SECTION 175.57. Title Insurance and Closing Requirements

(a) The board may designate an attorney or title company in the county where the land is located to serve as a closing agent. The board shall furnish written instructions to the closing agent describing all conditions that must be satisfied before loan funds are released to the seller.

(b) The board, by resolutions, shall provide for the selection of persons who shall be authorized to act as a trustee for any mortgage loan made or purchased by the board. The resolutions shall either name specific individuals, or describe classes of individuals, who may act as trustees. The resolutions shall explicitly describe the powers that may be exercised by persons authorized to act as trustees.

(c) The borrower must personally sign the loan documents.

(d) The board shall be provided a mortgagee's title insurance policy and the borrower must be furnished an owner's title insurance policy. The only exceptions that may be contained in the mortgagee's title insurance policy are those that are acceptable to the board.

(e) Notwithstanding any other provision of this chapter to the contrary, all loans made under this subchapter shall be secured by first, or co-first, liens.

(f) No fees or expenses in connection with closing a transaction may be charged to the board without its prior written consent. The board may require that a closing agent furnish the board an insured closing letter from its underwriter before the board shall release funds for a transaction.

Source Note: The provisions of this §175.57 adopted to be effective January 8, 2002, 27 TexReg 286; amended to be effective December 21, 2010, 35 TexReg 11390