News & Updates
In March, we announced that steps were being taken to suspend use of the "MERS as Original Mortgagee" authorized change to the Maine security Instrument (Form 3020). These steps are in response to judicial developments in Maine challenging MERS' role as nominee for originators (and their assignees) and the absence of a legislative remedy that addresses prospective foreclosures and other mortgage-related enforcement actions.
Effective for Mortgages with Note Dates on or after January 1, 2018, that are to be registered with MERS, formally known as the Mortgage Electronic Registration Systems, Inc., and for which the security property is located in the State of Maine, originators must use the new Fannie Mae / Freddie Mac MERS Mortgage Assignment (Form 3749) to assign such Mortgages to MERS.
Mortgage loans originated on or after January 1, 2018, that are secured by property located in Maine are ineligible for delivery to Freddie Mac if:
- The Maine Security Instrument (Form 3020) has been modified to name MERS as the original mortgagee of record solely as nominee for the lender; or
- The Mortgage has been assigned to MERS using an assignment form other than Form 3749.
The new Maine MERS Assignment form will show a version date of (Form 3749 8/17) and originators may begin using the new MERS Mortgage Assignment form immediately
As a reminder, the new assignment form must be used with the standard Maine mortgage form, and may not be used with a Maine mortgage form that has been modified to include the MERS-as-original-mortgagee authorized change.
Executable Spanish/English Uniform Residential Loan Application
Freddie Mac makes available executable Spanish/English version of the Uniform Residential Loan Application (Form 65S) and Statement of Assets and Liabilities (Form 65AS). Loan originators may begin using these forms immediately.
Updated Authorized Changes to Property Type Riders
Freddie Mac has added an authorized change to the Multistate 1-4 Family Rider (Form 3170). When using the 1-4 Family Rider, originators may delete Section E. "Borrower's Right to Reinstate" Deleted.
Using MERS for Properties in MAINE
Seller/Servicers are advised that steps are being taken to suspend use of the “MERS as Original Mortgagee” authorized change to the Maine security instrument (Form 3020). When these steps are completed, including a clarifying revision to the MERS System Rules of Membership, any new mortgage lien on property in Maine will need to be recorded in the lender’s name only and assigned to MERS utilizing a specified Fannie Mae/Freddie Mac mortgage assignment form if that mortgage is to be registered in the MERS System. Failure to execute and record the specified assignment to MERS will render the MERS-registered loan in Maine ineligible for sale to Freddie Mac.
After Freddie Mac announces the new documentation requirements for MERS loans in Maine, Seller/Servicers will be given an appropriate implementation period before the requirements become mandatory.
These steps are being taken in response to judicial developments in Maine challenging the use of MERS as nominee for a lender and lender's assigns, and due to the absence of a legislative remedy that addresses prospective foreclosures and other mortgage-related enforcement actions.
Frequently Asked Questions
Please note that the response to Question 17 in the Frequently Asked Questions on our website has been revised. All Frequently Asked Questions are currently posted and can be found at: http://www.freddiemac.com/uniform/uniffaq.html
Please direct Uniform Instrument related questions or comments to the Uniform Instrument Mailbox: Uniform_Instruments@freddiemac.com
Inquiries relating to other topics should be submitted using the Contact Us feature on Freddiemac.com