FNMA Ann. SEL 2014-03 announced a new requirement in FNMA 2014 Selling Guide B8-7-01, which stipulates that a special “MERS Rider” (new FNMA Form 3158) be used for loans secured by property located in the states of Montana, Oregon, and Washington, when the loan is registered with MERS. FHLMC also issued Bulletin 2014-6 announcing a similar change to Single-Family Seller/Servicer Guide, Vol. 1, Exhibit 4.
New Cx18587 will print in Closing document packages under the following conditions:
• Property State of Montana, Oregon, or Washington;
• MERS version of the security instrument;
• Conventional, VA, or RD/USDA;
• First Lien;
• Not a HELOC.
In addition, the MERS-versions of our standard FNMA security instruments for these three states (Cx335, 346, and 357) will be modified according to the official Instructions to Form 3158, as well as revised, permitted changes to the uniform FNMA instruments which these documents duplicate.
These changes include the removal of references to MERS within the body of the document, except for the definition for “MERS” which will be modified to refer to MERS as a nominee for the Lender and which also cross-references the new MERS Rider. The definition for “Lender” will also include a clause stipulating that the Lender is the beneficiary under the security instrument.
Although the announcements state mandatory use of this rider is not until October 15, 2014, FNMA and FHLMC do allow for it to be used “immediately.” Therefore, we will be making the rider and these changes effective on July 19, 2014. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
July 11, 2014