Reference Guide: Texas Disclosure (T-64) - First American

1 1 Reference guide : Texas Disclosure (T-64) The purpose of this document is to provide a Reference for the Texas Disclosure learning. This form allows Settlement Agents to meet Texas Disclosure requirements not provided for in the Closing Disclosure . Contents Comparison .. 1 Suggested Script .. 2 Sample Texas Disclosure T-64 .. 3 Comparison Texas Disclosure T-64 Closing Disclosure Itemizes all Recording Fees (Ex: POA Fee) Groups all Recording Fees in totals Line Discloses Actual Title Premiumsbased on State Premium laws Discount reflected in Loan PolicyPremium: Discloses Title Premiums based onCFPB s TRID Rule Discount reflected in Owner sPolicy Premium: First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions. First American , the eagle logo, First American Title, First American Eagle Academy , and are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates.

2 This document is for informational purposes only and is not and may not be construed as legal advice. No third party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action. Reference guide : Texas Disclosure (T-64) | 4/05/2016 2016 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF 2 Suggested Script Use the following script to follow along with the learning and practice: This next document is the Texas Disclosure form, which shows some of the charges associated with your transaction, but in a different format. The top section is for informational purposes, identifying the transaction with closing, transaction and lender information and substantially mirrors the information on page one of the Closing Disclosure . The next section addresses Title Insurance premiums, which accurately disclose the actual premiums for title insurance.

3 It also shows the title agent, the underwriter and a breakdown of the premium split between them. This section also shows any premium splits between title agents, if more than one is involved in the transaction. In the Fees Paid to the Settlement Agent section, we show our fees that are aggregated on the Closing Disclosure . These fees include the Escrow Fees, Courier Fees, Wire Transfer Fees and a fee to provide you with a copy of the restrictions. The next section down shows any portion of the broker commissions that are being disbursed to third parties, such as the agent that you worked with, or referral fees paid to others. In your case, your broker has asked us to disburse part of his commission to others for a franchise fee, referral fee and a charitable donation. The Other disclosures section shows recording fees that weren t itemized on the Closing Disclosure , such as the amount that you are paying to record the Power of Attorney.

4 This section also includes fees for endorsements for additional coverage that were included in the owner s and loan policy premiums. If you don t have any questions, please sign at the bottom of the form, acknowledging that you agree with the fees and charges as shown and authorizing us to disburse. First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions. First American , the eagle logo, First American Title, First American Eagle Academy , and are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates. This document is for informational purposes only and is not and may not be construed as legal advice. No third party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action.

5 Reference guide : Texas Disclosure (T-64) | 4/05/2016 2016 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF Texas Disclosure Form T-64 This form provides additional disclosures and acknowledgements required in Texas . It is used with the federal Closing Disclosure form. GF # 9876-16 Page 1 of 2 Closing Information Transaction Information Closing Disclosure Issued Date: 08/25/2016 Property: 1111 Dream Home Lane, Anytown, TX 12345 Closing Date: 09/01/2016 Borrower(s): Robert L. Brown and Mary R. Brown GF #: 9876-16 Address(es): 2143 Laney Drive, Anytown, TX 12345 Sales Price: $680,000 Seller(s): William T. Jones and Justine C. Jones Loan Amount: $530,000 Address(es): 111 Dream Home Lane, Anytown, TX 12345 Lender and Settlement Agent Lender: Mangrove Lending Address: 111 Mailing Street, Orange, CA 90070 Settlement Agent: Zeus LLC Address: 1567 Celestial Way, Anytown, TX 12345 Title Insurance Premiums If you are buying both an owner s policy and a loan policy, the title insurance premiums on this form might be different than the premiums on the Closing Disclosure .

6 The owner s policy premium listed on the Closing Disclosure will probably be lower than on this form, and the loan policy premium will probably be higher. If you add the two policies premiums on the Closing Disclosure together, however, the total should be the same as the total of the two premiums on this form. The premiums are different on the two forms because the Closing Disclosure is governed by federal law, while this form is governed by Texas law. The owner s policy and loan policy premiums are set by the Texas commissioner of insurance. When you buy both an owner s policy and a loan policy in the same transaction, you are charged the full premium for the owner s policy but receive a discount on the loan policy premium. Federal and Texas law differ on where the discount is shown. Texas law requires the discount to be reflected in the loan policy premium, while federal law requires the discount to be reflected in the owner s policy premium.

7 Title Agent: Zeus, LLC Owner s Policy Premium $ 1, Loan Policy Premium $ Underwriter: First American Title Insurance Company Endorsements $ Other $ TOTAL $ 1, Of this total amount: $_____ (or 15 %) will be paid to the Underwriter; the Title Agent will retain $_____ (or 85 %); and the remainder of the premium will be paid to other parties as follows: Amount ($ or %) To Whom For Services Texas Disclosure Form T-64 This form provides additional disclosures and acknowledgements required in Texas . It is used with the federal Closing Disclosure form. GF # 9876-16 Page 2 of 2 Fees Paid to Settlement Agent Fees Paid to Settlement Agent on the Closing Disclosure include: Escrow Fees $700 Copies of Restrictions $125 Courier Fees $150 Wire Transfer Fees $25 Real Estate Commission Disbursement Portions of the Real Estate Commissions disclosed on the Closing Disclosure will be disbursed to: Franchise Fee Omega Real Estate Broker, Inc.

8 Referral Fee Venus and Aphrodite Realty Charitable Donation Friends of Amphibians Society Other disclosures Although not required, this section may be used to disclose individual recording charges included on Line 01 of Section E of the Closing Disclosure , or to disclose a breakdown of other charges that were combined on the Closing Disclosure : Document Name Recording Fee Document Name Recording Fee Mortgage $ Deed $ Power of Attorney $ Closing Disclosure Charge Name Included in Closing Disclosure Charge Title Owner s Title Insurance (optional) Title Loan Policy T-17, T-19, T-36, T-30 The Closing Disclosure was assembled from the best information available from other sources. The Settlement Agent cannot guarantee the accuracy of that information. Tax and insurance prorations and reserves were based on figures for the preceding year or supplied by others, or are estimates for current year. If there is any change for the current year, all necessary adjustments must be made directly between Seller and Borrower, if applicable.

9 I (We) acknowledge receiving this Texas Disclosure and the Closing Disclosure . I (We) authorize the Settlement Agent to make the expenditures and disbursements on the Closing Disclosure and I (we) approve those payments. If I am (we are) the Borrower(s), I (we) acknowledge receiving the Loan Funds, if applicable, in the amount on the Closing Disclosure . _____ _____ Borrower: Borrower: _____ _____ Seller: Seller: Settlement Agent: By: _____ Escrow Officer