Compliance Updates: March 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 updated the New Jersey Initial Tax Authorization Notice (Cx1507) to comply with N.J. Stat. Ann. §§ 17:16F-17, 54:5-64(c), & 54:5-104.48 and N.J. Admin. Code §§ 5:33-4.3 & 5:33-4.4. The update includes additional fields to populate the document more completely. These changes will take effect on April 4, 2025. Read more.
  • We have updated the North Carolina Deed of Trust Second (Cx494) and Tennessee Deed of Trust Second (Cx509) to correct an issue where the wrong field was printing in the first paragraph. The changes are available for testing on Stage & Stage 2 servers and will take effect on April 2, 2025. Read more.
  • The late fee rules for Massachusetts HELOCs have been updated to comply with Mass. Gen Laws Ann. Ch. 140, §114B. The new rule supports a late charge of 10% of the outstanding balance or $10, whichever is less. These changes are effective March 27, 2025. Read more.
  • We have updated the Interest Rate Reduction Refinancing Loan (IRRRL) Worksheet (Cx5535) to allow the use of financed discount points instead of all discount points. This change is triggered by setting field 143184 to 'Yes', which will now use field 189156 for the "Discount" amount on lines 5 and 11. These changes are effective March 20, 2025. Read more.
  • The HUD Form 92541 “Builders Certification” (Cx3971) has been updated to align with the latest revision provided by HUD. The updates include minor grammatical and formatting changes throughout the document. These changes are effective as of March 19, 2025. Read more.
  • Docutech has updated Cx2283 “For Your Protection Get a Home Inspection” to comply with the SFH Guaranteed Loan Program Technical Handbook. The update includes a configuration for Field 2274 “Base Type” to ensure proper documentation. These changes will be effective on March 18, 2025. Read more.
  • We have updated Cx1062 “Fixed Rate Note New Hampshire Second” to align with the language in Fannie Mae/Freddie Mac Uniform Instrument Form 3230 “New Hampshire Fixed Rate Note.” The update includes the addition of Paragraph 3(C) “Acceptance and Application of Partial Payments” to Paragraph 3 “Payments,” specific to New Hampshire notes. Read more.
  • There has been a rollout of revised FHA security instruments and notes based on the 2021 (effective 2023) GSE forms. As of October 1, 2024, all clients received the new forms by default unless they opted to remain on the old versions. Starting April 1, 2025, the old FHA notes and security instruments will no longer be supported and will only be available as custom forms. Clients should review their mappings related to field 152151 before using the new forms. Read more.

  • Docutech has updated Cx2687 “CA Disclosure Receipt” to comply with Cal. Bus. & Prof. Code §10240. The update includes adding an “(if applicable)” parenthetical to indicate that the Good Faith Estimate (GFE) can be given but is not typically provided for HELOCs. These changes are available for testing and will take effect on March 11, 2025. Read more.

Notary Updates

  • Docutech has updated the South Dakota Notary for Remote Online Notarizations (RON) to match the model form found in the South Dakota Notary Public Handbook. The updates include the remote location of the signer and wording indicating the notarization was performed using a tamper-evident electronic system. These changes affect acknowledgments and jurats for various documents and will be effective on March 26, 2025. Read more.

Compliance News

  • The U.S. Department of Housing and Urban Development (HUD) has published Mortgagee Letter 2025-08, which rescinds several policy changes issued in previous mortgagee letters, including ML 2024-07, ML 2024-16, and ML 2021-27. This update removes the requirement to provide a Notice of Right to Request a Reconsideration of Value (ROV) to the borrower at the time of loan application and when the appraisal report is provided. Docutech is reviewing these changes to determine their impact on our document library. 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.