Fannie Mae and Freddie Mac have revised the Rhode Island (Form 3040) and Massachusetts (Form 3022) Security Instruments. The Rhode Island and Massachusetts Mortgages were updated to reflect recent changes in state law regarding homestead estates.
The Rhode Island change is based on the 2016 update to General Laws § 9-26-4.1(c), which reads:
“An estate of homestead shall be subordinate to a mortgage encumbering the home that was signed by all the owners of the home at the time of execution of said mortgage. A mortgage executed by fewer than all of the owners of a home that is subject to an estate of homestead shall be superior only to the homestead estate of the owners who are parties to the mortgage and their non-titled spouses and minor children, if any.”
Additionally, the model form for Massachusetts has been updated in accordance with MGLA 188 § 9, which reads:
“An estate of homestead shall be subordinate to a mortgage encumbering the home executed by all the owners of the home. For the purposes of this chapter, a mortgage shall include an instrument granting a security interest in a manufactured home or cooperative housing unit. The subordination shall not require the signature of a spouse who is not an owner. A mortgage executed by fewer than all of the owners of a home that is subject to an estate of homestead shall be superior only to the homestead estate of the owners who are parties to the mortgage and their non-titled spouses and minor children, if any.”
Per the state statutes and in compliance with FNMA model forms, Docutech has updated our Rhode Island and Massachusetts security instruments to reflect the FNMA updates. Affected Instruments include:
Rhode Island:
- RI Mortgage (Cx348)
- RI Mortgage FHA (Cx401)
- FHA RI Mortgage (Cx19397)
- RI Mortgage Second (Cx506)
- HELOC Mortgage – RI (Cx3064)
Massachusetts:
- MA Mortgage (Cx328)
- MA Mortgage FHA (Cx381)
- MA Mortgage Second (Cx486)
- HELOC Mortgage – MA (Cx1332)
- FHA MA Mortgage (Cx19379 )
These changes will be effective on November 18th, 2016. Please direct questions or concerns to Client Support at 1.800.497.3584.
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