We are updating our version of The TEXAS HOME EQUITY LOAN CLOSING INSTRUCTIONS ADDENDUM (CX5004) to remove the reference to an Owner’s Affidavit. This addendum is required to be provided to customers, in connection with a 50(a)(6) equity loan mortgage transaction, as defined under Tex. Const. art. 16, § 50(a)(6), 7 Tex. Admin. Code ch 153.
The Texas Home Equity Loan/ HELOC Closing Instruction Addendum (CX 5004), Section 1, Item K, has been revised to read:
“No Waiver or Consent Authorized. Lender will not accept a waiver by the Owner of the homestead of the Owner’s constitutional right to receive an advance disclosure of the actual fees, points, interest, costs, and charges that will be charged at closing of this Loan or accept a written consent by the Owner of the homestead to receive such a final itemized disclosure or a modification of such a final itemized disclosure on the date of closing based upon the existence of a claimed bona fide emergency or other good cause.”
Section 1 Item K Is based on Tex. Const. art. 16, § 50(a)(6)(M)(ii), which provides that If a bona fide emergency or another good cause exists, and the lender obtains the written consent of the owner, the lender may provide the documentation to the owner or the lender may modify previously provided documentation on the date of closing. This is a process that is greatly dependent on the lender and their system(s) LOS capabilities, which makes it difficult for Docutech to appropriately trigger this document. Thus, we have changed the language to remove the option for consent or authorization in the event of a bona fide emergency or other good cause as a matter of an overabundance of caution.
This change will be in effect on July 14, 2021. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.