In FNMA SEL-2015-08, Fannie Mae announced the publication of a new version of their uniform West Virginia security instrument (FNMA Form 3049), as follows:
“Fannie Mae and Freddie Mac have updated the West Virginia Deed of Trust (Form 3049) to make it consistent with the state’s Consumer and Credit Protection Act. The following sections of the security instrument have been revised:
- Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges;
- Application of Payments or Proceeds;
- Protection of Lender’s Interest in the Property and Rights Under this Security Instrument;
- Loan Charges;
- Borrower’s Right to Reinstate after Acceleration;
- Remedies; and
- Attorneys’ Fees.
Lenders are encouraged to review these changes carefully as they affect the ‘uniform covenants’ of the security instrument. Lenders may begin using this revised security instrument immediately and must use it for all West Virginia loans closed on or after January 1, 2016.”
We have completed updating our copy of this form (Cx359) accordingly. Plans are underway to update the FHA-version of this form (Cx19406) as well; however, there is a conflict between one of FHA’s required clauses and West Virginia law (concerning reinstatements). We have contacted FHA for guidance and clarification. Should FHA not respond back in a timely manner, we will proceed to retain FNMA’s clauses, since these are compatible with state law.
This change will take effect on August 14, 2015. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
August 7, 2015