When “Loan Proceeds Used for Construction or Repair/Remodeling” (field 60136) has not been set, it defaults to “Yes” in ConformX if any of the following conditions are true:
- “Loan Purpose” is Construction Only or Construction to Perm
- “Refinance Loan, Purpose of Refinance” is Home Improvement
- “FHA Section Code” is 203k
- “Rehabilitation/Renovation Yes/No” is Yes
- “New Construction?” is Yes
Setting “New Construction?” to Yes designates a new home has been or will be constructed on the property. The new home could already be complete. Therefore, the “New Construction?” is Yes condition that currently defaults “Loan Proceeds Used for Construction or Repair/Remodeling” to Yes will be replaced with one based on the more precise “Building Status” (field 30404).
If “Building Status” is set to one of the following options, then “Loan Proceeds Used for Construction or Repair/Remodeling” will default to “Yes”:
- Proposed Construction
- Subject To Alteration
- Subject To Repair
- Under Construction
“Loan Proceeds Used for Construction or Repair/Remodeling” will continue to be used as a trigger for the following:
- Nebraska Construction Loan Notice (Cx4669)
- Washington Hiring a Contractor, Remodeler, or HandyMan (Cx20791)
- Washington Facts About Construction Liens (Cx16579)
- Title of “CONSTRUCTION TRUST DEED” on the first lien Fannie Mae California Deed of Trust (Cx312) as announced here.
In addition, the title on the following other generic California deeds of trust will be modified to print “CONSTRUCTION TRUST DEED” when “Loan Proceeds Used for Construction or Repair/Remodeling” is “Yes”:
- FHA CA Deed of Trust (Cx19362)
- CA Deed of Trust FHA (Cx365) [for pre-09/14/2015 FHA Case Number Assignment Date loans]
- CA Deed of Trust Second (Cx471)
- HELOC Deed of Trust – CA (Cx1362)
These changes will be in effect on February 28, 2017. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
TW 173375 and DR 219830