| (a) Except as otherwise provided by subsection (c)
of this section, when provided to a mortgage applicant or prospective
mortgage applicant written confirmation of conditional pre-qualification
shall include the information in Form A, Figure: 7 TAC §81.201(a).
This information can be provided by utilizing Form A or an alternate
form that includes all of the information found on Form A. There is
no requirement to issue a written confirmation of conditional pre-qualification.
Form A or an alternate form may be modified by adding any of the following
as needed:
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(1) Any additional aspects of the loan as long as not
misleading;
(2) Any additional items that the originator has reviewed
in determining conditional qualifications; or
(3) Any additional terms, conditions, and requirements.
(b) When provided to a mortgage applicant or prospective
mortgage applicant, written notification of conditional loan approval
on the basis of credit worthiness, but not on the basis of collateral,
shall include the information in Form B, Figure 7: TAC §81.201(b).
This information can be provided by utilizing Form B or an alternate
form that includes all of the information found on Form B. There is
no requirement to issue a written notification of conditional loan
approval. Form B or an alternate form may be modified by adding the
additional information permitted by subsection (a)(1) - (3) of this
section, or disclosure of fees charged. A disclosure of fees charged,
on Form B or an alternate form, does not serve as a substitute for
any fee disclosure required by state or federal laws or regulations.
A conditional loan approval should not be issued unless the company
or originator has verified that, absent any material changes prior
to closing, the mortgage applicant or prospective mortgage applicant
has satisfied all loan requirements related to credit, income, assets,
and debts. Verification may be conducted manually or by electronic
means.
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(c) Subsection (a) of this section does not apply to
"firm offers of credit," as that term is defined in 15 U.S.C. §1681a(1).
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| Source Note: The provisions of this §81.201 adopted to be effective July 5, 2012, 37 TexReg 4873; amended to be effective November 5, 2015, 40 TexReg 7623; amended to be effective May 1, 2020, 44 TexReg 6527 |
