Last December, FHLMC published Bulletin 2017-28 announcing new guidance concerning land trusts (see https://compliance.docutech.com/2017/12/15/compliance-news-fhlmc-bulletin-2017-28-updates-land-trusts-texas-home-equity-loans/). Among these changes were the following:
“Each beneficiary of the Land Trust who is a Borrower must execute a Collateral Assignment . . .
. . . Form 50 is a sample form of Collateral Assignment for Land Trust Mortgages secured by Mortgaged Premises located in Illinois. The Seller may use Freddie Mac’s form for Land Trust Mortgages secured by Mortgaged Premises located in Illinois or an alternative form that Seller has determined meets Illinois requirements.” (FHLMC Single-Family Seller/Servicer Guide ch. 5103.7[b][ii][A] & [C])
Historically, we have provided our own “IL Security Assignment of Beneficial Interest in Land Trust” (Cx4936) for all loans involving a land trust in Illinois. Due to this update, however, we will be providing a duplicate of FHLMC Form 50 (“IL Collateral Assignment of Beneficial Interest in Land Trust”; Cx22151). Both Cx4936 and Cx22151 will print under the same conditions, except that Cx22151 will print when “Document Investor Institution” equals “FHLMC” and Cx4936 will print otherwise (i.e. Cx22151 will only print if the loan is intended to be sold to FHLMC).
These changes will take effect on March 24, 2018. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.