October 2023 Compliance Recap


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 October’s recap:

Document Updates

    • After an audit of Cx8809, it was decided to: 1) update the document name from “NM Borrower’s Attorney Preference” to “NM Notice of Right to Select Attorney”, and 2) revamp the entire document to better aid our clients in identifying when the definition of “points and fees” applies. Read more.
    • It has come to our attention that some county recorder offices in California are requiring additional titles on Deeds of Trust per Cal. Gov. Code § 27324. Consequently, we have created four new fields which can print all capitalized, reduced font size subtitles directly beneath the title “DEED OF TRUST” for specific documents. Read more.
    • 2023 Graphs for Credit Score Disclosure, A-3/H-3 (Cx15312), have been updated, so we are modifying Cx15312 to disclose the latest (2023) revisions of these credit score graphs from Equifax, Experian, and TransUnion. Read more.
    • According to FHA Single Family Handbook II.A.1.a.i.(E)(1)(a)(i), if the Borrower does not receive form HUD-92800.5B before signing the sales contract, the sales contract must be amended before closing to include an amendatory clause. Our Cx38 Amendatory Clause/Real Estate Certification reflects the required language, but an asterisk has been added at the end of the first sentence. Read more.
    • After a review of Cx7700, the UCC-1 Financing Statement, we have made updates to the form. This document prints for our Cooperative loans. Read more.
    • Due to the way Borrower names are generated on select documents like the Loan Estimate (Cx18565) and Closing Disclosure (Cx18566), there was a rare occurrence for loans with over four Non-Purchasing Entities (NPEs) where Borrower names could be missing. New fields populated by software have been created and added to the LE and CD for all loans to ensure that all names print, regardless of the number of NPEs on the loan. Read more.
    • For consistency throughout documents, the following update has been made to the SC Broker Fee Agreement Cx3525: Removal of the Aggregate Adjustment amount from the table in step 2 of the Disclosure of Lender Payments to Broker. Read more.
    • Several Docutech forms contain a jurat where a signer swears and affirms the truthfulness of the content of a document in the presence of a notary. We have recently started an audit of our jurats that print on our documents and have started making some updates. This is an ongoing project, and we will continue to update documents as needed. We have started with Cx865 and Cx7965 for the states of Ohio and Michigan. Read more.
    • We have made some adjustments to broaden the scope of section 18 “Remarks” sections on Cx26687 VA Request for Certificate of Eligibility. Read more.

Global Data Integrity Checks

    • Update for Global HPML Escrow Account Data Integrity Check. Read more.

Configuration Updates

    • I.C.A. § 535.8(5) requires a disclosure for a “payment reduction fee” which is also commonly known as loan discount points or fees. Because it is common industry practice to supply the Iowa Payment Reduction Fee Disclosure regardless of lender exemption status, and because many investors continue to require the Iowa Payment Reduction Fee Disclosure as well, Docutech has chosen the conservative approach by continuing to provide Cx1906 – Iowa Payment Reduction Fee Disclosure in all Initial Disclosure packages. Read more.

Compliance News

    • Florida witness lines now optional in Fannie Mae Security Instrument (Form 2010) (Cx25288). 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.