On July 7, 2021 Fannie Mae (FNMA) published a selling guide announcement about the release of their updated uniform legal instruments (see SEL-2021-06), including security instruments, notes, riders, addenda, and special purpose documents. This update is the result of a comprehensive review of the uniform instruments that was conducted in collaboration with Freddie Mac, and was designed to enhance their clarity and usability. These new model forms are demarcated with a July 2021 footer date, and can be found at: https://singlefamily.fanniemae.com/fannie-mae-legal-documents. Regarding the effective date, FNMA said:
Lenders may begin using these updated forms immediately but will be required to use them for loans with note dates on or after Jan. 1, 2023. The updated Jul. 2021 uniform instruments cannot be used in combination with any earlier versions. For example, a security instrument with a Jul. 2021 footer must be used with a note that also has a Jul. 2021 footer.
First American Docutech is pleased to announce that copies of the new 2021 FNMA first lien Security Instruments are ready to test on Stage servers. The document IDs range from Cx25279 “3001 AL Mortgage 2021” to Cx25330 “3051 WY Mortgage 2021”. The next phase of the rollout will focus on the new first lien Notes and Riders (anticipated July 1, 2022), followed by the new FHA Security Instruments, Notes, and Riders (anticipated October 1, 2022). The final phase of the project will focus on less frequently used special purpose documents. Please note that clients with any custom copies of FNMA Security Instruments, Notes, Riders, Addenda, etc. will need to contact their Client Relationship Manager if they wish to update their custom copies to match the new 2021 versions. Work on custom copies will take place only after the work on the standard copies is completed.
The FNMA updates to these model forms is largely focused on the language in the Uniform Covenants and definitions. Consequently, at this point we do not anticipate needing any new fields except the field that triggers the new documents to print. This field is “Use New FNMA/FHLMC Legal Documents (07/2021)” (Field 152151). This new document trigger is globally mapped to “No” if not otherwise set, but clients may map the new field to “Yes” as needed for testing purposes. (Please note that the new documents are only available to test on Stage servers for the time being, not Production.) Old versions of the FNMA forms are being configured with “Use New FNMA/FHLMC Legal Documents (07/2021)” = “No” to ensure that two copies of a standard document are never printed in the same package. This configuration change for the old first lien security instruments will be in place on Production servers on April 8, 2022.
The first lien FNMA Security Instruments, and the configuration changes to the old FNMA Security Instruments, will be available to test on April 1, 2022. If you have any questions or concerns about these new forms, please contact Client Support at 1.800.497.3584.