Md. Code Ann., Tax-Prop. § 12-108(g) exempts from a recordation tax certain refinance security instruments “to the extent that it secures the refinancing of an amount not greater than the unpaid principal amount secured by an existing [instrument] at the time of refinancing . . .” (Ibid. § 12-108[g]).
In order to qualify for this exemption, an affidavit signed by the original mortgagor must be recorded in which the mortgagor affirms that he is the original mortgagor and the amount of the unpaid outstanding principal of the original loan which is being refinanced.
We have been providing, on an investor level, Cx15803 for this requirement – which is substantially similar to the model “Refinance and Supplement Affidavit” published by Howard County on their website (http://www.co.ho.md.us/Departments.aspx?ID=1452).
In order to ensure that all lenders have the option of providing this affidavit, we will be configuring this document to be used generically for loans secured by property in Maryland. This document will print when:
- “Document Package Type” equals either “Initial Disclosure” or “Closing.”
- “Loan Purpose” equals either “CashOutOther” or “NoCashOutOther.”
This change will take effect on March 22, 2014. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
March 17, 2014