A contract for a loan under Chapter 342 of the Finance Code (i.e., a secondary mortgage loan with an effective rate of greater than 10 percent) or a home equity loan regulated by the Texas Office of Consumer Credit Commissioner ("OCCC") must be written in "plain language." In accordance with these Plain Language Contract Rules, the OCCC provides model notes and security instruments for second lien home equity loans and second lien purchase money loans. Because the lender must use the OCCC model forms, DSI provides these in the following generic plan codes:

1_TX1 Texas Purchase Money Homestead or Second Home
1_TX5 Texas Homestead Cash-Out or Refi With Cash-Out

For a non-standard plain language document, the OCCC must approve each document. Under Texas Finance Code Section 341.502(d), a non-standard plain language contract submitted to the TX OCCC for approval may be used on the date it is submitted for review.

Because the OCCC has not provided model forms for the below loan types, DSI's Compliance Department has prepared and submitted to the OCCC the following documents on the following dates for the generic plan codes set forth below:

SUBMISSION DATE		PLAN CODE		DOCUMENTS SUBMITTED
March 1, 2005		1__TX1		Fixed Rate Balloon Note (having a 15-year term amortized over 30 years) and an accompanying Balloon Rider
April 27, 2006		1__TX2 1__TX3		txpnr.msc and corresponding security instrument (Non-Mers Version) (Mers Version)

The above documents have been used since the date of their submission to the OCCC. If you have any questions regarding these plain language documents, please contact the Compliance Department.

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Melanie A. Feliciano is Assistant General Counsel of Document Systems, Inc. and a member of its Compliance Department.