Fannie Mae recently announced a change to the instructions for the Virginia Deed of Trust Form 3047 that includes the deletion of authorized change #13 and an update to language permitted for eligible refinance transactions in authorized change #15.
The changes coincide with the passage of Virginia House Bill (HB) 1882, which becomes effective on July 1, 2021. In part, HB 1882 amends Section 55.1-319(B) of the Virginia code related to priority of a residential refinance mortgage or a subordinate mortgage. Virginia Code Annotated Section 55.1-319(B)1 provides the language allowed by authorized change #15:
THIS IS A REFINANCE OF A (DEED OF TRUST, MORTGAGE, OR OTHER SECURITY INTEREST) RECORDED IN THE CLERK’S OFFICE, CIRCUIT COURT OF (NAME OF COUNTY OR CITY), VIRGINIA, IN DEED BOOK____, PAGE____, IN THE ORIGINAL PRINCIPAL AMOUNT OF ____, AND WITH THE OUTSTANDING PRINCIPAL BALANCE WHICH IS ____ WHICH HAD AN INTEREST RATE OF ____%.
Additionally, Virginia Code Annotated Section 55.1319(B) provides that a subordinate mortgage shall retain the same subordinate position in a refinance if “the interest rate of the refinance mortgage at the time it is recorded does not exceed the interest rate of the prior mortgage.” The interest rate of the prior mortgage must be provided on the first page of the refinance mortgage.
Upon request, DocMagic provides alternative versions of Virginia Deed of Trust Form 3047 that include the optional language permitted by the authorized changes. Both the MERS version (DocMagic Form ID VA3047Y.MZD) and non-MERS version (DocMagic Form ID VA3047Y.DOT) were updated on May 5, 2021 to include the language provided by authorized change #15 of the instructions.
For questions or to request use of the Virginia Deed of Trust that includes the permissible changes, please contact DocMagic’s Customer Service.
