Washington DOT, Third Party Security Instruments, Default Interest Revisions, and Pennsylvania Mortgage

We have issued an update to the system which modified the following:

Washington Deed of Trust

In a recent update, we added the ability to include the Lot, Block and Plat Section to the Deed of Trust in Washington.  The intent was to address a requirement that the first page of the Deed of Trust include the summary legal description of the subject property.  We quickly discovered that outside of title, it is incredibly difficult for a user to determine the proper description to include. Historically, best practice has been to rely on the title company to provide such descriptions.  In light of the difficulty being experienced, and the fact that title has added the summary legal description, we have removed this option to avoid confusion and mistakes by users.

Third Party Security Instruments

For those users that have requested access to third party security instruments, we have made the following updates to the security instrument:

1. Clarified references to the third party pledgor and borrower

2. Added third party pledgor waivers section

Default Interest Revisions

In light of the recent California Appeals court decision related to the charging of default interest, we have chosen to extensively modify the default interest section of our Promissory Note. Specifically, we have identified several specific ways mortgage lenders are damaged when the borrower defaults and how those harms are impossible to quantify at loan origination which is why an agreed-upon rate of default interest should apply.

Even though the case is a California case, we believe it is best practice to modify this section for all lenders and in all states to make it clear that the lender’s cost of funds has now increased due to borrower’s default. Therefore, this modification in language is a global change made to all Promissory Notes going forward.

Pennsylvania Mortgage

Edits to PA Note Addendum to remove duplicate reference to document date in the intro paragraph and numbering formatting.