- 01.13.25 •
- Topics:
- Compliance
Compliance Updates: December 2024 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
- Field Change to FHA Conditional Commitment HUD 92800.5B (Cx4733). We have made a minor field adjustment to the Specific Commitment Conditions section. We are switching the “See the following additional conditions…” description field from Field 46082 “Indicated Additional Items Description” to Field 46083 “Additional Conditions Description”. Read more.
- Prop. Code Ann. § 41.0021 allows the homestead exemption for certain types of trusts, namely inter vivos revocable trusts. Previously we did not support the ability for a trust to sign Cx19609. We have updated the form so that a trustee can sign the document on behalf of the trust. We are also adding the ability for Non-Purchasing Entities to sign the document. Logic will also be added to the notary section to include both Trust signors and NPE’s. Read more.
- To improve functionality of the e-sign process, we have added the option to make the borrower initials fields compatible with e-sign on Cx5100 NY Pre-Application Disclosure for Licensed Bankers, Cx3710 Prevailing Interest Rate Commitment, Cx3588 NY Interest Rate Lock Commitment, and Cx5099 NY Lock In Agreement. Read more.
- Texas has updated its document requirements for various disclosures to require at least 12 point font starting January 1, 2025. We have updated the required documents to 12-point font to ensure compliance. Read more.
- Our California Consumer Caution and Home Ownership Counseling Notice (Cx2797) is given pursuant to Cal. Fin. Code §4973(k) which requires a “Consumer Caution and home ownership counseling notice” to be given to covered loans. California Assembly Bill number 3108 was passed September 24, 2024 and becomes effective January 1, 2025. The Bill updated the notice by updating the website to the HUD approved housing counseling agencies. We have updated Cx2797 to match the model notice language by updating the URL. Read more.
- ConformX supports the Puerto Rico Uniform Instruments posted by FNMA/FHLMC. Several updates have been made to these documents. Read more.
- On November 23, 2024, Texas Department of Savings and Mortgage Lending adopted various new rules. To comply with this new rule, we have created a new document entitled “Texas Correspondence Disclosure”, Cx28042. This document will print different name, NMLS, and website information for Mortgage Companies and/or Residential Mortgage Loan Companies, depending on how clients have field 118757 “Texas License Type” set. Read more.
- On December 13, 2024, New York Governor Kathy Hochul signed Assembly Bill A5073A which immediately enacted NY Real Property Law § 283 which contains a new requirement for lenders/brokers to provide the notice to borrowers relating to flood insurance. As such, Cx28044 “New York Flood Insurance Disclosure” is offered generically and is available in either/both Initial and Closing packages. Read more.
- Kansas has made updates to the Kansas Uniform Consumer Credit Code (UCCC) and Kan. Stat. Ann. § 16-207(h) & (i) has been repealed. Global standard value field mapping and relevant forms have been updated accordingly. Read more.
- We have recently completed a review of several documents in view of our functionality built for loan guarantors. We determined that many state statutes as well as the CFPB consider the terms “applicant” and/or “consumer” to be nearly synonymous with “guarantor”. Therefore, we have updated some functionality for some documents to print a copy for each guarantor in addition to the copies that already print for each borrower. Read more.
- We have made slight logic adjustments to a certain provision in Cx1327 New York HELOC Mortgage. In the premises paragraph we are updating the language to match up with the checkboxes that are part of the BORROWER’S STATEMENT REGARDING THE PROPERTY. The document logic in the premises section will now match the language associated with the checkboxes. Read more.
- NE Notice of Cosigner (Cx13029) has been modified to replace Lender Mailing Address: City (FI 1043) under the lender’s signature with Lender City (FI 1031). This change aligns the lender’s city field with the lender’s street, state and zip code fields already in place. Read more.
- As part of our monthly audit of federal agency forms, we have made updates to the respective document as reflected by the most recent information published by the FHA. Read more.
- As part of our monthly audit of federal agency forms, we have made updates to the respective document as reflected by the most recent information published by the VA. Read more.
Global Mapping Updates
- As in previous years, the Consumer Financial Protection Bureau (“CFPB”) has updated a couple of the dollar amounts specified in various parts of Federal Regulation Z (12 CFR Pt. 1026), which amounts are required to be adjusted annually for inflation. As such, fields “Loan Amount Less Than or Equal to Reg Z Threshold Amount” (81938) and “Higher-Risk HPML” (67269) have been updated for 2025. Read more.
- The global standard value mappings on State Funding Type have been modified for the state of Utah. Utah will now be set to “Wet” instead of “Dry”. Note custom standard value mappings for State Funding Type (FI 23043) have not been modified; and the related settings Always Print Dates in RTC Text (FI 42762) and Always Print Date for RTC Received (FI 42763) will continue to be honored. Read more.
Compliance News
- Fannie Mae recently announced “Limited Purpose Execution” Language in Security Instruments. The instructions for all security instruments (excluding Puerto Rico) have been updated. This update only revised the “Limited Purpose Execution” Authorized Change language. This Authorized Change remains optional for use. Read more.
- On December 13, 2024, New York Governor Kathy Hochul signed Assembly Bill A9686 which enacts NY Banking Law § 35 which contains a new requirement for mortgage lenders and other banking organizations offering residential mortgage services to provide a “What Mortgage Applicants Need to Know” pamphlet to applicants. These provisions are effective June 11, 2025. Read more.
For full details related to document and mortgage compliance updates, sign up for real-time compliance updates at info.docutech.com/subscribe-compliance.
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.