Document Updates: California Impound Disclosure (Cx1231)

The California Impound Disclosure (Cx1231) has been updated for clarity and consistency with California Civil Code § 2954(a).

The language describing the purpose of an impound account was revised from references to “property taxes, hazard insurance premiums and other applicable charges” to the broader “taxes, insurance premiums, or other purposes related to the property.”

The remainder of the provision continues to clarify that the charges collected through the impound account are limited to those mutually agreed to by the applicable parties to the loan and that borrowers may remain responsible for paying certain charges, such as supplemental taxes, directly.

This update is intended to provide clearer, more consistent language without unnecessarily limiting the description to particular types of taxes or insurance.

Additionally, minor formatting updates were made, including removing a dash from the document title and correcting capitalization within the revised paragraph.

These changes are available for testing on Stage and Stage 2 servers and will take effect on August 26, 2026. If you have questions about these changes, please contact Client Support at 1.800.497.3584.

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The preceding is for informational purposes only and is not and may not be construed as legal advice. No third-party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third-party should consult with an attorney prior to embarking upon any specific course of action.