Field Index 123528 “Co-op is Real Property or Personal Property” is used to differentiate loans secured by a borrower’s lease and shares in a cooperative unit (aka “cooperative loans”) from being treated as secured by real property or personal property, particularly in some states like Minnesota and New Jersey where the lender can elect between these two options on a loan-by-loan basis.
We are adding two global standard value mappings to this field, so that the field is set if clients do not set it themselves. By default, field 123528 will be set to “Personal Property” if:
- FI 123528 is empty;
- “Cooperative” (FI 22537) is set to “Yes”; and
- “Property State” (FI 1714) is either Maryland, Minnesota, New Jersey, or New York.
We are defaulting to “Personal Property” in these four states because the Uniform Commercial Code, which governs transactions secured by personal property, either exclusively governs or is more commonly elected to govern cooperative loans in these states.
Conversely, FI 123528 will be set to “Real Property” under the same conditions as for “Personal Property”, except that it will be set to the former in all states except Maryland, Minnesota, New Jersey, and New York.
These changes will take effect on May 28, 2019. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.