While not a legally required document, many lenders have borrowers sign an “Occupancy Statement,” in which the borrowers certify, under penalties of perjury, their intended use of the subject property, whether as a principal dwelling, a second home, or as an investment property….
Cx3581 is provided pursuant to the provisions of Tex. Fin. Code § 156.303(a), which states the following (in relevant part):
“The commissioner [of the Department of Savings and Mortgage Lending] may order disciplinary action against a licensed or registered residential mortgage loan company when the commissioner,…
Cal. Civ. Code § 1916.5(a) stipulates the following:
“No increase in interest provided for in any provision for a variable interest rate contained in a security document, or evidence of debt issued in connection therewith, by a lender other than a supervised financial organization is valid unless that provision is set forth in the security document,…
1) New functionality has been added to ConformX to allow the following inter vivos revocable trust settlor signature section currently printing on the standard “Inter Vivos Revocable Trust Acknowledgment” (Cx3142) to print directly on the security instrument and security instrument riders for loans with an inter vivos revocable trust:
…
New Hampshire recently made a substantial amendment to its Consumer Credit Law in H.B. 594-FN (N.H. 2013). This change affects when the GFE, in its entirety, must be completed. Previously, New Hampshire required the GFE tradeoff table (page three of the GFE) to be completed “where a yield spread premium is to be paid in connection with a mortgage transaction.” With the amendment,…
Both Cx13457 and 14089 provide the adjustable-rate mortgage (ARM) disclosures required under 12 CFR § 1026.19(b). One of the disclosures set forth in this Subsection is as follows:
“The maximum interest rate and payment for a $10,000 loan originated at the initial interest rate (index value plus margin,…
Ark. Code Ann. § 4-59-101(d) (West 2012), a part of Arkansas’ Statute of Frauds, states the following:
“(1) No action may be maintained by or against any person or entity on any agreement to extend credit or to renew or modify existing credit in an amount greater than ten thousand dollars ($10,000) or to make any other accommodation relating to such credit,…
Arkansas, Georgia, and North Carolina generally allow attorney fees to be excluded from each of their “Points and Fees Test” for their equivalents of high-cost mortgage loans, “if the borrower has the right to select the attorney from an approved list or otherwise.” (Ark….
FNMA Ann. SEL-2013-04 amended FNMA 2013 Selling Guide B3-3.1-06 to require a separate IRS Form 4506-T to be signed if business returns are used to document the borrower’s income:
“Fannie Mae requires lenders to have each borrower (regardless of income source) complete and sign a separate IRS Form 4506-T at or before closing….
N.H. Rev. Stat. Ann. § 417:4(XVI) states, in part, the following:
“(a) No creditor or lender engaged in the business of financing the purchase of real or personal property or of lending money on the security of real or personal property may require,…
Form HUD-92561, in which a borrower agrees with HUD to not use, for hotel or transient use purposes, the condominium unit secured by his loan, is required under FHA Single Family Handbook 4155.1 ch. 2.B.4 and 4.B.4.e to be given in connection with multi-unit and investment properties….
The ARM Disclosures are provided pursuant to the provisions 12 CFR § 1026.19(b), which require certain disclosures and a booklet to be provided to consumers in connection with variable-rate transactions secured by the consumer’s principal dwelling with a term greater than one year….
In July we announced an update to our Addendum to Loan Application (Cx13441) for use in all states except Vermont (see http://www.docutechcorp.com/document-changes-addendum-to-loan-application-cx13441 for details).
Upon further review, it has been determined that the NJ Addendum to Loan Application (Cx11886) has substantively been replaced by Cx13441,…
N.J. Admin. Code tit. 3, § 1-16.10(b) requires the following:
“Before accepting any loan application, the broker shall make written disclosure to the borrower in a separate service agreement setting forth:
1. The amount of the broker’s application fee,…
As a result of our yearly audit of state-specific disclosure requirements, we will be providing the following three new disclosures for Alaska:
AK Depository Institution Insurance Disclosure (Cx17687)
This document will be provided,…
Cx14101 is provided pursuant to the provisions of Ill. Admin. Code tit. 38, § 1050.1335(a)(2) (2013). Pursuant to our yearly state-specific disclosure audit, we will be revising the content of Cx14101 in the following ways:
1. Replacing the last two paragraphs in the document,…
According to VA Lender’s Handbook ch. 10.08, properties which are appraised as “new construction” must be covered by either a one-year VA builder’s warranty, or a ten-year insurance-backed protection plan. An exception to these guaranties is made when the builder is not involved with VA financing on a frequent basis and he will not provide either type of guaranty….
Due to state provisions which prohibit persons from requiring borrowers to obtain insurance through particularly agents (so-called “anti-coercion” provisions), we have been providing various multi-state anti-coercion disclosure documents, in which the borrowers are generally informed that they may obtain their insurance products through an agency of their choice,…
Cx4303 is provided in connection with home equity line of credit loans (HELOCs) due to the following requirement:
“Prior to any licensee [under the Minnesota Regulated Loan Act] taking a lien upon the borrower’s homestead, as defined in chapter 510,…
Iowa Code Ann. § 537.3208 requires, in connection with a consumer credit transaction, that a cosigner receive a prescribed notice concerning the cosigner’s liability in connection with such a transaction, before the cosigner becomes obligated under the transaction agreement.
A “consumer credit transaction” is a broad term encompassing consumer credit sales,…
