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Question:

Did Texas amend its requirements with regard to pre-qualifications and pre-approvals?

Answer:

 Yes.  On November 1, 2019, the TX Finance Commission adopted amendments regarding its conditional pre-qualification and conditional loan approval forms. 

The amendments are meant to clarify when to use the forms and to make the content of the forms more uniform.  Specifically, the amendments explain that there is no requirement to issue a written confirmation of conditional pre-qualification or conditional loan approval.  However, in the event a mortgage lender does issue such written notifications to a consumer, it must utilize the appropriate prescribed form or an alternate form that includes all of the information found on the prescribed form.  Further, with regard to the pre-qualification form, the amendments are also meant to help emphasize to mortgage applicants that the form is not a loan approval or commitment to lend. 

The amendments and requirements to use the amended forms become effective May 1, 2020. 

Updated Conditional Pre-Qualification Letter

Updated Conditional Approval Letter