Document and Global Mapping Updates: New field “Maryland Apply Exemption to Assumption Upon Decree of Absolute Divorce” (FI 193924)

Maryland Conventional loans currently include the "Assumption upon Decree of Absolute Divorce" section in the standard security instrument; and both “Print Maryland Assumption Notice” (FI 193824) and “Assumable Loan” (FI 1170) are globally standard value mapped to "Yes". New field “Maryland Apply Exemption to Assumption Upon Decree of Absolute Divorce” (FI 193924) indicates that the lender is exempt from the requirements outlined in Maryland House Bill 1018 (effective October 1, 2025) and has opted out of the related ConformX functionality. This new field allows lenders to:

• Remove the "Assumption upon Decree of Absolute Divorce" section from the Maryland security instruments;
• Stop the “Maryland Assumption Notice” (Cx28523) from printing; and
• Have “Assumable Loan” set to “No” for Maryland Conventional loans when applicable.

Maryland Conventional Deeds of Trust Update

The FNMA instructions for Maryland Form 3021 allow for the “Assumption upon Decree of Absolute Divorce” section to be removed when not required. The instructions state:

“Lenders MAY delete the following Section 30 if it is not required (see Md. Code Ann., Fin. Inst. §§ 5-514, 6-606.1, and 11-522):

30. Assumption upon Decree of Absolute Divorce. The Annotated Code of Maryland - Financial Institutions provides that any existing Borrower on the Loan may purchase the Property interest of another Borrower on the Loan by assuming the selling Borrower’s portion of the Loan in connection with the granting of a decree of absolute divorce. The assuming Borrower must qualify for the underlying Loan as determined by the Lender. This Section 30 will apply only if (a) the Loan is not insured or guaranteed by the federal government, (b) the Property is (i) a “dwelling” under Section 11-501 of the Annotated Code of Maryland - Financial Institutions or (ii) residential real estate on which a “dwelling” is constructed or intended to be constructed, (c) the Property (or at least one unit contained therein) is owner-occupied, and (d) the Loan is primarily for personal, family, or household use.”

Accordingly, this new field allows the assumption section to be deleted when it is not required. When new field "Maryland Apply Exemption to Assumption Upon Decree of Absolute Divorce" is set to "Yes", the "Assumption upon Decree of Absolute Divorce" section will no longer print on the Deed of Trust. The three documents that were updated to allow the section to be suppressed are:

• 3021 MD Deed of Trust 2021 (Cx25299)
• MD Deed of Trust Second (Cx487)
• HELOC Deed of Trust - MD (Cx3040)

Global Standard Value Field Mappings Update

Standard “Maryland Assumption Notice” (Cx28523) prints for Maryland loans when “Print Maryland Assumption Notice” (FI 193824) is set to “Yes”. If new field "Maryland Apply Exemption to Assumption Upon Decree of Absolute Divorce" is set to "Yes", the global standard value field mapping for “Print Maryland Assumption Notice” will no longer set the field to "Yes" for Maryland Pre-Disclosure and Initial Disclosure document packages.

Among other things, “Assumable Loan” (FI 1170) determines how the Loan Estimate and Closing Disclosure “Assumable” section gets marked. If new field "Maryland Apply Exemption to Assumption Upon Decree of Absolute Divorce" is set to "Yes", the global standard value field mapping for “Assumable Loan” will no longer set the field to "Yes" for all Maryland Conventional loans. The multistate logic based on program settings will be applied instead. This will allow the “Assumption” provision of the LE/CD to be marked as “will not allow assumption of this loan on the original terms” for Maryland Conventional loans when applicable.

New Exemption Not Activated by Default

New field "Maryland Apply Exemption to Assumption Upon Decree of Absolute Divorce" is not set by default. If the field is left empty, the functionality will continue to be the same as originally announced here: https://compliance.docutech.com/document-update-maryland-house-bill-1018-and-new-document-maryland-assumption-notice-cx28523

Clients may request "Maryland Apply Exemption to Assumption Upon Decree of Absolute Divorce" (FI 193924) to set to be set to “Yes” if they are exempt from these requirements and choose to be excluded from the related default functionality.

These changes are available for testing on Stage and Stage 2 servers and will take effect on December 10, 2025. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.

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.