As previously announced, the California Department of Business Oversight (“DBO”) published new disclosure forms (in Spanish) to be used once CA SB 1201 (2018) became law, which it did on September 11, 2018 with a practical effective date of January 1, 2019. This bill amends Cal. Civ. Code § 1632.5(a)(2) and (i)(4) to require the following:
“(a)(2) A supervised financial organization that negotiates the modification of any of the terms of a loan or extension of credit secured by residential real property primarily in Spanish, Chinese, Tagalog, Vietnamese, or Korean, and that offers a borrower a final loan modification in writing, shall deliver to that borrower, at the time the final loan modification offer is made, one of the forms described in paragraph (4) of subdivision (i) summarizing the modified terms of the loan in the same language as the negotiation. . . .
(i) The Department of Business Oversight shall make available each of the following forms based on existing forms in each of the languages set forth in subdivision (a) for use by a supervised financial organization to summarize the terms of a mortgage loan pursuant to subdivision (a). In making available the forms, the Department of Business Oversight may use as guidance the following existing forms: . . .
(4) The Agreement for Modification, Re-Amortization, or Extension of a Mortgage (Form 181), the Loan Modification Agreement (Providing for Fixed Interest Rate) (Form 3179), and the Loan Modification Agreement (Providing for Adjustable Interest Rate) (Form 3161) from the Federal National Mortgage Association.”
We will be providing duplicates of the DBO’s Spanish translations of FNMA Forms 3179 and 3161 as Cx22818 and Cx22819, respectively.
Cx22818 will print as an “upon request” document, to compliment the English language-versions of the form (“Loan Modification Agreement – Fixed” [Cx1701 and Cx10515]), which are also assigned “upon request.” Once assigned, Cx22818 will print by default under the following conditions:
- Amortization Type = Fixed
- Document Package Type = Closing
- State Code = California
- Use Spanish Docs? = Yes
Similarly, Cx22819 will print “upon request” to compliment the English language-versions of our copies of the FNMA form (“Loan Modification Agreement – ARM” [Cx4888 and Cx10514]), which are also assigned “upon request.” Once assigned, Cx22819 will print by default under the following conditions:
- Amortization Type = AdjustableRate
- Base Type = Conventional
- Document Package Type = Closing
- HELOC = No
- State Code = California
- Use Spanish Docs? = Yes
We do not currently provide a duplicate of English-version of FNMA Form 181 and will not be creating the Spanish-version of this form.
Please note that while we have duplicated two of the DBO’s forms, these forms do not provide Spanish-translations of variable text which are outlined in the Instructions to FNMA Forms 3179 and 3161. We have received informal, unofficial feedback from the DBO that they expect their forms to be treated in the same fashion as FNMA’s forms. We have, therefore, internally translated the variable text in the Instructions and included it in our new forms.
These new documents will be available January 1, 2019. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
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