Document Updates: TN Lock-In Agreement (Cx14675)

One of the loan terms agreed to within Cx14675 (which is provided pursuant to Tenn. Comp. R. & Regs. 0180-17-.01, .04, & .05) is indicated by two checkboxes, one of which indicates that private mortgage insurance (“PMI”) is required in connection with the loan and the other indicating that PMI is not required, “provided the appraised value of the property results in a Loan to Value ratio of 80% or less.”

We will be improving the logic used to select these checkboxes as follows:

• Because none of Tennessee’s regulations require the terms of mortgage insurance/guarantees to be promulgated on the lock-in agreement, the checkboxes and language concerning PMI will be configured to print only when field “Loan Type” (FI 1066) equals “Conventional”.

• The “Required” checkbox will only be selected when:
  • “Loan Type” equals “Conventional”; and either
    • “Mortgage Insurance Annual Amount” (FI 112) is greater than zero;
    • “Single Premium Borrower Paid PMI” (FI 49955) equals “Yes”; or
    • “Lender Paid Mortgage Insurance” (FI 27249) equals “Yes”.

• If none of the conditions are met to select “Required”, then the “Not Required” checkbox will be checked. However, the text “provided the appraised value of the property results in a Loan to Value ratio of 80% or less” will only print when “Private Mortgage Insurance Requirement is Based on Loan to Value Ratio Over 80%” (FI 142839) does not equal “No”.

These changes will take effect on April 20, 2021. Questions or concerns about these changes should be directed towards Client Support at 1.800.497.3584.

DR 341538