April 23, 2021

PPDocs staff participated in Texas Mortgage Bankers Association Advocacy Day, Fannie Mae and Freddie Mac Report Changes to QM Loan Eligibility and more!

PPDocs Staff Participate in Texas Mortgage Bankers Association Advocacy Day

On March 22nd and 23rd, mortgage bankers and associated real estate finance professionals from across the state participated in TMBA's biennial Advocacy Day. Several members of PPDocs staff joined TMBA to communicate the importance of the mortgage industry to the Texas economy. Through virtual meetings with various State Legislators, PPDocs staff members helped ensure that the views of Texas' real estate financial industry were heard as the Texas Legislature considers issues vital to the future of housing in the state of Texas.

Amy Coke, PPDocs employee and Co-Chair of the TMBA Advocacy and Government Relations Committee, remarked, “Thanks to the invaluable support & participation of folks like my incredible PPDocs teammates, the TMBA is able to stay at the forefront of the ongoing battle to protect our industry, and the 2021 Advocacy Day can definitely be declared a rousing success!”

PPDocs employees participating in the TMBA Advocacy Day were Amy Coke, Matt Filpi, Nick Bailey, Brayden Frank, Dallas Rivera, and Shannon Phillips Jr.

Fannie Mae and Freddie Mac Report Changes to QM Loan Eligibility

Lender Letter LL-2021-09 from Fannie Mae and Bulletin 2021-13Freddie Mac stated that loans purchased on after July 1, 2021, must meet the revised General Qualified Mortgage (QM) loan definition in the CFPB’s rule that became effective Mar. 1, 2021 (Revised QM Rule). To be eligible for purchase, such loans must:

have application dates on or before Jun. 30, 2021, and

be purchased as whole loans on or before Aug. 31, 2021, or in MBS pools with an issue date on or before Aug. 1, 2021.

Note: These announcements will effectively overrule any QM delay by the CFPB for secondary market loans.

April Frequently Asked Question

Question: May a mother name her daughter as a DBA? May an LLP name a corporation as a DBA? On a related note, does an assumed name certificate need to be filed by a borrower?

Answer: We find that there is a lot of confusion regarding assumed names. The main thing to remember about an assumed name is that an assumed name certificate is only used when a person or entity is doing business in another name.

So for example, “Betty Smith DBA Lois’ Hair Salon” means that Betty Smith is doing business under the name of “Lois Hair Salon”.

An assumed name cannot be “legal entity DBA legal entity,” “person DBA person,” “person DBA legal entity” or “legal entity DBA person.” It will always be “person DBA name” or “legal entity DBA name.” All you have to remember is that the first of the two names in a DBA must be an actual person or legal entity, and the second name cannot be an actual person or legal entity.

DBA’s Cannot Be: “Smith LLC DBA Smith Inc.” or “Betty Smith DBA David Smith” or “Betty Smith DBA Smith Inc.” or “Smith LLC DBA Betty Smith.”

DBA’s May Be: “Betty Smith DBA Lois’ Hair Salon” or “Smith LLC DBA Barbara’s Burger Barn” or “Smith Inc. DBA Taco Terrace.”

Filing Assumed Name Certificates: This is from the Texas Secretary of State on filing assumed name certificates:

Regardless of where in Texas you are using an assumed name, an assumed name certificate must be filed as follows:

The following types of persons are required to file an assumed name certificate with the county clerk in each county in which a business office is or will be maintained. If the person does not maintain a business office in Texas, then in each county in which the person conducts business.

Sole proprietorship
General partnership or joint venture
Estates
Real Estate Investment Trusts
Any other type of business entity not included above or those listed below as filing with the secretary of state.

The following types of Texas or foreign business entities are required to file an assumed name certificate both with the secretary of state and with the appropriate county clerk. Entities that are required to maintain a registered agent file in the county where the entity’s principal office is located, if the principal office is located in Texas, or where the registered office is located, if the entity’s principal office is not located in Texas. A domestic entity that is not required to maintain a registered agent shall file in the county where the entity maintains its office in Texas. A foreign entity that is not required to maintain a registered agent in Texas shall file a certificate in the county where it maintains its principal place of business in Texas.

Corporations (for-profit, nonprofit, and professional) or other
Limited liability companies (including professional limited liability companies)
Limited partnerships
Professional associations
Limited liability partnerships
Foreign filing entities

Source: http://www.sos.state.tx.us/corp/namefilingsfaqs.shtml