On November 1, 2019, the Texas Finance Commission published amendments adopted for the Texas Administrative Code rules 7 TAC §§80.201 and 81.201 in the Texas Register (44 Tex Reg 6524, 6527).
Sections §§80.201 and 81.201 concern loan status forms, that are attached to each of the sections as Forms A and B. The amendments clarify the usage of the conditional qualification and conditional loan approval forms and includes changes to the content of the forms.
After a public comment period, the sections have been amended to clarify that written notification of conditional prequalification or conditional approval is not required. However, if written notification is provided, the loan status forms or forms with the same substance must be provided to an applicant. The form requirements have also been amended to add loan originator contact information and a statement that verification can be conducted manually or by electronic means.
Rule §80.201 applies to Texas licensed residential mortgage loan companies and their licensed residential mortgage loan originators. The DocMagic Form ID for Form A - Conditional Pre-Qualification Letter is TXCQL.MSC. The DocMagic Form ID for Form B - Conditional Approval Letter is TXCAL.MSC.
Rule §81.201 applies to Texas registered residential mortgage bankers and their licensed residential mortgage loan originators. The DocMagic Form ID for Form A – Mortgage Banker Conditional Pre-Qualification Letter is TXMBCQL.MSC. The DocMagic Form ID for Form B – Mortgage Banker Conditional Approval Letter is TXMBCAL.MSC.
DocMagic will begin providing the updated loan status forms as of the effective date, May 1, 2020.
If you have any questions regarding the contents of this article, please contact DocMagic’s Compliance Department.
