Based on further research provoked by comments from a number of DocMagic customers, we have modified all security instruments to add the name of the non-title spouse (NTS) under the definition of "Borrower." Previously, the NTS name appeared only in the signature block of the security instruments. (See prior articles on DocMagic's handling of a NTS here and here.)

Why this change? We received a number of requests from you, our customers, asking that the NTS name be added as a named "Borrower." After researching this matter, we concluded that this was appropriate to do. While we reviewed a number of sources, we placed great weight on the text of the Fannie Mae uniform instrument itself. Specifically, Paragraph 13 of almost all of Fannie Mae first-lien security instruments entitled, "Joint and Several Liability; Co-signers; Successors and Assigns Bound," which states in relevant part:

Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent.

Paragraph 13 of the security instruments clearly recognizes that a person defined as a "Borrower" under the security instrument may not be a "Borrower" under the Note, and that a "Borrower" under the security instrument may be signing solely for the purpose of releasing his or her homestead or spousal rights in the property, as is the case with an NTS.

Any customer wanting to remove the name of the NTS on page 1 of the security instruments due to different investor requirements should contact DocMagic's Customer Service Department, at (800) 649-1362.