As part of our efforts at Docutech to offer products on a generic basis, we are pleased to announce that we have reviewed and implemented requirements for the Fannie Mae Homestyle Renovation program. Our new generic FNMA Homestyle documents are:
- HomeStyle Renovation Loan Investor Rider (Cx22292, FNMA Form 3733)
- HomeStyle Renovation Contract (Cx22293, FNMA Form 3730)
- HomeStyle Renovation Loan Rider (Cx22294, FNMA Form 3732)
- HomeStyle Renovation Loan Agreement (Cx22295, FNMA Form 3731)
These new forms will be triggered for all conventional Closing packages where Rehabilitation/Renovation Yes/No (Field 29861) is Yes, and the new document trigger FNMA HomeStyle Renovation Forms (Field 126661) is also Yes.
In addition, we have also completed a state by state compliance review for renovation and construction/construction-to-permanent loans. Pursuant to this review, we have created several new disclosures that are required in renovation and construction type loans. These new documents and their configurations are:
- Pursuant to Tx. Prop. Code § 53-257, we have created Cx22478 TX Home Improvement Closing Certification, with a configuration of:
- 29861 Rehabilitation/Renovation Yes/No = Yes
OR
5991 Loan Purpose = Construction/Construction to Perm
OR
18189 FHA Section Code = 203k
OR
33578 Special Program = HomeStyle - 18215 Document Package Type = Closing
- 2279 State Code = TX
- 1179 New Construction = No
- 29861 Rehabilitation/Renovation Yes/No = Yes
- Pursuant to Miss. Code Ann. § 85-7-405(2)(c), we have created Cx22480 MS Affidavit of Commencement, with a configuration of:
- 29861 Rehabilitation/Renovation Yes/No = Yes
OR
5991 Loan Purpose = Construction/Construction to Perm
OR
18189 FHA Section Code = 203k
OR
33578 Special Program = HomeStyle - 18215 Document Package Type = Closing
- 2279 State Code = MS
- 29861 Rehabilitation/Renovation Yes/No = Yes
- Pursuant to FSA § 713.3471, we have created Cx22481 FL Borrowers Acknowledgement of Disbursement, with a configuration of:
- 29861 Rehabilitation/Renovation Yes/No = Yes
OR
5991 Loan Purpose = Construction/Construction to Perm
OR
18189 FHA Section Code = 203k
OR
33578 Special Program = HomeStyle - 18215 Document Package Type = Closing
- 2279 State Code = FL
- 29861 Rehabilitation/Renovation Yes/No = Yes
- Pursuant to NY Lien Law § 73, we have created Cx14623 NY Notice of Lending, with a configuration of:
- 29861 Rehabilitation/Renovation Yes/No = Yes
OR
5991 Loan Purpose = Construction/Construction to Perm
OR
18189 FHA Section Code = 203k
OR
33578 Special Program = HomeStyle - 18215 Document Package Type = Closing
- 2279 State Code = NY
- 29861 Rehabilitation/Renovation Yes/No = Yes
- Pursuant to NRS § 76-239.01, we have created Cx22482 NE Construction Financing Notice, with a configuration of:
- 29861 Rehabilitation/Renovation Yes/No = Yes
OR
5991 Loan Purpose = Construction/Construction to Perm
OR
18189 FHA Section Code = 203k
OR
33578 Special Program = HomeStyle - 18215 Document Package Type = Closing
- 2279 State Code = NE
- 29861 Rehabilitation/Renovation Yes/No = Yes
And finally, we are also modifying our new generic HomeStyle documents to comply with state-specific regulations related to renovation, rehabilitation, and construction loans. The state-specific changes are:
- Cx22294 HomeStyle Renovation Loan Rider – The following changes will print when Rehabilitation/Renovation Yes/No (Field 29861) = Yes:
- For West Virginia a credit line deed of trust requires the maximum principal amount to be on the security instrument and a provision that permits future advances. (See WV code § 38-1-14(c))
- Iowa allows advances to be made to protect priority as long as a specific notice is placed on the mortgage. We have placed this required notice on the rider so that lenders may make protected advances to protect priority. (See ICA § 654.12A)
- For Oklahoma, North Carolina, and the Virgin Islands, a construction mortgage statement is added to protect the priority against subsequent liens. (See 12A OK Stat § 12A-1-9-334, NCGSA § 25-9-334(h), and OKSA VIC § 9-334(h))
- Cx22295 HomeStyle Renovation Loan Agreement – Several States have limitations on disbursement retainage which have been implemented dynamically on cx 22295 Renovation Loan Agreement. The states and conditions are as follows:
- If the property state is Maryland, a 2-4 unit property, and the loan amount is more than $250k, retainage will be 5%. (See MD Real Prop. §9-301 et seq.)
- If the property state is Minnesota or Oregon, retainage will be 5%. (See MSA 337.10 subd. 4(b) and ORS 701.420(1))
- If the property state is Nevada and is a 2-4 unit property, retainage will be 5%. (See NRS 624609(2)(a)(q) & 624.031(5))
- If the property state is North Dakota, the maximum retainage will be 10% until the project is 50% complete, after which point retainage is not permitted. (See NDCC 43-07-23)
- If the property state is Montana and the loan amount is more than $400k, retainage will be 5%. (See MCA 23-2-2107 & 23-2-2110)
These changes will be in effect on November 9, 2018. If you have any questions or concerns about these new documents, please contact Client Support at 1.800.497.3584.
DR 268798
Update: We have also created Cx14622 NY Section 22 Affidavit, pursuant to NY Lien L § 22, with a configuration of:
- 29861 Rehabilitation/Renovation Yes/No = Yes
OR
5991 Loan Purpose = Construction/Construction to Perm
OR
18189 FHA Section Code = 203k
OR
33578 Special Program = HomeStyle - 18215 Document Package Type = Closing
- 2279 State Code = NY
This additional document will also be in effect on November 9, 2018.
DR 276461
Update: Our Nebraska Construction Financing Notice (Cx22482) is being retired immediately, since it was determined that our existing Nebraska Construction Loan Notice (Cx4669) is already sufficient to satisfy the requirements of NRS § 76-239.01. Effective March 9, 2019, Cx22482 will no longer print in any packages. If you have any questions or concerns about the retirement of this document, please contact Client Support at 1.800.497.3584.
DR 284747