TX state processing guide
Contract Mortgage Processing in Texas
My Loan Flow supports Texas wholesale mortgage files with a state-specific intake and milestone plan. Texas Constitution Section 50(a)(6) transactions receive an additional control track for the required consumer disclosure, waiting period, loan-to-value limit, fee review, permitted collateral and lender, closing location, and one-home-equity-loan-at-a-time rules.
Coverage is based on company-supplied information and remains subject to engagement-level licensing, lender, product, activity, and compliance confirmation.
How do you process a Texas Section 50(a)(6) cash-out refinance?
Identify the loan as a potential Texas home-equity transaction before disclosures and lender submission. Then use the lender’s current 50(a)(6) checklist and qualified legal or compliance review for the property, homestead status, existing liens, loan purpose, lender eligibility, fees, loan-to-value calculation, and closing plan.
- Flag Texas 50(a)(6) in the LOS and lender portal so the correct product, forms, and workflow are used.
- Collect the lien, title, property, payoff, and prior home-equity history needed for lender review.
- Do not convert an ordinary cash-out checklist into a Texas checklist by adding a single disclosure; the constitutional controls affect the entire file.
When does the Texas 12-day waiting period begin?
The OCCC states that the 12-day period begins when the lender has both the loan application and the required consumer disclosure; closing may occur after the period has passed. The processor records receipt evidence and uses the lender or counsel’s approved calculation rather than promising a closing date from memory.
- Record the application date, disclosure delivery date, delivery method, and evidence in the source systems.
- Surface any correction or redisclosure question to the lender’s compliance team because it may affect the closing plan.
- Keep the waiting-period gate visible next to appraisal, title, conditions, disclosure, and document milestones.
Which Texas 50(a)(6) controls should be rechecked before documents?
The OCCC consumer disclosure describes an 80 percent aggregate loan-to-value cap, limits on certain fees, restrictions on additional collateral, a single 50(a)(6) loan at a time, permitted closing locations, and lawful-lender requirements. The processor assembles evidence and reconciles data; lender counsel and compliance determine whether the transaction can close.
- Reconcile title, payoff, aggregate liens, value, loan amount, fees, and cash-to-close against the lender’s final calculation.
- Confirm the approved closing location and document execution plan before scheduling.
- Treat this page as an operations guide, not a legal opinion; current Texas law and lender counsel control.
Texas processing FAQ
What do brokers ask about Texas file processing?
Can a Texas 50(a)(6) loan close 12 days after the disclosure alone?+
The OCCC says the waiting period begins after the lender has both the loan application and the required consumer disclosure. The lender or counsel should confirm the actual earliest closing date.
Is the maximum Texas home-equity LTV 80 percent?+
The OCCC consumer disclosure describes an 80 percent cap on the total principal balances of the home-equity loan and other debts secured by the home. Current law and lender calculations control.
Does My Loan Flow provide Texas legal advice?+
No. My Loan Flow coordinates documents, data, and milestones. The lender, brokerage compliance team, title professionals, and qualified counsel make legal and eligibility determinations.
Official state references
Which sources govern this workflow?
These primary sources support this operations guide. Current law, agency guidance, lender instructions, and qualified compliance or legal review take precedence.
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