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Compliance FAQs: State Disclosure

Here are Frequently Asked Questions (FAQs) that the DocMagic Compliance Department receives from our customers.

On what closing documents does the CA CFL license number need to appear?

According to the California Department of Corporations, the CFL license number needs to be disclosed on at least one document that is to be signed by the consumer.  It does not necessarily need to be disclosed on the deed of trust if another document already discloses it.  However, we currently disclose the CFL license number on the Note, Good Faith Estimate, TIL and the CA Finance Lender's Law Statement of Loan.

Does the IN Property Tax Benefit Forms need to printed in color in order to be compliant?

According to Ind. Code Ann. § 6-1.1-12-43, the Property Tax Benefits (INPTB.MSC) disclosure must be "be printed in one (1) of two (2) or more colors prescribed by the department of local government finance that distinguish the form from other documents typically used in a closing referred to in subsection (b)."  The Indiana Department of Local Government Finance has advised that the form must be printed on gold or yellow paper.  So for eDisclosure purposes, both forms must have the background color display in either gold or yellow.

Why are the words “Open-End” on the Connecticut Mortgage?

If you look at Fannie Mae's security instrument for Connecticut, they use "open-end" in the title (see here). 

To protect the lien priority of a mortgage intended to secure future advances; Conn. Gen. Stat. § 49-2(c) provides an optional statutory safe harbor that may be followed.

In other words, if the lender, for some reason, makes advances on behalf of the borrower to protect the property, pay insurance, etc., having "Open-End" in the title of the mortgage deed would secure these advances, thereby allowing the lender to recover these costs.


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