advanced Against Non-Homestead Property”. This covenant contains four checkboxes, one applicable to each item. After some legal research, it was decided that the global prompts for the four indicator fields should be less restrictive. The prompts will be changed to fire for all Texas Closing packages, regardless of lien position or loan type, if they are not populated. The fields impacted are:
- 482 Acknowledgement of Cash Advanced
- 1236 Owelty of Partition
- 1718 Texas Purchase Money [previously called “Purchase Money (Paragraph 27)”]
- 1761 Renewal and Extension of Liens
In conjunction with these changes, we are also creating a new data integrity check. The text of the Warning will read:
“Texas loans that are not Texas Home Equity Section 50 (a)(6) loans must have one or more of the following four options checked on the security instrument:
Texas Purchase Money (field 1718)
Owelty of Partition (field 1236)
Renewal and Extension of Liens Against Homestead Property (field 1761)
Acknowledgment of Cash Advanced Against Non-Homestead Property (field 482)
This loan does not have any option(s) selected.”
This Warning will be triggered when all the following states are true:
- 1714 (Property State) Equals “TX”
- 29932 (Is this a Texas Home Equity Section 50(a)(6) loan?) Equals “No”
- 482 (Acknowledgement of Cash Advanced) is empty or “No”
- 1236 (Owelty of Partition) is empty or “No”
- 1718 (Texas Purchase Money) is empty or “No”
- 1761 (Renewal and Extension of Liens) is empty or “No”
Please also note that we are modifying the global prompt for field 36021 “Use Texas Plain Language” to only fire when the field is not already set.
These changes will be in effect on September 22, 2017. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
September 26, 2017
The new Warning above will be updated to only fire at the time of Closing, since it concerns a section on the Texas Deed of Trust. This change will be in effect in the next few days.