Under previous FHA rules, the form of security instrument used in New Mexico was a deed of trust (see FHA Single Family Handbook 4155.2, ch. 6.B.5.k and FHA ML 2009-13). This was done to correspond with the fact that FNMA and FHLMC had changed their uniform instrument from a mortgage to a deed of trust in 2008 (see “News and Updates Archive”, p. 8, available at https://www.fanniemae.com/singlefamily/legal-documents).
Since then, FNMA and FHLMC have reverted their New Mexico instruments back to a mortgage (see http://blog.docutechcorp.com/security-instrument-updates-new-mexico) and, a short time afterwards, FHA followed suit (see http://blog.docutechcorp.com/document-changes-fha-security-instruments-riders-and-disclosures). During period between these changes (where deeds of trust would print for FHA loans in New Mexico and mortgages would print for all other types of loans), our New Mexico assignments contained logic with language which would switch between references to a “mortgage” and to a “deed of trust,” based on whether the loan was an FHA one or not.
We will be updating our New Mexico assignments to remove this logic, so that they will only reference “mortgages.” Documents affected are:
- NM Assignment (Cx1541)
- NM Assignment from MERS (Cx4337)
- NM Assignment – INV BLANK (Cx4492)
This change will take effect immediately. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
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