Cx2774 has traditionally been provided to fulfill the following requirements of N.M. Admin. Code 12.19.8.8(D) (cited in relevant part):
“(1) Trust accounts: All funds belonging to third party settlement service providers (e.g., appraisal services, credit reporting agencies), borrowers or sellers, shall, upon receipt thereof, be deposited into the licensee’s trust account that is set up exclusively for the deposit and disbursement of third party settlement service fees and the borrowers or sellers funds. . . .
(2) If a licensee requires a deposit in connection with an application for a mortgage loan, there must be an agreement in writing between consumer and licensee, setting forth the disposition of the deposit, whether the loan is finally consummated or not.”
After reviewing this requirement, we have determined that the New Mexico-version of “Advanced Fee/Application Disclosure” (Cx2783) substantively fulfills this same requirement, making Cx2774 duplicative and superfluous. We are, therefore, retiring Cx2774 as a standard document. It can still be assigned to clients upon their request as a custom document.
We will also make some minor changes to Cx2783 to make it more compatible with the requirement that there must be “an agreement” between the consumer and the licensee about the disposition of a deposit. The title of the document will be changed to “New Mexico Advanced Fee/Application Agreement” and the text of the acknowledgment of receipt will be changed so that the borrower affirms agreement with the terms within this Agreement.
These changes will take effect on August 18, 2020. Questions or concerns about these changes should be directed to Client Support at 1.800.497.3584.
DR 325068