Saturday, September 1, 2007 - New Closing Disclosure in Texas!!!!

Many of you may know, but if you don't this is a big wake up call!

Effective September 1, 2007 and pursuant to the revisions of the Texas Finance Code as required by House Bill 716, each mortgage lender, mortgage banker, or licensed mortgage broker/loan officer shall provide to each applicant for a home loan, this written notice at CLOSING for full verification and execution by EACH loan applicant to help fight mortgage fraud.

The SML Auditors will be enforcing this in full force beginning Jan. 1, 2008.

WHO THIS AFFECTS:

1. Mortgage Lenders

2. Mortgage Bankers

3. Licensed Mortgage Brokers and Loan Officers

HOW TO COMPLY:

1. Provide the disclosure to the title company for signature AT CLOSING!!! Do not rely on the lender to send this disclosure. It may take a while for all of the lenders to "catch on." (No this cannot be done with your initial disclosures because the law says to have it signed at closing.)

2. Follow up with the title company to make sure it was signed.

3. Get a copy of the signed disclosure for your archived file (when you request the copy of the signed HUD-1).