Section (E) of the NOTICE CONCERNING EXTENSIONS OF CREDIT DEFINED BY SECTION 50(a)(6), ARTICLE XVI, TEXAS CONSTITUTION: states that FEES AND CHARGES TO MAKE THE LOAN MAY NOT EXCEED 3 PERCENT OF THE LOAN AMOUNT. We’ve set a business rule in Optimal Blue that factors the 3% when pricing a small TX Cashout. The business rule is applied to all loans under $135,000. Unfortunately I can’t apply this rule to only TX cashouts because not all lenders offer a specific loan product for Texas cashouts. Some call them Equity loans or TX cashouts, others just call them conforming fixed, they all have the standard FNMA cashout adjustments but those don’t protect us against the actual closing cost on the smaller loans being over 3%. The business rules
