T-42.1 - TX Supplemental Coverage Equity Loan Mortgage Affidavit Checklist for T-42.1 Endorsement 1
This cover sheet must be detached before using this form.
[If you check "NO," delete the paragraph of T-42.1 and get lender approval.]
CHECKLIST FOR T-42.1 ENDORSEMENT
YES NO ISSUE T-42. Always attach the T-42 Endorsement to your Mortgagee Policy, if you issue the T-42.1 Endorsement. Comply with our underwriting to issue the T-42 Endorsement.
YES NO REQUIRE OUR AFFIDAVIT. Always have the mortgagors sign our Supplemental Coverage Equity Loan Affidavit.
YES NO NOTE AND MORTGAGE. Paragraph 1(a) through 1(h). Note and Mortgage must be executed in your Texas title company office.
YES NO CLOSING DATE. Paragraph 1(a). Note and Mortgage must be executed on or after earliest closing date expressly stated in closing instructions.
YES NO DISBURSE. Paragraph 1(b). Do not disburse Home Equity Loan proceeds before fourth business day after closing and do not disburse before closing instructions allow.
YES NO ELECTION NOT TO RESCIND. Paragraph 1(c). Do not allow the owner or spouse to sign an acknowledgment of election not to rescind when they sign the Note and Mortgage.
YES NO COPIES OF DOCUMENTS. Paragraph 1(d). Make a separate copy of all documents executed in your office after signed and give a copy to each owner and each spouse.
YES NO SEND FINAL CLOSING DISCLOSURE. Paragraph 1(e). Send a final Closing Disclosure to the Lender showing all the fees you will collect or disburse (and all other fees of which you know that are POC items) before closing. Require the Lender to initial and fax back its approval.
YES NO NO BLANKS. Paragraph 1(f). Review (1) documents you prepare, (2) Note, (3) Mortgage, (4) any Affidavit of Compliance, and (5) Acknowledgment of Fair Market Value. Verify no blanks left to be filled in when signed by owners. Be sure the Acknowledgment of Fair Market Value states the agreed value.
YES NO ATTACH APPRAISAL OR EVALUATION. Paragraph 1(g). Verify the copy of the purported appraisal or evaluation is attached to the Acknowledgment of Fair Market Value when signed by the owners.
YES NO EXECUTE ACKNOWLEDGMENT OF FAIR MARKET VALUE. Paragraph 1(h). Verify that the owners sign the Acknowledgment of Fair Market Value in your office when they sign the Note and Mortgage.
YES NO ONLY HOMESTEAD. Paragraph 1(i). Verify (1) the land does not exceed ten acres, (2) the land is only one tract of land (not two or more lots), (3) the land is used for a residence, and (4) the owners do not claim a separate homestead tract [DO NOT ISSUE WITHOUT UNDERWRITER APPROVAL IF (1) ONE OR MORE COTENANTS DO NOT LIVE ON THE LAND, OR (2) A TRUST OWNS THE LAND, OR (3) A TENANT OCCUPIES PART OF THE LAND]. Otherwise, call us. You can verify that the land does not exceed ten acres by (a) a surveyor's certificate or letter, or (b) use of a software program that your examiner uses by typing the land description. If the land exceeds 200 acres and is rural, call us.
YES NO NO HOME EQUITY MORTGAGE ON OTHER LAND. Paragraph 1(j). Require our Affidavit. IF THE LAND IS IN A CITY LOCATED IN MORE THAN ONE COUNTY, YOU MAY ISSUE THE T-42.1 DESIGNED FOR CITIES LOCATED IN MULTIPLE COUNTIES.
YES NO NO HOME EQUITY MORTGAGE CLOSED ON OTHER LAND IN LAST 12 MONTHS. Paragraph 1(k). Require our Affidavit. If the land is business homestead, call us. If the owners own their own business (according to the Affidavit or Loan Application, if available), please call us. IF THE LAND IS IN A CITY LOCATED IN MORE THAN ONE COUNTY, YOU MAY ISSUE THE T-42.1 DESIGNED FOR CITIES LOCATED IN MULTIPLE COUNTIES.
For issuing guidelines on this form, see Guidelines