As previously announced, FNMA announced that they had published a revised Form 3890 (“Multistate Second Home Rider”) on their website (FHLMC announced similar revisions in FHLMC Guide Bulletin 2019-7). As a result, we will be modifying the following duplicates of this form to match the latest revisions:
- 3890 Rider Second Home (Cx35)
- NY CEMA GAP – 3890 Rider Second Home (Cx16202)
We will also be modifying the following forms, which are substantially based on Form 3890, to incorporate FNMA/FHLMC’s changes:
- Second Home Rider (Cx1878)
- Second Home Rider – HELOC (Cx20384)*
* There are minor deviations from FNMA/FHLMC’s text when this document prints for cooperative loans.
The changes consist of modifying the language of the paragraph which replaces Section 6 of FNMA/FHLMC’s uniform security instruments from:
“Borrower shall occupy, and shall only use, the Property as Borrower’s second home. Borrower shall keep the Property available for Borrower’s exclusive use and enjoyment at all times, and shall not subject the Property to any timesharing or other shared ownership arrangement or to any rental pool or agreement that requires Borrower either to rent the Property or give a management firm or any other person any control over the occupancy or use of the Property.”
“Borrower will occupy and use the Property as Borrower’s second home. Borrower will maintain exclusive control over the occupancy of the Property, including short-term rentals, and will not subject the Property to any timesharing or other shared ownership arrangement or to any rental pool or agreement that requires Borrower either to rent the Property or give a management firm or any other person or entity any control over the occupancy or use of the Property. Borrower will keep the Property available primarily as a residence for Borrower’s personal use and enjoyment for at least one year after the date of this Second Home Rider, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower’s control.”
These changes will take effect on April 12, 2019. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.