Compliance Updates: July 2025 In Review

Our team of experts at Docutech continually review requirements for document changes and publish real-time updates. To help keep you in the know, the monthly Docutech Compliance Recap brings you the most recent compliance updates. 

Here’s our latest recap:

Document Updates

• Docutech has implemented updates to Texas Plain Language second lien documents. These include a new default late fee setting to align with standard note language, updates to field mapping for better alignment with print configurations, and a new data integrity error to ensure accurate document generation. These changes aim to enhance consistency and compliance across second lien documentation. Read more.

• The Nebraska Loan Broker Disclosure Statement (Cx3444) has been updated to reflect changes in state law. Specifically, the requirement that the disclosure be provided at least 48 hours before signing a loan brokerage agreement has been removed. Now, the disclosure must simply be provided prior to signing. As a result, references to the 48-hour timeframe have been eliminated from both the opening paragraph and the “Acknowledgment” section of the document. Read more.

• Testing is now available for the updated USDA Form RD 3555-21, titled Request for Single Family Housing Loan Guarantee (Cx18893). This update aligns the form with the latest USDA revisions, ensuring compliance and improved functionality. Key changes include the removal of certain fields and adjustments to better reflect USDA requirements. Lenders and users are encouraged to begin testing the updated form to ensure a smooth transition. Read more.

• The Arkansas-specific document Cx15905 is being retired following the repeal of Arkansas Code §4-93-104(a)(4), which previously required Social Security numbers in adverse action notices. This change, prompted by Senate Bill 240, will take effect on August 4, 2025, and is already reflected in Stage and Stage 2 environments. Read more.
• Several standard security instruments have been updated to support optional fields for the Beneficiary/Lender name and full address, enhancing flexibility in document customization. Previously, only default lender fields were printed in certain areas, even when alternate fields were supported elsewhere. These updates ensure that the optional fields now appear consistently across all relevant sections of the documents for multiple states. Read more.
• Freddie Mac recently updated the formatting of their Seller/Servicer Guide, which affected Form 490. In response, Docutech has updated Cx23607 Freddie Mac Form 490 Community Land Trust Ground Lease to reflect the revised version. These changes are now available in Stage and Stage 2 environments and will go into effect on July 31, 2025. Read more.
• Nebraska Revised Statute 76-1008 allows individuals to request notices of default or sale under a trust deed, using a specific statutory model form. To better align with this model, Cx496 Nebraska 2nd Lien Deed of Trust has been updated to include a dedicated signature line beneath the request for notice section. These changes are now available in Stage and Stage 2 environments and will take effect on July 30, 2025. Read more.
• Docutech has updated Cx11910 FBI Fraud Warning to better align with the FBI Mortgage Fraud Warning template issued by the Alabama State Banking Department. Changes include switching the default print size to letter, adding a note about signature lines on following pages, and including an acknowledgment statement at the top of page two. Read more.
• The Cx12387 Enhanced Prepayment Fee Addendum and Cx12388 Enhanced Prepayment Fee Rider forms have been updated to better align with the “Borrower’s Right to Prepay” section of Notes for various loan types. The updates adjust the final sentence of the second paragraph and add tailored language depending on whether the loan is fixed or adjustable, and whether it includes interest-only periods. Read more.
• To improve eSign functionality, Docutech has updated Cx12874 Colorado Reasons for Loan by modifying the Form-Fill area so that only the first borrower entering the form will provide the loan reason, while subsequent borrowers will simply sign. This change ensures consistency between eSigned and pre-filled versions of the form and expands the input area for clarity. Read more.

New Documents

• Washington Senate Bill 5686 introduced an $80 foreclosure prevention fee and requires a disclosure explaining its purpose. While this disclosure is typically provided by escrow or settlement agents, lenders acting as closing agents may also need to issue it. To support this, Docutech created Cx28412 WA Foreclosure Prevention Fee Disclosure, based on the model form from the Washington State Department of Commerce. Read more.

Software Enhancement

• Docutech has introduced an optional enhancement to APR calculations in ConformX to better align with the APR tool published by government agencies. While the current method remains compliant with 12 CFR Part 1026 Appendix J, this update offers improved consistency for users who opt in. Read more.

The above information 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.