Compliance Updates: November 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

  • As part of an ongoing audit of second lien and HELOC documents, we have made changes to Cx1061 Fixed Rate Note Nebraska Second, Cx3044 HELOC Deed of Trust – NE and the Nebraska version of Cx21652 HELOC Agreement. Read more.
  • California Assembly Bill 2424 adds a requirement to California Civil Code § 2932.2 for mortgagee, beneficiary or authorized agent to provide a disclosure notifying buyers of properties with four units or less that a third party such as a family member, HUD-certified housing counselor, or attorney may record a request to receive copies of any notice of default and notice of sale. To comply with this new disclosure requirement, which is legally required on January 1, 2025, we have created Cx27952 California Third-Party Request for Notices Disclosure. Read more.
  • The DE Second Mortgage (Cx475) and the LA Second Mortgage (Cx485) both allow the lender to disclose attorney fees as a percentage of the principal and interest. Our research found that FNMA and FHLMC, as well as the relevant statutes in Delaware and Louisiana do not provide guidance on how Section 17 of the mortgage should be completed if the lender does not indicate a percentage for attorney fees. To accurately reflect the data submitted to the system, and to ensure consistency across our forms, we have decided to print “N/A” in the attorney fees space if no information is provided. Read more.
  • Previously, South Carolina security instruments in Docutech’s document library were only formatted for probate verifications. Now, clients may choose whether to utilize a probate verification or an acknowledgment statement. The specific South Carolina documents have been updated accordingly. Read more.
  • The Model A-3/H-3 Form was specifically created for situations when credit will be secured by residential real property. A unique feature of this Model Form is its use of a graph to disclose a range of credit scores by a particular credit reporting agency and the percentage of consumers with scores in a particular range. These graphs are generally provided by credit reporting agencies, particularly the three largest ones (Equifax, Experian, and TransUnion), and are updated periodically by the agencies. The graphs have been updated, so we are modifying Cx15312 to disclose the latest (2024) revisions of these credit score graphs from Equifax, Experian, and TransUnion. Read more.
  • Pursuant to our monthly audit of Federal Agency forms our teams found that that HUD Important Notice to Homebuyers 92900-B (Cx40) and HUD Addendum to Uniform Residential Loan Application Form 92900-A (Cx24442) required updates. We are updating the specific forms to match the model forms listed on the HUD website. Read more.
  • The Texas Finance Commission has adopted rules proposed by the Texas Department of Savings and Mortgage Lending. These rules were published in the November 15, 2024 edition of the Texas Register. These changes are effective November 23, 2024. Among other things, the Texas Department of Savings and Mortgage Lending has simplified two disclosures; the Texas Mortgage Company Disclosure (Cx3883) and Texas Mortgage Banker Disclosure (Cx2999). The wording has been updated and the format has changed slightly. We have updated our documents to match their new model forms. The new rules also removed any requirements for signatures on the documents. As a result, we no longer have signature fields on either document. Read more.
  • Pursuant to our monthly audit of federal agency forms, we have updated (Cx23) – 4506 Request for Copy of Tax Form. Read more.

Global Mappings Update

  • The Section 184 Indian Housing Loan Guarantee Program and Section 184A Native Hawaiian Housing Loan Guarantee Program documents are available through ConformX. An FHA loan program should be used for Section 184/184A loans to ensure the proper documents print, including a 4% late charge. Several changes have been made in ConformX to streamline use of these programs. 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.