Document Updates: Fannie Mae Updates 07/2021 Maryland Security Instrument Form 3021

In response to Maryland Senate Bill 689, Fannie Mae recently revised Maryland Security Instrument Model Form 3021 by adding the following new paragraph:

• 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.

Paragraph 30 now appears in the following documents:

• Cx25299 - 3021 MD Deed of Trust 2021
  (Conventional version only; not available in VA & USDA/RD versions)
• Cx487 - MD Deed of Trust Second
• Cx3040 - HELOC Deed of Trust - MD

For consistency, all versions of the documents listed above, including Cx26136 - FHA MD Deed of Trust 2021, have been updated to reflect the new revision date in the footer, even though Paragraph 30 only applies to conventional loans.

These changes are available for testing on Stage & Stage 2 servers and will take effect on September 17, 2025. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.

LEG-3145
DR-194703

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.