Mortgage Documents

Mortgage Documents
Multistate Adjustable Rate Note – 3-Year ARM - Single Family - Fannie
Mae/Freddie Mac UNIFORM INSTRUMENT (Form 3504)
Type of Instrument
Note
Instrument Revision Date
1/01 (rev. 6/16)
Instrument Last Modified
10/2/06 – (Spanish Translation Posted)
6/16 (Section 4 Revised)
Summary Page Last Modified
10/2/06 (Spanish Translations Added)
6/16 (PA Instructions Added)
Printing Instructions
The PDF document must be printed on letter size paper, using portrait format.
Use This Document For
State
All
Lien Type
First
Product Type
ARM -- Plan 649
Property Type
All, except
cooperatives
Occupancy Type
All
Required Changes
The following changes MUST always be made to this document:
None
Authorized Changes
The following changes MAY be made to this document at the lender’s option or MUST be made
under certain circumstances only:
1. Lenders MAY include at the bottom of each page “initial lines” on which borrowers may
insert their initials to acknowledge that all pages of the document are present. If these
lines are added, lenders MUST require the borrowers to initial the lines on each page of
the document.
2. Lenders MAY adjust cross-references to section, paragraph, or page numbers, if needed
to reflect changes in section, paragraph, or page numbers that result from adding,
modifying, or deleting certain language in accordance with another authorized change.
3. Lenders MAY add the following disclosure notice above or below the Borrower signature
lines (or at the end of the document, if the security property is located in Puerto Rico), if
they originate mortgages pursuant to the regulations of the Comptroller of the Currency:
Notice: The initial index value for this loan is ______%.
[Spanish Translation]
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Aviso: El valor del índice inicial de este préstamo es ____%.
4. Lenders MAY add the following language (with all letters being capitalized) above the
Borrower signature lines, if the security property is located in Alabama:
Caution -- It is important that you thoroughly read the contract before you sign it.
[Spanish Translation]
Advertencia – Es importante que usted lea detenidamente el contrato antes de firmarlo.
5. Lenders MUST insert the following language as a new Section 12, if the security
property is located in Alaska:
NOTICE OF OTHER REMEDIES
To the extent set forth in this Note and any Rider attached hereto (a) the mortgagor or trustor
(“Borrower”) is personally obligated and fully liable for all amounts due under this Note, and
(b) the holder hereof has the right to sue on this Note and obtain a personal judgment against the
Borrower for satisfaction of all amounts due under this Note either before or after a judicial
foreclosure, under Alaska Statutes §§09.45.170 through 09.45.220, of the deed of trust which
secured this Note.
[Spanish Translation]
NOTIFICACIÓN DE OTROS RECURSOS
En la medida establecida en este Pagaré y cualquier Cláusula Adicional adjunta (a) el deudor
hipotecario o fideicomitente (“Deudor”) se obliga en forma personal y es plenamente
responsable de todos los montos adeudados en virtud del presente Pagaré, y (b) el tenedor del
presente tiene derecho a entablar una demanda en relación con el presente Pagaré y obtener una
sentencia que impone responsabilidad personal contra el Deudor para satisfacer todos los
montos adeudados en virtud del presente Pagaré ya sea antes o después de la ejecución
hipotecaria judicial, en virtud de los artículos 09.45.170 a 09.45.220 de las Leyes de Alaska
(Alaska Statutes §§ 09.45.170 - 09.45.220), de la escritura de fideicomiso que garantiza el
presente Pagaré.
6. Lenders MUST insert the following language as a new Section 12 if the security property
is located in Florida:
DOCUMENTARY TAX
The state documentary tax due on this Note has been paid on the mortgage securing this
indebtedness.
[Spanish Translation]
IMPUESTO DE REGISTRO
El impuesto estatal de registro adeudado en virtud del presente Pagaré se ha pagado sobre la
hipoteca que garantiza esta deuda.
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7. Lenders MAY add the following language immediately before the Borrower signature
lines (in bold conspicuous type, such as being bold-faced with all letters capitalized), if
the security property is located in Indiana and the mortgage contract resulted from a
telephone sales commitment (as covered under Indiana Code 24-4.7-4-4):
You are not obligated to pay any money unless you sign this contract and return it to the
seller/lender.
[Spanish Translation]
Usted no está obligado a pagar dinero alguno a menos que firme este contrato y lo devuelva al
vendedor/prestador.
8. Lenders MAY add the following language immediately after the Borrower signature
lines, if the security property is located in Louisiana:
‘NE VARIETUR’ for identification with an Act of Mortgage passed before me this ____________
day of __________________, _____.
_____________________________________________________
Notary Public: (Name)
[Spanish Translation]
‘Ne varietur’ para identificación con una hipoteca otorgada ante mí el ____de ______.
_____________________________________________________________________
Notario habilitado en el Distrito (Parish) de __________, Louisiana.
9. Lenders MAY add the following language immediately before the Borrower signature
lines, if the security property is located in Maryland:
This loan transaction is governed by Title 12, Subtitle 10 of the Commercial Law Article of the
Annotated Code of Maryland.
[Spanish Translation]
Esta transacción de préstamo se rige por el Título 12, Subtítulo 10 del Artículo de Derecho
Comercial del Código Anotado de Maryland (Title 12, Subtitle 10 of the Commercial Law Article
of the Annotated Code of Maryland).
10. Lenders MUST add the following language as a new Section 12 if the security property is
located in New Hampshire:
ATTORNEYS’ FEES
Pursuant to New Hampshire Revised Statutes Annotated §361-C:2, in the event that Borrower
shall prevail in (a) any action, suit or proceeding, brought by Lender, or (b) an action brought by
Borrower, reasonable attorneys’ fees shall be awarded to Borrower. Further, if Borrower shall
successfully assert a partial defense or set-off, recoupment or counterclaim to an action brought
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by Lender, a court may withhold from Lender the entire amount or such portion of its attorneys’
fees as the court shall consider equitable.
[Spanish Translation]
HONORARIOS DE ABOGADOS
De conformidad con el Artículo 361-C:2 de las Leyes Revisadas y Anotadas de New Hampshire
(New Hampshire Revised Statutes Annotated § 361-C:2), en caso de que el Deudor sea la parte
vencedora en (a) cualquier acción, juicio o procedimiento iniciado por el Prestador, o (b) una
acción iniciada por el Deudor, los honorarios razonables de abogados se adjudicarán al Deudor.
Asimismo, si el Deudor opusiera, con éxito, una defensa parcial o compensación, reducción o
contrademanda a una acción iniciada por el Prestador, un tribunal podrá retenerle al Prestador
el monto total o la porción de los honorarios de abogados que dicho tribunal considere justa.
11. Lenders MUST make the following changes if the security property is located in
Pennsylvania:
(a) Change the second paragraph in Section 2. INTEREST to read as follows:
The interest rate required by this Section 2 and Section 4 of this Note is the rate I will
pay both before and after any Survival Event as defined in this Note.
(b) Add the following sentence to the end of the second paragraph in Section 3(A)
Time and Place of Payments [after “Maturity Date.”]:
I will continue to pay those amounts both before and after any Survival Event as defined in this
Note, until I have paid all of the principal and interest and any other charges described below
that I may owe under this Note.
(c) Add the following sentence at the end of Section 7(E) Payment of Note Holder’s
Costs and Expenses:
I will pay the Note Holder back for those expenses paid by the Note Holder both before
and after any Survival Event as defined in this Note.
(d) Add a new Section 12 to the document as follows:
12. EFFECT OF SURVIVAL EVENTS
For purposes of this Note, “Survival Event” is defined as follows:
(a) any default described in Section 7(B) of this Note;
(b) Noteholder requiring me to pay immediately the full amount of Principal which has
not been paid and all the interest that I owe on that amount under Section 7(C) of this
Note;
(c) Noteholder requiring immediate payment in full of all sums secured by the Security
Instrument;
(d) the Maturity Date as defined in this Note;
(e) the entry of any judgment against me under this Note; and
(f) the entry of any judgment under the Security Instrument.
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12. Lenders MAY add the following language (with all letters being capitalized and boldfaced) immediately before the Borrower signature lines, if the security property is located
in Texas:
This written loan agreement represents the final agreement between the parties and may not be
contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the
parties. There are no unwritten oral agreements between the parties.
[Spanish Translation]
Este acuerdo de préstamo por escrito representa el acuerdo definitivo entre las partes y no
admite contradicciones planteadas por pruebas de acuerdos verbales previos, contemporáneos o
posteriores de las partes. No existen acuerdos verbales no escritos entre las partes.
13. Lenders MUST insert the following language (in at least 10-point bold-faced type) at the
end of the document before the sentence reading “Witness the Hand(s) and Seal(s) of the
Undersigned,” if the security property is located in Vermont:
NOTICE TO CO-SIGNER
YOUR SIGNATURE ON THIS NOTE MEANS THAT YOU ARE EQUALLY
LIABLE FOR REPAYMENT OF THIS LOAN. IF THE BORROWER DOES
NOT PAY, THE LENDER HAS A LEGAL RIGHT TO COLLECT FROM
YOU.
[Spanish Translation]
NOTIFICACIÓN AL CO-FIRMANTE
Su firma en el presente Pagaré significa que es igualmente responsable del
reembolso de este préstamo. Si el Deudor no pagara, el Prestador tiene el
derecho legal de cobrarle a usted los montos que correspondan.
14. Lenders MAY add the following text after the Borrower signature lines, if the security
property is located in Virginia:
This is to certify that this is the Note described in and secured by a Deed of Trust dated
_____________, ____ on the Property located in ___________________, Virginia.
My Commission Expires
___________________________________
Notary Public
[Spanish Translation]
Por el presente certifico que este es el Pagaré descrito y garantizado por una Escritura de
Fideicomiso de fecha ____________de ___ sobre la Propiedad ubicada en ____, Virginia.
Mi Mandato Vence:
___________________________________
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Notario Público
15. Lenders MUST change the first sentence in Section 10. Waivers to read as follows, if the
security property is located in Virginia:
I and any other person who has obligations under this Note waive the rights of Presentment and
Notice of Dishonor and waive the benefit of the homestead exemption as to the Property
described in the Security Instrument (as defined below).
[Spanish Translation]
Yo y cualquier otra persona obligada en virtud de este Pagaré renunciamos a los derechos de
Presentación y Notificación de Falta de Pago y renunciamos al beneficio de la exención de bien
de familia inembargable sobre la Propiedad descrita en el Instrumento de Garantía (conforme se
define a continuación).
16. Lenders MUST change the second sentence in Section 7(A). Late Charges for Overdue
Payments to read as follows, if the security property is located in West Virginia:
The amount of the charge will be ____% of that portion of the installment of principal and
interest that is overdue, but not more than U.S. $____________________.
[Spanish Translation]
El monto del cargo por atraso será del ____% de la porción de la cuota de principal e intereses
vencida, pero no superará los US$___________.
17. Lenders MUST delete the sentence in Section 7(E). Payment of Note Holder’s Costs and
Expenses that reads as follows, if the security property is located in West Virginia:
Those expenses include, for example, reasonable attorneys’ fees.
[Spanish Translation]
Estos gastos incluyen, a modo de ejemplo, los honorarios razonables de abogados.
18. Lenders MUST add the following language as the third paragraph under Section 2.
Interest, if the security property is located in Wisconsin:
Solely for the purpose of computing interest, a monthly payment received by the Note Holder
within 30 days prior to or after the date it is due will be deemed to be paid on such due date.
[Spanish Translation]
Únicamente a efectos de calcular los intereses, un pago mensual recibido por el Tenedor del
Pagaré dentro de los 30 días anteriores o posteriores a la fecha de vencimiento, se considerará
pagado en dicha fecha de vencimiento.
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19. Lenders MUST delete the following language from the fourth sentence of Section 3(A).
Time and Place of Payments, if the security property is located in Wisconsin:
...will be applied as of its scheduled due date and...
[Spanish Translation]
…se aplicará en la fecha de vencimiento programada y…
20. Lenders may insert a Notice on the Note if the Notice is required by applicable law for
the type of transaction.
Other Pertinent Information
Any special instructions related to preparation of this document, use of special signature forms,
required riders or addenda, etc. are discussed below.
1. If the borrower is an inter vivos revocable trust, we may require: a special rider, a
different signature form for the trustee signature, and a special signature acknowledgment
for the settlor/credit applicant(s). Lenders are responsible for making any modifications,
including the use of different terminology, needed to conform to the signature forms
customarily used in the applicable jurisdiction and will be held fully accountable for the
use of any invalid signature form(s).
-
Each of the trustees must sign this document in a signature block substantially
similar to the following, which should be inserted in the Borrower signature lines.
___________________________, Trustee of the __________________________ Trust
under trust instrument dated __________________.
[Spanish Translation]
___________________________, Fiduciario del Fideicomiso _____________________
de conformidad con el instrumento de fideicomiso de fecha ________.
2. Lenders should insert in the first blank of the first sentence in Section 4(D). Limits on
Interest Rate Changes an interest rate that is equal to the sum of the initial start rate for
the mortgage and the applicable annual interest rate adjustment cap (which is 2% for
ARM Plan 649). Then, in the second blank of the sentence, lenders should insert an
interest rate that is equal to the initial start rate for the mortgage less the applicable annual
interest rate adjustment cap (which is 2% for ARM Plan 649). However, if this difference
is less than the specified mortgage margin, lenders should insert the specified mortgage
margin in the second blank of the first sentence. Lenders should insert in the blank in the
last sentence an interest rate that is equal to the sum of the initial start rate for the
mortgage and the applicable lifetime interest rate adjustment cap (which 6% for ARM
Plan 649).
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3. When completing Section 7(A). Late Charges for Overdue Payments, lenders should
specify the maximum late charge percentage allowed by state law, if that amount is less
than the late charge we require (as specified in the Servicing Guide). In no instance
should lenders specify a late charge greater than our required late charge percentage.
4. When a lender uses the New York Consolidation, Extension and Modification Agreement
(Form 3172) in connection with the refinancing of a mortgage as an ARM Plan 649, there
is generally no need for the borrower to execute a separate note, although he or she will
need to execute the applicable adjustable-rate rider. However, if additional funds are
advanced in connection with the consolidation, the borrower must also execute a new
note and a new mortgage.
6/2016
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