Texas Cash out mortgage Texas Refinance Mortgage Lenders s provides owner-occupied properties located in Texas with new or existing Texas mortgage applicants Section 50 (a)(6) mortgage cash out refinance Texas cash out mortgage Texas Refinance Mortgage Lenders s s. Texas cash out mortgage Texas Refinance Mortgage Lenders s regulatory requirements supersede all standard Texas cash out mortgage Texas Refinance Mortgage Lenders s underwriting guidelines set forth by Texas cashout mortgage Texas Refinance Mortgage Lenders s. If the first or second Texas mortgage refinance Texas cash out mortgage Texas Refinance Mortgage Lenders s according to Section 50(a)(6) Texas cash out mortgage Texas Refinance Mortgage Lenders s being paid off, regardless of whether the Texas mortgage refinance applicant is getting any cash back, the Texas cash out mortgage Texas Refinance Mortgage Lenders s is restricted to the Texas Home Equity Section 50(a)(6).

Texas Bad Credit Cash-out Refinance Fico And Texas Mortgage Refinance To Value

500+ Fico Rate and term Bad Credit Cash out down to 65% of Appraisal
540+ Fico Rate and term Bad Credit Cash out down to 70% of Appraisal
600+ Fico Rate and term Bad Credit Cash out down to 75% of Appraisal
640+ Fico Rate and term Bad Credit Cash out down to 80% of Appraisal
680+ Fico Rate and term Bad Credit Cash out down to 80% of Appraisal
$1,500,000 = Bad Credit Cashout = Max Texas Mortgage Refinance Amount

Texas Cash Out Mortgage Texas Refinance Mortgage Lenders s Section 50(a)(6) Equity Cash-out:

Private Texas Cashout Mortgage Texas Refinance Mortgage Lenders s
Fannie Mae Fixed Rate
Fannie Mae LIBOR ARMs
Freddie Mac Conforming Fixed and ARMs
Freddie Mac Super Conforming
Agency Plus
Alternative Documentation

Texas Cash Out Mortgage Refinance Texas Refinance Mortgage Lenders s Highlights:

Eligible if owner-occupied
All Texas Cash-Out Mortgage Texas Refinance Mortgage Lenders s Rules are applicable
Texas Section Cash out Mortgage Texas Refinance Mortgage Lenders s 50(a)(6) initially, second lien considered a rate and term refinance

Article XVI Section 50(a)(6) of the Texas Cash-Out Mortgage Texas Refinance Mortgage Lenders s Constitution permits Texas cash out mortgage refinance applicants to borrow against the equity in their primary residences. The Texas Constitution, however, imposes substantial restrictions under which (a)(6) Texas cash out mortgage Texas Refinance Mortgage Lenders s s may be originated and closed. If any of the requirements or guidelines are not followed, then the lien may be invalid.

Article XVI, Section 50(e) of the Texas Constitution provides that if a refinance Texas cash out mortgage Texas Refinance Mortgage Lenders s secured by homestead property includes the advance of more money than is necessary to pay off the existing debt, the lien is not valid unless (i) the Texas cash out mortgage Texas Refinance Mortgage Lenders s is treated as a Texas Equity Texas cash out mortgage Texas Refinance Mortgage Lenders s (ii) the additional funds are for “reasonable costs necessary to refinance” the debt being paid off, or (iii) the additional funds are for another purpose authorized by the Constitution.

A first mortgage rate & term refinance originated to pay off an existing Texas Equity Texas cash out mortgage Texas Refinance Mortgage Lenders s regardless of whether the Texas Cash Out Refinance Mortgage Applicants receives any cash-out of the refinance proceeds, is the “Once Texas Equity Texas cash out mortgage Texas Refinance Mortgage Lenders s always a Texas Equity Texas cash out mortgage Texas Refinance Mortgage Lenders s ” rule. Once a Texas Cash Out Refinance Mortgage Applicants obtains a first or second lien Texas Equity Texas cash out mortgage Texas Refinance Mortgage Lenders s , subsequent refinancing of the homestead property is considered a Texas Equity Texas cash out mortgage Texas Refinance Mortgage Lenders s subject to all the requirements of Section 50(a)(6) of the Texas Constitution if any of the proceeds are used to pay off the existing Texas Equity Texas cash out mortgage Texas Refinance Mortgage Lenders s even if the Texas Cash Out Refinance Mortgage Applicants does not receive any cash from the transaction.

Texas Cash Out Refinance Mortgage Texas Refinance Mortgage Lenders s will only approve Texas Section 50(a)(6) first lien cash-out refinance Texas cash out mortgage Texas Refinance Mortgage Lenders s s that are made in accordance with Texas law and the Interpretive Authority adopted by the Texas Finance Commission and Credit Union Commission.

Texas cash out mortgage Texas Refinance Mortgage Lenders s s originated and closed as Texas Section 50(a)(6) Texas cash out mortgage Texas Refinance Mortgage Lenders s s must strictly adhere to all requirements outlined in this underwriting guideline to be eligible.

Texas Cash Out Mortgage Refinance Description / Summary

The following are considered Texas Section 50(a)(6) Texas cash out mortgage Texas Refinance Mortgage Lenders s s:

Texas cash out mortgage Texas Refinance Mortgage Lenders s s using proceeds to pay off an existing (a)(6) Texas cash out mortgage Texas Refinance Mortgage Lenders s .
Texas cash out mortgage Texas Refinance Mortgage Lenders s s using proceeds to pay off federal tax debt liens.
Texas cash out mortgage Texas Refinance Mortgage Lenders s s using proceeds to pay property tax liens on the property securing the new Texas cash out mortgage Texas Refinance Mortgage Lenders s .
Texas cash out mortgage Texas Refinance Mortgage Lenders s s with any cash back to the Texas Cash Out Refinance Mortgage Applicantss.

The following are NOT considered Texas Section 50(a)(6) Texas cash out mortgage Texas Refinance Mortgage Lenders s s:

Texas cash out mortgage Texas Refinance Mortgage Lenders s s using proceeds to pay current taxes due on the property securing the Texas cash out mortgage Texas Refinance Mortgage Lenders s .
Texas cash out mortgage Texas Refinance Mortgage Lenders s s using proceeds to buy out equity pursuant to a court order or agreement of the parties (usually applies to a divorce settlement).
Texas cash out mortgage Texas Refinance Mortgage Lenders s proceeds used to pay a prepayment penalty assessed on an existing non-(a)(6) Texas cash out mortgage Texas Refinance Mortgage Lenders s , and the prepayment is included in the payoff amount. The new Texas cash out mortgage Texas Refinance Mortgage Lenders s must have a new title policy issued without exception to the financing of the prepayment fee.

o If the title company requires them to be paid, Texas cash out mortgage Texas Refinance Mortgage Lenders s s that include the payment of HOA dues.

Note: Texas cash out mortgage Texas Refinance Mortgage Lenders s proceeds to pay off legitimate purchase money (a)(6) home improvement Texas cash out mortgage Texas Refinance Mortgage Lenders s s are acceptable to originate as a rate & term refinance.

Section 3 Texas Cash out Mortgage Refinance (a)(6) Restrictions

Texas (a)(6) Texas cash out mortgage Texas Refinance Mortgage Lenders s s are subject to the following restrictions:

An (a)(6) Texas cash out mortgage Texas Refinance Mortgage Lenders s may not be closed sooner than 12 months after the closing of the previous (a)(6) Texas cash out mortgage Texas Refinance Mortgage Lenders s .
There can be only one (a)(6) Texas cash out mortgage Texas Refinance Mortgage Lenders s secured by the property at one time.
The (a)(6) Texas cash out mortgage Texas Refinance Mortgage Lenders s may not be identified as a rate & term refinance.
The (a)(6) Texas cash out mortgage Texas Refinance Mortgage Lenders s may not be used to acquire the property or to finance construction

Section 4 Texas Cash out Mortgage Refinance (a)(6) Texas cash out mortgage Texas Refinance Mortgage Lenders s s /(a)(6) Requirements

Even if no cash is taken from the transaction, a refinance of an (a)(6) Texas cash out mortgage Texas Refinance Mortgage Lenders s may not be identified as a rate & term refinance. Any refinance of an (a)(6) Texas cash out mortgage Texas Refinance Mortgage Lenders s must be classified as a distinct and new origination of an (a)(6) Texas cash out mortgage Texas Refinance Mortgage Lenders s .

The severe restrictions imposed by Section 50(a)(6) Article XVI of the Texas Constitution require that the Texas cash out mortgage Texas Refinance Mortgage Lenders s be originated and closed subject to all the requirements outlined within this section.
Full/Alternative documentation is required

Section 5 Texas Cash out Mortgage Refinance Use of Proceeds and Payoff of Debts

The Texas Constitution prohibits a Texas Refinance Mortgage Lenders from requiring that the proceeds from an (a)(6) Texas cash out mortgage Texas Refinance Mortgage Lenders s be used to pay off any debts to that Texas Refinance Mortgage Lenders that are not secured by the homestead.

If the payoff of debts to other Texas Refinance Mortgage Lenders s/creditors is required in order to qualify the Texas Cash Out Refinance Mortgage Applicants, then those payoffs must be disbursed directly to the creditor by the title company.
Debts that are elected to be for paid off by the Texas Cash Out Refinance Mortgage Applicants, but are not required to be paid off in order to qualify the Texas Cash Out Refinance Mortgage Applicants, may be disbursed directly to the Texas Cash Out Refinance Mortgage Applicants.
A Texas cash out mortgage Texas Refinance Mortgage Lenders s used for consolidating debt must be originated as an (a)(6) Texas cash out mortgage Texas Refinance Mortgage Lenders s even if the proceeds at closing are paid directly to the creditors and the Texas Cash Out Refinance Mortgage Applicants personally receives no cash from the transaction.
The pay off of purchase money Texas cash out mortgage Texas Refinance Mortgage Lenders s or a previous no cash-out refinance.
Payment of non delinquent liens for property taxes on the subject property securing the new Texas cash out mortgage Texas Refinance Mortgage Lenders s .
The only cash proceeds the Texas Cash Out Refinance Mortgage Applicants may receive are limited to:

o A refund of a previously paid application fee, OR

o Existing escrow monies in excess of any amount needed to fund any new escrow account.

Section 6 Texas Cash out Mortgage Refinance Property Type/Occupancy

1-unit SFR, condo or PUD (2-4 unit properties ineligible)
Owner-occupied primary residence
Must be Texas Cash Out Refinance Mortgage Applicants’s Texas homestead

Section 1 Overview / General

Article XVI Section 50(a)(6) of the Texas Constitution permits homeowners to borrow against the equity in their primary residences. The Texas Constitution, however, imposes substantial restrictions under which (a)(6) Texas Mortgage Refinances may be originated and closed. If any of the requirements or guidelines are not followed, then the lien may be invalid.

Article XVI, Section 50(e) of the Texas Constitution provides that if a refinance Texas Mortgage Refinance secured by homestead property includes the advance of more money than is necessary to pay off the existing debt, the lien is not valid unless (i) the Texas Mortgage Refinance is treated as a Texas Equity Texas Mortgage Refinance (ii) the additional funds are for “reasonable costs necessary to refinance” the debt being paid off, or (iii) the additional funds are for another purpose authorized by the Constitution.

A first mortgage rate & term refinance originated to pay off an existing Texas Equity Texas Mortgage Refinance regardless of whether the Texas Cash Out Refinance Mortgage Applicants receives any cash-out of the refinance proceeds, is the “Once Texas Equity Texas Mortgage Refinance always a Texas Equity Texas Mortgage Refinance” rule. Once a Texas Cash Out Refinance Mortgage Applicants obtains a first or second lien Texas Equity Texas Mortgage Refinance, subsequent refinancing of the homestead property is considered a Texas Equity Texas Mortgage Refinance subject to all the requirements of Section 50(a)(6) of the Texas Constitution if any of the proceeds are used to pay off the existing Texas Equity Texas Mortgage Refinance even if the Texas Cash Out Refinance Mortgage Applicants does not receive any cash from the transaction.

Refinance Cash out Mortgage Lenders will only approve Texas Section 50(a)(6) first lien cash-out refinance Texas Mortgage Refinances that are made in accordance with Texas law and the Interpretive Authority adopted by the Texas Finance Commission and Credit Union Commission.

Texas Mortgage Refinances originated and closed as Texas Section 50(a)(6) Texas Mortgage Refinances must strictly adhere to all requirements outlined in this underwriting guideline to be eligible.

Note: Texas Section 50(a)(6) does not apply to reverse mortgages.

Section 2 Description / Summary

The following are considered Texas Section 50(a)(6) Texas Mortgage Refinances:

Texas Mortgage Refinances using proceeds to pay off an existing (a)(6) Texas Mortgage Refinance.
Texas Mortgage Refinances using proceeds to pay off federal tax debt liens.
Texas Mortgage Refinances using proceeds to pay property tax liens on the property securing the new Texas Mortgage Refinance.
Texas Mortgage Refinances with any cash back to the Texas Cash Out Refinance Mortgage Applicantss.

The following are NOT considered Texas Section 50(a)(6) Texas Mortgage Refinances:

Texas Mortgage Refinances using proceeds to pay current taxes due on the property securing the Texas Mortgage Refinance.
Texas Mortgage Refinances using proceeds to buy out equity pursuant to a court order or agreement of the parties (usually applies to a divorce settlement).
Texas Mortgage Refinance proceeds used to pay a prepayment penalty assessed on an existing non-(a)(6) Texas Mortgage Refinance, and the prepayment is included in the payoff amount. The new Texas Mortgage Refinance must have a new title policy issued without exception to the financing of the prepayment fee.

o If the title company requires them to be paid, Texas Mortgage Refinances that include the payment of HOA dues.

Note: Texas Mortgage Refinance proceeds to pay off legitimate purchase money (a)(6) home improvement Texas Mortgage Refinances are acceptable to originate as a rate & term refinance.

Section 3 Texas (a)(6) Restrictions

Texas (a)(6) Texas Mortgage Refinances are subject to the following restrictions:

An (a)(6) Texas Mortgage Refinance may not be closed sooner than 12 months after the closing of the previous (a)(6) Texas Mortgage Refinance.
There can be only one (a)(6) Texas Mortgage Refinance secured by the property at one time.
The (a)(6) Texas Mortgage Refinance may not be identified as a rate & term refinance.
The (a)(6) Texas Mortgage Refinance may not be used to acquire the property or to finance construction.

Section 4 Refinances of (a)(6) Texas Mortgage Refinances /(a)(6) Requirements

Even if no cash is taken from the transaction, a refinance of an (a)(6) Texas Mortgage Refinance may not be identified as a rate & term refinance. Any refinance of an (a)(6) Texas Mortgage Refinance must be classified as a distinct and new origination of an (a)(6) Texas Mortgage Refinance.

The severe restrictions imposed by Section 50(a)(6) Article XVI of the Texas Constitution require that the Texas Mortgage Refinance be originated and closed subject to all the requirements outlined within this section.
Full/Alternative documentation is required.

Section 5 Use of Proceeds and Payoff of Debts

The Texas Constitution prohibits a Texas Refinance Mortgage Lenders from requiring that the proceeds from an (a)(6) Texas Mortgage Refinance be used to pay off any debts to that Texas Refinance Mortgage Lenders that are not secured by the homestead.

If the payoff of debts to other Texas Refinance Mortgage Lenders s/creditors is required in order to qualify the Texas Cash Out Refinance Mortgage Applicants, then those payoffs must be disbursed directly to the creditor by the title company.
Debts that are elected to be for paid off by the Texas Cash Out Refinance Mortgage Applicants, but are not required to be paid off in order to qualify the Texas Cash Out Refinance Mortgage Applicants, may be disbursed directly to the Texas Cash Out Refinance Mortgage Applicants.
A Texas Mortgage Refinance used for consolidating debt must be originated as an (a)(6) Texas Mortgage Refinance even if the proceeds at closing are paid directly to the creditors and the Texas Cash Out Refinance Mortgage Applicants personally receives no cash from the transaction.
The pay off of purchase money Texas Mortgage Refinance or a previous no cash-out refinance.
Payment of non delinquent liens for property taxes on the subject property securing the new Texas Mortgage Refinance.
The only cash proceeds the Texas Cash Out Refinance Mortgage Applicants may receive are limited to:

o A refund of a previously paid application fee, OR

o Existing escrow monies in excess of any amount needed to fund any new escrow account.

Section 6 Property Type/Occupancy

1-unit SFR, condo or PUD (2-4 unit properties ineligible)
Owner-occupied primary residence
Must be Texas Cash Out Refinance Mortgage Applicants’s Texas homestead

Section 7 Documentation Requirements

(a)(6) Urban and Rural Homestead Guidelines Full / Alternative documentation is required.

Acreage

Urban Homestead

Rural Homestead

The acreage securing the Texas Mortgage Refinance may not exceed 10 acres.

The acreage may exceed 10 acres. However, the lot size must be typical and common with highest and best use as residential. In no case may the lot size exceed 20 acres.

Property Location and Services

The property must be located:

· Within municipal boundaries, OR

· Its extraterritorial jurisdiction, OR

· A platted subdivision AND be served by police protection, paid or volunteer file protection and at least three (3) of the following services provided by a municipality or under contract to a municipality:

o Electric

o Natural gas

o Sewer

o Storm sewer AND

o Water

The property is not located within municipal boundaries or its extraterritorial jurisdiction, or if the property is located in one of those types of areas:

· It is not served by police protection or paid or volunteer fire protection provided by the municipality or under contact to a municipality, AND

· The municipality provides directly or under contract less than three (3) of the following services:

o Electric

o Natural gas

o Sewer

o Storm sewer AND

o Water

Section 8 Texas (a)(6) Eligible Texas Cash Out Refinance Mortgage Applicantss

Eligible Texas Cash Out Refinance Mortgage Applicantss	Texas Cash Out Refinance Mortgage Applicants Type	Requirement
Individuals	US Citizens	Allowed with a valid Social Security number
Individuals	Permanent Resident Alien	Allowed under the same conditions as a US Citizen
Individuals	Non-Permanent Resident Alien	Allowed under the same conditions as a US Citizen
Trustee’s & Individual	InterVivos Revocable Trusts	Allowed under same conditions as US Citizen and subject to specific program and trust guidelines. Trust must meet “qualifying trust” under Texas law for purposes of owning residential property that qualifies for the homestead exemption.

For additional information on Texas Cash Out Refinance Mortgage Applicants requirements refer to the residency requirements in ’s Conventional Underwriting Guidelines.8.1 Ineligible Texas Cash Out Refinance Mortgage Applicantss The following Texas Cash Out Refinance Mortgage Applicants types are not allowed:

Non-occupant co-Texas Cash Out Refinance Mortgage Applicantss
Co-signors and guarantors
Foreign nationals
Corporations and partnerships, including family partnerships
Non-titled Texas Cash Out Refinance Mortgage Applicantss

Section 9 (a)(6) Fee Restrictions

Under Texas law, there is a 2% fee restriction on closing costs that can be charged to a Texas Cash Out Refinance Mortgage Applicants in order to obtain a Texas Section 50(a)(6) Texas Mortgage Refinance. Included in this calculation are all closing costs, paid directly or indirectly by the Texas Cash Out Refinance Mortgage Applicants:

Fees must be reasonable and not paid to an employee of the Client.
All fees paid for by the Texas Cash Out Refinance Mortgage Applicantss which include: fees paid outside of closing (credit, etc.), fees related to the maintenance of the Texas Mortgage Refinances (i.e., tax service fee, etc.), and fees paid to third parties (, and fees paid to Texas Refinance Mortgage Lenders .Texas Refinance Mortgage Lenders credits to the Texas Cash Out Refinance Mortgage Applicants for the interest rate chosen may be applied towards the closing costs included in the 2% calculation. Closing Costs paid with Texas Refinance Mortgage Lenders Credit must be reflected in “Paid By Others” column of the Closing Disclosure.

Exclude from 2% limitation:

Bona fide discount points, per diem interest and prepaid interest

o If discount points were used to buy down the interest rate, a fully executed Texas Home Equity Discount Point Acknowledgement Disclosure must be in the Texas Mortgage Refinance file.

Fees for an appraisal performed by a third party appraiser;
Fees for a property survey by a state registered or licensed surveyor;
Title insurance premiums;
Fees for a title examination report if the cost is less than the title insurance premium.

Section 10 (a)(6) Texas Refinance Appraisal Requirements

A new full appraisal is required, including both interior and exterior inspections, to determine current value on Form 1004, Uniform Residential Appraisal Report, or Form 1073, Individual Condominium Unit Appraisal Report, regardless of AUS recommendation.

Certain Texas Mortgage Refinance programs may require more than one appraisal or additional appraisal reviews. Refer to the underlying Texas Mortgage Refinance program. The more restrictive of these, or the Texas Mortgage Refinance program requirements, apply.

Section 11 (a)(6) Title Insurance

The title insurance coverage and policy must adhere to the following requirements:

Title insurance coverage must be the T-2 Mortgagee Policy of Title Insurance and include both of the following endorsements, which must also expressly show on the Closing Disclosure.

- T-42 Equity Texas Mortgage Refinance Mortgage Endorsement
- T-42.1 Supplemental Coverage Equity Texas Mortgage Refinance Mortgage Endorsement

There may be no exceptions to, or deletions from the coverage.
Paragraph 1(a) of the Supplemental Coverage Equity Texas Mortgage Refinance Mortgage Endorsement must be part of the coverage, which means that the Texas Mortgage Refinance must be closed at an office of the title company issuing the policy.
If the prior T-2 was issued within the last 7 years, verify that the title company charges the lower reissue rate for the T-2.

Underwriters may rely on the federal Notice of Right to Cancel form to meet this requirement. However, to be eligible for purchase, Texas Mortgage Refinances must comply with Section 50(a)(6)(Q)(viii) of the Texas Constitution and Chapter 153, Home Equity Lending, Section 153.25 of the Texas Home Equity Interpretive Authority.

Section 12 (a)(6) Closing Date Requirements

A Texas (a)(6) Texas Mortgage Refinance may not close until:

12 days after the Texas Cash Out Refinance Mortgage Applicants submits the Texas Mortgage Refinance application or all Texas Cash Out Refinance Mortgage Applicantss sign the 12-day notice, whichever is later.
1 day after the Texas Cash Out Refinance Mortgage Applicantss receives a copy of the Initial Closing Disclosure.
After the 1-year anniversary of the closing of an existing Texas (a)(6) Texas Mortgage Refinance.

Section 13 Eligible Texas Mortgage Refinance Programs

Refer to Program guidelines for eligibility.

13.1 Ineligible Texas Mortgage Refinance Programs

Interest-Only
ARM Texas Mortgage Refinances with LP as the AUS (AUS must be DU for ARMs)
Affordable Housing Programs
Texas Mortgage Refinances with land contracts

Section 14 Additional (a)(6) Guidelines

ARM Texas Mortgage Refinances: Arm Texas Mortgage Refinances are only eligible for DU, LP is ineligible.

Assumability: Not assumable.

Conveyed Property: Any consumer initiated conveyances of the property adding new owners must be completed at least 12 days before closing and the new owners must receive the “Notice Concerning Extensions of Credit” at least 12 days before closing.

DU Texas Mortgage Refinances Cash-out / Limited Cash out: Special Feature Code 003 should only be used if this transaction results in actual “cash out” to consumer. Special Feature Code 007 should be used to identify this transaction is a “limited cash-out refinance”.

DU Texas Mortgage Refinances TX 50(a)(6): Special Feature Code 304 always applies to identify TX 50(a)(6) Texas Mortgage Refinances.

ARM Texas Mortgage Refinances are only eligible for DU not LP.

DU/LP/Scorecard Data Entry: Only enter Texas Mortgage Refinance as cash-out if the Texas Cash Out Refinance Mortgage Applicants is truly getting cash-out on the subject transaction.

Escrow Holdbacks: Not allowed.

Energy Efficient Mortgages: Not allowed.

Existing Second Lien: New secondary financing on first-lien Texas (a)(6) Texas Mortgage Refinances is not allowed. Existing non-(a)(6) secondary financing (for example, an existing (a)(5) home improvement Texas Mortgage Refinance) is allowed if subordinated to the new (a)(6) mortgage. Additionally, the Texas Mortgage Refinance must meet the 80% CLTV requirement. (Subordination agreement not required).

Identification of Spouses: It is the responsibility of the Underwriter to ascertain all the owners of the property, and the owners’ spouses, including common-law spouses.

Individuals on Note: Only individuals/trusts on the title may be on the Note. Non-titled spouses may not be on the Note.

Mortgage Insurance: Not required.

Temporary Buydowns: Not allowed.

Prepayment Penalty Option: Not allowed.

Project Warranty: Standard Fannie Mae guidelines for project warranty apply.

Section 15 Required Documents

Each owner of the property and each spouse of an owner must sign the Texas Home Equity Affidavit and Agreement.
Provided at closing
Notice Concerning Extension of Credit

A Texas Equity Texas Mortgage Refinance may not be closed before the 12th calendar day after the later of (i) the date that the owner submits a Texas Mortgage Refinance application to a Texas Refinance Mortgage Lenders , or (ii) the date that each owner signs the Notice Concerning Extensions of Credit disclosure. Each Texas Mortgage Refinance file must contain the Notice Concerning Extensions of Credit disclosure that is signed by each owner within the required time frame. will not accept an acknowledgment signed by the owners at closing stating that they received the Notice Concerning Extensions of Credit disclosure at least 12 days prior to closing.

This disclosure is required to be sent to the Texas Cash Out Refinance Mortgage Applicants prior to closing. The 12 days start with either the Texas Cash Out Refinance Mortgage Applicants(s) signature on the disclosure or the Texas Cash Out Refinance Mortgage Applicants(s) electronic acknowledgement.

Note: If the Texas Cash Out Refinance Mortgage Applicantss sign the application (1003) after the Notice Concerning Extension of Credit has been signed, then the 12 days begin based on the date of the 1003.

Acknowledgment of Fair Market value of Homestead Property

The owners and the Texas Refinance Mortgage Lenders must sign a written acknowledgment as to the fair market value of the homestead on the date the Texas Equity Texas Mortgage Refinance is made. A Texas Equity Texas Mortgage Refinance is not eligible for sale to if the Texas Refinance Mortgage Lenders fails to sign the Acknowledgment of Fair Market value either prior to closing or after closing.

Provided at closing
An appraisal must be attached to the written acknowledgment

A Mortgagee Policy of Title Insurance (form T-2) is required. The policy must be supplemented by the following endorsements.

Equity Texas Mortgage Refinance Mortgage Endorsement (form T-42), which must include the optional coverage provided by Paragraph 2(f).
Supplemental Coverage Equity Texas Mortgage Refinance Mortgage Endorsement (Form T-42.1) deletions to the endorsements are not permitted.

Survey: If the Texas Cash Out Refinance Mortgage Applicants or co-Texas Cash Out Refinance Mortgage Applicants owns any adjacent land, the Texas Mortgage Refinance file must contain a survey that shows the homestead property is a separate parcel that does not exceed the acreage permitted under the Texas Constitution.

Each property owner and each owner’s spouse are required to certify, at closing, that he or she received the required copies. The certification could be on each document that the Texas Cash Out Refinance Mortgage Applicants signs or on a separate certification.

Power of Attorney Texas Mortgage Refinances closing with the use of a Power of Attorney are not eligible for financing.

Section 16 Texas 50 (a)(4)

A new provision has been added to allow a home equity Texas Mortgage Refinance [Texas 50(a)(6)] to be refinanced by a no-cash out refinance transaction [Texas 50(a)(4)]. The following criteria must be met:

The Texas Mortgage Refinance being refinanced [Texas (a)(6)] must be seasoned at least 12 months;
There is no cash out;
The LTV/CLTV can not exceed 80% at the time of closing; and
The Texas Cash Out Refinance Mortgage Applicants(s) affirmatively states that they are aware that they are refinancing their Texas Mortgage Refinance from a home equity Texas Mortgage Refinance [Texas (a)(6)] to a no cash-out refinance Texas Mortgage Refinance [Texas (a)(4)] and acknowledges such on an affidavit. The affidavit must be provided to the Texas Cash Out Refinance Mortgage Applicants(s) no later than 3 business days after the date the application is received AND at least 12 days before Texas Mortgage Refinance closing.

o The “affidavit” refers to the “Notice of Refinance of a Texas Home Equity Texas Mortgage Refinance Pursuant to Subsection (f)(2) of Article XVI, Section 50 of the Texas Constitution.”

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