Important Compliance Information. How to obtain and use the new documents (if fillable PDF s are mentioned above)

Transcription

1 Copliance This Copliance is being sent to infor you that one or ore of the docuents currently contained in your Wolters Kluwer Financial Services Bankers Systes software syste or electronic docuents odule is being revised. The following inforation suarizes the changes and provides instructions on how to obtain and use the revised docuent(s). While not all users are affected by the changes, we ask that you read the following inforation carefully to deterine if your docuents require updates. Iportant Copliance Inforation Multistate Consuer Open End (not hoe-secured) Note and Agreeent Please read if you offer variable rate (not hoe-secured) plans with caps on APR decreases (caps on annual rate decreases or per adjustent rate decreases). If you do not, you can ignore this section. In general, for variable rate plans with caps on Annual Percentage Rate decreases, a rate increase requires a 45-day advance change-in-ters notice. Additional restrictions apply to personal lines of credit that can be accessed by a card. For these plans, the APR cannot be increased during the first year and no rate increase can be applied to an existing balance. The Consuer Open End (not hoe-secured) Note and Agreeent does not currently reflect these restrictions. This proble will be resolved in CoplianceOne Release To correct this for overdraft plans and personal lines of credit not directly accessible by a card, the following text ust be added to the Agreeent: The portion of the Variable Rate paragraph of the COMPUTATION OF INTEREST CHARGES section which indicates when an Index rate increase or decrease will take effect is revised to provide that a rate change will take effect as follows: How to obtain and use the new docuents (if fillable PDF s are entioned above) Until you receive your next software or electronic docuents update, any of the docuents entioned can be downloaded fro Because they are intended as interi solutions, they cannot be integrated into your software syste or electronic docuents odule. All downloaded docuents are fillable PDF files, which allow you to coplete the docuent on screen before printing. To access the docuent fro the web site: Select Log in fro the upper right corner. Review the Ters of Use agreeent. Enter your User Nae and Password and click Log In. If you do not yet have a User Nae for the secured sections of the web site, you ay register online by clicking Register. You ust have your current custoer nuber to register. Select Downloads. Select your Product. Locate and select the Ters of Use link for the At the botto of the Ters of Use screen, select the link for the docuent(s) you wish to download. When propted, select Save to save the file to your coputer. If you receive a Security Warning screen, click More Info for inforation on this warning or click YES to continue. Save the file to your Desktop. After the download is coplete, navigate to your Desktop and double-click to run the EXE. Select Yes to continue or No to close the utility. Enter the password that is specified on the Ters of Use screen and click OK. The file(s) are extracted to your coputer. d i d d t If you need assistance with the download, or have additional questions, please contact a SupportLine technician at , Extension Page 1 of 10 Wolters Kluwer Financial Services

2 Copliance An Index rate decrease will take effect. An Index rate increase will take effect following the expiration of the period of tie (a iniu of 45 days) indicated in the advance written notice you provide e as required by law. To correct this for personal lines of credit that can be directly accessed by a card, the following text ust be added to the Agreeent: The portion of the Variable Rate paragraph of the COMPUTATION OF INTEREST CHARGES section which indicates when an Index rate increase or decrease will take effect is revised to provide that a rate change will take effect as follows: The annual percentage rate ay increase or decrease after reaining fixed for (user to insert the period of tie ust be at least one year). An Index rate decrease will take effect. An Index rate increase will take effect following the expiration of the period of tie (a iniu of 45 days) indicated in the advance written notice you provide e as required by law. Failure to disclose these restrictions or increasing the Annual Percentage Rate without coplying with these requireents ay result in Truth-in- Lending violations. Truth-in-Lending violations ay be curable if you act fast. You ust act no later than 60 days after discovering the proble and before your custoer brings the proble to your attention. You should consult with your attorney regarding these issues. This will be updated in the next release of the product, which is scheduled to be sent to you in Septeber We are sorry for these probles with the Open-End docuents. If you want to contact us about this letter, please call us at: Extension Settleent Stateent (HUD-1) Settleent Stateent (HUD-1A) On July 11, 2011, HUD issued a Final Rule that akes technical corrections and clarifying aendents to RESPA regulations that were published on Noveber 17, 2008 and becae effective on January 1, The effective date of the Rule is August 10, The Rule revises instructions for copleting Pages 2 and 3 of HUD-1/HUD- 1A Settleent Stateents. Specifically, the first paragraph of the instructions for Page 3 of the HUD-1 is revised to clarify that the coparison table should include only the aounts for the services that were purchased as part of the transaction, and that no aount should be included on Page 2 of the HUD-1 for any service that was listed on the GFE, but was not purchased at closing. For RESPA transactions, where at the tie of application you will use an existing appraisal or survey that was paid for in a prior transaction, you ust list the appraisal or survey in Block 3 and disclose $0.00 as the charge Page 2 of 10

3 Copliance for that service on the Good Faith Estiate (GFE); or, if you include an estiate of a charge for a service on the GFE, but then use an existing work product that was paid for in a prior transaction, then these services are not entered on page 2 of the HUD-1/HUD-1A and the GFE estiate of the charge for that service is not included on the coparison chart on page 3 of the HUD-1/1A. Therefore, you will need to reove the service fro the page 2 of the HUD-1/HUD-1A and the GFE estiate of the charge for that service fro the coparison chart on page 3 of the HUD-1/HUD-1A. These docuents will be updated in an upcoing release of the product. Stateent of Purpose for an Extension of Credit Secured by Margin Stock (G-3) The Federal Reserve has updated the expiration date to January 31, 2014, on the G-3 Stateent of Purpose for an Extension of Credit Secured by Margin Stock by a Person Subject to Registration Under Regulation U. We will be revising our G-3 to atch the changes. Minor changes were ade to the for. Stateent of Purpose for an Extension of Credit Secured Margin Stock (U-1) The Federal Reserve Board has revised their Stateent of Purpose for an Extension of Credit Secured by Margin Stock docuent (FR U-1) with a revision date of January 31, We will be revising our U-1 to atch the state s changes. Minor text changes throughout the docuent are being ade. State Specific Idaho Far Products Financing Stateent (UCC1F-LAZ-ID) The State of Idaho Secretary of State has revised their for UCC-1F. Their new revision is dated 11/2010. We will be revising our UCC1F-LAZ-ID to atch the state's changes. Soe foratting has changed. The Assignee and Acknowledgeent Nae and Address sections have been reoved. UCC Financing Stateent Aendent & Instructions (UCC3F-ID) The State of Idaho Secretary of State has revised their Far Products Financing Stateent-Aendent, For UCC-3F. Their new revision date is 08/2010. Foratting on the first page has been changed, including adding Page 3 of 10

4 Copliance a new section for New/Additional Secured Party, Aended Secured Party or Assignee. Additional instructions were also added to the Instruction page. A county code for all counties was added, as well as additional product and unit codes. We will be revising our UCC3F and instructions to atch the state s changes. Illinois Notice of Assignent, Sale, or Transfer of Servicing (VMP553IL) The Illinois Residential Mortgage License Act and associated regulations require all licensees to give notice at the tie of transfer to the borrower anytie servicing of the borrowers loan is assigned, sold or transferred to another licensed or exept servicer. All licensees who are party to the assignent, sale or transfer ust give the notice. The notice is required under 205 Ill. Cop. Stat. Ann. 635/3-7 and content of the notice is described in the associated regulations at 38 Ill. Ad. Code Notice of assignent, sale or transfer of servicing rights is also required under the Real Estate Settleent Protection Act ( RESPA ) at 24 C.F.R The RESPA notice is provided in VMP553R (Notice of Assignent Sale or Transfer of Servicing); see also VMP553A (Notice of Assignent Sale or Transfer of Servicing without Signature Lines) and VMP553B (Notice of Assignent Sale or Transfer of Servicing without Mortgage/Disability Insurance). The Illinois notice requireent includes inforation not required in the RESPA notice, specifically the aount of each payent required for the three onths following the notice, including the nae and address of who these payent ust be sent to, and (2) the nae and address of the priary regulator of the new servicer. This ay be the Illinois Departent of Financial & Professional Regulation for state licensed servicers, or another state or federal agency for exept servicers. An Illinois specific version of the RESPA notice was created to address these additional requireents and should be used in place of VMP553R where the property state is Illinois. Louisiana UCC Financing Stateent - Aendent (UCC-3-LAZ-LA) The Louisiana Secretary of State has revised their UCC-3. Their current revision is 11/22/2010. We will be updating the UCC-3-LAZ-LA by deleting the office copies and reoving the forer Secretary of State's nae. The for has changed fro five pages to two pages. Page 4 of 10

5 Copliance North Carolina Notice of Inforation and Exaples of Aortization of Hoe Loans (AMORTINFO-NC) The North Carolina Coissioner of Banks has updated their for MLA09. We will be updating our for AMORTINFO-NC. Changes include adding parenthesis to four negative balances in the charts and changing 15 years to 30 years on the 30 Years at 11% chart. North Dakota Recordable Docuents Notary Update Mortgages, Assignent of Leases and Lents, Leasehold Mortgage, Mortgage Assignents, Modifications, Satisfactions, Subordination Agreeents North Dakota House Bill 1136 enacted a new chapter updating their notarial acts statutes and repealing others. Included in the changes are new statutory short for notary acknowledgents. (Note: the long for notary fors did not change with this bill). The changes are effective August 1, These docuents will be updated in the next release of the product, which is scheduled to be sent to you in Septeber Oklahoa Effective Financing Stateent Far Products (EFS-1-LAZ-OK) Effective Financing Stateent Far Products Continuation (EFS-2-LAZ-OK) Lien Entry For (LEFLZ-OK) The OK Secretary of State sent out a Notice of Address Change effective July 1, Notice states: We will no longer be using our P.O. Box address. Effective July 1 our ailing address will change to the above street address. Our new address is listed on our current EFS fors located on our website. Our website address is The new address is: Secretary of State Central Filing Syste 2300 N. Lincoln Blvd Roo 101 Oklahoa City, OK Changes in UCCC Dollar Aounts Page 5 of 10

6 Copliance The Oklahoa Departent of Consuer Credit announced changes to the Oklahoa Consuer Credit Code dollar aounts which were effective July 1, The new rates are below: Split Rate Loans: First Break -- $1,380 (was $1,350) Split Rate Loans: Second Break -- $4,600 (was $4,500) Real Estate as Collateral -- $4,600 iniu loan aount if over 21% Attorney's Fee -- prohibited on aounts $4,600 or less Deficiency Judgents -- restricted on aounts $4,600 or less Copliance Analysis and the split rate aounts will be updated in the next release of the product, which is scheduled to be sent to you in Septeber South Carolina Mortgage Broker Fee Agreeent for Financial Services (VMP1061SC) Although it is likely not coon, it is possible that a user of this product ay need to provide the VMP1061SC. The VMP-1061(SC) eets the requireents of S.C. Code Ann (D). S.C. Code Ann (D) states: At the tie of application for a ortgage loan, the ortgage broker, originator, or eployee shall provide the borrower with a docuent specifying the agency designated to receive coplaints or inquiries about the origination and aking of the loan, with the telephone nuber and address of the agency. The consuer shall sign a copy of the docuent acknowledging receipt of this disclosure and the copy ust be aintained in the files of the ortgage broker or originator. With the passage of SC Senate Bill 673, the definition of Originator now reads as "An eployee of a ortgage broker or ortgage lender whose priary job responsibilities". S.C. Code Ann (12) defines Originator as: An eployee of a ortgage broker or ortgage lender whose priary job responsibilities include direct contact with or inforing loan applicants of the rates, ters, disclosure, or other aspects of the ortgage. It does not ean an eployee whose priary job responsibilities are clerical in nature, such as processing the loan. S.C. Code Ann (10) defines Lender as: "Lender" includes, but is not liited to, a ortgage broker originating a loan in a tablefunded loan transaction in which the broker is identified as the original payee of the note. S.C. Code Ann (10) defines Tablefunded as: "Table-funded transaction" eans a settleent at which a ortgage loan is funded by an advance of loan funds to a lender who closes the Page 6 of 10

7 loan in his nae followed by an assignent of the loan fro the person identified as the lender in the loan docuents to the person advancing the initial loan funds. Copliance Notice of Agency to Receive Coplaints (VMP1062SC) The South Carolina Consuer Protection Code requires that all ortgage brokers and ortgage loan originators, including eployees of ortgage lenders, provide the borrower with a notice designating the regulatory agency to receive consuer coplaints regarding the origination and aking of his/her ortgage loan. The notice ust be provided at the tie of application and a signed copy ust be aintained in the borrower file. VMP1061SC is used by non-exept ortgage brokers. This docuent will be added to the product in a future release. Utah Servicing Disclosure Stateent (VMP552UT) The Mortgage Loan and Servicing Disclosure is given to borrowers in Utah if the first lien ortgage loan applied for ay be sold or assigned; the servicing of the loan ay be sold or assigned; or the ortgage loan will not be necessarily be held or serviced by the lender that originates the loan. The notice ust be given at the tie of receipt or preparation of the written application for a ortgage loan. This for contains a check box if the ortgage loan applied for ay be sold or assigned per Utah Code 70D It also contains the RESPA notice required by HUD that was published in Fed Reg Vol. 73, No. 222, dated 11/17/2008 and ay be used in place of the RESPA servicing disclosure for Utah. There is no andatory use date or regulatory changes. Title Application for Various States Colorado Title Application (MV-1-CO) The Colorado Departent of Revenue has revised their Title Application docuent (DR 2395) with a revision date of 2/22/2011. We will be revising our MV-1-CO to atch the state s changes. Page 7 of 10

8 Copliance Florida Notice of Lien (MV-NOL-FL) The Florida Division of Motor Vehicles has revised their Application for Notice of Lien/Reassignent of Lien or Notice to First Lienholder of Subsequent Lien docuent (HSMV 82139) with a new revision date of 06/11. We are revising our MV-NOL-FL to atch the state s changes. A fillable pdf is available at MS/fors.ht. Iowa Boat Title Application (BTA-1-IA) The Iowa Departent of Natural Resources has updated their Title Application (for ). The DNR's new revision date is 11/2010. We will be updating our BTA-1-IA to atch the DNR's changes. Changes in the Registration section include adding checkboxes for Iowa Resident or Non Resident, a line for Phone Nuber and Eail inforation, and reoving references to Off-Road Vehicle and Boat. Kayak was reoved in the Boat section. In the ATV/Snowobile/ORV section "ORV" was reoved. On the second page the Book Value inforation was also updated. Louisiana Boat Title Application (BTA-1-LA) The Louisiana Departent of Wildlife and Fisheries has updated the Application for Boat Title, their for MBT 56, Rev. 7/09. They have added Motor Title Fees and Description fields to the for in the new 1/11 revision. We will be updating our BTA-1-LA to atch the state's for. Kentucky Title Lien Stateent (MV-2-TX) The Kentucky Transportation Cabinet has revised their Title Lien Stateent docuent (TC ) with a revision date of Deceber We will be revising our MV-2-KY to atch the state's changes. Ite #4 of the docuent has been updated with to allow only one vehicle per for and other inor changes were ade to the docuent. Nebraska Page 8 of 10

9 Copliance Application for Certificate of Title (MV-1-NE) The Nebraska Departent of Transportation has revised their Application for Certificate of Title docuent (RV-707) with a revision date of 2/2011. "City, State, Zip" have been added after "Owner's Residential Address," in the "Owner/Applicant Inforation" section. We will be revising our MV-1- NE to atch the state s changes. Tennessee Notice of Lien (MV-2-TN) The State of Tennessee, Division of Motor Vehicles has updated their for. We are aking changes to atch the state for. Changes include a reference to a for nae in the instructions and adding a title to the docuent address. Texas Application for Certificate of Title Motor Vehicle (MV-1-TX) The Texas Departent of Transportation has revised their Application for Texas Certificate of Title docuent (for 130-U) with a new revision date of 04/11. We will be revising our MV-1-TX to atch the state's changes. Minor changes were ade to the for. A fillable pdf is available at U.xdp&appID=/VTR&status=/reportError.jsp&configFile=WFServletConfig.x l. Washington Title Application (MH-1-WA) The Washington Manufactured Hoe Application docuent has been revised with a state revision date 2/2011. We will be revising our MH-1-WA to atch the state's changes. Minor text changes throughout the docuent are being ade. The instructions on page 3 of MH-1-WA are being deleted. West Virginia Boat Title Application (BTA-1-WV) The West Virginia Departent of Transportation has revised their Boat Title Application docuent (MB-6) with a revision date of We will be revising our BTA-1-WV to atch the state s changes. Page 9 of 10

10 Application to Record Title (MV-1A-WV) Copliance The West Virginia Departent of Transportation has revised their Application to Record Title docuent (DMV 84A) with a revision date of We will be revising our MV-1A-WV to atch the state s changes. Wisconsin Certificate of Title (VMP1494WI) The Wisconsin Manufactured Hoe Certificate of Title Application SBD was revised by Wisconsin Safety and Buildings Division to insert text on page 2 in the instructions for Manufactured Hoe Inforation that the length and width of the hoe are approxiate. There is no andatory use date. We will be revising our VMP1494WI to atch the state s changes. Wyoing Title Application (MV-1-WY) The Wyoing Departent of Transportation has copletely changed their Application for Certificate of Title and VIN/HIN Inspection docuent with a state revision date of 2/2011. We will be updating the MV-1-WY. This docuent is being revised significantly. Page 10 of 10