Fannie Mae has updated their instructions for the Loan Modification Agreement (Form 3179). These changes include the required inclusion of two new provisions for mortgage loans secured by property in New York and updated provisions related to MERS.
The new paragraphs for the New York version of this document are required by New York General Obligations Law § 17-105, entitled Promises and Waivers Affecting the Time Limited for Action to Foreclose a Mortgage and will print by default when a Loan Modification Agreement is printed for New York.
The updated provisions to MERS include the option to populate Grantee as MERS reference type in the first paragraph when the Deed Type selected is Security Deed. Previously the options were Beneficiary if Deed of Trust was selected, otherwise it defaulted to Mortgagee. We have added this functionality to the first paragraph when MERS is selected as well as paragraph 5(g).
While these instructions were updated only for Fannie Mae’s Fixed Loan Modification Agreement (FNMA Form 3179), we have made the same changes to our ARM Loan Modification Agreements (FNMA Form 3161) for consistency and compliance with state laws.
The changes are available for testing on Stage & Stage 2 servers and will take effect on May 21, 2024. If you have any questions or concerns, please contact Client Support at 1.800.497.3584.
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