Compliance Updates: January 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

    • Due to high interest rates, the Vermont Commissioner of Financial Regulation signed an order to suspend the disclosure requirements pursuant to Regulation B-98-2 (Vt. Admin Code 4-2-6) and Vt. Stat. Ann. Tit. 9 §104. We will be setting Cx3708 (VT High Rate/High Point Notices), to print by default. Any client custom configurations, including “Do No Print” settings, that existed prior to the suspension will be in effect when the document resumes printing in packages. Read more.
    • Corresponding with our enhancement to ConformX to support Settlor Power of Attorney (POA) fields in signature lines (as announced in Oct Release Notes – Production Release Date – 10/06/23), we have modified the generic documents to also support Settlor POA fields. Read more.
    • Regulations for the “Informed Consumer Choice Disclosure” model form that requires that the loan information table, which appears in the middle of the model form, be updated periodically to “reflect prevailing market conditions” (see 24 CFR § 203.10[d]). We have updated the date in the first paragraph of our copy of the form (Cx41) to “January 2024.” Read more.
    • Our standard HELOC Important Terms document (Cx21651) has a table that shows how the Annual Percentage Rate and the minimum monthly payments for a single $10,000 credit advance would have changed based on changes in the index over the past 15 years. The Historical Table on Cx21651 has been modified to add a row for the upcoming year (2024). The rest of the table and the repayment figures have been modified accordingly. Read more.
    • The “Certificate of Foreign Status” (our Cx7938) is used for foreign persons that have amounts that are subject to US tax withholding. Part I of the form is for the identification of the Beneficial Owner of the amounts. Number 2 of Part I is a box for the “Country of citizenship.”. We are updating this box to utilize the “Borrower [x] Country of Citizenship” field series (e.g., FI 149478) on a generic basis. Read more.
    • We have made updates to three HELOC security instruments: AZ HELOC Deed of Trust (Cx1374), DC HELOC Deed of Trust (Cx2167), and NJ HELOC Mortgage (Cx1359). Read more.
    • According to D.C. Code Ann. § 26-1152.11, lenders making covered loans are required to send the borrower a Red Flag Warning Disclosure Notice (our Cx4245). We are making slight adjustments to our form Cx4245 to more closely match the statutory form. The changes are minor but include removing certain italics and some slight punctuation changes. Read more.
    • The FHA Loan Underwriting and Transmittal Summary is used to summarize key information utilized in the comprehensive risk assessment of the mortgage loan and the final underwriting decision. We have made slight logic adjustments to the Loan Purpose section on our copies of this form (Cx13513 and Cx15849). Read more.
    • It has come to Docutech’s attention that while utilizing the “Global Default” for stacking orders, Cx4549 “TX Notice Concerning Extensions of Credit” and Cx3640 “TX Notice Concerning Extensions of Credit – Spanish” were not printing consecutively because Cx4549 had been coded as Document Type “Other” while Cx3640 had been coded as Document Type “Lender.” To rectify this, the coding for Cx3640 has been updated to Document Type “Other.” Read more.
    • On January 10, 2024, the New Mexico Financial Institutions Division announced a clarification regarding the Freedom to Choose Insurance Company and Insurance Professional Notice. At this time, there is no need for Docutech to update Cx2794 “NM Freedom to Choose Insurance Company” because our document is already programmed to print the natural person’s name if it is passed from the loan origination system. Read more.



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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.