We have issued an update to the system which modified the following:
- Update to GA Security Instrument related to Intangible Mortgage Taxes.
- Update to OR Security Instrument Recording Cover Page resolving recorders issues.
- Update to TX Note modifying Usury Saving Clause when out-of-state governing law is selected.
- Update to IN Security Instrument based on the advice of local counsel.
- Update to interest calculations for Key Provisions Summary for 365/Actual and 360/Actual loans to resolve rounding discrepancies.
Added two new SOFR Indices.
Previously, the only available index was the 30 Day Average SOFR index. Based on user requests we added SOFR and One Month CME Term SOFR. Copied below is the specific language which will populate based on which index is used. To determine the best option, users should first look to their warehouse line of credit agreements to determine which index they are paying to their current financial institutions. Otherwise, SOFR is likely the most common option to be used.
Previous Option (30 Day Average SOFR):
1.3. Index. Commencing on the first Change Date, the interest rate will be based on an Index. “Index” shall mean the 30-day average Secured Overnight Financing Rate (“SOFR”), which is the compounded averages of the SOFR over rolling 30 calendar day periods, as published by the Federal Reserve Bank of New York….
SOFR
1.3. Index. Commencing on the first Change Date, the interest rate will be based on an Index. “Index” shall mean the secured overnight financing rate (“SOFR”) published for such day by the Federal Reserve Bank of New York, as administrator of the benchmark, (or a successor administrator) on the Federal Reserve Bank of New York’s website (“SOFR”)….
One Month CME Term SOFR
1.3. Index. Commencing on the first Change Date, the interest rate will be based on an Index. “Index” shall mean the One-Month CME Term Secured Overnight Financing Rate (“SOFR”) as published by CME Group Benchmark Administration Limited (“SOFR”)….