Texas Administrative Code
Title 7 - BANKING AND SECURITIES
Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER
Chapter 90 - CHAPTER 342, PLAIN LANGUAGE CONTRACT PROVISIONS
Subchapter D - SECOND LIEN HOME EQUITY LOANS (SUBCHAPTER G)
Section 90.404 - Model Contracts; Permissible Changes
Universal Citation: 7 TX Admin Code § 90.404
Current through Reg. 50, No. 13; March 28, 2025
(a) A licensee may consider making the following types of changes to the second lien home equity loans plain language model clauses:
(1) Adding information related to information set forth in the model clauses that is not otherwise prohibited by law;
(2) Substituting another term for "Lender" or "Borrower" that has the same meaning, or using pronouns such as "you," "we," and "us";
(3) Presenting the model clauses in any order, and combining or further segregating the model clauses;
(4) Inserting descriptive headings or number provisions;
(5) Changing the case of a word if otherwise permitted by the Texas Finance Code; or
(6) Making other changes that do not affect the substance of the disclosures.
(7) A licensee may place its NMLS ID number, the individual residential mortgage loan originator's name, or the originator's NMLS ID on any portion of a document requiring this information, including the signature page. To the extent allowed by Regulation Z, 12 C.F.R. 1026.36(g), and the official commentary to that section, a licensee may omit:
(A) the licensee's NMLS ID number, if the licensee does not have an NMLS ID number and is not legally required to obtain one; and
(B) the individual residential mortgage loan originator's NMLS ID number, if the originator does not have an NMLS ID number and is not legally required to obtain one.
(8) A sample model note is presented in the following example.
(9) A sample model security document is presented in the following example.
(b) A licensee has considerable flexibility to arrange the format of the model form if the revised format does not significantly adversely affect the substance, clarity, or meaningful sequence of the disclosures.
Disclaimer: These regulations may not be the most recent version. Texas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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