Mortgage Documents
West Virginia Adjustable Rate Note -- ARM 5-1 -- Single Family -- Fannie
Mae/Freddie Mac UNIFORM INSTRUMENT (Form 3501.49)
Type of Instrument
Note
Instrument Revision Date
1/01 (rev. 7/01)
Instrument Last Modified
9/3/02 (Formatting Correction)
10/2/06 – Spanish Translation Posted
Summary Page Last Modified
10/2/06 (Spanish Translations Added)
Printing Instructions
The PDF document must be printed on letter size paper, using portrait format.
Use This Document For
State
WV
Lien Type
First
Product Type
ARM -- Plans 383,
510, and 710; also
ARM Plan 711, if
additional documents
are executed
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 MUST add a second tagline to the document footer -- “Fannie Mae 4-1/5-1/6-1
ARM”, if they use this document for ARM Plans 383, 710, and 711. [Note: See Item 3
below under Other Pertinent Information for specific instructions about using this
document in connection with ARM Plan 711.] Lenders MAY also include the applicable
plan numbers in the second tagline.
4.
Lenders MAY add the following disclosure notice above or below the Borrower signature
lines, 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]
Aviso: El valor del índice inicial de este préstamo es ____%.
5.
Lenders MAY modify Section 11. Uniform Secured Note by replacing the last sentence
of the first paragraph with the following sentence and adding the subsequent language as
a new paragraph before the existing second paragraph:
…………………………………………………………….…Some of those conditions read as follows:
Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section
18, “Interest in the Property” means any legal or beneficial interest in the Property, including,
but not limited to, those beneficial interests transferred in a bond for deed, contract for deed,
installment sales contract or escrow agreement, the intent of which is the transfer of title by
Borrower at a future date to a purchaser.
[Spanish Translation]
.... .... .... .... .... .... .... ....A continuación se describen algunas de esas condiciones:
Traspaso de la Propiedad o de un Interés Beneficioso en el Deudor. Conforme se utiliza
en la presente Sección 18, “Interés en la Propiedad” significa cualquier interés legal o interés
beneficioso sobre la Propiedad, incluidos, pero no limitados a, los intereses beneficiosos
transferidos por un acuerdo de transferencia futura de título, contrato de transferencia de título
condicional, contrato de venta en cuotas o acuerdo de depósito en reserva, en virtud del cual se
pretende la transferencia de título en una fecha futura, del Deudor a un comprador.
6.
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 West Virginia 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 ___________________________, for the benefit of
_____________________________ (Borrower).
[Spanish Translation]
___________________________, Fiduciario del Fideicomiso _____________________
de conformidad con el instrumento de fideicomiso de fecha ________, en beneficio de
__________(Deudor).
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 1% for
ARM Plans 383, 510, 710, and 711). 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 1% for ARM Plans 383, 510,
710, and 711). 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 is 4% for ARM Plan 383, 5% for ARM Plan 510, and
6% for ARM Plans 710 and 711).
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.
Lenders may also use this note to document a convertible ARM Plan 711; however, if
they do so, they must also have the borrower execute the following riders to the security
instrument -- a Multistate Adjustable Rate Rider (Form 3108) and a Multistate Adjustable
Rate Rider - Fixed Rate Option Addendum (Form 3109) -- and an addendum to the note - Fixed Rate Option Addendum (Note) (Form 3256).