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Revised Timeline: FHA/VA Instrument Updates

As noted in prior articles, Fannie Mae and Freddie Mac published new versions of their Uniform Instruments in July 2021, with a required use date as of January 1, 2023.  DocMagic moved to the new versions of standard conventional documents as of August 12, 2022.  DocMagic previously announced we would be making updates to the notes and security instruments used for FHA and VA loan types as a result of these changes.  

Since the release of the revised uniform instruments, no additional guidance has been provided by the Federal Housing Administration, or Veterans Affairs about use of updated instruments with those loan products.  As of September 2015, the FHA handbook was revised to require use of the notes and security instruments published by Fannie Mae and Freddie Mac, with specific modifications as provided by the FHA.    See FHA Handbook 4000.1.II.A.6.b.

The prior instructions provided by the FHA provided instructions specific to making modifications to the prior versions of the uniform instruments, and especially in the case of the security instruments, these instructions were not easily applied to the new documents.   Nonetheless, DocMagic has made new versions of the FHA Notes and Security Instruments in accordance with our prior announcements.   These updated FHA documents are available for testing on our Stage environment.   However, these documents will not automatically be returned for our clients without a request to do so by the client.  

As there has been no additional guidance provided by the FHA about use of updated instruments, or updates to the instructions used to make modifications to the conventional uniform instruments, rather than return these automatically for all customers, DocMagic is making these new FHA documents available at the client’s election.   Should you wish to use these new documents, beginning January 20, 2023, clients may request their account be updated to use the 2023 FHA instruments.   Without such a request, DocMagic will continue to return the prior versions of the FHA instruments.  

The Department of Veterans Affairs does not specify use of any specific note or security instrument, requiring only that security instruments used contain certain provisions as required by the VA Lender Handbook.   Current VA instruments meet all requirements contained in the VA Lender Handbook and may continue to be used without issue. 

Nonetheless, DocMagic continues to plan new versions of the VA notes and instruments that are based on the July 2021 conventional documents.   These will be available for use in March 2023.   As an additional option, Lenders may choose to use the new conventional instruments, with a supplemental rider to satisfy VA requirements for the security instrument, DocMagic’s VA Assumption Policy Rider, (DocMagic Form ID: VAPR.RDR).

 

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