If you originate loans in Maryland, you may have noticed that we have modified our Maryland security instruments to indicate, when applicable, that the property securing repayment of the promissory note is the borrower's principal dwelling.  By way of background, recording fees in the applicable Circuit Courts in Maryland are based in part on number of pages.  Generally speaking, for documents of nine (9) pages or less, the recording fee is $20; for documents of 10 pages or more, the recording fee is $75.  There is an additional $20 surcharge for most instruments recorded in the land records, such as security instruments.  Thus, the aggregate recording fee is $40 for a security instrument of nine (9) pages or less, and $95 for a security instrument of 10 pages or more.  As you can see, the difference in recording fees is significant.  If, however, the document presented for recordation involves solely a principal residence, then the recording fee is $40 without regard to the number of pages recorded. 

For those DocMagic customers making loans in the State of Washington, you may wish to review a letter written by Deb Bortner, Director of Consumer Services, and posted on the Washington State Department of Financial Institutions' (DFI) website concerning new licensing requirements arising from recently enacted legislation.  To view the letter, click here.  Watch the DFI website for upcoming interpretive documents on some of the ramifications of the recent legislation.    The DFI will begin rulemaking to implement the new legislation in a few weeks.

Effective April 4, 2008, Governor Martin O'Malley signed into law HB 365 / SB 216 as emergency measures.  Among other things, these emergency measures enact a new law (codified as MD Real Property Code Section 3-104.1) requiring every security instrument securing "residential property" to contain the name and license number of the mortgage originator and mortgage lender in order to record the security instrument.  "Residential Property" is defined under Section 3-104.1(A) as "real property improved by four or fewer single family dwelling units."  In addition, the new law provides that if the originator is exempt under the Mortgage Originators Act, or if the lender is exempt under the Maryland Mortgage Lender Law, an affidavit to the security instrument stating this fact is required. 

In our February, 2008 issue, DocMagic, Inc.'s Compliance Department advised that it had updated Fannie Mae's/Freddie Mac's Massachusetts mortgage as well as its other mortgages and assignments to comply with Section 3 of Chapter 206 of the Acts of 2007.  Click here for the February, 2008 article.