After an audit of Cx8809, it was decided to: 1) update the document name from “NM Borrower’s Attorney Preference” to “NM Notice of Right to Select Attorney”, and 2) revamp the entire document to better aid our clients in identifying when the definition of “points and fees” applies.
N.M. Stat. Ann. §58-21A-3(M)(1)(d)(8) states:
M. “points and fees” means:
(1) all amounts payable by a borrower at or before the closing of a home loan, exclusive of any time-price differential due at closing on the loan proceeds, including: (a) loan discount points or other discounts; (b) loan fees, broker fees or similar charges; and (c) fees for preparation of loan-related documents; but
(d) does not include fees for the following purposes, if the amounts are bona fide and reasonable and paid to a person other than the creditor or an affiliate of the creditor:
[. . .]
8) attorney fees, if the borrower has the right to select the attorney from an approved list or otherwise;
In the previous iteration of Cx8809, it stated:
1. I/We have been informed by the lender that I/we have a right to select legal counsel to represent me/us in all matters of this transaction relating to the closing of the loan.
(a) I/We select ________________________________________________.
In the new iteration of Cx8809, three clauses with checkboxes appear:
□ I/We elect to exercise the right to select an attorney to provide legal services in connection with this residential mortgage loan transaction. I/We select _________________________________________________.
(Checkmark is applied when Fl 6611 “Borrower Will Select Closing Attorney/Agent” = Yes AND when text appears in Fl 29148 “Closing Attorney Full Name”)
□ I/We elect to exercise the right to select an attorney to provide legal services in connection with this residential mortgage loan transaction. I/We agree to inform the lender in a timely manner of the attorney who has been selected.
(Checkmark is applied when Fl 6611 “Borrower Will Select Closing Attorney/Agent” = Yes AND when NO text appears in Fl 29148 “Closing Attorney Full Name”)
□ I/We elect NOT to exercise the right to select an attorney to provide legal services in connection with this residential mortgage loan transaction. I/We agree to have the lender select the attorney instead.
(Checkmark is applied when Fl 6611 “Borrower Will Select Closing Attorney/Agent” = No)
These changes are available for testing on Stage and Stage 2 servers and will take effect on November 7, 2023. If you have any questions or concerns, please contact Client Support at 1.800.497.3584.
LEG-1518
DR-146506