Subsequent to our state-by-state construction-to-permanent review, discussed in a previous post, we have modified and added several documents for Texas construction-to-permanent loans. This was necessary because Texas construction loans are not structured the same as they are in other states….
In September we announced that FNMA had revised their model construction loan forms. Docutech has used these model forms to create new generic construction loan documents for construction-to-permanent loans. These new generic FNMA construction documents are:
- FNMA Construction Contract (FNMA Form 3734,
The following data integrity error message triggers for USDA/RD loans in ConformX if the loan term is more than 360 months, the loan is interest only or biweekly, there is a balloon payment, or the amortization type is set to ARM:
“Per 7 CFR § 3555.104(b),…
Pursuant to a periodic review, it came to our attention that 26-C DCMR § 1116.2(e) requires:
“The following additional information shall be included in, or attached to, a mortgage loan application if available at the time of the application:
(e) Disclosure as to whether the loan may result in a balloon payment…”…
Document Updates: Configuration Changes for FL Notice to Purchaser and TN Title Insurance Disclosure (Cx4131 and Cx4167)
Tennessee law TCA § 56-35-133(a) requires that:
“…the person conducting or handling the settlement…shall obtain from the purchaser a statement in writing that the purchaser has received a notice that owner’s title insurance may be available to the purchaser and that the purchaser does or does not desire to purchase the insurance coverage.”…
Document Updates: California, Connecticut, and Washington PMI Disclosures (Cx999, Cx1029, and Cx18541) – FNMA PMI Cancellation Updates
As previously announced, FNMA updated their requirements regarding borrower-initiated cancellation of private mortgage insurance (PMI) this past July. Mandatory compliance with these changes begins September 1, 2019, but servicers may optionally begin complying with these changes starting on January 1,…
Under Nev. Rev. Stat. Ann. § 107.090(3)(b), a copy of a notice of default is required to be provided to “each . . . person with an interest whose interest or claimed interest is subordinate to the deed of trust.” Thus,…
District of Columbia
DC Code § 42.2303 gives a Credit Line Deed of Trust priority over other unrecorded instruments. The law also gives any future advances priority over such instruments. A “Credit Line Deed of Trust” is defined as:
“…any deed of trust in which title to real property located in the District of Columbia is conveyed,…
New York Lien Law § 22 requires that a building loan contract, in writing and duly acknowledged with a statement under oath, must show the consideration paid, all other expenses to be incurred in connection therewith, and the net sum available to the borrower….
Our Borrower and Non-Purchasing Entity Signature/Name Affidavits (Cx865 and Cx7965, respectively) are not required by law, but are provided as a way to prevent any future litigation arising over the identity of the borrowers. These documents are sworn statements, which,…
MGLA 183 § 6B requires that all documents to be recorded in Massachusetts shall, if applicable, set forth in the margin the street address of the property which is affected by the recorded document. Consequently, we are updating the MA Assignment of Mortgages to include the Property Address….
Document Updates: Loan Estimate (Cx18565) and Closing Disclosure (Cx18566) Step Rate Decrease, IO Life of Loan ARMs, and Balloon ARMs
Step Rate Decrease
Non-ARM loans with more than one rate that increases over time are labeled as “Step Rate” in the “Product” description on the Loan Estimate (LE) and Closing Disclosure (CD) per 12 CFR § 1026.37 (a)(10)(i)(B):
Docutech is updating the formats of LA Mortgage (Cx327), LA Mortgage Second (Cx485), and FHA LA Mortgage (Cx19376) to reflect the current Louisiana – Single Family – Fannie Mae/Freddie Mac Uniform Instrument (Form 3019) model found at https://www.fanniemae.com/singlefamily/security-instruments#….
IRS Form W-9 “Request for Taxpayer Identification Number and Certification” (Cx22) includes a certification of the signer that “I am a U.S. citizen or other U.S. person (defined below)”. The instructions include the following related information:
“Definition of a U.S….
Calculation Setting Updates: Treatment of Negative Prepaid Interest in the Calculation of the TOP & TP5Y
Docutech has received several inquiries for guidance on whether a prepaid interest credit (negative prepaid interest) may be used to reduce the amount disclosed for the Total of Payments (TOP) on the Closing Disclosure and the Total Interest Paid After Five Years (TP5Y) on the Loan Estimate….
As previously announced, the Rhode Island Department of Business Regulation amended their regulations which implement the “Home Loan Protection Act” (see https://compliance.docutech.com/2018/11/05/compliance-news-changes-to-rhode-islands-home-loan-protection-act-regulations/). Part of these changes included modifications to the following disclosures provided pursuant to the Act:
- RI Prohibited Acts of Lenders and Loan Brokers (Cx11241)
- RI Tangible Net Benefit (Cx11242)
- RI High Cost Related Prohibited Acts of Lenders and Loan Brokers (Cx11408)
- RI Home Loan Protection Act Disclosure (Cx12089)
- RI Form 4 HLPA (Cx12090)
We will be modifying these forms to match the model forms promulgated in new Bulletin 2018-4 (available at: http://www.dbr.state.ri.us/news/banking.php)….
5 Del. Admin. Code §2104-1.0 requires that brokers have a “separate, signed, written agreement with the applicant, independent of the loan agreement.” As a result, we have added a Broker Signature Line to Cx3585 to ensure compliance with the above mentioned regulation….
New Jersey’s law changed N.J. Stat. Ann. § 17:11C-74(24)(a) & (b) and (c)(3) & (c)(6) to effectively differentiate a “discount point” from a “broker fee” by holding that a “discount point” is charged by a lender, while a “broker fee”…
Product Updates: New Support for Cooperatives in California, Connecticut, District of Columbia, Florida, Maryland, Virginia, and Washington
As a part of our efforts to expand the scope of our support for loans secured by a borrower’s ownership shares and lease in a cooperative unit (“cooperative loans”), we are pleased to announce that we will be rolling out support for these types of loans in California,…
Cx2283 is a duplicate of form HUD-92564-CN, which is provided pursuant to the requirements of FHA Single Family Handbook 4000.1 II.A.1.a.ii(A)(4), II.A.8.a.xiv(B)(3), & A.9.k.ii.
Pursuant to our recurring audits of FHA forms, we will be updating Cx2283 to match the latest version of this form,…