Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
TEXAS HOME EQUITY – 12-DAY NOTICE FOR HOME EQUITY LOANS
New TREC Contract Forms Approved
n today’s issue of the Texas Register (Vol. 36, No. 33), the Texas Real Estate Commission published notice of the following revised standard real estate contract forms effective August 24, 2011. These form are available from the Texas Real Estate Commission’s website at http://www.trec.texas.gov/.
Amendments to ECOA and FCRA Adverse Action Notice Model Forms
In the July 15, 2011 Federal Register, the Federal Reserve Board (FRB) published a final rule amending the model notices in the Equal Credit Opportunity Act’s (ECOA) Regulation B (12 CFR Part 202) to implement the new credit score disclosure requirements of section 1100F of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) for adverse action notices under the Fair Credit Reporting Act (FCRA).
Model Privacy Form Under Gramm-Leach-Bliley Act (74 FR 62890)
The following federal agencies – Office of the Comptroller of the Currency (OCC); Board of Governors of the Federal Reserve System (FRB); Federal Deposit Insurance Corporation (FDIC); Office of Thrift Supervision (OTS); National Credit Union Administration (NCUA); and Federal Trade Commission (FTC) – published final amendments to their respective privacy rules (collectively “privacy rule”) that implement the privacy provisions of the Gramm-Leach-Bliley Act (“GLB Act”). The privacy rule requires financial institutions to provide initial and annual privacy notices to their customers. The federal agencies have amended their respective privacy rule to include a model privacy form (“model form”) that financial institutions may rely on as a safe harbor to provide disclosures under the privacy rule. In addition, the federal agencies are eliminating the safe harbor permitted for privacy notices based on the Sample Clauses currently contained in the privacy rule if the notice is provided after December 31, 2010. While the federal agencies are eliminating the Sample Clauses (effective January 1, 2012) and related safe harbor (effective January 1, 2011), institutions may continue to use notices containing the Sample Clauses, so long as these notices comply with the privacy rule.
Good Faith Estimate Forms
We have posted three sample forms for use with the new GFE. They are:(1) Notification of Expiration of Good Faith Estimate – Suggest to be used when 10 business days have passed and the borrower has not expressed an intent to proceed.(2) Receipt of GFE – Lenders are prohibited from including a signature line on the new GFE. This form allows the borrower to express an immediate intent (yes or no) or provides evidence of receipt for the running of the ten business day period.(3) Written List of Providers – As to certain settlement providers for whom borrowers can shop, this is a suggested form for the required disclosure to the borrower.(4) Sample Closing Instructions – Sample Black, Mann & Graham L.L.P. Closing Instructions (5) Change Circumstance – Changed Circumstance or Borrower Requested Change Letter(6) Construction Disclosure – Construction Disclosure
Texas Finance Commission Relocates/ Amends Plain Language Rules and Forms
The Texas Finance Commission (“Commission”) published in the August 25, 2006 issue of the Texas Register (Vol. 31, No. 34) an extensive relocation and reorganization of administrative rules and model forms for secured and unsecured loans subject to Chapter 342 of the Texas Finance Code.
Legislative Update from Texas Legislature 2005
This memorandum is the final revisions to our previous memorandums on this issue dated August 18, and September 2, 2005. As discussed in those prior memorandums, House Bill 1547, 79th Regular Session of the Texas Legislature, 2005, amends the plain language provisions of Section 341.502 of the Texas Finance Code to provide for the following Spanish language disclosures.
RESPA-Violation Complaint Form
The Real Estate Settlement Procedures Act (“RESPA”) is designed to assure fair lending practices by helping customers become better shoppers for settlement services and eliminate kickbacks and referral fees that unnecessarily increase the cost of settlement services. If you are aware of possible RESPA violations in your area, please let HUD know about them. You may use this form to register a complaint.