LOANLINER. First Mortgage Documents User Guide. State-Based Documents RXUG51

Transcription

1 LOANLINER First Mortgage Documents User Guide State-Based Documents RXUG51

2 Disclaimer: This guide is distributed to provide general information about the subject matter covered. It should not be substituted for professional advice in specific situations. CUNA Mutual Group does not represent or warrant the fitness or suitability of any LOANLINER First Mortgage Document for any specific purpose. Competent First Mortgage lending personnel with experience in making the type of first mortgage loans that will be documented with these forms should thoroughly review each loan document and determine its suitability for use for a specific loan transaction. In addition, all documents should be thoroughly reviewed to identify any inconsistencies with your credit union s policies and procedures. CUNA Mutual cannot provide legal advice. If you have questions related to specific loan transactions, please consult your attorney.

3 Contents Introduction... 1 California... 3 California Holden Act Fair Lending Notice... 3 California Impound Disclosure/Waiver... 7 California Insurance Notices California Notice to Applicant of No Title Insurance California Private Mortgage Cancellation Disclosure California Registered Domestic Partners California Waiver of Limitation on Per Diem Interest Accrual Connecticut Connecticut Notice of Right to Counsel Connecticut Notice Required by Connecticut Law Connecticut Bridge Loan Disclosure District of Columbia District of Columbia Notice Regarding Your Right to Pay Taxes and Insurance Directly Florida Florida Insurance Anti-Coercion Statement for Real or Personal Property Florida Title Insurance Disclosure Iowa Iowa Oral Modification Disclosure Iowa Payment Reduction Fee Disclosure Maine Maine Right to Choice of Insurance Agent Contents i

4 Maine Partially Amortizing Loan Disclosure Maine Adjustable-Featured Loan Disclosure Maine Rate Lock Disclosure Maine Qualification for Fully Amortizing Loan Maryland Maryland Affidavit of Consideration Non-Purchase Money Maryland Affidavit of Consideration and Disbursement Purchase Money Maryland Affidavit of Principal Residence Maryland Affidavit of Refinance of Principal Residence Maryland Delivery of Net Proceeds Maryland Lender Attorney s Fee Certification Maryland Montgomery County Property Addendum Maryland Notice to First Mortgage Applicants Maryland Refinance Affidavit--(Frederick County, MD) Maryland Right to Rescind Purchase Contract Maryland Land Instrument Intake Sheet Massachusetts Massachusetts Mortgage Review Letter Massachusetts Notice of Right to Counsel Michigan Michigan Borrower s Bill of Rights Michigan Counseling Notice Minnesota Minnesota Notice of Right to Discontinue Escrow New Jersey New Jersey Attorney Disclosure ii Contents

5 New Mexico New Mexico Freedom to Choose Insurance Company and Insurance Professional New York New York Preapplication Disclosure New York Interest Rate Determination New York Credit Report Notice New York Hazard Insurance Disclosure New York Insurance Disclosure NY Banking Law New York Guaranteed Refinancing Balloon Preapplication Disclosure New York Straight Balloon Preapplication Disclosure New York Commitment Letter Interest Rate Lock New York Prevailing Rate Commitment New York Notice of Expiration of Commitment Period New York Notice of Expiration of Lock-In Period New York Balloon Disclosures for the Note New York Real Property Insurance Escrow Disclosure Ohio Notice to Ohio Applicants Oklahoma Oklahoma Title Protection Act Notice Oregon Oregon Escrow Disclosure Rhode Island Rhode Island Loan Application Disclosure Contents iii

6 South Carolina South Carolina Attorney/Insurance Preference Check List Notice to Cosigner Tennessee Tennessee Placement of Insurance Texas Texas Mortgage Fraud Notice Texas Notice to Borrower Texas Acknowledgment of Fair Market Value Utah Utah Deposit and Servicing Disclosure Notice Utah Initial Servicer Disclosure Statement Vermont Vermont Authorization to Obtain Credit Report Vermont Addendum to Residential Mortgage Loan Application Virginia Virginia First Mortgage Application Disclosure Washington Washington Waiver of Document Copies Prior to Loan Closing Wisconsin Wisconsin Escrow Notice Wisconsin Explanation of Personal Obligation Wisconsin Preapplication Fee Disclosure Wyoming Wyoming Notice of Required Insurance iv Contents

7 Introduction Welcome to the LOANLINER First Mortgage Documents User Guide. This User Guide will help you process documents for First Mortgage loans from the following document groupings: Origination Documents Processing Documents Closing Documents Post-Closing Documents State-Based Notices and Disclosures (this User Guide) You can use our First Mortgage Documents product line to supplement your mortgage lending operations document needs. LOANLINER s First Mortgage Documents were designed from Fannie Mae (FNMA) documents. State-specific versions of FNMA documents are available from LOANLINER as well. Notary acknowledgements are included with our Security Instruments so filing of documents is a snap. LOANLINER s First Mortgage Documents are available in electronic PDF format. With LOANLINER you can rest assured that every document when completed in accordance with the instructions provided in this guide is compliant with federal and state regulations and standards. Service and Support The LOANLINER Program has been part of credit unions lending success for well over two decades and is currently being used by nearly 7,000 credit unions. Our work with these credit unions has helped us develop a high degree of lending and deposit operation and compliance expertise. You will have direct access to this expertise via any of the channels described below. LOANLINER Resource Center. Providing you with 24x7 access to the resources you ll need to fully utilize your LOANLINER First Mortgage Documents. The resource center includes elearning Modules, document samples, User Guides, answers to frequently asked questions, featured articles, and other helpful tools. This resource center is available only to LOANLINER customers. To request access go to Compliance updates are distributed through the Lending Resource Center. There is also an archive of past updates. LOANLINER Documents User Guides. We strongly recommend that all credit unions review the LOANLINER First Mortgage Documents User Guide for important document usage information and statespecific language that is recommended for certain loan documents. These User Guides can be found in the LOANLINER Lending Resource Center. LOANLINER Customer Service. Providing you with assistance in ordering documents, checking the status of your order, or billing questions. Call , Option 1 or loanliner@cunamutual.com. LOANLINER Compliance Support. Providing you with assistance in selecting documents as well as answers to your compliance, document usage, and operational questions. Call , Option 2 or loanliner@cunamutual.com. First Mortgage Documents User Guide 1

8 Your CUNA Mutual Representative. Call your CUNA Mutual Group Account Representative at for more information. Using this Guide This User Guide provides the basics on the purpose and use of the LOANLINER First Mortgage Documents. You can download the current User Guide from the LOANLINERP PLending Resource Center. This User Guide is intended to be used as: A learning tool to learn the LOANLINERP First Mortgage Documents Program. A reference tool once you begin using the documents on a regular basis. A supplement to credit union training activities related to first mortgages. If you need detailed assistance, you can rely on your local CUNA Mutual representative or the LOANLINER Compliance staff for expert help on using any of the First Mortgage Documents. Or contact your local CUNA Mutual representative for more information on CUNA Mutual. The User Guide was designed to make it easy for you to reference each document. Each chapter provides the following information for each document: Document Description Document Sample Document Instructions 2 CUNA Mutual Group

9 California Holden Act Fair Lending Notice California s Holden Act requires every financial institution to post a copy of the Fair Lending Notice in a conspicuous place at the institution. A Fair Lending Notice must also be given to a loan applicant when a written loan application is submitted in connection with a loan to be secured by improved or unimproved real property that (1) is used or is intended to be used as a residence, (2) is or will be occupied by the owner, and (3) contains not more than four dwelling units. The loan applicant must be given a copy. The Fair Lending Notice informs loan applicants that financial institutions are prohibited from discriminating on the basis of race, color, religion, sex, marital status, national origin, or ancestry when considering applications for real estate loans. Discrimination based on trends, characteristics, or conditions in the neighborhood is also prohibited. Document Description When used Purpose Document number Imprinting Number of pages The California Holden Act Fair Lending Notice is used when an applicant submits a written application for a first mortgage loan. The Fair Lending Notice informs the applicant of the prohibition against discrimination in first mortgage lending and provides addresses where additional information may be requested or complaints filed. ECA10* *Spaceholder for version number Optional imprinting of credit union name, address, telephone number, and logo. One First Mortgage Documents User Guide 3

10 California Holden Act Fair Lending Notice Sample Use the numbers provided to locate the corresponding instructions on the next page. 1. Anti- Discrimination Details. 2. Contacts for Filing Complaints or Requesting Information. 3. Acknowledgment of Receipt. 4 CUNA Mutual Group

11 California Holden Act Fair Lending Notice Instructions Instructions are given for each section of the document. Refer to the corresponding number on the sample document on the facing page. 1. Anti-Discrimination Details. This section informs the applicant that lending institutions may not discriminate on the basis of race, color, religion, sex, marital status, national origin, or ancestry, or on the basis of neighborhood trends or characteristics, when considering applications for real estate loans. 2. Contacts for Filing Complaints or Requesting Information. This section informs the applicant for a first mortgage loan where additional information regarding discrimination can be obtained and where complaints regarding discrimination can be filed. 3. Acknowledgment of Receipt. Each applicant should sign and date the Fair Lending Notice. First Mortgage Documents User Guide 5

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13 California Impound Disclosure/Waiver An escrow account is known in California as an impound account. The Impound Disclosure/Waiver provides notification to the borrower of whether an Impound Account for property taxes, insurance premiums, or other purposes is required as a condition of the loan. If an Impound Account is not required by the lender, the Impound Disclosure/Waiver provides a means for the borrower to elect to establish an Impound Account for convenience. In California, a lender may not require an impound account for property taxes, insurance premiums or other purposes relating to the real property if the property contains only a single-family, owner-occupied dwelling. Exceptions to this rule are: 1. where the impound is required by state or federal regulatory authority; 2. where a loan is made, guaranteed, or insured by a state or federal governmental lending or insuring agency; 3. if the borrower fails to pay two consecutive tax installments on the property prior to the delinquency date for the tax payments; 4. where the original principal loan amount is 90% or more of the sale price (if the property involved is sold) or of the appraised value of the property securing the loan; and 5. whenever the combined principal amount of all loans secured by the real property exceeds 80% of the appraised value of the real property securing the loan. For loans secured by other than a single-family, owner-occupied dwelling, or under the specific circumstances described above, the lender may require an impound account provided it is mutually agreed to by the parties to the loan and, if prior to the execution of the loan documents, the lender has furnished the borrower with a statement in writing to the effect that the establishment of the impound account is not required as a condition to the closing of the loan and further stating whether or not interest will be paid on the funds in the impound account. Document Description When used Purpose Document number Imprinting Number of pages The Impound Disclosure/Waiver is used when borrowers are required to have an impound account and when borrowers who are not required to have an impound account wish to have one established for convenience. The Impound Disclosure/Waiver document informs the borrower of the requirement to have an impound account OR allows the borrower to choose to establish an impound account when it is not required. RCA20* *Spaceholder for version number Optional imprinting of credit union name, address, telephone number, and logo. One First Mortgage Documents User Guide 7

14 California Impound Disclosure/Waiver Sample Use the numbers provided to locate the corresponding instructions on the next page. 1. Name(s) and Address of Borrower(s). 2. Property Address. 3. Disclosure Notice. 4. Mandatory Impound Account checkbox. 5. Impound Account Waiver checkbox. 6. Signature(s) of Borrower(s). 8 CUNA Mutual Group

15 California Impound Disclosure/Waiver Instructions Instructions are given for each section of the document. Refer to the corresponding number on the sample document on the facing page. 1. Name(s) and Address of Borrower(s). This section provides a place to record each borrower s name. The name of the borrower must be printed/typed in this area. 2. Property Address. This section provides a place to record the address of the property described in the Mortgage/Deed of Trust. 3. Disclosure Notice. This section informs the borrower regarding requirements for an impound account. 4. Mandatory Impound Account checkbox. Check this box if an Impound Account is required. 5. Impound Account Waiver checkbox. Check this box if an Impound Account is not required but the borrower wishes to establish an Impound Account for convenience. Enter the interest rate to be paid to the borrower on amounts retained in the Impact Account as a percentage. 6. Signature(s) of Borrower(s). This section provides a place for each borrower to sign and date the California Impound Disclosure/Waiver. First Mortgage Documents User Guide 9

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17 California Insurance Notices The California Insurance Notices provide information to the borrower regarding the requirement to obtain hazard insurance against risks to improvements on real property (Hazard Insurance Notice) and the borrower s right to select the insurance company or broker from which insurance will be purchased (Choice of Insurance Notice). The Hazard Insurance Notice informs the borrower that the lender cannot require the borrower to purchase hazard insurance coverage against risks to the improvements on the real property in an amount exceeding the replacement value of those improvements. Hazard insurance coverage means insurance against losses caused by perils which are commonly covered in policies described as a Homeowner s Policy, General Property Form, Guaranteed Replacement Cost Insurance, Special Building Form, Standard Fire, Standard Fire with Extended Coverage, Standard Fire with Special Form Endorsement, or comparable insurance coverage to protect the real property against loss or damage. The Choice of Insurance Notice informs the borrower that the lender cannot require the borrower to negotiate any insurance or renewal of insurance covering the secured property through a particular insurance agent or broker. Document Description When used Purpose A lender must disclose the Hazard Insurance Notice and the Choice of Insurance Notice to a borrower in writing as soon as practicable, but before execution of any note or security documents. This document discloses to the borrower two Insurance Notices: the Hazard Insurance Notice and the Choice of Insurance Notice. The Hazard Insurance Notice informs the borrower that the lender shall not require the borrower to provide hazard insurance coverage against risks to the improvements on the real property in an amount exceeding the replacement value of those improvements. The Choice of Insurance Notice informs the borrower that the lender cannot require the borrower to negotiate any insurance or renewal thereof covering the secured property through a particular insurance agent or broker. Document number Imprinting Number of pages RCA30* *Spaceholder for version number Optional imprinting of credit union name, address, telephone number, and logo. One First Mortgage Documents User Guide 11

18 California Insurance Notices Sample Use the numbers provided to locate the corresponding instructions on the next page. 1. Name(s) and Address of Borrower(s). 2. Property Address. 3. Insurance Notices. 4. Acknowledgment of Receipt. 12 CUNA Mutual Group

19 California Insurance Notices Instructions Instructions are given for each section of the document. Refer to the corresponding number on the sample document on the facing page. 1. Name(s) and Address of Borrower(s). This section provides a place to record each borrower s name. The name and address of the borrower(s) must be printed/typed in this area. 2. Property Address. This section provides a place to record the address of the property described in the Mortgage/Deed of Trust. 3. Insurance Notices. This section contains notices for the borrower regarding property insurance. Hazard Insurance Notice: This section informs the borrower that the lender cannot require the borrower to obtain hazard insurance in an amount greater than the value of the improvements on the real property. Choice of Insurance: This section informs the borrower of the right to choose the insurance agent or broker for property insurance. 4. Acknowledgment of Receipt. The borrower(s) should sign and date the California Insurance Notices. First Mortgage Documents User Guide 13

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21 California Notice to Applicant of No Title Insurance In an escrow transaction for the purchase or simultaneous exchange of real property, where a policy of title insurance will not be issued to the buyer or to the parties to the exchange, the borrower must be advised in a separate document that a new policy of title insurance should be obtained. This Notice should be provided to the borrower prior to the closing and should be signed and dated by the borrower to acknowledge receipt of the notice. This notice applies when there is a purchase or exchange of property. Document Description When used Purpose Document number Imprinting Number of pages The California Notice to Applicant of No Title Insurance is used when there is a purchase or exchange of real property and a title insurance policy will not be issued to the buyer or to the parties to the exchange. The California Notice to Applicant of No Title Insurance informs the borrower that it is advisable to obtain title insurance to ensure the borrower s interest in the property. RCA40* *Spaceholder for version number Optional imprinting of credit union name, address, telephone number, and logo. One First Mortgage Documents User Guide 15

22 California Notice to Applicant of No Title Insurance Sample Use the numbers provided to locate the corresponding instructions on the next page. 1. Name(s) and Address of Applicant(s). 2. Property Address. 3. Notice of No Title Insurance. Acknowledgment of Receipt. 16 CUNA Mutual Group

23 California Notice to Applicant of No Title Insurance Page One Instructions Instructions are given for each section of the document. Refer to the corresponding number on the sample document on the facing page. 1. Name(s) and Address of Applicant(s). This section provides a place to record each applicant s name and address. 2. Property Address. This section provides a place to record the address of the property for which the loan is being sought. 3. Notice of No Title Insurance. This section advises the borrower to obtain title insurance to ensure interest in the property being acquired. 4. Acknowledgment of Receipt. Each applicant should sign and date the California Notice to Applicant of No Title Insurance. First Mortgage Documents User Guide 17

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25 California Private Mortgage Cancellation Disclosure If private mortgage insurance (PMI) is required as a condition of a loan secured by a Security Instrument (Mortgage/Deed of Trust) on real property, the lender or person making or arranging the loan must notify the borrower whether the borrower has a right to cancel the insurance. If the borrower has the right to cancel, the lender must notify the borrower in writing of the following: 1. Any identifying loan or insurance information necessary to permit the borrower to communicate with the insurer or the lender concerning the insurance. 2. The conditions that must be satisfied before the PMI can be cancelled. 3. The procedure the borrower is required to follow to cancel the private mortgage insurance. The notice required above must be given to the borrower no later than 30 days after the date of closing. Document Description When used Purpose Document number Imprinting Number of pages Special notes The California Private Mortgage Cancellation Disclosure is used when private mortgage insurance is required by the lender as a condition of securing the loan. The California Private Mortgage Cancellation Disclosure informs the borrower of the conditions that must be met in order for cancellation of private mortgage insurance to occur and provides information to the borrower on how to initiate the request to cancel the insurance. RCA60* *Spaceholder for version number Optional imprinting of credit union name, address, telephone number, and logo. Two If a statute, regulation, rule or written guideline promulgated by an institutional third party specifically prohibits cancellation during the term of the indebtedness, the borrower cannot terminate PMI. First Mortgage Documents User Guide 19

26 California Private Mortgage Cancellation Disclosure Page One Sample Use the numbers provided to locate the corresponding instructions on the next page. 1. Name(s) of Borrower(s). 2. Property Address. 3. Date. 4. Lender Contact Information. 5. Notices to the Borrower. 20 CUNA Mutual Group

27 California Private Mortgage Cancellation Disclosure Page One Instructions Instructions are given for each section of the document. Refer to the corresponding number on the sample document on the facing page. 1. Name(s) of Borrower(s). This section provides a place to record each borrower s name. 2. Property Address. This section provides a place to record the address of the property for which the loan is being sought. 3. Date. Enter the current date. 4. Lender Contact Information. This section provides a place to enter the lender name and address to which the borrower can send a request for cancellation of private mortgage insurance. 5. Notices to the Borrower. This section informs the borrower of the minimum requirements for cancellation of private mortgage insurance. A borrower has the right to terminate private mortgage insurance if all of the following conditions are met. The request to cancel private mortgage insurance is in writing. The origination date of the note is at least two years prior to the date of the request. The note is for personal, family or household purposes, or purchase-money purposes, secured by a deed of trust or mortgage on owner-occupied, one-to-four unit residential real property. The unpaid principal balance owed on the secured obligation is not more than 80% (unless borrower and lender agree to a higher loan to value ratio) of either the sale price at the origination date, provided the current fair market value of the property is equal to or greater than the original appraised value, or the current fair market value of the property as determined by an appraisal paid for by the borrower. The appraisal shall be ordered and the appraiser shall be selected by the lender or servicer. The borrower is current in payments and shall not have been in default more than 30 days past due during the 24-month period immediately preceding the request, and no notice of default has been recorded against the property as a result of a nonmonetary default during the 24-month period. First Mortgage Documents User Guide 21

28 California Private Mortgage Cancellation Disclosure Page Two Sample Use the numbers provided to locate the corresponding instructions on the next page. 6. Acknowledgment of Receipt. 22 CUNA Mutual Group

29 California Private Mortgage Cancellation Disclosure Page Two Instructions Instructions are given for each section of the document. Refer to the corresponding number on the sample document on the facing page. Acknowledgment of Receipt. Each borrower should sign and date the California Private Mortgage Cancellation Disclosure. First Mortgage Documents User Guide 23

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31 California Registered Domestic Partners Under California s Domestic Partnership law, registered domestic partners (persons of same sex, or persons of opposite sex over age 62) have the same rights as married persons. A lender is obligated to inquire about whether an applicant for a loan has registered a Domestic Partnership in California for the purpose of giving a Security Instrument (Mortgage/Deed of Trust) on the real property to secure the loan. The California Registered Domestic Partners form is not a required form, but is provided as a means of inquiry as to whether the joint applicants are domestic partners. The form provides information regarding the definition of a domestic partnership and the rights and obligations of the non-borrowing partner. Document Description When used Purpose Document number Imprinting Number of pages The California Registered Domestic Partners document is used when a California resident applies for a first mortgage loan. The California Registered Domestic Partners document is used to obtain information regarding the domestic partner status of the loan applicant, and to inform the loan applicant of the rights and obligations of the registered domestic partners when real property is used to secure a loan. RCA10* *Spaceholder for version number Optional imprinting of credit union name, address, telephone number, and logo. One First Mortgage Documents User Guide 25

32 California Registered Domestic Partners Sample Use the numbers provided to locate the corresponding instructions on the next page. 1. Name and Address of Applicant. 2. Property Address. 3. Domestic Partner Notice. 4. Applicant s Domestic Partnership Status. 5. Name of Applicant s Domestic Partner. 6. Signature of Applicant. 26 CUNA Mutual Group

33 California Registered Domestic Partners Instructions Instructions are given for each section of the document. Refer to the corresponding number on the sample document on the facing page. 1. Name and Address of Applicant. This section provides a place to record applicant s name and address. 2. Property Address. This section provides a place to record the address of the property for which the loan is being sought. 3. Domestic Partner Notice. This section informs the applicant of the definition of a domestic partnership in the State of California, legal unions in other jurisdictions that are recognized in California as valid domestic partnerships, the community property interests of the non-borrowing registered domestic partner, and the requirement that the non-borrowing domestic partner must also sign the Security Instrument (Mortgage/Deed of Trust) and addendums or riders pertaining to those instruments that secure payment of the loan. 4. Applicant s Domestic Partnership Status. This section provides a place for the applicant to declare his/her current domestic partnership status. The applicant should check the appropriate checkbox. 5. Name of Applicant s Domestic Partner. The applicant should print the full legal name of his/her registered domestic partner. 6. Signature of Applicant. The applicant should sign and date the California Registered Domestic Partners document. First Mortgage Documents User Guide 27

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35 California Waiver of Limitation on Per Diem Interest Accrual In California, a loan may be placed in escrow for a period of time after closing and before funds are disbursed. Thus, there are regulations regarding additional interest accuring on the loan for that period of time. The California Waiver of Limitation on Per Diem Interest Accrual allows the lender to collect additional interest during that time period under certain conditions. The California Waiver of Limitation on Per Diem Interest Accrual informs the applicant of the conditions under which additional interest may accrue and also informs the applicant when interest is not required. This disclosure must be acknowledged by the applicant by signing a copy of the disclosure document prior to placing funds in escrow. Document Description When used The California Waiver of Limitation on Per Diem Interest Accrual allows the lender to collect additional interest after closing and before funds are disbursed under certain conditions. Purpose Document number Imprinting Number of pages The California Waiver of Limitation on Per Diem Interest Accrual informs the applicant of the conditions under which additional interest may accrue after closing but before funds are disbursed, and also informs the applicant when interest is not required. RCA50* *Spaceholder for version number Optional imprinting of credit union name, address, telephone number, and logo. One First Mortgage Documents User Guide 29

36 California Waiver of Limitation on Per Diem Interest Accrual Sample Use the numbers provided to locate the corresponding instructions on the next page. 1. Name(s) and Address of Applicant(s). 2. Property Address. 3. Notice. 4. Signature(s) of Applicant(s). 5. Certification. 30 CUNA Mutual Group

37 California Waiver of Limitation on Per Diem Interest Accrual Instructions Instructions are given for each section of the document. Refer to the corresponding number on the sample document on the facing page. 1. Name(s) and Address of Applicant(s). This section provides a place to record each applicant s name. The name of the applicant must be printed/typed in this area. 2. Property Address. This section provides a place to record the address of the property described in the Mortgage/Deed of Trust. 3. Notice. This sections informs the applicant of when additional interest can be charged by the lender after the date of closing but before funds are disbursed. 4. Signature(s) of Applicant(s). This section provides a place for each applicant to sign and date the California Waiver of Limitation on Per Diem Interest Accrual. Enter the amount of additional interest, if applicable. 5. Certification. These lines provide a place for the escrow officer to sign and date the California Waiver of Limitation on Per Diem Interest Accrual. First Mortgage Documents User Guide 31

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39 Connecticut Notice of Right to Counsel The Connecticut Notice of Right to Counsel must be given at the time the lender receives a mortgage loan application. The notice must be in plain, simple English and must be signed by the applicant to acknowledge receipt. Document Description When used Purpose Document number Imprinting Number of pages The Connecticut Notice of Right to Counsel must be provided at the time or within three (3) days of the lender receiving a mortgage loan application. The Connecticut Notice of Right to Counsel is required by Section 49-6d of the Connecticut General statutes and informs the application of their rights to counsel. RCT10* *Spaceholder for version number Optional imprinting of credit union name, address, telephone number, and logo. One First Mortgage Documents User Guide 33

40 Connecticut Notice of Right to Counsel Sample Use the numbers provided to locate the corresponding instructions on the next page. 1. Name(s) and Address of Applicant(s). 2. Property Address. 3. Notice. 4. Acknowledgment of Receipt. 34 CUNA Mutual Group

41 Connecticut Notice of Right to Counsel Instructions Instructions are given for each section of the document. Refer to the corresponding number on the sample document on the facing page. 1. Name(s) and Address of Applicant(s). This section provides a place to record each applicant s name. The name and address of the applicant(s) must be printed/typed in this area. 2. Property Address. This section provides a place to record the address of the property described in the Security Instrument (Mortgage/Deed of Trust). 3. Notice. This section informs the applicant of their rights to counsel. 4. Acknowledgment of Receipt. The applicant(s) should sign and date the Connecticut Notice of Right to Counsel. First Mortgage Documents User Guide 35

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43 Connecticut Notice Required by Connecticut Law The Connecticut Notice Required by Connecticut Law should include a description of the purpose of the mortgage insurance, if mortgage insurance is required as a condition of the loan and indicate the cost of mortgage insurance is disclosed on the Good Faith Estimate. Document Description When used Purpose Document number Imprinting Number of pages The Notice must be provided to the first mortgage applicant at time of application. The Notice discloses that the first mortgage lender will either require a first mortgage loan applicant to pay for private mortgage insurance, or will charge the applicant a high interest rate that would apply if the applicant s loan to value is greater than 80%. RCT20* *Spaceholder for version number Optional imprinting of credit union name, address, telephone number, and logo. One First Mortgage Documents User Guide 37

44 Connecticut Notice Required by Connecticut Law Sample Use the numbers provided to locate the corresponding instructions on the next page. 1. Name(s) and Address of Applicant(s). 2. Notice. 3. Acknowledgment of Receipt. 38 CUNA Mutual Group

45 Connecticut Notice Required by Connecticut Law Instructions Instructions are given for each section of the document. Refer to the corresponding number on the sample document on the facing page. 1. Name(s) and Address of Applicant(s). This section provides a place to record each applicant s name. The name and address of the applicant(s) must be printed/typed in this area. 2. Notice. This section informs the applicant of details on private mortgage insurance. 3. Acknowledgment of Receipt. The applicant(s) should sign and date the Notice Required by Connecticut Law. First Mortgage Documents User Guide 39

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47 Connecticut Bridge Loan Disclosure The Connecticut Bridge Loan Disclosure needs to be given only if your credit union does not offer bridge loans. Pursuant to Conn. Gen. Stat. Section 49-6a the bridge loan disclosure must be in plain, simple English and must be signed by the applicant to acknowledge receipt. Document Description When used Purpose Document number Imprinting Number of pages The Disclosure must be given to a first mortgage applicant at time of application. The Disclosure is used by first mortgage lender s who do not generally offer interim financing (bridge loans).. RCT30* *Spaceholder for version number Optional imprinting of credit union name, address, telephone number, and logo. One First Mortgage Documents User Guide 41

48 Connecticut Bridge Loan Disclosure Sample Use the numbers provided to locate the corresponding instructions on the next page. 1. Name(s) and Address of Applicant(s). 2. Property Address. 3. Notice. 4. Acknowledgment of Receipt. 42 CUNA Mutual Group

49 Connecticut Bridge Loan Disclosure Instructions Instructions are given for each section of the document. Refer to the corresponding number on the sample document on the facing page. 1. Name(s) and Address of Applicant(s). This section provides a place to record each applicant s name. The name and address of the applicant(s) must be printed/typed in this area. 2. Property Address. This section provides a place to record the address of the property described in the Security Instrument (Mortgage/Deed of Trust). 3. Notice. This section informs the applicant(s) that the credit union does not provide bridge loans. 4. Acknowledgment of Receipt. The applicant(s) should sign and date the Connecticut Bridge Loan Disclosure. First Mortgage Documents User Guide 43

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51 District of Columbia Notice Regarding Your Right to Pay Taxes and Insurance Directly The District of Columbia Notice Regarding Your Right to Pay Taxes and Insurance Directly, notifies the borrower(s) of the instances that allow tax and premium payment directly from the borrower. Document Description When used Purpose Document number Imprinting Number of pages The notice is given to the borrowers at time of closing. The disclosure is used to inform the borrower(s) that if certain down payment percent or equity is met, then they have the right to pay their own taxes and insurance premiums. RDC10* *Spaceholder for version number Optional imprinting of credit union name, address, telephone number, and logo. One First Mortgage Documents User Guide 45

52 District of Columbia Notice Regarding Your Right to Pay Taxes and Insurance Directly Sample Use the numbers provided to locate the corresponding instructions on the next page. 1. Name(s) and Address of Borrower(s). 2. Notice. 3. Acknowledgment of Receipt. 46 CUNA Mutual Group

53 District of Columbia Notice Regarding Your Right to Pay Taxes and Insurance Directly Instructions Instructions are given for each section of the document. Refer to the corresponding number on the sample document on the facing page. 1. Name and Address of Borrower(s). This section provides a place to record each borrower s name. The name and address of the borrower(s) must be printed/typed in this area. 2. Notice. This section informs the borrower that the borrower is not required to make advance payments of taxes and insurance if certain conditions are met. 3. Acknowledgment of Receipt. The borrower(s) should sign and date the District of Columbia Notice Regarding Your Right to Pay Taxes and Insurance Directly. First Mortgage Documents User Guide 47

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55 Florida Insurance Anti-Coercion Statement for Real or Personal Property The Florida Insurance Anti-Coercion Statement for Real or Personal Property informs the applicant that the Lender may not require the applicant to take insurance through any particular insurance agent or company to protect the mortgaged property. The notice must be provided prior to the acceptance of an application for a mortgage loan or payment of any fees or costs by the applicant. This notice is customarily given to the prospective applicant along with the loan application form. If the loan application is taken over the telephone, the notice should be mailed to the applicant immediately thereafter. The disclosure must be in writing and signed by the applicant. The lender should provide two copies, one to retain in the loan file and a signed copy for the applicant. Document Description When used Purpose Document number Imprinting Number of pages The Florida Insurance Anti-Coercion Statement for Real or Personal Property must be provided to the applicant prior to the acceptance of an application by the lender or payment of any fees or costs by the applicant. The notice must be given at the time of application, but it may not actually be completed and signed until closing. The purpose of the Florida Insurance Anti-Coercion Statement or Real and Personal Property is to inform the applicant of the right to place insurance with the agent or company of his/her choice, provided the selected insurance company meets the requirements of the lender. RFL10* *Spaceholder for version number Optional imprinting of credit union name, address, telephone number, and logo. One First Mortgage Documents User Guide 49

56 Florida Insurance Anti-Coercion Statement for Real or Personal Property Sample Use the numbers provided to locate the corresponding instructions on the next page. 1. Name(s) and Address of Applicant(s). 2. Property Address. 3. Insurance Notice. 4. Insurance Company Information. 5. Acknowledgment of Receipt. 50 CUNA Mutual Group

57 Florida Insurance Anti-Coercion Statement for Real or Personal Property Instructions Instructions are given for each section of the document. Refer to the corresponding number on the sample document on the facing page. 1. Name and Address of Applicant(s). This section provides a place to record each applicant s name. The name and address of the applicant(s) must be printed/typed in this area. 2. Property Address. This section provides a place to record the address of the property described in the Security Instrument (Mortgage/Deed of Trust). 3. Insurance Notice. This section informs the applicant of the right to choose an agent or company for obtaining property insurance. 4. Insurance Company Information. Enter the name of the selected insurance company. Enter the address of the insured property. 5. Acknowledgment of Receipt. The applicant(s) should sign and date the Florida Anti-Coercion Statement for Real or Personal Property. First Mortgage Documents User Guide 51

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59 Florida Title Insurance Disclosure This disclosure must be given if the lenders are mortgagees whose interests in borrowers real property are protected by title insurance policies that do not protect the borrowers interests. This disclosure serves to inform the borrower that the borrower is not protected by the title policy of the lender. The disclosure must be made in writing and signed by the borrower. Document Description When used Purpose Document number Imprinting Number of pages The Florida Title Insurance Disclosure is used at the time of the closing of a first mortgage loan. This disclosure serves to inform the borrower that the borrower is not protected by the title insurance policy of the lender. RFL20* *Spaceholder for version number Optional imprinting of credit union name, address, telephone number, and logo. One First Mortgage Documents User Guide 53

60 Florida Title Insurance Disclosure Sample Use the numbers provided to locate the corresponding instructions on the next page. 1. Name(s) and Address of Borrower(s). 2. Property Address. 3. Title Insurance Notice. 4. Acknowledgment of Receipt. 54 CUNA Mutual Group

61 Florida Title Insurance Disclosure Instructions Instructions are given for each section of the document. Refer to the corresponding number on the sample document on the facing page. 1. Name and Address of Borrower(s). This section provides a place to record each borrower s name. The name and address of the borrower(s) must be printed/typed in this area. 2. Property Address. This section provides a place to record the address of the property described in the Security Instrument (Mortgage/Deed of Trust). 3. Title Insurance Notice. This section informs the borrower that the borrower is not protected by the title insurance policy of the lender. 4. Acknowledgment of Receipt. The borrower(s) should sign and date the Florida Title Insurance Disclosure. First Mortgage Documents User Guide 55

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63 Iowa Oral Modification Disclosure The Iowa Oral Modification Disclosure is provided in statute (8) and states that, unless otherwise expressly agreed in writing, a modification of a credit agreement that occurs after the person asserting the modification has been notified in writing that oral or implied modifications are unenforceable and should not be relied upon, is not enforceable in contract law by way of action or defense by any party unless a writing exists containing the material terms of the modification and is signed by the party against whom enforcement is sought. Document Description When used Purpose Document number Imprinting Number of pages The notice is given in connection with closed end consumer purpose loans greater than $2,000 per Iowa Code (8). The purpose of this disclosure is to protect the creditor against a claim that there has been an oral modification of written loan terms. RIA10* *Spaceholder for version number Optional imprinting of credit union name, address, telephone number, and logo. One First Mortgage Documents User Guide 57

64 Iowa Oral Modification Disclosure Sample Use the numbers provided to locate the corresponding instructions on the next page. 1. Name(s) and Address of Borrower(s). 2. Property Address. 3. Notice. 4. Acknowledgment of Receipt. 58 CUNA Mutual Group

65 Iowa Oral Modification Disclosure Instructions Instructions are given for each section of the document. Refer to the corresponding number on the sample document on the facing page. 1. Name and Address of Borrower(s). This section provides a place to record each borrower s name. The name and address of the borrower(s) must be printed/typed in this area. 2. Property Address. This section provides a place to record the address of the property described in the Security Instrument (Mortgage/Deed of Trust). 3. Notice. This section informs the borrower that only terms in writing are enforceable. 4. Acknowledgment of Receipt. The borrower(s) should sign and date the Iowa Oral Modification Disclosure. First Mortgage Documents User Guide 59

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67 Iowa Payment Reduction Fee Disclosure The Iowa Payment Reduction Fee Disclosure allows a fee authorized by Iowa Code that lenders may offer in exchange for the payment of an interest reduction fee to make a loan on all of the same terms except at a lower interest rate, with lower payments that results from the lower interest rate. Document Description When used Purpose Document number Imprinting Number of pages The disclosure is used prior to accepting an application for a loan that includes a payment reduction fee. The disclosure identifies that a fee was paid by the borrower to receive a lower interest rate. RIA20* *Spaceholder for version number Optional imprinting of credit union name, address, telephone number, and logo. One First Mortgage Documents User Guide 61

68 Iowa Payment Reduction Fee Disclosure Sample Use the numbers provided to locate the corresponding instructions on the next page. 1. Name(s) and Address of Applicant(s). 2. Property Address. 3. Notice. 4. Acknowledgment of Receipt. 62 CUNA Mutual Group

69 Iowa Payment Reduction Fee Disclosure Instructions Instructions are given for each section of the document. Refer to the corresponding number on the sample document on the facing page. 1. Name and Address of Applicant(s). This section provides a place to record each applicant s name. The name and address of the applicant(s) must be printed/typed in this area. 2. Property Address. This section provides a place to record the address of the property described in the Security Instrument (Mortgage/Deed of Trust). 3. Notice. This section informs the applicant with a good faith example that shows the amount of the payment reduction fee and the reduction in payments which result from the payment of this fee. 4. Acknowledgment of Receipt. The applicant(s) should sign and date the Iowa Payment Reduction Fee Disclosure. First Mortgage Documents User Guide 63

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71 Maine Right to Choice of Insurance Agent The Maine Right to Choice of Insurance Agent allows the lender to inform the borrower that obtaining insurance products from a particular agent or broker does not affect credit decisions by the lender regarding the borrower, with certain exceptions. Document Description When used Purpose Document number Imprinting Number of pages The notice must be provided at the time of application for the loan or at the outset of negotiations regarding the loan. The purpose of the notice is to have the lender inform the borrower of their right of free choice in the selection of the agent and insurer through or by which the insurance is placed, including the right to choose an agent or broker whether or not that agent or broker is affiliated with the lender. RME10* *Spaceholder for version number Optional imprinting of credit union name, address, telephone number, and logo. One First Mortgage Documents User Guide 65

72 Maine Right to Choice of Insurance Agent Sample Use the numbers provided to locate the corresponding instructions on the next page. 1. Name(s), Address, and Property Address. 2. Notice. 3. Acknowledgement of Receipt. 66 CUNA Mutual Group

73 Maine Right to Choice of Insurance Agent Instructions Instructions are given for each section of the document. Refer to the corresponding number on the sample document on the facing page. 1. Name and Address of Applicant(s). This section provides a place to record each applicant s name. The name and address of the applicant(s) must be printed/typed in this area. 2. Notice. This section informs the applicant that they may select an insurance agent regardless of affiliation with Lender. 3. Acknowledgment of Receipt. The applicant(s) should sign and date the Maine Right to Choice of Insurance Agent. First Mortgage Documents User Guide 67

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75 Maine Partially Amortizing Loan Disclosure The Maine Partially Amortizing Loan Disclosure points out that if you make only the minimum payments, the loan will not be repaid in full on the maturity date. The final payment may be substantially more than the regular payments. Document Description When used Purpose Document number Imprinting Number of pages The disclosure is used at or within three (3) days of receiving an application. The disclosure informs the borrower that the loan they have applied for does not fully amortize over the term of the loan. RME20* *Spaceholder for version number Optional imprinting of credit union name, address, telephone number, and logo. One First Mortgage Documents User Guide 69