Compliance Updates: January 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

  • As previously announced, Docutech added optional subtitle functionality to all California Deeds of Trust. The document title in Cx1362 has now been updated to print only “DEED OF TRUST,” and functionality has been added for the Fl 187454 Security Instrument Subtitle Assignment Of Rents Indicator. Read more.
  • The Massachusetts Department of Banking has announced on their website that they will be moving. Starting February 7, 2025, all mail should be directed to their new address. Cx3852 MA Mortgage Review Board Notice, Cx16146 MA Insurance Disclosure, and Cx18935 MA Insurance Disclosure (Credit Unions) include the address for the Massachusetts Division of Banks. We have updated the address on these forms. Read more.
  • Puerto Rico Recordable Documents Print in Legal Size. 4 L.P.R.A. § 2055 states: “Public notarial documents shall be written on sheets of paper or folios fourteen inches (14) long by eight and a half inches (8 ½) wide.” As such, the specified documents have been formatted to print by default in legal size. Read more.
  • We previously announced mapping adjustments due to Kansas updating the KS Uniform Consumer Credit Code. We have further reviewed the updates and determined that KS ST 16a-3-207 has been fully repealed, which was the governing provision for Cx1595 (KS High LTV Consumer Notice). As such, we will be retiring our KS High LTV Consumer Notice. Read more.
  • VA Lenders Handbook M26-7, Chapter 9, Topic 8(c) states: “The lender must always verify that the Veteran is alive at the time of loan closing.” When Cx16760 “Lender’s Certification of Veteran Alive at Time of Closing” was originally created, it only took into consideration instances where there was only one veteran borrower per loan package. To accommodate for instances where there is more than one veteran borrower per loan package, various fields have been renamed. 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 index values are Prime Rate values in use at the beginning of each year, as posted by the Wall Street Journal. While only one payment amount per year is shown, payments would have varied during each year. The Historical Table on Cx21651 has been modified to add a row for the upcoming year (2025). The rest of the table and the repayment figures have been modified accordingly. Read more.
  • Cx2485 “DC Real Property Recordation and Transfer Tax Form FP 7/C” has been revised to match the most current model form located on the DC Office of Tax and Revenue website. The changes to the form are minor and include a date change on the footer and clarified instructions in parts E and F of page one. Read more.

Global Mapping Updates

  • Loan Has Tax Escrow (FI 61570) is used to designate that there is a tax item that is part of the escrow account on the loan. Recently the Loan Has Tax Escrow field was added as a print condition for several Illinois Mortgage Escrow Account Act documents, and it is also used as a print condition for standard NY Tax Escrow Account Designation (Cx2657) and by clients for a few other tax escrow related forms. Updated global standard value field mappings for Loan Has Tax Escrow now use fields that designate whether or not there are escrowed Property Taxes from the LE/CD for TRID loans and the HUD-1 for non-TRID loans. Read more.
  • Documents related to the Illinois Mortgage Escrow Account Act in ConformX are required to be provided if the mortgage is not FHA-insured or VA-guaranteed, relates to the purchase of an owner-occupied, single-family residence, and an escrow account used to pay taxes is or may be required (765 Ill. Comp. Stat. Ann. 910 et seq.). Read more.

Global Data Integrity Checks

  • We have changed the logic on one of our Data Integrity Checks for FHA loans. Currently, the Data Integrity Check warns users if they send the FHA Case Number in the wrong format. However, the Case Number format for Section 184 and 184A loans is in a different format than other FHA loan Case Numbers, so we have modified the logic underlying the Data Integrity Check to prevent it from firing for Section 184 and 184A loans. Read more.

New Document Creation

  • We have created a new document for loans originating in the Virgin Islands. 9 V.I.C. 373 lays out the Virgin Islands’ requirements for a financing agreement. One of the requirements is that the financing agreement executed by the lender must be delivered to the borrower at least 72 hours before the time of settlement agreed to by the parties. We currently fulfill all the requirements of that statute with an Initial Financing Agreement (Cx14846) which is given with initial disclosures. Read more.

Compliance Alerts

  • The CFPB has published finalized rules on Residential Property Assessed Clean Energy (PACE) transactions. The published rules and other resources can be found here. Several provisions in Regulation Z have been updated for transactions involving PACE transactions. While Docutech does not currently intend on generically supporting PACE loans, Docutech seeks input on whether lenders are intending to offer PACE transactions. If a lender is intending on offering PACE transactions, please reach out to Docutech’s Client Support. 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.