--- title: "Document Updates: Alabama Promissory Notes, Loan Estimates, and Closing Disclosures" description: Join the First American network of trusted title agents with comprehensive tools and resources. --- - Solutions - [Overview](https://docutech.com/solutions/) - [Document Solutions](https://docutech.com/solutions/document-solutions) - [eClosing](https://docutech.com/solutions/eclosing/) - [Document Generation](https://docutech.com/solutions/document-generation) - [Fulfillment](https://docutech.com/solutions/solutions-fulfillment) - Resources - [Overview](https://docutech.com/resources/) - [Solution Briefs](https://docutech.com/resources/solution-briefs) - [Request a Demo](https://docutech.com/docutech-request-a-demo) - [Compliance](https://docutech.com/resources/compliance) - [Blog](https://blog.docutech.com) - Partners - [Overview](https://docutech.com/partners/) - About Us - [Overview](https://docutech.com/about-us/) - [Contact Us](https://docutech.com/about-us/contact-us) - Let's Talk - Solutions - [Overview](https://www.docutech.com/solutions?hsLang=en) - [Document Solutions](https://www.docutech.com/solutions/document-solutions?hsLang=en) - [eClosing](https://www.docutech.com/solutions/eclosing?hsLang=en) - [Document Generation](https://www.docutech.com/solutions/document-generation?hsLang=en) - [Fulfillment](https://www.docutech.com/solutions/solutions-fulfillment?hsLang=en) - Resources - [Overview](https://www.docutech.com/resources?hsLang=en) - [Solution Briefs](https://www.docutech.com/resources/solution-briefs?hsLang=en) - [Request a Demo](https://www.docutech.com/docutech-request-a-demo?hsLang=en) - [Compliance](https://www.docutech.com/resources/compliance?hsLang=en) - [Blog](https://blog.docutech.com/) - Partners - [Overview](https://www.docutech.com/partners?hsLang=en) - About Us - [Overview](https://www.docutech.com/about-us?hsLang=en) - [Contact Us](https://www.docutech.com/about-us/contact-us?hsLang=en) # Document Updates: Alabama Promissory Notes, Loan Estimates, and Closing Disclosures Sep 23, 2019 Topics: [Document Updates](https://compliance.docutech.com/tag/document-updates) FMNA has create a new “may” change to Form 3200, permitting language to be added to this promissory note which specifies that the amount of any late charge cannot exceed $100. FHLMC has authorized a similar “may” change to all of their promissory notes (see “Authorized Changes to Notes”, page 2; available at: [https://sf.freddiemac.com/general/authorized-changes-for-notes-riders-security-instruments-and-uniform-residential-loan-application](https://sf.freddiemac.com/general/authorized-changes-for-notes-riders-security-instruments-and-uniform-residential-loan-application)). *Promissory Notes* To accommodate clients who wish to have this language appear on their promissory notes for Alabama, we have created new field “Alabama Late Charge Language Indicator” (FI 136866). This field will be globally mapped to “Yes” when: - Field “Late Charge Maximum Amount” (FI 1025) equals “$100” (which will automatically be set if clients are using our late charge defaults); and - Field “Property State” (FI 1714) equals “Alabama”. The notes to which this language is added are listed in the postscript of this announcement. Please note that we will be adding this language to some of our non-GSE generic notes (and our standard HELOC Agreement), since this language helps to ensure that servicers are not collecting more than the $100 maximum late charge permitted by Ala. Code § 5-19-4(a). In modifying our generic FHA notes, we are relying upon the following instruction from FHA’s “Instructions for Model Notes” (available at: [https://www.hud.gov/program\_offices/housing/sfh/model\_documents](https://www.hud.gov/program_offices/housing/sfh/model_documents)): “. . . Any future changes to the provisions of the GSE notes that are not currently identified as FHA-Specific Modifications may be incorporated in a manner that remains consistent with all relevant statutes and regulations.” Also, the reference to “Section 6(A)” in FNMA’s and FHLMC’s language will be changed for any notes or agreements wherein the corresponding late charge provision appears in a different section (*e.g.* “Section 7(A)”). *Loan Estimate and Closing Disclosure* TRID permits for the maximum dollar amount which can be assessed for a late charge under applicable state law to be disclosed on the LE and CD, though such a disclosure is not required (see 12 CFR Pt. 1026, Supp. I, Paragraphs 37\[m\]\[4\] – 2 & 38\[l\]\[3\] – 1). Our policy on this provisions is to reflect the maximum dollar amount on the LE and CD ***if*** the promissory note so specifies such a dollar amount, in strict adherence to Regulation Z’s requirements that “the disclosures shall reflect the terms of the legal obligation between the parties.” (12 CFR § 1026.17\[c\]\[1\]). In conformity with our policy, we will be changing the logic we use to populate the “Late Payment” sections of the LE and CD. These changes include: - Removing obsolete conditions for printing certain language for junior lien loans when the property state is Colorado, Indiana, Kansas, or West Virginia. Instead, we will be using our standard “minimum/maximum” language and conditions used in other states, in order to reflect the latest changes we made to our junior lien notes, which now use standard late charge language. - Adding a condition to print “but in no event will any late charge exceed $100” on the LE and CD when new FI 136866 equals “Yes” (*e.g.* “If your payment is more than 15 days late, we will charge a late fee of 5% of the monthly principal and interest payment but in no event will any late charge exceed $100”). These changes will impact the following documents: - Loan Estimate (Cx18565) - Closing Disclosure (Cx18566) - Spanish Loan Estimate (Cx18990) - Spanish Closing Disclosure (Cx18991) *Effective Date* ­These changes will be in effect on September 28, 2019. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584. *DRs 298971 & 298972* *Postscript* - 3200 Note Fixed (Cx5) - FHA Note Fixed (Cx36) - VA 3200 Note Fixed (Cx58) - 3523 Note ARM 5/1 7/1 10/1 Conversion Option 1-2-3 1 Yr Treasury (Cx68) - 3508 Note ARM 1/1 Conversion Option 1-5 1 Yr Treasury (Cx69) - F3514 Note ARM 5/5 5 Yr Treasury (Cx71) - 3522 Note ARM 1 Yr Treasury (Cx75) - 3503 Note ARM 1/1 3/1 Conversion Option 1-2-3 3-4-5 1 Yr Treasury (Cx81) - 3504 Note ARM 3/3 3 Yr Treasury (Cx84) - 3501/3502 Note ARM 1/1 3/1 1 Yr Treasury (Cx142) - 3510 Note ARM 6m 1/1 COFI (Cx149) - 3525 Note ARM 5/1 7/1 10/1 Conversion Option 1-2-3 1 Yr WSJ LIBOR (Cx191) - 3526 Note ARM 1 Yr WSJ LIBOR (Cx192) - 3527 Note ARM 3/1 Conversion Option 1-2-3 1 Yr WSJ LIBOR (Cx193) - 3529 WSJ 1yr. LIBOR ARM Note – Convertible (Cx194) - 3528 Note ARM 5/1, 7/1, 10/1 Yr WSJ LIBOR (Cx203) - F3290 Note Balloon (Cx227) - 3260 Note Balloon (Cx230) - 3271 Interest-Only Note Fixed Note (Cx299) - 3263 Note 10 Yr Treasury ARM (Cx767)­ - 3264 Biweekly Note (Cx768) - 3505 Note ARM 3/3 Conversion Option 1-2 3 Yr Treasury (Cx778) - 3531 Interest-Only Note ARM 1 Yr Treasury (Cx820) - 3530 Interest-Only Note ARM 1 Yr WSJ LIBOR (Cx828) - FHA ARM Note – Treasury (Cx861) - Fixed Rate Note Alabama Second (Cx1033) - 3265 Biweekly Note Without Conversion (Cx1590) - 3528 Note WSJ 1 Yr. LIBOR ARM – modified (Cx3140) - 3532 Interest-Only ARM Note (Cx2635) - 3501 – 1 YR Treasury – Modified for VA ARM (Cx3148) - 3533 Interest-Only ARM Note (Cx3174) - 5531 1 Yr. LIBOR ARM Note (Cx3439) - 5206 Freddie Mac Interest Only Fixed (Cx4047) - 5536 Freddie Mac Interest Only 1 YR LIBOR (Cx4063) - 5537 Freddie Mac Interest Only 1 YR LIBOR A.I.P. (Cx4066) - 5506 Freddie Mac Interest Only 1 YR Treasury A.L.L. (Cx4067) - 5510 Freddie Mac 1 YR Treasury AIP (Cx4136) - 5511 Freddie Mac 1 YR Treasury ALL (Cx4138) - 5532 Freddie Mac 1 YR LIBOR ALL (Cx4144) - 5533 Freddie Mac 1 YR LIBOR ALL (CONV) (Cx4145) - 5512 Freddie Mac 1 YR Treasury ALL (CONV) (Cx4146) - 5534 Freddie Mac 1 YR LIBOR AIP (CONV) (Cx4149) - 5530 Freddie Mac 1 YR LIBOR ALL (Cx4150) - 5513 Freddie Mac 1 YR Treasury AIP (CONV) (Cx4151) - 5507 Freddie Mac Interest Only 1 YR Treasury A.I.P. (Cx4947) - Cooperative Apartment Fixed Rate Note (Cx4992) - 3537 Multi 1 Yr LIBOR Ten-Year Interest Only Note (Cx6100) - 3535 Multi 1 Yr LIBOR Ten-Year Interest Only Note (Cx6124) - 3534 Multi 1 Yr Treasury Ten-Year Interest Only Note (Cx6125) - 3536 Multi 1 Yr Treasury Ten-Year Interest Only Note (Cx6126) - Prime Rate ARM Note – Multistate (Cx6580) - 5524 FHLMC 6 Month LIBOR ARM Note (Assumable After IP) (Cx7609) - FHA ARM Note – LIBOR (Cx13045) - Modified 3501/3502 Note (Cx13102) - Modified 3522 Note (Cx13107) - 3530 Interest-Only Note ARM 1 Yr WSJ LIBOR – Modified (Cx19016) - 3288 Biweekly Note (Cx19235) - 3289 Biweekly Note Without Conversion (Cx19237) - 5/1, 7/1, 10/1 ARM WSJ LIBOR – Note (Cx19931) - Modified 3522 Note ARM 1 Yr Treasury (Cx20401) - Modified 3537 Note 1 Yr LIBOR Interest Only (Cx20487) - 3535 Multi 1 Yr LIBOR Ten-Year Interest Only Note – Modified (Cx21322) - HELOC Agreement (Cx21652) - SG Capital Partners 5 Yr. Interest Only 1/1 ARM Note (Cx22156) - SC Capital Partners 1/1 ARM Note (Cx22159) [Return to Blog](https://compliance.docutech.com) ### Stay informed. --- Subscribe to emails to get notified when new content is published. ### Category / Topics [Document Updates](https://compliance.docutech.com/tag/document-updates) ### Recent Posts #### [Document Updates: Wyoming Notice and Explanation of Fee Increase (TRID)(Cx19752) and Wyoming Notice and Explanation of Fee Increase (Cx16634)](https://compliance.docutech.com/document-updates-wyoming-notice-and-explanation-of-fee-increase-tridcx19752-and-wyoming-notice-and-explanation-of-fee-increase-cx16634) Sep 23, 2019 #### [Document Updates: New Jersey Notarial Certificate](https://compliance.docutech.com/document-updates-new-jersey-notarial-certificate) Sep 23, 2019 #### [Document Updates: MD Loan Commitment (Cx4174) and MD Financing Agreement (Cx2171)](https://compliance.docutech.com/document-updates-md-loan-commitment-cx4174-and-md-financing-agreement-cx2171) Sep 23, 2019 The preceding is for informational purposes only and is not and may not be construed as legal advice. 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