Fannie Mae has posted an authorized change in its Instructions for the Illinois Mortgage (Form 3014). The authorized change allows lenders to add either the phrase, “at the rate of %,” at the end of the second sentence in the definition of “Note” on Page 1 of the Illinois Mortgage or an Interest Rate Rider to the Mortgage that replaces the definition of “Note” by including the foregoing language, if the loan is a fixed-rate mortgage (FRM).
This authorized change is only applicable to FRMs, because an Adjustable-Rate Rider already provides for the rate of interest and accompanies the Illinois Mortgage when the loan is an adjustable-rate mortgage (ARM).
Revised Form: Mississippi Security Instruments
Mississippi House Bill 600, which became effective July 1, 2012, amends Miss. Code Ann. §89-5-24(2) to require that the physical business address of every grantor, grantee, borrower, beneficiary, trustee or other party to the instrument appear on the first page of each document presented for recording, below the three-inch margin. In response to this amendment, Fannie Mae has updated the Instructions for Mississippi’s Deed of Trust (Form 3025), mandating that lenders include the street address for Mortgage Electronic Registration Systems (MERS) if MERS is named as the mortgagee of record (as nominee for the beneficiary).
Accordingly, if originating loans in Mississippi, please ensure that your Mississippi Security Instruments comply with the amendment to Miss. Code Ann. §89-5-24(2) and Fannie Mae’s requirement for Mississippi, conventional MERS Security Instruments. If MERS will be named as the mortagee of record for your Mississippi FHA and VA loans, the security instruments for FHA and VA loans should include the same street address for MERS that appears in the conventional security instruments.
Virginia Recording Requirements Revised
Virginia House Bill 761 amends 17.1-223 of the Code of Virginia to provide that a county recorder may reject any deed for filing or recordation unless the deed states on the first page of the document that it was prepared by the owner of the real property or an attorney licensed to practice law in the Commonwealth, where the statement by an attorney includes the name and Virginia State Bar number of the attorney who prepared the deed. The bill allows for some exceptions to this requirement, including deeds in which a public service company, railroad, or cable system operator is a grantor or grantee, and deeds prepared under the supervision of the Office of Attorney General of Virginia. The amendment to Section 17.1-223 becomes effective on July 1, 2012.
If making conventional loans in Illinois or mortgage loans in Mississippi and/or Virginia, please make sure that your security instruments in these states are updated accordingly by your document preparation vendor or in-house compliance or legal department.
Please note: The legal developments in this article affect security instruments in Illinois, Mississippi and Virginia
Melanie A. Feliciano Esq. is DocMagic Inc.’s chief legal officer and currently serves as editor-in-chief of DocMagic’s electronic compliance newsletter, The Compliance Wizard. She received her JD from the Georgetown University Law Center, and is licensed in California and Texas. She may be reached by phone at (800) 649-1362 or e-mail [email protected]