May Compliance Roundup

We saw several states completing the lawmaking process in May, which may result in some changes to our system or document library. The details are here in our monthly compliance update blog post. You can always find up-to-the-minute compliance information on our compliance blog. Subscribe to the blog to be among the first to learn about all the industry’s most important compliance news.

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State and Investor Compliance News

Several state legislatures completed work on new laws in May, and the various state governors have signed them into law. We are now studying the updated state codes and will provide advice and update notifications on our compliance blog.

Here is a look at what happened in May.

Colorado. Governor John Hickenlooper has signed CO HB 19-1172 (2019), which concerns “an organizational recodification of Title 12 of the Colorado Revised Statutes.” We are reviewing this change to determine any impact to our document library and/or systems and evaluating any necessary changes. Learn more.

Indiana.  In May, Governor Eric Holcomb signed IN HB 1136 (2019) into law, which (inter alia) amends the state’s code to establish a tiered late payment charge restriction structure based on the frequency of when installment payments become due. We are currently reviewing the change to the late charge restrictions to determine any impact to our document library and/or systems and evaluating any necessary changes. Learn more.

The Indiana Governor also signed IN HB 1487 (2019) which, inter alia, amends the code to permit the use of either the Indiana Secretary of State’s version of the UCC forms or the International Association of Commercial Administrators. We are reviewing this change to determine any impact to our document library. Learn more.

Finally, Indiana’s Governor signed IN HB 1440 (2019), which repeals Chapter 5, Article 2, Title 23 of Indiana’s Code (concerning loan brokers) and substantively replaces it with new Article 2.5, Title 23. We are reviewing this change to determine any impact to our document library. Learn more.

Minnesota. In May Gov. Tim Walz signed MN HF 1840 (2019) into law, which removes references to “subprime” in several sections of Minnesota’s Statute. We are currently reviewing this change to determine any impact to our document library and/or systems and evaluating any necessary changes. Learn more.

Nevada. Last month, Nevada Governor Steve Sisolak (D) signed NV SB 201 (2019) into law, which modifies various parts of Chapter 604A of Nevada’s Revised Statutes. The chapter coincides and supplements the Federal “Military Lending Act” and the Federal regulations implementing such “Act.” Since the laws exempt their MLA provisions from applying to a “residential mortgage,” this term leaves a loophole which may make mortgage loans secured by vacant property subject to MLA provisions. We are currently reviewing this change to determine any impact to our document library and/or systems and evaluating any necessary changes. Learn more.

Virginia. Earlier this year, Gov. Ralph Northam signed a new law that revamps many of Virginia’s laws governing real property laws. The effective date of this bill is October 1, 2019. We are currently reviewing this change to determine any impact to our document library and/or systems and evaluating any necessary changes. Learn more.

Document Changes

The document library also saw a few revisions in May. They’ve been summarized below with links to the full descriptions of the updates.

  • Form Cx17342 “Gift Letter” bears instructions that require the form to be transmitted directly to the donor, we have changed the default seeing from “eSign” to “Ink Sign.” Learn more.
  • Indiana specific UCC forms Cx22852, Cx22853 and Cx22858 have been retired. Learn more.
  • Changes have been made in the way our system treats Field Index 123528 “Co-op is Real Property or Personal Property” because the lender can elect between two options on a loan-by-loan basis. Learn more.
  • Changes have been made to two South Carolina forms to update the address for the state’s consumer affairs office. Learn more.
  • Changes have been made to several documents to remove the word “commonwealth” and streamline notarial certificates. Learn more.
  • Since Utah no longer requires the word “RESPA” to be on loan documents for loans subject to RESPA, a few state forms have been modified to remove the word. Learn more.
  • Documents that must be recorded in Washington County, Pennsylvania have been modified as the Recorder will only accept documents with a font size of 12 or larger. Learn more.

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