An allonge is usually added to promissory notes in order to show endorsements, particularly when there is insufficient room on the note to add endorsements. Our most frequently used allonge (Cx1702) is provided for this purpose and, in regards to the endorsement, contains the date of the endorsement.
According to GNMA MBS Guide 5500.3, Rev. 1, App. V-1, ch. 3-C, 4-C, 5-C, 6-C, & 10-C:
“The endorsement should be on the note, but should not include a date. Allonges may be used as long as they are acceptable practice in the jurisdiction in which the mortgaged property is located. The allonge must be an original, must clearly reference the note, and must be firmly affixed to the note.” (see also Ibid. ch. 24-3 & 31-12)
In order to comply with GNMA requirements, the phrase “Without Recourse On [date]” will only appear as such when “Document Investor Institution ID” does not equal “GNMA.” For loans where the investor selected is GNMA, the phrase will appear instead as “Without Recourse”. We will, however, continue to print the date of the note at the top of the allonge, in order to comply with GNMA requirements that the allonge clearly identify the note they are attached to (see Ibid.)
This change will take effect on December 27, 2014. If you have any questions or concerns, please contact Client Support at 1.800.497.3584.
December 22, 2014