This disclosure, set forth in Tex. Fin. Code § 343.104, must be made by hand delivery or mail not later than the third business day after the date the lender receives a home loan application. Tex. Fin. Code § 343.001 defines “home loan” for purposes of the required disclosure.
Insurance Notice to Applicant
You may elect to purchase credit life, disability, or involuntary unemployment insurance in conjunction with this mortgage loan. If you elect to purchase this insurance coverage, you may pay for it either on a monthly premium basis or with a single premium payment at the time the lender closes this loan. If you choose the single premium payment, the cost of the premium will be financed at the interest rate provided for in the mortgage loan.
This insurance is not required as a condition of closing the mortgage loan and will be included with the loan only at your request.
You have the right to cancel this credit insurance once purchased. If you cancel it within 30 days of the date of your loan, you will receive either a full refund or a credit against your loan account. If you cancel this insurance at any other time, you will receive either a refund or credit against your loan account of any unearned premium. You must cancel within 30 days of the date of the loan to receive a full refund or credit.
To assist you in making an informed choice, the following estimates of premiums are being provided along with an example of the cost of financing. The examples assume that the term of the insurance product is [number] years and that the interest rate is [percent] percent (a rate that has recently been available for the type of loan you are seeking). Please note that the actual loan terms you qualify for may vary from this example. “Total amount paid” is the amount that would be paid if you financed only the total insurance premium for a [number] year period and is equal to the amount you would have paid if you made all scheduled payments. This is not the total of payments on your loan.
Credit Life Insurance: Estimated premium of $[amount]
Disability Insurance: Estimated premium of $[amount]
Involuntary Unemployment Insurance: Estimated premium of $[amount]
Total Insurance Premiums: $[amount]
Total Amount Paid: $[amount]
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Include the following language if an acknowledgment of receipt is desired. |
The undersigned acknowledge[s] receipt of the foregoing notice on [date].
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Continue with the following. |
[Name of applicant]
Date:
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Include additional signature lines for each applicant. |