The updated (rev. 2/20) versions of FNMA and FHLMC ARM notes and riders, including fallback language recommended by the Alternative Reference Rates Committee (ARRC), print for all standard Conventional ARM notes and riders in ConformX by default. A list of these documents is included in this related announcement: https://compliance.docutech.com/2020/03/18/document-updates-adding-fallback-language-to-standard-arm-notes-and-arm-riders/
Fannie Mae and Freddie Mac have reminded lenders that they must send information in the Uniform Loan Delivery Dataset (ULDD) by June 1, 2020, to indicate ARM loans closed on the updated documents.
“Reminder: June 1 effective date for updated ARM notes and riders
Lenders must use the updated Adjustable-Rate Mortgage (ARM) notes and riders by June 1 for loans closed with note dates on or after this day. The joint GSE notes and riders and Fannie Mae-only ARM notes and riders were previously updated to include new fallback language for closed-end, residential ARMs. Special Feature Code (SFC) 785 is required for delivery of ARM loans closed on the updated documents to indicate the updated documents have been used (note: this will be a fatal edit at delivery).”
FNMA LL-2020-01 may be viewed here: https://singlefamily.fanniemae.com/media/document/pdf/lender-letter-ll-2020-01-important-updates-adjustable-rate-mortgage-arm-products
“Updated ARM Notes and Riders – required implementation date and delivery requirements
In Bulletin 2020-1, we announced updated uniform ARM Notes and riders revised to reflect the final fallback language recommended by the Alternative Reference Rates Committee (ARRC) for ARMs.
We are reminding Sellers that they are required to use the updated uniform documents for all CMT- and LIBOR-indexed ARMs with Note Dates on or after June 1, 2020. We are also reminding Sellers that when delivering CMT- and LIBOR-indexed ARMs originated using the updated ARM Notes and riders (rev. 2/20), they must deliver the valid value “J23” for ULDD Data Point, Investor Feature Identifier (Sort ID 368).”
FHLMC Bulletin 2020-1 may be viewed here: https://guide.freddiemac.com/app/guide/bulletin/2020-1