The Finance Commission of Texas, on behalf of the Texas Department of Savings and Mortgage Lending (“SML”), published final changes to existing rules and added new rules to the Texas Administration Code governing residential mortgage loan companies, mortgage bankers, individual residential mortgage loan originators, mortgage servicers, and wrap mortgage loans, as previously discussed here.
Many existing rules under Title 7, Part 4 of the Texas Administrative Code (“TAC”) have been relocated to new chapters. Chapter 81, which previously covered both residential mortgage loan originators and mortgage bankers, has been reorganized and split into Chapters 55 and 57, respectively. Rules for mortgage companies have been relocated from Chapter 80 to Chapter 56. Additionally, rules for mortgage servicers have been relocated from Chapter 79 to Chapter 58. Wrap mortgage loan rules are now covered in Chapter 59 instead of Chapter 78. Many of the finalized updates became effective on November 23, 2024.
In addition to new definitions that have been added to the rules, including "E-Sign Act," "making a residential mortgage loan," “trigger lead," "UETA," "wrap lender," and "wrap mortgage loan," the updated rules also contain new formatting requirements for notices. The new sections provide that any notice or disclosure required by Texas Finance Code Chapters 157 or 180, must be “easily readable”, which includes being in at least a 12-point font and using one of the specified typefaces, or any other easily readable typeface.
DocMagic has updated several Texas forms required under the Texas Finance Code to meet the 12-point font requirements:
- Mortgage Company Disclosure (Form ID: TXMCD.MSC)
- Mortgage Banker Disclosure (Form ID: TXMBD.MSC)
- Mortgage Company Conditional Pre-Qualification Letter – Form A (Form ID: TXCQL.MSC)
- Mortgage Company Conditional Approval Letter -Form B (Form ID: TXCAL.MSC)
- Mortgage Banker Conditional Pre-Qualification Letter – Form A (Form ID: TXMBCQL.MSC)
- Mortgage Banker Conditional Approval Letter – B (Form ID: TXMBCAL.MSC)
- Disclosure of Multiple Roles in a Consumer Real Estate Transaction (Form ID: TXDOMR.MSC)
- Mortgage Banker Disclosure Regarding Loan Servicing (TXMBDRLS.MSC)
- Residential Mortgage Loan Servicer Registrant Required Disclosure (TXRD.MSC)
- Texas Lock-In Agreement (TXLIA.MSC)
The updates are currently available in production. If you have any questions, please contact DocMagic’s Compliance Department.
