Note: For an overview of the rationale for providing Cx13441, please see our article, “To Have and To Hold, In Title and in Compliance . . .” by clicking here .
Pursuant to further research into each state’s laws concerning domestic partnerships, civil unions, and same-sex marriages (hereinafter collectively referred to as “domestic relationships”) and considering the legal ramifications of the current language used in our addendums to the loan applications, the following changes will be made to Cx6095 and Cx13441:
Language: The current language of Cx13441, while giving a good overview of property rights for domestic relationships, may be too comprehensive and confusing for most borrowers. To make things simpler and easier to read for them, the language concerning property rights will be replaced for all state-specific versions of the document with a simple statement that people who are in a civil union or domestic partnership have the same rights as spouses and, as a result, all partners in these relationships will be required to sign the security instrument to enforce the lien on the subject property. Additional text will be added encouraging borrowers to consult an attorney about their property rights.
For states that recognize same-sex marriage, additional text will be added stating that both traditional and same-sex marriages are recognized in the state and non-borrowing spouses in such marriages will be required to sign the security instrument.
Scope: Cx13441 will print for the following states in Initial Disclosures and will disclose the following citations:
- California: Cal. Fam. Code § 297.5 (West 2012)
- Colorado: Colo. Rev. Stat. Ann. § 15-22-105(3)(a) (West 2013)
- Connecticut: Kerrigan v. Commissioner of Public Health, 957 A.2d 407 (Conn. 2008)
- Delaware: Del. Code Ann. tit. 13, § 212(a) (West 2013)
- District of Columbia: D.C. Code Ann. §§ 15-502 & 46-401 (2012)
- Hawaii: Haw. Rev. Stat. § 572B-9 (West 2012)
- Iowa: Varnum v. Brien, 763 N.W.2d 862 (Iowa 2009)
- Illinois: 750 Ill. Comp. Stat. Ann. 75/20 (West 2012); Ill. Admin. Code tit. 38, § 1050.11150 (2013)
- Maine: Me. Rev. Stat. Ann. tit. 19-A, § 650-A (2011)
- Maryland: Md. Code Ann., Fam. Law § 2-201 (West 2012)
- Nevada: Nev. Rev. Stat. Ann. § 122A.200 (West 2011)
- New Hampshire: N.H. Rev. Stat. Ann. § 457:1-a (2013)
- New Jersey: N.J. Stat. Ann. § 37:1-31 (West 2013)
- New Mexico: N.M. Stat. Ann. § 40-1-4 (West 2012); N.M. Attn’y Gen. Opinion No. 11-01
- New York: N.Y. Dom. Rel. Law § 10-a (McKinney 2013)
- Oregon: Or. Rev. Stat. Ann. § 106.340 (West 2012)
- Rhode Island: R.I. Gen. Laws Ann. § 15-3.1-6 (West 2012); R.I. Gov. Exec. Order 12-02
- Washington: Wash. Rev. Code Ann. §§ 26.04.010 & 26.60.010 through 26.60.901 (West 2012)
- Wisconsin: Wis. Stat. Ann. §§ 770.001 through 770.18 (West 2012)
Due to the fact that Cx13441 will now begin printing for California, it is no longer necessary to print the California-specific duplicate of this form (Cx6095), so this document will be retired from generic use and will no longer be maintained for compliance. We will, however, continue to provide the “VT Addendum to Uniform Residential Loan Application” form (Cx5107) for loans secured by property in Vermont (pursuant to Vt. Stat. Ann. tit. 15, § 1204 [West 2012]), since the language of this form duplicates the recommended form published by the Vermont Department of Banking, Insurance, Securities, and Health Care Administration (see Bulletin #23, published on June 4, 2001).
Indication: Instead of asking the borrower and co-borrower whether, based on the state’s property right laws, another person may have an interest in the subject property, Cx13441 will simply ask the borrower and co-borrower whether they are in a civil union or domestic partnership and, for certain states, whether they have a non-borrowing spouse. For Colorado, which allows for designated beneficiary agreements, the borrower and co-borrower will be asked whether they are a party to such an agreement.
These changes will take effect on April 2, 2013. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
March 26, 2013