2015 Virginia Laws ch. 434 (S.B. 999), which is applicable to transactions occurring on or after July 1, 2015, amends (inter alia) Va. Code Ann. § 58.1-803(D)(3) to require the following:
“The supplemental instrument, or any cover sheet submitted with the supplemental instrument, shall include the original principal amount of the bonds or other obligations secured by the prior instrument, the deed book and page number or instrument number, as applicable, of the prior instrument, and if applicable with regard to the calculation of the tax paid on the prior instrument, any increase in the fair market value of the property conveyed.”
Although no official definition of “supplemental instrument” is provided, amended Subsection (D)(1) does indicate that such an instrument is “supplemental to, wrap[s] around, or modif[ies] the terms of an existing deed of trust or mortgage”. Within our system, these would be our generic loan modification agreements (Cx1701, Cx4888, Cx10514, and Cx10515).
We are, therefore, modifying these agreements to conform to Virginia’s new requirements. The following information will print before the first paragraph when “State Code” equals “Virginia”:
“For the purposes of Va. Code Ann. § 58.1-803(D)(3), the following information is provided:
Original Principal Amount of Original Note: $[Field 6678]
Recording Information of Deed of Trust being Modified: See first paragraph
Increase in Fair Market Value of Secured Property (if applicable): $[Field 98171] “
This change will take effect on July 1, 2015. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
June 12, 2015