Similar to the changes made on Docutech’s ARM Disclosures to accommodate both Type A and Type B construction loan interest disclosure types, we are also enhancing the Escrow Account Disclosure (Cx7605) and the First Payment Letter (Cx7606) to allow for both disclosure methods.
For Construction and Construction-to-Permanent loans that are charging escrow amounts during the construction period, our Escrow Account Disclosure (Cx7605) shows the total amount of the first monthly mortgage payment, and how much of that amount is for interest. The calculations for these figures are being modified to correctly allow for both Type A and Type B construction interest disclosure types. In addition, a sentence has been added to the first paragraph that explains that the terms of the loan may result in changes to the principal and interest payments during the first year.
Docutech’s First Payment Letter (Cx7606) is also being enhanced for Construction loans to print the estimated Interest Only payment for both Type A and Type B construction interest disclosure types. To accommodate this, the calculations for the Total Payment amount have been modified to include the new amounts as appropriate.
These changes will be in effect on January 17, 2018. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.