In March of this year, KY SB 148 (2015) became law, with an effective date of June 23, 2015. This bill amends KY Rev. Stat. §382.290 to prevent county clerks (or their deputies) from recording mortgage or deeds with liens retained therein unless either document explicitly refers to the next immediate source of title for which the mortgagee or grantee derived title to the property or the interest encumbered therein.
We will be updating our KY Mortgage FNMA/FHLMC (Cx326), KY Mortgage FHA (Cx379), KY Mortgage Second (Cx484), and KY HELOC Mortgage (Cx1404) to match Fannie Mae’s revised Form 3018 by adding the following Derivation Clause:
Being the same property conveyed to Borrower by deed dated _________, of record in Deed Book ____, page _____, ______________ County Clerk’s office.
The Derivation Clause will begin appearing on these documents on June 23, 2015. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
June 2, 2015
DR 170395
Update:
In conjunction with the addition of the Derivation Clause for Kentucky, we will also create global optional prompts for the appropriate fields in Closing Packages for loans in Kentucky. In order to give clients an opportunity to populate the Derivation Clause correctly, we will prompt for the following fields:
- Derivation Recording Book Number (Field 623)
- Derivation Recording Page Number (Field 625)
- Derivation Clause Instrument Date (Field 98080)
These prompts will be applied on July 15, 2015. If you have any questions or concerns about these optional prompts, please contact Client Support at 1.800.497.3584.
July 8, 2015
TW 121051