As was previously announced here, Gov. Ralph Northam (D) approved VA H.B. 1882 (2021), which impacts several rules regarding deeds of trust. The law updated the model form for subordinate language to include a reference to the previous loan interest rate. The subordinate language as found in VA ST 55.1-319 (B)(1) now has “WHICH HAD AN INTEREST RATE OF ___% PER ANNUM” appended, as follows:
“THIS IS A REFINANCE OF A DEED OF TRUST 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.”
Since these changes to VA ST 55.1-319 (B)(1) are in effect on July 1, 2021, we will be triggering the new text for loans that have a Closing Date (FI 678) on or after July 1, 2021. The documents impacted by this change are:
- VA Deed of Trust (Cx354)
- FHA VA Deed of Trust (Cx19404)
This document code will be in Production on June 23, 2021, but the logic will prevent the new text from triggering unless the Closing Date is on or after July 1. If you have any questions or concerns about these changes please contact Client Support at 1.800.497.6584.