In an email sent this morning (Subject: CU Update, Quality Insider, Remote Work Lender Survey, and More), FNMA announced the following:
“We’ve updated the instructions to the Virginia Deed of Trust (Form 3047) to reflect a revised authorized change applicable to eligible refinance transactions.”
The revised Instructions to Form 3047 show that Authorized Change # 13 has been deleted, while Authorized Change # 15 has been modified to state the following:
“Lenders MAY add the following language in bold-face or capitalized letters just before the Definitions (but after the Lender, Borrower, Trustee granting clause), if the mortgage is an eligible refinance transaction under Virginia Code Annotated Section 55.1-319(B):
This is a refinance of a (Deed of Trust, Mortgage, or other security interest) recorded in the clerk’s office, Circuit Court of (name of county or city), Virginia, in Deed Book ___, page ____, in the original principal amount of _________, and with the outstanding principal balance which is ___________ which had an interest rate of ___% per annum.”
These changes are likely due to the ones which the Commonwealth of Virginia made to their Code this past February, which take effect on July 1, 2021 (see https://compliance.docutech.com/2021/03/02/compliance-news-virginia-changes-certain-security-instrument-requirements/ for details).
We are currently reviewing this announcement to determine any impact, and evaluating any modifications, to our document library and/or systems. Any modifications we make as a result will be announced on our website (https://compliance.docutech.com/).