Cx10515 and Cx1701 are duplicates of FNMA Form 3179 (Loan Modification Agreement [Providing for Fixed Interest Rate]). FNMA recently revised this form, so we will be modifying Cx10515 and Cx1701 to match these revisions. Specific changes include:
- Adding a new Subsection 5(f), wherein the borrower authorizes the lender to share the borrower’s personal information with third parties who will help with foreclosure prevention alternatives. The borrower also consents to allow these third parties to contact the borrower.
- Removing language concerning the Expanded Approval™ Timely Payment Rewards program and rider.
- Including additional paragraphs to dynamic Subsection 5(g) when the loan is secured by a 2- to-4 unit or investment property. These additional paragraphs deal with the assignment of rents and their application. This language is included in the Instructions to FNMA Form 3179 – however, we will be including the phrase “To the extent permitted by applicable law,” at the beginning of the second paragraph for loans which are secured by property in Hawaii, due to Hawaii case law which limits the assignment of rents (see Hawaii Nat’l Bank v. Cook, 99 Haw. 334, 55 P.3d 827 (Haw. Ct. App. May 16, 2000).
These changes will take effect on November 12, 2014. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
November 7, 2014