Document Changes: TX Mortgage Banker Disclosure (Cx2999)

Tex. Fin. Code Ann. §157.007 (Acts 2011, 82nd Leg., ch. 655 version) and 7 Tex. Admin. Code §81.7 require a mortgage banker, which is also a mortgage loan originator, to include a specific disclosure in an application package for a residential mortgage loan. This disclosure is published on the Texas Department of Savings and Mortgage Lending’s website (http://www.sml.texas.gov/ResidentialMortgageLoanOriginator/rmlo_mb_forms.html) and Cx2999 is a copy of such.

A “mortgage banker” is defined as “a person who accepts an application for a residential mortgage loan, makes a residential mortgage loan, or services residential mortgage loans” (Supra §157.002[4]; Ibid. §81.1[a]). “Person” is generally defined as any type of entity, ranging from an individual to a corporation.

A “residential mortgage loan originator” is “an individual who for compensation or gain or in the expectation of compensation or gain: (i) takes a residential mortgage loan application; or (ii) offers or negotiates the terms of a residential mortgage loan” (Tex. Fin. Code §180.002[19]; see also Ibid. §157.002[6]).

Unlike a mortgage banker, a residential mortgage loan originator is an “individual,” which is officially defined as being a natural person (Ibid. §180.002[9]).

The published disclosure (as well as Cx2999) sets forth an area for disclosing the name and NMLS number of the residential mortgage loan originator. In the past, DocuTech has disclosed the name and NMLS number of the company extending the mortgage loan. However, since “residential mortgage loan originator” refers to an individual, DocuTech but will begin disclosing the information of the individual originator instead.

This change will take effect on April 19, 2012. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.

April 17, 2012
DR 123762