Written Loan Application.
Texas Home Equity Loan Terms and Conditions. The document Texas Home Equity Terms and Conditions Agreement document is mandatory for all Texas Home Equity Loans. The document has been created as a result of the case Garofolo v. Ocwen Loan Servicing, LLC. The Court in Garofolo determined, among other things, that in order for a Texas Home Equity loan to be “foreclosure eligible,” the transaction documents must include the terms (Section 50(a)(6)(A)-(P)) and conditions (Section 50(a)(6)(Q)(i)-(xi)) from the Texas Constitution. The parties, including the Bank, must agree to the terms and conditions. VMP8083(TX) (1801) is for closed-end loans. HE-OE-TC-TX (1/1/2018) is for open-end loans.
Notice Concerning Extension of Credit. This form provides the statutorily required notice that must be given 12 days before closing a Home Equity Loan as defined by Section 50(a)(6), Article XVI, of the Texas Constitution. The language in the notice appears exactly as it does in the Constitutional amendment. A sample form is located at the end of this Chapter.
Texas Home Equity Receipt of Documents. This form should be signed by borrowers acknowledging that they have received copies of documents relating to their Texas home equity loan. A Receipt of Documents form is located at the end of this Chapter.
TILA-RESPA Loan Estimate must be delivered or mailed no later than three (3) days after the loan application is received or before the consumer pays a non-refundable fee, whichever is earlier.
Home Equity Tax Waiver Notice. This form gives Bank a signed acknowledgement that the lender has not given any advice regarding the tax consequences of a home equity loan to the borrower. The possession of a signed waiver may limit a lender’s exposure to claims that a consumer relied on representations regarding tax implications of home equity lending. A sample form is located at the end of this Chapter.
Appraisal or Evaluation, as appropriate.
Acknowledgement as to Fair Market Value of Homestead Property.
Texas Home Equity Affidavit and Agreement. This is a sworn statement signed in the presence of a notary in which the borrower/owner makes certain warranties and states that certain representations are true. This form describes requirements that apply to any Texas home equity loan made and is used to ensure that the loan complies with these requirements. The form is in recordable form (i.e., notarized). While recording of this document may not be required by law, it is recommended. When signing this form, the borrower is indicating that he has executed an Acknowledgment Regarding Fair Market Value and affirms under oath some of the restrictions of the Amendment, such as the 80% LTV restriction, the definition of homestead and property usage, remedies, and so forth. A sample form of Texas Home Equity Affidavit and Agreement (First Lien) VMP8034 (TX) (Form 3185 (1/18)) is located at the end of this Chapter.
Texas Home Equity Real Estate Note. A sample form is located at the end of this Chapter. It is produced and copyrighted by Wolters Kluwer. It is for use when the Bank takes a second lien on the borrower’s home. Wolters Kluwer also produces two Texas Home Equity Real Estate Note (Cash Out - First Lien) forms, one which is for FNMA, FHLMC, FHA and VA use and one which is not.
Survey, Title Commitment and Title Policy. See Chapter 4.
Notice of Rights of Rescission.
Flood Hazard Verification, Notice to Borrower and Flood Insurance Policy, when required.
Multi-peril Hazard Insurance with Bank as loss payee.
TILA-RESPA Closing Disclosure.
Other Regulatory Disclosures, as appropriate.