After legal review of Second Mortgage and HELOC documents, we have decided to make the following updates:
Cx493 MT Deed of Trust Second, Cx482 IN Mortgage Second, Cx468 AL Mortgage Second
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- Change the word federal to applicable in Section 16. It previously read “However, this option shall not be exercised by lender if exercise is prohibited by federal law as of the date of this Deed of Trust.” It now reads, “However, this option shall not be exercised by lender if exercise is prohibited by applicable law as of the date of this Deed of Trust.”
- In Section 17, the sentence that previously read, “a date, not less than 30 days from the date the notice is mailed to the Borrower…” now reads, “a date, not less than 30 days or as otherwise specified by applicable law from the date the notice is mailed to Borrower…”
Cx482 IN Mortgage Second
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- Section 22 was added which reads: 22 Stated Maturity Date. The stated maturity date is the date by which the debt must be paid in full as set forth in the definition of the Note.
Cx3045 HELOC Deed of Trust – WV
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- The subtitle “CREDIT LINE DEED OF TRUST” was changed to “A CREDIT LINE DEED OF TRUST”
Cx1383 HELOC Mortgage – FL, Cx1384 HELOC Mortgage – SC
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- On the last paragraph of page one, the word “maximum” has been added before “principal.” The first sentence of the paragraph now reads, “The Mortgage will secure your loan in the maximal principal amount of…”
Cx1384 HELOC Mortgage – SC
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- The Waiver of Appraisal Rights paragraph on page 5 has been moved to page six in order to comply with S.C. Code of Laws § 29-3-680(B), which mandates that this waiver appear on the same page as a signature. The last line of the waiver has also been changed from, “This waiver will not apply so long as the Premises is used as a dwelling place as defined in Section 12-37-250 of the South Carolina Code of Laws or to a consumer credit transaction as defined in Section 37-1-301(11) of the South Carolina Code of Law,” to “This waiver will not apply to any real estate foreclosure proceeding relating to a dwelling place, as defined in Section 12-37-250 of the South Carolina Code of Laws, or to a consumer credit transaction, as defined in Section 37-1-301(11) of the South Carolina Code of Laws”.
Cx471 CA Deed of Trust Second
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- Section 23 previously read: Statement of Obligation Fee. Lender may collect a fee not to exceed $50.00 for furnishing the statement of obligation as provided by Section 2943 of the Civil Code of California. It now reads: Statement of Obligation Fee. Lender may collect a fee not to exceed the maximum amount permitted by applicable Law for furnishing the statement of obligation as provided by Section 2943 of the Civil Code of California.
Cx1381 HELOC Mortgage – IN
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- The Default section on page three has been reworded to more closely match the wording found on the new FNMA model security instrument. It now reads: DEFAULT: If you give notice of Default to us: (i) all Rents received by us must be held by us as trustee for the benefit of you only, to be applied to the sums secured by the Security Instrument; (ii) you will be entitled to collect and receive all of the Rents; (iii) we agree to instruct each Tenant that Tenant is to pay all Rents due and unpaid to you upon your written demand to the Tenant; (iv) we will ensure that each Tenant pays all Rents due to you and will take whatever action is necessary to collect such Rents if not paid to you; (v) unless Applicable Law provides otherwise, all Rents collected by you will be applied first to the costs of taking control of and managing the Property and collecting the Rents, including, but not limited to, reasonable attorneys’ fees and costs, receiver’s fees, premiums on receiver’s bonds, repair and maintenance costs, insurance premiums, taxes, assessments, and other charges on the Property, and then to any other sums secured by this Security Instrument; (vi) you, or any judicially appointed receiver, will be liable to account for only those Rents actually received; and (vii) you will be entitled to have a receiver appointed to take possession of and manage the Property and collect the Rents and profits derived from the Property without any showing as to the inadequacy of the Property as security.
- We have added a “Stated Maturity Date” section to the bottom of the instrument. It reads: STATED MATURITY DATE: The stated maturity date is the date by which the debt must be paid in full as set forth in the definition of the Agreement.
Cx1325 HELOC Mortgage – OK
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- We have changed the formatting of the Power of Sale section at the top of the page to be more in line with the statute. It was previously bold and italicized, it is now bold and underlined.
Cx1393 HELOC Mortgage – MI, Cx489 – MI Mortgage Second
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- We have changed the wording on the Mortgaged Premises section from “we hereby mortgage, grant and convey to you the Premises…” to “we mortgage, grant, convey and warrant to you the Premises…” We also added the words “to secure the re-payment of the principal amount in the LOAN section” between (the “Premises”) and “further described as:”
Cx1389 HELOC Deed of Trust – TN
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- On page two, we have changed the last sentence of the “LOAN” section from “Upon such notice we will be obligated to return to you checks, credit cards or other devices for obtaining advances upon your request” to “If we exercise such right, then upon notice form you, we will be obligated to return to you checks, credit cards or other devices to obtain further advances upon the Agreement upon your request.”
These changes will be in effect on August 17, 2023. If you have any questions of concerns about these changes, please contact Client Support at 1.800.497.3584.
LEG-1267