Compliance Updates: July 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

• In order to improve the process of completing Cx12873 (Colorado Net Tangible Benefit Disclosure) we have updated the logic connected to the selections. We have adjusted the logic so that the ARM line will not be automatically checked if the loan is a purchase. The line will only be checked on an ARM if the loan is also a refinance. Read more.
• Oklahoma, South Carolina and Minnesota updated their late fee requirements on July 1st. As a result, the following adjustments have been made to the Late Fee Matrix and the ConformX Late Fee Table, both of which have been republished on the Matrices webpage. Read more.
• According to Ga. Comp. R. & Regs. 80-11-1-.01(3) & (6), all disclosures required by federal law for Home Equity Lines of Credit (HELOCs) must be acknowledged in writing by the applicant, with one copy of that acknowledgment kept by the mortgage loan originator, and another copy of that acknowledgment given to the applicant. As such, when Field 28859 – Heloc = Yes, we have updated the language in Cx19978. Read more.
• The Summaries of Transactions on the Closing Disclosure contains both “Adjustments for Items Paid by Seller in Advance” (in Sections K and M) and “Adjustments for Items Unpaid by Seller” (Sections L and N). Each of these prorated items can be one of many different types of tax or insurance premiums. In order to provide better consistency between the proration types between Sections K, L, M, and N, and to comply with LOS partner requests, we have expanded the proration types across all Sections. These expanded proration types can now print on Cx18566 (the English-language Closing Disclosure) and Cx18991 (the Spanish-language Closing Disclosure). Read more.
• Docutech has created a new generic document entitled “Notice of Right to Request a Reconsideration of Value (ROV)” (Cx27674). This is a customizable document, but Docutech has included generic default language in compliance with Fannie Mae Single Family Selling Guide B4-1.3-12, Freddie Mac Single Family Seller Servicer Guide 5604.4, and FHA Single Family Housing Policy Handbook 4000.1 II.A.3.a.ix.A & II.B.4.a.ii.H.1. Read more.
• We have made updates to our Cx801 Tax Information Authorization form. This form is a duplicate of IRS Form 8821. This document is an upon request document and is used by a limited number of clients. It was previously a static form and information had to be hardcoded to add it to the form. After several requests to hardcoding, fields have been added to this form to allow clients to pass information to the form. Read more.
• NY Banking Law §590-a(2) contains provisions that require junior lien contracts, notes or instruments to include certain types of provisions. We have updated the document logic on Cx21652 to ensure that the specified notice is no longer limited to cooperative units and will now print for all NY junior liens. Read more.
• We have made updates to Cx16043 Wisconsin Explanation of Personal Obligation. This document is provided pursuant to Wis. Rev. Stat. 422.305(1) and is only required if each borrower does not receive their own copy of each instrument, document, agreement and contract. This document is set to print generically on most loans in Wisconsin. Previously when it printed, it would have a signature for borrowers 2, 3, 4, etc. but not borrower 1. This caused instances where the document would print without a signature line for single-borrower loans. We have updated the document to add a signature line for borrower 1 in all circumstances, ensuring the document never prints without a signature line. Read more.
• We are updating the default print configurations for several Illinois escrow documents to have them only print for single unit properties. The legal requirements for these documents refer to “single family secured real estate” or “single family owner-occupied residential property”. See Ill. Admin. Code tit. 38 § 1050.1360 and 765 ILL. Comp. Stat. 910/4. Neither of these terms are defined in the statute or the regulation. In the past, they have been inconsistently interpreted to mean either single unit or 1–4-unit residential properties. In the absence of guidance or clarification, we are interpreting these terms to refer to a single unit structure and are updating the configurations accordingly. Read more.
• The introduction of the new First-Generation Homebuyer Certification (Fannie Mae/Freddie Mac Form 1109) was recently announced by Fannie Mae and Freddie Mac. Docutech has added the First-Generation Homebuyer Certification to its generic document library as Cx27698. Read more.
• Fannie Mae recently announced that the Model Form for the Connecticut Security Instrument (Form 3007) has been revised to increase clarity in Paragraph 26(a) “Notice of Default”. Paragraph 26(a)(vi) has been revised and documents have been updated accordingly. Read more.
• The introduction of the new Ohio Dual Capacity Disclosure was recently announced by the Ohio Department of Commerce. Docutech has added the Ohio Dual Capacity Disclosure to its generic document library as Cx27678 based on the sample form provided by the Ohio Department of Commerce. Read more.
• In Docutech’s ongoing efforts for having consistency throughout its documents, Power of Attorney/Attorney-In-Fact logic has been added to the notary block in Cx12309 – Texas Notice of Penalties for Making False or Misleading Statement. 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.