According to MD Code, Real Property §4-106(a), mortgages or deeds of trust are required to have an oath or affirmation of the mortgagee that the consideration recited in the mortgage or deed of trust is true and bona fide as set forth. Additionally, §4-106(b)(1) provides that if security interest is purchase-money, an affidavit of disbursement and consideration is required.
In conjunction with these requirements, the FNMA instructions provide sample forms for an Affidavit of Consideration and an Affidavit of Consideration and Disbursement.
We have updated our HELOC (Cx3040) and Second Lien (Cx487) documents to provide for either the Affidavit of Consideration or Affidavit of Disbursement and Consideration. The combined Affidavit of Consideration and Disbursement will be triggered if Loan Purpose is a Purchase, i.e. FI 1063 Loan Purpose (MISMO) = 0 is sent to us in the loan file. Otherwise, the Affidavit of Consideration will print.
These changes are on Stage 1 and Stage 2 servers and will be in effect on November 10, 2023. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.