--- title: "Document Updates: Most Generic Oklahoma Mortgages (Cx503 & Cx3392) and HELOC Agreement (Cx21652)" description: Join the First American network of trusted title agents with comprehensive tools and resources. --- - Solutions - [Overview](https://docutech.com/solutions/) - [Document Solutions](https://docutech.com/solutions/document-solutions) - [eClosing](https://docutech.com/solutions/eclosing/) - [Document Generation](https://docutech.com/solutions/document-generation) - [Fulfillment](https://docutech.com/solutions/solutions-fulfillment) - Resources - [Overview](https://docutech.com/resources/) - [Solution Briefs](https://docutech.com/resources/solution-briefs) - [Request a Demo](https://docutech.com/docutech-request-a-demo) - [Compliance](https://docutech.com/resources/compliance) - [Blog](https://blog.docutech.com) - Partners - [Overview](https://docutech.com/partners/) - About Us - [Overview](https://docutech.com/about-us/) - [Contact Us](https://docutech.com/about-us/contact-us) - Let's Talk - Solutions - [Overview](https://www.docutech.com/solutions?hsLang=en) - [Document Solutions](https://www.docutech.com/solutions/document-solutions?hsLang=en) - [eClosing](https://www.docutech.com/solutions/eclosing?hsLang=en) - [Document Generation](https://www.docutech.com/solutions/document-generation?hsLang=en) - [Fulfillment](https://www.docutech.com/solutions/solutions-fulfillment?hsLang=en) - Resources - [Overview](https://www.docutech.com/resources?hsLang=en) - [Solution Briefs](https://www.docutech.com/resources/solution-briefs?hsLang=en) - [Request a Demo](https://www.docutech.com/docutech-request-a-demo?hsLang=en) - [Compliance](https://www.docutech.com/resources/compliance?hsLang=en) - [Blog](https://blog.docutech.com/) - Partners - [Overview](https://www.docutech.com/partners?hsLang=en) - About Us - [Overview](https://www.docutech.com/about-us?hsLang=en) - [Contact Us](https://www.docutech.com/about-us/contact-us?hsLang=en) # Document Updates: Most Generic Oklahoma Mortgages (Cx503 & Cx3392) and HELOC Agreement (Cx21652) Feb 3, 2021 Topics: [Document Updates](https://compliance.docutech.com/tag/document-updates) The Instructions to FNMA Form 3037 have been modified to permit the first sentence of Section 16 of Form 3037 to be replaced by a sentence which specifically states that the security instrument shall be governed by the laws of the State of Oklahoma, rather than referencing that the instrument will subject to “the law of the jurisdiction in which the Property is located.” *Background* Fannie Mae has not provided an explanation as to why this authorized change was created. There is some speculation (which may or may not be accurate) that this change will give creditors a means to stipulate which law applies to the security instrument, in light of the U.S. Supreme Court’s recent decision in *McGirt v. Oklahoma*, 140 S. Ct. 2452, 207 L. Ed. 2d 985 (2020). In *McGirt*, the Court reversed an Oklahoma State Court’s judgment against the defendant, holding that under the federal Major Crimes Act, Federal courts (not those of Oklahoma) had jurisdiction, since the crime was committed on the Muskogee (Creek) Reservation and the defendant was considered an “Indian person” under such Act. A large portion of the Court’s opinion details the history of the Creek Reservation, the Federal Government’s relation with the Creek Nation, and what autonomy the Creek Nation has. Ultimately, the Court held that such Reservation has not been disestablished, thus confirming that parts of Tulsa, all of Muskogee, and other notable cities are still part of the Reservation. The Court noted that the Creek Nation has a fair amount of autonomy in establishing their own laws, as follows: “The Creek Nation . . . has ratified a new constitution and established three separate branches of government. . . . Today the Nation is led by a democratically elected Principal Chief, Second Chief, and National Council; operates a police force and three hospitals; commands an annual budget of more than $350 million; and employs over 2,000 people. . . . In 1982, the Nation passed an ordinance reestablishing the criminal and civil jurisdiction of its courts. . . . The territorial jurisdiction of these courts extends to any Indian country within the Tribe’s territory as defined by the Treaty of 1866. . . . And the State of Oklahoma has afforded full faith and credit to its judgments since at least 1994 . . . \[Quoting from *Solem v. Bartlett*, 465 U.S. 463 {1984}\] ‘\[o\]nce a block of land is set aside for an Indian reservation and no matter what happens to the title of individual plots within the area, the entire block retains its reservation status until Congress explicitly indicates otherwise.’” (*Surpa* 140 S. Ct. 2452, 2467 \[2020\]) While this case deals with the application of the Major Crimes Act in its relation to the Creek Nation, it’s possible that there may be litigation in the future over whether Oklahoma or Creek Nation laws should be applied to a mortgage loan (*e.g.*, foreclosure proceedings), based on the findings in this case. Stipulating within the mortgage that the laws of Oklahoma apply to it may help to mitigate (or eliminate) any ambiguity on this point. *Changes* We will be making the following changes to the following documents: - - **OK Mortgage Second (Cx503)**. The first sentence in Section 13 (“Governing Law; Severability”) will be changed from: “The state and local laws applicable to this Mortgage shall be the laws of the jurisdiction in which the Property is located.”          To:  “This Mortgage shall be governed by the laws of the State of Oklahoma.” - - **OK Mortgage (Cx3392)**. When new field “Mortgage Subject To Oklahoma Law” (FI 143168) is set to anything other than “No”, the following will print as the first sentence in Section 16 (“Governing Law; Severability; Rules of Construction”): “This Security Instrument shall be governed by federal law and the law of the State of Oklahoma.” - - **HELOC Agreement (Cx21652)**. When field “Property State” (FI 1714) equals “Oklahoma”, the following will print as the first sentence in Section 29 (“Applicable Law”): “This agreement is governed by the laws of **\[FI 99886 or 1714\]** and the United States of America.” *FHA* FHA requires that “\[t\]he Mortgagee must develop or obtain a separate Mortgage and Note that conforms generally to the Freddie Mac and Fannie Mae forms in both form and content, but that includes the specific modification required by FHA set forth in the applicable Model Note and Mortgage.” (FHA Single Family Handbook 4000.1 II.A.6.b\[ii\]) According to the “[Instructions for Model Mortgages](https://www.hud.gov/program_offices/housing/sfh/model_documents)”, new authorized changes by Fannie Mae or Freddie Mac may be incorporated into an FHA mortgage, as follows: “. . . Any future changes to the provisions of the GSE Uniform Covenants that are not currently \[May, 2015\] identified as FHA-Specific Modifications may be incorporated in a manner that remains consistent with all relevant statutes and regulations.” Based on our research, we will ***not*** be incorporating the new authorized change into our “FHA OK Mortgage” (Cx19394), due to the following regulation by HUD: “Each mortgage shall also contain any provisions necessary to create a valid and enforceable secured debt **under the laws of the jurisdiction in which the property is located**.” (24 C.F.R. § 203.17\[a\]\[2\]\[ii\]; emphasis added) If, ultimately, it is determined that the subject property of a mortgage is under the jurisdiction of the Creek Nation (or another Native American nation), then incorporating a provision which stipulates that the mortgage is subject to Oklahoma law would be in violation of this regulation. Therefore, we will not be incorporating this authorized (yet optional) change. *Effective Date* These changes will take effect on February 9, 2021. Questions or concerns about these changes may be directed to Client Support at 1.800.497.3584. *DR 336560* [Return to Blog](https://compliance.docutech.com) ### Stay informed. --- Subscribe to emails to get notified when new content is published. ### Category / Topics [Document Updates](https://compliance.docutech.com/tag/document-updates) ### Recent Posts #### [Document Updates: Wyoming Notice and Explanation of Fee Increase (TRID)(Cx19752) and Wyoming Notice and Explanation of Fee Increase (Cx16634)](https://compliance.docutech.com/document-updates-wyoming-notice-and-explanation-of-fee-increase-tridcx19752-and-wyoming-notice-and-explanation-of-fee-increase-cx16634) Feb 3, 2021 #### [Document Updates: New Jersey Notarial Certificate](https://compliance.docutech.com/document-updates-new-jersey-notarial-certificate) Feb 3, 2021 #### [Document Updates: MD Loan Commitment (Cx4174) and MD Financing Agreement (Cx2171)](https://compliance.docutech.com/document-updates-md-loan-commitment-cx4174-and-md-financing-agreement-cx2171) Feb 3, 2021 The preceding is for informational purposes only and is not and may not be construed as legal advice. 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