| (c) Accuracy. All information and amounts on the disclosure
statement must be accurate and must correctly reflect the terms of
the property tax loan at closing.
(1) Annual percentage rate. For a residential property
tax loan, the annual percentage rate will be considered accurate if
it is not more than 1/8 of 1 percentage point above or below the annual
percentage rate determined in accordance with §89.502(2) of this
title (relating to Definitions).
(2) Dollar amounts. For purposes of this subsection,
a dollar amount on the disclosure will be considered accurate if it
is not more than $10 above or below the actual amount charged under
the terms of the property tax loan.
(3) Amended disclosure statement. At any time after
delivering the disclosure statement, if the property tax lender learns
that any information on the disclosure statement was inaccurate or
did not correctly reflect the terms of the loan at closing, then the
property tax lender must notify the property owner of the inaccuracy,
and must send an amended, accurate disclosure statement to the property
owner in a manner described by subsection (d) of this section. The
amended disclosure statement must list the date on which it was revised.
(A) General timing requirement. The property tax lender
must provide any amended disclosure statement to the property owner
before the property owner executes any promissory note, loan agreement,
deed of trust, contract, security deed, or other security instrument.
(B) Prompt disclosure for certain increased amounts.
In addition to complying with subparagraph (A) of this paragraph,
the property tax lender must provide the amended disclosure to the
property owner promptly after discovering the inaccuracy if the inaccuracy
results in:
(i) an increase of more than $10 to the total of payments,
the closing costs, or the amount of any periodic payment, compared
to the amount originally disclosed to the property owner; or
(ii) an increase of more than 1/8 of 1 percentage point
to the annual percentage rate, compared to the amount originally disclosed
to the property owner for a residential property tax loan.
(d) Delivery.
(1) Face-to-face interview before closing. In the case
of a face-to-face interview, a property tax lender must provide a
disclosure statement containing all of the elements outlined by subsection
(a) of this section to the property owner at the time of the interview.
A property owner present at the interview may sign an acknowledgment
verifying receipt of the disclosure statement at that time.
(2) No face-to-face interview. If there is no face-to-face
interview, a licensee must deliver a disclosure statement containing
all of the elements outlined by subsection (a) of this section to
the owner of the property.
(A) Method of delivery. The disclosure statement may
be delivered by U.S. mail, with prepaid first-class postage, or via
facsimile or email if the property owner consents. Alternatively,
licensees may deliver the disclosure statement by certified mail with
return receipt requested, by using a commercial delivery service with
tracking abilities, or by using a courier service.
(B) Timing of delivery. The disclosure statement must
be delivered within three business days from receipt of the property
owner's application for a property tax loan, or within three business
days from the date that the property tax lender first has knowledge
of the property owner's agreement to enter into a property tax loan
with the property tax lender.
(C) Co-applicants. If property owners who are co-applicants
provide the same mailing address, one copy delivered to that address
is sufficient. If different addresses are shown by co-applicants,
a copy must be delivered to each of the co-applicants.
(e) Verification of delivery.
(1) At time of face-to-face interview before closing.
At the time of a face-to-face interview, verification that a disclosure
was provided under this section is not required, but may be established
by a signed and dated acknowledgment of the property owner obtained
at the time of the interview.
(2) No face-to-face interview. If there is no face-to-face
interview, the property tax lender must deliver the disclosure statement
to the property owner as prescribed in subsection (d)(2) of this section.
(A) Verification of delivery by mail. The property
tax lender must allow a reasonable period of time for delivery by
mail. A period of three calendar days, not including Sundays and federal
legal public holidays, constitutes a rebuttable presumption for sufficient
mailing and delivery.
(B) Verification of delivery via facsimile. For disclosures
delivered via facsimile, a dated facsimile confirmation page indicating
that the disclosure statement was successfully transmitted to the
fax number provided by the property owner will constitute a rebuttable
presumption for sufficient delivery.
(C) Verification of delivery by certified mail with
return receipt requested. For disclosures delivered by certified mail
with return receipt requested, a dated return receipt indicating that
the disclosure statement was successfully delivered to the property
owner's address will constitute verification of delivery.
(D) Verification of delivery by commercial delivery
service with tracking abilities. For disclosures delivered by commercial
delivery service, a dated receipt indicating that the disclosure statement
was successfully delivered to the property owner's address will constitute
verification of delivery.
(E) Verification of delivery by courier service. For
disclosures delivered by courier service, a dated receipt indicating
that the disclosure statement was successfully delivered to the property
owner will constitute verification of delivery.
(F) Verification of delivery by email. For disclosures
delivered via email, a dated reply email indicating that the disclosure
statement was successfully delivered to the property owner will constitute
verification of delivery. Alternatively, a property owner's affirmative
consent to electronic delivery of the disclosure in accordance with
the Electronic Signatures in Global and National Commerce Act, 15
U.S.C. §7001(c), will constitute a rebuttable presumption for
sufficient delivery.
(f) Acknowledgment at time of closing. At the time
of closing, a property tax lender may deliver an additional copy of
the disclosure statement, but is not required to do so. The property
tax lender must obtain a dated acknowledgment signed by the property
owner stating that the property owner received the disclosure statement
prior to closing. The acknowledgment of receipt may be included on
the disclosure form as provided in §89.507(a)(11) of this title
(relating to Permissible Changes).
(1) Married property owners. If the property is designated
as a homestead, the signatures of both spouses must be obtained by
the property tax lender in order to acknowledge delivery of a disclosure
under this section.
(2) Property owned by a legal entity. If the property
is owned by a legal entity (e.g., a living trust), the signature of
a person with authority to sign on behalf of the legal entity must
be obtained by the property tax lender in order to acknowledge delivery
of a disclosure under this section.
(g) Disclosure of affiliated businesses. If a property
tax lender regularly contracts with one or more affiliated businesses
for services under Texas Finance Code, §351.0021(a)(4), (a)(5),
(a)(6), (a)(7), (a)(8), or (a)(10) that are not performed by an employee
of the property tax lender, then the disclosure statement must include
a statement substantially similar to the following: "The property
tax lender can impose certain additional charges after closing. Some
of these charges may be paid to (INSERT NAME OF AFFILIATED BUSINESS
OR BUSINESSES), which is affiliated with the property tax lender.
The costs paid to the affiliated business cannot be for services performed
by employees of the property tax lender."
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| Source Note: The provisions of this §89.504 adopted to be effective January 3, 2008, 32 TexReg 9944; amended to be effective July 5, 2012, 37 TexReg 4874; amended to be effective September 5, 2013, 38 TexReg 5707; amended to be effective March 15, 2015, 40 TexReg 1068; amended to be effective November 9, 2017, 42 TexReg 6131 |
