In FNMA Ann. SEL-2015-05, FNMA and FHLMC announced that they would be changing their Form 3032 (the uniform security instrument for New Mexico) from a deed of trust to a mortgage, allegedly due to an expansion of New Mexico’s “Home Loan Protection Act” and its prohibitions on non-judicial foreclosures for most residential properties.
According to the Announcement, “Lenders are encouraged to begin using the New Mexico mortgage form immediately, and must use the new form for mortgage loans with note dates on or after November 1, 2015.” For conventional loans, our version of Form 3032 (Cx341) will be updated to the latest version of such Form. The current deed of trust-version will be copied over to Cx13595, which will be available upon request for any clients who wish to continue using a deed of trust for their loans in New Mexico.
For FHA loans, we will continue to provide the current version Cx394 pursuant to the provisions of FHA Single Family Handbook 4155.2 ch. 6.B.2 & 12.A.2 and FHA ML 2009-13. Once these FHA rules are replaced by new FHA Single Family Handbook 4000.1 this September, we will be updating Cx394 to more closely match the language in the newest version of Form 3032 (i.e. we will continue to provide a deed of trust for FHA loans in New Mexico until the new Handbook takes effect, at which time we will provide a mortgage).
Our generic junior lien security instrument for New Mexico (Cx499) is currently formatted as a mortgage and requires no updates.
Changes to Cx341 will take effect on May 19, 2015 and changes to Cx394 will be announced separately in the future as our new FHA security instruments are completed. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
May 12, 2015