Fannie Mae and Freddie Mac have jointly developed Master and Short Form security instruments for first mortgage loans as part of their continuing efforts to lower homeownership costs for borrowers and achieve greater efficiencies in the residential lending industry.  Fannie Mae has released Master and Short Form security instruments for twenty-six (26) states that permit use of a Master and Short Form.  These Master/Short Forms may be used in lieu of the Fannie Mae/Freddie Mac uniform first mortgage security instruments.  To view Fannie Mae's Announcement 07-13 regarding the Master/Short Forms, click here. 

Short Form security instruments can be one-quarter the length of Fannie Mae's security instruments, and, when recorded, can result in significant savings in recording and other closing costs.  Before recording a Short Form security instrument, a Master Form security instrument must have previously been recorded in the recording district in which the Short Form security instrument will be recorded.  The Master Form consists of a title page that complies with state-specific requirements and the long-form uniform security instrument for that state. The Short Form contains loan-specific information (e.g., borrower name, lender name, loan amount, description of property, etc.), references the Master Form that previously recorded, and incorporates the Master Form provisions by reference.  The borrower must sign the Short Form and all riders attached to the Short Form while the lender must provide the borrower with a recorded copy of the Master Form.

Fannie Mae's Master and Short Form security instruments together with instructions for completing and using the Forms may be viewed here. 

DocMagic, Inc.'s Compliance Department is in the process of having the Master and Short Form security instruments laid out and programmed.  So, look out!  The Master and Short Form security instruments will be available soon.