DocuTech will be making two changes to its generic Buydown Agreement (Cx25). The third paragraph in the Agreement will be modified to state the following:
‘In order to comply with FNMA guidelines and protect the availability of the buydown funds, these funds shall be held in an escrow account with a financial institution which is not the original or servicing mortgagee and is supervised by a Federal or State agency.’
In the current version, this paragraph referenced ‘Federal regulations,’ rather than ‘FNMA guidelines.’ This is being changed in order to give a more particular reference.
In addition, since the lender will be taking upon themselves some obligations under the terms of the Agreement, a lender’s signature line will be added.
These changes will take effect on Monday, August 22, 2011.