The Federal Housing Administration (FHA) model security instruments and notes are generally modeled on the Fannie Mae and Freddie Mac (the GSEs) uniform instruments. In 2021 the GSEs published revised uniform instruments which were mandatory in 2023, but as of this date FHA has not required their use as a base for their forms. Mortgage Letter 2023-01 states:
“FHA is not requiring the use of the [2021 (Effective 2023)] GSE Forms; however, if a Mortgagee does utilize the 2023 GSE Forms, they are advised that FHA has added instructions on the FHA-specific modifications that must be made to the 2023 GSE Forms to be acceptable for FHA mortgage insurance.
FHA will continue to accept the 2001 GSE Forms that include the specific modifications required by FHA.”
Docutech has recently completed a revised set of FHA notes and security instruments based on the 2023 GSE forms. These new FHA forms conform generally to the 2023 GSE model forms except for specific modifications required by FHA as designated in their model note and mortgage and specified in their instructions. The instructions for the FHA specific modifications can be found at this link.
In an effort to standardize our document library, Docutech plans to make the new FHA instruments modeled after the 2023 GSE forms our standard FHA documents with closing dates on or after after July 1, 2024. We will be making these new documents available for testing on March 5, 2024 and they will be available for optional use on April 2, 2024 until the cutover on July 1st. This extended rollout and testing period will provide our clients with sufficient time to prepare to use these new forms. [See updated timeline below.]
The new documents will be configured to print based on field 152151 “Use New FNMA/FHLMC Legal Documents (07/2021)”. Clients should review any mappings they have related to this field during the testing period. A list of the new FHA legal documents can be found here.
These documents will be available for testing on Stage & Stage 2 servers and will take effect as outlined in this announcement. If you have any questions or concerns, please contact Client Support at 1.800.497.3584.
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COM-3602
The preceding is for informational purposes only and is not and may not be construed as legal advice. No third-party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action.
Updated Timeline:
In response to feedback from our clients, we have adjusted the previously announced timeline for the rollout of these new forms.
April 2, 2024 (available) – the new documents are available for testing and can be configured to print as default forms when clients indicate they are ready to use them.
October 1, 2024 (standard) – all clients will receive the new forms by default unless they notify Docutech client support that they wish to remain on the old versions.
April 1, 2025 (required) – the old FHA notes and security instruments will no longer be supported by Docutech and will only be available as client custom forms. The new FHA security instruments and notes based on the 2021 (effective 2023) GSE forms will be Docutech’s only standard FHA instruments and notes supported from that date forward.
If you have any questions or concerns, please contact Client Support at 1.800.497.3584.
COM-3602
The preceding is for informational purposes only and is not and may not be construed as legal advice. No third-party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action.