First American Docutech has made an adjustment to the loan-to-value (LTV) calculation used to determine when the Kansas Uniform Consumer Credit Code (UCCC) Addendum (Cx4448) prints by default.
The KS UCCC applies to “consumer credit transactions” made in the state of Kansas (Kan. Stat. Ann. § 16a-1-201). The term “consumer credit transactions” includes the defined term “consumer loan” (Kan. Stat. Ann. § 16a-1-301). The definition of “consumer loan” found in Kan. Stat. Ann. § 16a-1-301(17) does not include first liens unless:
- the LTV ratio of the loan at the time when made exceeds 100%;
- the loan is not a HELOC, Purchase, or New Construction, is secured by the consumer’s principal residence, and the annual percentage rate (APR) exceeds 12%; or
- if agreed to by written agreement.
The law in subsection (28) defines “Loan-to-value ratio” as a fraction expressed as a percentage:
(a) The numerator of which is the aggregate unpaid principal balance of all loans secured by a first mortgage or a second mortgage encumbering the real estate at such time; and
(b) the denominator of which is the appraised value of the real estate.
New field “Loan to Value Based on Loan Amount Plus Second Loan Amount and Appraised Value” (FI 149440) is calculated by dividing the sum of the first and second lien loan amounts by the appraised value. This new field will replace the regular “Loan to Value Ratio” (FI 1075) in the global standard value field mapping of “Subject to Kansas Uniform Consumer Credit Code” (FI 23011), which triggers Cx4448 to print by default when the LTV is over 100%.
This change is currently available for testing on ConformX Stage and Stage 2 servers and will take effect on Production servers on July 20, 2021. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.