Document Update: Cx2687 – CA Disclosure Receipt

According to Cal. Bus. & Prof. Code §10240(a), a real estate broker is required to deliver to the borrower a statement in writing containing certain information, including amounts for appraisal fees, escrow fees, and title charges. Subsection (c) states that if the borrower receives a “good faith estimate” satisfying the requirements of the Real Estate Settlement Procedures Act of 1974 with other specified disclosures, it will satisfy the requirements of subsection (a).  RESPA, for open-ended credit loans, allows the use of the HELOC important terms and the “What You Should Know About Home Equity Lines of Credit” booklet to satisfy the GFE requirement. (see 12 CFR 1024.7(h) and 12 CFR 1026.40).  We provide Cx2687 as an acknowledgement for the borrower to sign confirming the proper disclosures have been given. For HELOC’s, the document indicates that the GFE was given.  As the language of the §10240(c) references the use of the GFE for compliance, the document will continue to state the GFE was given, BUT we are adding an “(if applicable)” parenthetical since the GFE can be given, but is not typically provided for HELOC’s.

These changes are available for testing on Stage & Stage 2 servers and will take effect on March 11, 2025. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.

LEG-2700
COM-5704
DR-174602

The preceding is for informational purposes only and is not and may not be construed as legal advice. No third-party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third-party should consult with an attorney prior to embarking upon any specific course of action.