Fannie Mae and Freddie Mac (the “GSEs”) recently announced revisions to the security instruments for the states of Connecticut and Kentucky.
Connecticut (Form 3007)
- Section 26(a)(vi) was changed from “Borrower’s right to bring a court action to deny the existence of a Default or to assert any other defense of Borrower to acceleration and foreclosure or sale," to read to read “Borrower’s right to deny in the foreclosure proceeding the existence of a Default or to assert any other defense of Borrower to acceleration and foreclosure.”
- Footer updated with a new revision date of 07/2021 (rev. 07/24).
Kentucky (Form 3018)
- Definition B: “Lender’s address” changed to read "Lender's mailing address.".
Definition C: part of the last sentence was removed, “(or, if the rate of interest is adjustable, may be interest added to principal, commonly called "negative amortization").
- Transfer of Rights in the Property paragraph was changed to remove “power of sale.” The second sentence was changed from “For this purpose, Borrower mortgages, grants, and conveys to Lender, with power of sale, the following described property…” to “For this purpose, Borrower mortgages, grants, and conveys to Lender, the following described property…”
- Footer updated with a new revision date of 07/2021 (rev. 07/24).
The updated security instruments were released to DocMagic’s production as of August 15, 2024. In addition to updating the conventional versions of Connecticut and Kentucky security instruments, DocMagic also updated the applicable FHA and VA versions of the security instruments.
If you have any questions, please contact DocMagic’s Compliance Department.
