For a good number of security instruments, there is included a “Prepared By” section in which at least the name (and usually the contact information) of the person and company who prepared the instrument is disclosed.
Our policy has been to include this section only when:
1. Required by statutory law;
2. Necessitated by case law which holds that the preparation of a security instrument is a practice of law (i.e. including the section allows clients to show that an attorney prepared the instrument); or
3. It is referenced or recommended by Ernst Publishing (http://ernstpublishing.com/default.asp), which provides detailed, state-by-state recording rule summaries.
Pursuant to an audit of these sections on our instruments, we will be removing this section on the following documents, since they are not required or recommended:
Alaska
Cx467 (2nd Lien)
Cx1344 (HELOC)
Colorado
Cx313 (1st Lien)
Cx472 (2nd Lien)
Connecticut
Cx314 (1st Lien)
Cx367 (FHA)
Cx1399 (HELOC)
Louisiana
Cx327 (1st Lien)
Cx485 (2nd Lien)
Cx1356 (HELOC)
Massachusetts
Cx328 (1st Lien)
Cx381 (FHA)
Cx486 (2nd Lien)
Cx1332 (HELOC)
Missouri
Cx491 (2nd Lien)
Montana
Cx335 (1st Lien)
Cx388 (FHA)
Cx493 (2nd Lien)
Cx3027 (HELOC)
Nebraska
Cx338 (1st Lien)
Cx391 (FHA)
Cx496 (2nd Lien)
Cx3044 (HELOC)
Nevada
Cx500 (2nd Lien)
Cx3039 (HELOC)
New Hampshire
Cx497 (2nd Lien)
North Dakota
Cx337 (1st Lien)
Cx495 (2nd Lien)
Cx3028 (HELOC)
Oklahoma
Cx503 (2nd Lien)
Cx1325 (HELOC)
Oregon
Cx504 (2nd Lien)
Cx1370 (HELOC)
We will be adding a “Prepared By” section to Cx364 (AZ Deed of Trust FHA), since it is recommended.
These changes will take effect on January 23, 2014. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
January 16, 2014
DR 147076