Pursuant to a recent audit, we will be modifying our FHA New York Mortgage (Cx19390) to more closely match the FHA Model Mortgage Forward. The text of paragraph (a) “Borrower’s Obligations” in the third Uniform Covenant will be changed to:
“I shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the “Funds”) to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rent on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums to be paid by Lender to the Secretary or the monthly charge by the Secretary instead of the monthly Insurance premiums. These items are called “Escrow Items.” At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees and Assessments, if any, be escrowed by me, and such dues, fees and assessments shall be an Escrow Item. I shall promptly furnish to Lender all notices of amounts to be paid under this section.”
This change will be in effect on April 7, 2016. If there are any questions or concerns about this change, please contact client support at 1.800.497.3584.