To accommodate those customers whose loans are secured by a leasehold estate, Document Systems, Inc. ("DSI's") has added the following provisions as the second sentence of the last paragraph in Section 9, entitled "Protection of Lender's Interest in the Property and Rights Under this Security Instrument," of the Fannie Mae security instruments:

Borrower shall not surrender the leasehold estate and interests herein conveyed or terminate or cancel the ground lease. Borrower shall not, without the express written consent of Lender, alter or amend the ground lease.

For New York and Maine's "plain language" mortgages, DSI added the following provisions as the second sentence of the last paragraph in Section 9, entitled "Lender's Right to Protect Its Rights in the Property," as follows:

I will not give up the rights that I have as a tenant on the Property. I will not cancel or terminate my lease and I will not change or amend that lease unless Lender agrees in writing to the change or amendment.

The above provisions have been added to the Fannie Mae security instruments in accordance with Fannie Mae's Document Summaries for these instruments. According to the Document Summaries, the above provisions are required either as a rider or as part of Section 9 if the mortgage is secured by a leasehold estate. This verbiage is only discretionary if the mortgage is not secured by a leasehold estate. If the property is not a leasehold estate, this verbiage has no effect on the transaction.

In lieu of preparing a leasehold rider in which a customer would have to contact Customer Service to request this form because DocMagic does not capture any data to indicate that the secured property is a leasehold, DSI's Compliance Department has determined that the most effective way to address this circumstance is to add the above provisions in the Security Instruments.

You may refer to our September, 2006 Forms Updates to see which security instruments have been updated. If you have any questions concerning these updates, please contact the Compliance Department.