Pursuant to a recent audit, we will be modifying our FHA West Virginia Deed of Trust to more closely match the FHA model Mortgage Forward and the recently updated FNMA model WV Deed of Trust. The following changes will be made:
- The first paragraph in Uniform Covenant 1 will end with:
“However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require, as permitted by Applicable Law, that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer’s check or cashier’s check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer”.
- In Uniform Covenant 1, after the first sentence of the second paragraph, we are inserting the following:
“Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted.”
- In Uniform Covenant 1, the sentence with instructions for partial payments will be replaced with:
“If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure.”
- We will remove the paragraph in Uniform Covenant 2 concerning the application of monies received for delinquent payments.
- In the first paragraph of Uniform Covenant 13, a provision will be inserted concerning attorney’s fees, property inspection and valuation fees.
- At the end of subsection (c) of Uniform Covenant 18, we will add: “…including, but not limited to, reasonable attorneys’ fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender’s interest in the Property and rights under this security instrument.”
- In Uniform Covenant 18 we will also insert a new sentence after clause (iii) concerning reinstatement:
“Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer’s check or cashier’s check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer.”
- At the end of the first paragraph of Covenant 22, a clause for attorney’s fees will be added.
- The witness lines will be removed.
- A few minor typos will be corrected.
These updates will be effective March 11, 2016. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.