Compliance Updates: May 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

• The West Virginia Ability-to-Repay Worksheet (Cx21375) has been updated to comply with W. Va. Code §106-5, which requires an assessment of the borrower's ability to repay the loan, signed by both the lender and borrower(s). The breakdown of proposed monthly housing expenses from the 1003 Uniform Residential Loan Application will be updated to reflect the current 1003 when field 123494 is set to "Yes". Read more. 
• The introductory sentence in the "Request for Notice of Default and Foreclosure" section of the California Deed of Trust Second (Cx471) will change based on Field 175381. These updates are available for testing and will take effect on June 3, 2025. Read more.
• The Pennsylvania Lock-In Agreement (Cx15748) has been revised to comply with recent regulatory changes. The updated document will be effective from June 1, 2025. Adjustments have been made to the terms and conditions to ensure clarity and compliance with state-specific requirements. Read more.
• The Form HUD-50131 Section 184 Request for Case Number (Cx7910) has been updated to align with recent regulatory changes. These updates will be effective from June 1, 2025. The revisions include adjustments to the form's content to ensure compliance with current requirements. Read more.
• The Rhode Island Tangible Net Benefit Form (Cx11242) has been revised to meet new regulatory standards. These changes will take effect on June 1, 2025. The updates include modifications to the form's content to enhance clarity and ensure compliance with current regulations. Read more.
• The Georgia Acknowledgement of Receipt (Cx19978) has undergone revisions to adhere to recent regulatory changes. These updates will take effect on June 1, 2025. The document's content has been modified to ensure it meets current standards and provides clearer information. Read more.
• The New York Flood Insurance Disclosure (Cx28044) has been updated to reflect recent regulatory changes. These updates, effective June 1, 2025, include revisions to the document's language to enhance clarity and ensure compliance with current regulations. Read more.
  
• The Arkansas Legislature passed Senate Bill 240, repealing Arkansas Code §4-93-104(a)(4), which required adverse action notices to include the consumer's Social Security number. Consequently, the Arkansas Addendum to Statement of Credit Denial, Termination, or Change (Cx15905) is being retired. These changes will be effective in early August 2025, following the legislative session's adjournment on May 5, 2025. Read more.
• Montour County, Pennsylvania, has mandated additional space for recording information on all documents. To comply, a 2.5-inch margin has been added to the bottom of the last page of various security instruments, assignments, and loan modifications. This change affects several documents, including the PA Mortgage Second (Cx505) and HELOC Mortgage – PA (Cx1348). The updates will be effective from May 13, 2025. Read more.
• Docutech has added a new field to Maryland security instruments to address different notaries for borrower and lender certifications. This field controls whether notary fields appear for both acknowledgments and certifications. The changes affect several documents and will be effective from May 9, 2025. Read more.

In the News

• The Ohio Department of Commerce has announced an increase in the coverage amount for a residential mortgage to be subject to, or exempt from, a prepayment penalty. As such, the Prepayment Penalty Matrix has been revised to incorporate recent regulatory updates. These changes will be effective starting June 1, 2025. The modifications aim to ensure the matrix aligns with current regulations and provides clearer guidance on prepayment penalties. 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.