As more detailed in another announcement on our website (see “Document Updates: Various Texas Home Equity Loan Documents”), we are making changes to documents provided for Texas home equity loans (aka “Texas 50[a] loans”) and for the new rate-and-term refinance of such loans (aka “Texas 50[f] loans”), due to the recent passage of amendments to Texas’ Constitution.
As also detailed in another announcement (see “IMPORTANT NOTICE CONCERNING TEXAS CONSTITUTIONAL AMENDMENTS”), due to the effective date of these amendments in conjunction with the timing requirements of the disclosures required under Tex. Const. art. 16, § 50(f)(2)(D) & (g), the Texas Finance Commission suggests that lenders do not close on Texas 50(f)(2) loans until January 13, 2018. Also, FNMA has made a preliminary announcement indicating that they will not accept for purchase any “Texas 50(a)(6) refinance loans” closed between January 1 – 12, 2018.
Due to this, we will be creating a new “Hard Stop” error for Texas 50(a)(6) and 50(f)(2) loans attempted to be closed during the first twelve days of January. The error message will state the following:
“As outlined in our announcement, the Texas Finance Commission strongly suggests not closing 50(a)(6) or 50(f)(2) Texas Home Equity loans prior to January 13, 2018. In addition, Fannie Mae will not purchase TX Home Equity loans closed during the first 12 days of 2018. If you still wish to close Texas Home Equity loans during this time, please contact Client Support at 1.800.497.3584.”
Clients who wish to close these types of loans during this time period, despite the warnings from the Texas Finance Commission and Fannie Mae, need to map the new field “Close Texas 50(a)(6) or 50(f)(2) Loans In the First 12 days of 2018” (118766) to “Yes”. This will allow them to bypass the Hard Stop error and continue to close 50(a)(6) or 50(f)(2) Texas Home Equity loans during the aforementioned dates.
This Data Integrity Check will be in place on December 20, 2017. If you have any questions or concerns about this Data Integrity Check, or if you wish to close 50(a)(6) or 50(f)(2) Texas Home Equity loans during the first 12 days of 2018, please contact Client Support at 1.800.497.3584.