Following a review of the Initial and Final District of Columbia Financing Statements, we have made some small, non-substantive grammatical and stylistic changes to the documents to enhance their clarity and consistency. These changes impact our DC Initial Financing Agreement (Cx3633) and DC Final Financing Agreement (Cx13979)….
For residential real property loans, California Civil Code § 1785.15.1(a) requires a credit reporting agency to supply the consumer with a credit score that is derived from a widely distributed credit scoring model OR with a credit score that assists the consumer in understanding the credit assessment of his or her credit behavior and prediction about his or her future credit behavior. …
Massachusetts Division of Banks and Loan Agencies has amended 209 CMR 42.00 et seq. The amended regulation has removed §§ 42.12A(5) and 42.16 which required a Loan Origination and Compensation Agreement with the borrower. As this disclosure is no longer required,…
The Office of the Indiana Attorney General Homeowner Protection Unit updated one of their model forms, the Notice To Borrower/ Prospective Borrower, which is required pursuant to Indiana Code § 24-5-23.5-8(a). The first section of the form has been modified to:
A borrower in a real estate transaction,…
Our routine audit of state disclosures has resulted in a few changes being made to Washington and Oregon documents, as follows:
Oregon
OR Version of Multi-state Cx2778 Anti-Coercion Insurance Disclosure
Oregon ORS 746.215(2) requires an anti-coercion disclosure to inform the customer that “the customer’s choice of insurer or insurance producer will not affect the credit decision or credit terms in any way,…
Pursuant to a review, it was determined that we needed to modify the language of Cx865 and Cx7965 when there is a Power of Attorney (POA) on the loan.
We will be making the following changes if there is a POA on the loan:
…
Most states have laws that a creditor may charge additional fees for certain insurances, as long as a clear and specific written statement is provided and agreed to by the borrower. Typically, the statement must list the cost of the insurance,…
New support for High Cost Late Fee Percentage defaults was announced recently. However, since many clients do not send the HCL-Federal indicator (Field 51518) in the loan file, the indicator was not getting set until after the Late Fee Percentage defaults had already been applied….
Upon review of the Notice of Required Flood Insurance form (Cx10) Docutech has decided to remove the following sentence for Closing packages:
“As of the time of this notice, the flood hazard determination has not been finalized or cannot be made due to the unavailability of information on the property.”
Since Cx10 prints in Closings by default,…
As announced in our last post on the topic, Fannie Mae and Freddie Mac added the phrase “or less than the Margin” to the end of each “Limits on Interest Rate changes” section of their Notes and Riders….
To comply with Virginia Code Annotated § 58.1-802, we have added the following sentence to the first page of certain Virginia recording instruments:
“The amount of consideration for Virginia recording tax purposes is $_____.”
VA Code Ann….
FHA has announced that the new 203(k) Calculator in its FHA Connection (FHAC) system is now available for use. The new 203(k) Calculator automates Maximum Mortgage Amount calculations required for both Standard and Limited 203(k) programs and is accessible in both a public version on HUD.gov (for transactions without a case number) and a secure version within the FHAC system (for transactions with a specified case number)….
With the help of our clients, we continue to uncover situations that the CFPB may not have (could not have) contemplated. Occasionally a refinance loan will have negative Closing Costs, usually as a result of a credit for closing costs that is larger than actual closing costs….
Based on recent requests, we will be updating the Late Fee Percentage defaults to accommodate the processing of High Cost Loans (HCL), which are defined in 12 CFR § 1026.32(a)(1). Concerning HCL late charges, § 1026.34(a)(8)(i) states that:
“Any late payment charge imposed in connection with a high-cost mortgage must be specifically permitted by the terms of the loan contract or open-end credit agreement and may not exceed 4 percent of the amount of the payment past due….
Freddie Mac recently made minor changes to FHLMC Form 1077 (FNMA Form 1008) Uniform Underwriting and Transmittal Summary (our Cx2901 and Cx15847). The changes center around the name change for the FHLMC Automatic Underwriting System, which was changed from Loan Prospector to Loan Product Advisor….
On August 9th, 2016, we announced updates to VA Form 26-6393 (Loan Analysis) and VA Form 26-8937 (Verification of VA benefits) that included language in the signature sections of “(Sign in ink)” and “(Complete in ink)”. We reached out to the VA and were informed that the change on the new versions of these documents meant that,…
Pursuant to our yearly audit of state-specific disclosures, we will be making the following changes:
Model Form Update: Michigan Principal Residence Exemption (PRE) Affidavit (Cx995)
A new version of the model form has been made available on the Michigan Department of Treasury website….
The VA updated VA Form 26-6393 (Loan Analysis) and VA Form 26-8937 (Verification of VA benefits) by explicitly requiring that certain signatures and sections of these documents must be completed in ink. This requirement was made clear by the addition of the phrases “…
Field 2194 “FHA/VA Purpose of Loan” is used on the HUD FHA/VA Addendum (our generic is Cx3981) to fill out Box 20 “Purpose of Loan”. Currently Field 2194 is globally mapped based on other loan data to determine the appropriate FHA/VA Loan Purpose….
Connecticut Senate Bill 152 became effective on May 6, 2016. This bill requires that “each person who offers a residential property containing two or more units in the state for sale, exchange or for lease with option to buy shall attach a photocopy,…
