Both FNMA and FHLMC announced updates to their uniform promissory notes, security instruments, and affidavit used for Texas home equity loans (see FNMA Ann. SEL-2017-10 and FHLMC Guide Bulletin 2017-28) due to the recently passed amendment to Texas’ Constitution (see our announcement here for an overview of the changes implemented due to the passed amendment). Specifically, the following documents were updated:
- Texas Home Equity Security Instrument First Lien – Form 3044.1 (Cx6178)
- Texas Home Equity Affidavit and Agreement First Lien – Form 3185 (Cx3442)
- Texas Home Equity Note Fixed-Rate – First Lien – Form 3244.1 (Cx6173)
- Texas Home Equity Fixed/Adjustable-Rate Note – 1 Year Treasury Index – First Lien – Form 3522.44 (Cx7859)
- Texas Home Equity Fixed/Adjustable-Rate Note – WSJ One-Year LIBOR – Form 3528.44 (Cx6177)
As a result of these changes, we are updating our duplicates of these forms to match the latest revisions published on FNMA’s website. The text of the updated versions will print when “Closing Date On or After 01/01/2018” (FI 118148) equals “Yes”. We are also monitoring this website for any changes to the Spanish-version of Form 3044.1 and will update this form accordingly.
We will also be modifying the text of our generic “TX Renewal and Extension Exhibit” (Cx4284) by configuring the following paragraph to print only when both new fields “No Cash-Out Refi is Refinancing a TX Home Equity 50(a)(6) Loan” (FI 118143) and “Closing Date On or After 01/01/2018” (FI 118148) equal “Yes” (i.e. this text will only print for Texas 50[a][6] loans and not for Texas 50[f][2] loans; see this announcement for details):
“This renewal and extension is not a refinance of a debt any portion of which is an extension of credit as defined by Section 50(a)(6) or Section 50(a)(7), Article XVI, of the Texas Constitution.”
These changes will take effect on December 29, 2017. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
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