Pursuant to our yearly audit of state-specific disclosures, we will be making the following changes to the following documents which print in document packages for loans secured by property located in Wyoming:
WY Mortgage Second (Cx517) and HELOC Mortgage – WY (Cx1403)
Wyo. Stat. Ann. § 34-2-121 sets forth text for waiving any homestead exemption which may apply to the subject property of a loan (“Hereby releasing and waiving all rights under and by virtue of the homestead exemption laws of this state”).
While this text may be modified, as long as such modifications are not substantial in nature, we do strive to keep the text as close as possible to any statutorily prescribed text. Pursuant to this, we will be replacing the current homestead waiver language in our standard second lien mortgage and our most common HELOC mortgage template with the prescribed text, with slight modifications for grammatical purposes (e.g. including nouns before the statement, as well as changing the verb forms).
Anti-Coercion Insurance Disclosure (Cx2778)
The Wyoming version of this document, while containing the usual anti-coercion language found in most anti-coercion documents, also contains borrower selections for obtaining hazard and credit insurances through the lender, pursuant to Wyo. Stat. Ann. § 40-14-311(b), which provision a typical one found in most state’s adaptions of the Uniform Consumer Credit Code.
We are planning, in the near future, of providing a multi-state disclosure for these provisions under the Uniform Consumer Credit Code. In anticipation of such, we are removing the borrower selections from Cx2778 and these will be added to the multi-state disclosure.
Enhanced Prepayment Penalty Disclosure (Cx12389)
This document will be re-configured to print both in Initial Disclosure and Closing packages, due to the timing requirements of Wyo. Stat. Ann. § 40-23-113(a)(ii) which stipulate that the form is to be initially “delivered along with the good faith estimate of settlement costs within three (3) business days after accepting an application from the borrower. The disclosure shall subsequently be provided by the lender and signed by the borrower at the same time the borrower is given the final Truth-in-Lending Act disclosure.”
WY Mortgage Broker Agreement (Cx13452)
Minor changes are being made to this document, as follows:
- The title of the document will be changed from “Loan Origination and Compensation Agreement” to “Wyoming Mortgage Broker Agreement”;
- References to the common noun “mortgage broker,” the proper noun “Broker,” and other similar references will be replaced with the proper noun “Mortgage Broker”;
- Field Index 147 (“Application Date”) will be included in paragraph three to identify the loan application referenced in such paragraph;
- A disclaimer will be placed at the beginning of the third-to-last paragraph stating that conditions concerning the refund of fees is subject to applicable law;
- Citation to Wyo. Stat. Ann. § 40-23-114 will be made; and
- The phrase “acting within the capacity of the Broker” will be deleted from the last paragraph.
WY Commitment/Lock-in Agreement (Cx15904)
Minor edits will also be made to this document, as follows:
- The title will be changed from “Commitment Agreement/Lock-in Agreement” to “Wyoming Commitment Agreement/Lock-in Agreement”;
- The phrase “the Borrower(s)” will be added after the clause “The mortgage loan for which you” in the third paragraph;
- “Addenda” will replace “addendums” in the third to last condition in the conditions list;
- The phrase “the borrower” will be deleted in the third to last paragraph, since the accompanying pronoun “you” sufficiently identifies the borrowers; and
- The citation to Wyo. Stat. Ann. § 40-23-115(a) will print in bold and will be formatted to more align with Blue Book standards.
WY Notice and Explanation of Fee Increase (Cx16634)
This new document is being provided due to the provisions of Wyo. Stat. Ann. § 40-23-114(d), which states the following (in relevant part):
“A mortgage broker shall not receive any fee that inures to the benefit of the mortgage broker, either directly or indirectly if it exceeds the fee disclosed on the most recent good faith estimate unless:
(ii) The mortgage broker has provided to the borrower, no less than three (3) business days prior to the signing of the mortgage loan closing documents, a new good faith estimate of settlement costs, a clear written explanation of the increase in the fee and the reasons for charging a fee that exceeds that which was previously disclosed.”
It is also being provided due to the provisions of Wyo. Stat. Ann. § 40-23-113(e)(ii), which are near verbatim to Supra, except that such provisions apply to mortgage lenders as well.
This disclosure will inform the borrower that certain fees on the GFE have increased. A list of the amount of the fees which increased (based on “Changed Circumstance Affected Fee” Field Indices 48475 through 48480, 74023, & 74026), as well as an explanation for the increase (based on input in “Itemized Changed Circumstance Reason Description” Field Indices 63038 through 63042 and Indices 74035 through 74037), will be included in the document.
Cx16634 will print under the following conditions:
- “Document Package Type” equals “Initial Disclosure”;
- “Is GFE Redisclosure?” equals “Yes”;
- “Lien Position” equals “FirstLien.”
All of these document and configuration changes will take effect on February 28, 2014. If you have any questions or concerns about this change, or would like this document assigned to your packages, please contact Client Support at 1.800.497.3584.
February 20, 2014
DR 125692, 147586