Document Updates: Texas Home Equity Second Note (Cx6183)

The late charge section of TX Home Equity Second Note (Cx6183) has been updated to match the second lien late charge logic found on other standard second lien closed end notes. Among the changes:

• “Late Charge Percentage” (FI 1024) will no longer be written out in words.
• The text regarding "Late Charge Minimum Amount" (FI 1026) and "Late Charge Maximum Amount" (FI 1025) will now only print when the fields are populated.

Previous Late Charge Text

The following text would print all the time, with the late charge percent written out, and “N/A” in place of the late charge minimum and maximum amount fields if they were empty:

The amount of the charge will be FIVE AND NO/1000 (5.000%) of my overdue payment of principal and interest, but not less than $N/A and not more than $N/A.

Updated Late Charge Text

Now the “Late Charge Percentage” only prints as a numerical value, and the late charge text is dynamic based on if the "Late Charge Minimum Amount" and "Late Charge Maximum Amount" fields are populated. This means the late charge section functionality on the TX Home Equity Second Note will work the same as other standard second lien closed end notes, such as Fixed Rate Note Texas Second (Cx1075).

• If both amounts are empty:
  The amount of the charge will be 5.000% of my overdue payment of principal and interest.
• If both amounts are populated:
  The amount of the charge will be 5.000% of my overdue payment of principal and interest, but not less than U.S. $5.00 and not more than U.S. $25.00.
• If only the minimum amount is populated:
  The amount of the charge will be 5.000% of my overdue payment of principal and interest, but not less than U.S. $5.00.
• If only the maximum amount is populated:
  The amount of the charge will be 5.000% of my overdue payment of principal and interest, but not more than U.S. $25.00.

These changes are available for testing on Stage & Stage 2 servers and will take effect on January 1, 2026. If you have any questions or concerns, please contact Client Support at 1.800.497.3584.

LEG-3533
DR-205773

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.