Certain disclosures concerning the cancellation and termination of private mortgage insurance (“PMI”) premiums are required to be provided for a “residential mortgage transaction” under 12 USCA § 4903. A “residential mortgage transaction” is defined (in relevant part) as “a transaction . . . in which a mortgage, deed of trust, purchase money security interest arising under an installment sales contract, or equivalent consensual security interest is created or retained against a single-family dwelling that is the principal residence of the mortgagor to finance the acquisition, initial construction, or refinancing of that dwelling.” (Ibid.§ 4901[15]). Previously these forms have printed when Property Type (field 22265) is set to something other than “2 unit/duplex” or “3+ unit”. However, sometimes Property Type is set to something other than “2 unit/duplex” or “3+ unit” even though the subject property contains more than one unit:
Co-op
Condo
Log Home
Manufactured/Mobile
Other
PUD
Rural
Single Family
Townhome
Number of Units (field 8215) is an integer field that imports from the LOS separately from Property Type. New Property Number of Units (field 152180) has been created as a new print condition trigger to ensure that single-family dwelling documents only print for properties with one unit. Property Number of Units will be set via global standard value mapping based on Number of Units. If Number of Units is empty or set to “0”, then Property Type will be used to set Property Number of Units.
We have replaced Property Type in the default print conditions of all standard documents with new Property Number of Units. Instead of printing the following federal Homeowner’s Protection Act documents if Property Type is set to anything but “2 unit/duplex” or “3+ unit”, they will now print by default if Property Number of Units is set to “One Unit”:
- PMI Disclosure – Fixed Rate (Cx29)
- PMI Disclosure – ARM (Cx862)
- PMI Disclosure – Balloon (Cx4668)
- Borrower Paid Single Premium PMI Disclosure – Fixed Rate (Cx14292)
- Borrower Paid Single Premium PMI Disclosure – ARM (Cx14293)
- Borrower Paid Single Premium PMI Disclosure – Balloon (Cx14294)
- LPMI Disclosure (Cx13489)
MN Disclaimer of Loan Terms (Cx18230) has similarly been changed from printing when Property Type is set to anything but “2 unit/duplex” or “3+ unit” to print by default if Property Number of Units is set to “One Unit”. (“‘Loan’ does not include a loan or advance of credit secured by a mortgage upon real property containing more than one residential unit or secured by a security interest in shares of more than one residential unit in a building owned or leased by a cooperative apartment corporation.” [Minn. Stat. Ann. § 47.206(1)(b)])
IA Payment Reduction Fee Disclosure (Cx1906) has been changed from printing when Property Type is set to anything but “3+ unit” to print by default if Property Number of Units is set to “One Unit” or “Two Units”. (“‘Loan’ means a loan of money which is wholly or in part to be used for the purpose of purchasing real property which is a single-family or two-family dwelling occupied or to be occupied by the borrower.” [Iowa Code Ann. § 535.8(1)(b)])
CT Fair Housing Notice (Cx20625) has been changed from printing when Property Type is set to “2 unit/duplex” or “3+ unit” to print by default if Property Number of Units is set to “Two Units”, “Three Units”, or “Four Units”. (“…residential property containing two or more units…” [Conn. Gen. Stat. Ann. § 20-327h(b)])
If you have a set of custom print conditions on any of these standard forms or have custom documents with print conditions where you’d like to use Property Number of Units, please contact your Client Relationship Manager directly or contact our Client Support Team at 1.800.497.3584 to review them.
These changes will be in effect on October 20, 2021. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
DR 356210