There are special conditions that require modification of a security instrument (usually by a rider) or a note (usually by an addendum). These conditions may relate to the type of borrower (inter vivos revocable trusts), the type of security property (units in project developments, multiple-dwelling units, and leasehold estates), the occupancy status of the property (second homes or investment properties), the amortization method used for the mortgage (adjustable-rate mortgages), or the type of mortgage product (HUD Section 184 mortgages that are combination construction/permanent mortgages, or HomeStyle Renovation mortgages).
There are uniform Fannie Mae/Freddie Mac riders to security instruments, as well as some Fannie Mae-specific riders. There are also some situations in which Fannie Mae requires a rider to security instruments, but Fannie Mae has not developed a specific form. In some cases, Fannie Mae may offer language that a lender may include in the rider, even though Fannie Mae did not develop a specific document.
The various riders that are used for regularly amortizing first mortgages may be found on Riders & Addenda. Authorized changes that must or may be made to these documents are set out in the Summary Page that accompanies each document.
Security instruments must be amended by one or more uniform riders or Fannie Mae-specific riders, as applicable, including:
|Uniform or Fannie Mae-Specific Rider||Purpose|
|The Multistate PUD Rider (Form 3150) or the Multistate Condominium Rider (Form 3140)||Required for a mortgage that is secured by
a unit in a PUD or condo project. Fannie Mae also has developed
special riders for Texas Section 50(a)(6) loans that are secured
by units in condo or PUD projects.
In some states, co-op share loan documents must incorporate a co-op rider. Fannie Mae has not developed a standard multistate form for that rider, so the lender should contact its lead Fannie Mae regional office (see E-1-03, List of Contacts) to determine Fannie Mae’s documentation requirements for co-op share loan riders.
|The Multistate 1–4 Family Rider (Form 3170)||Required for a mortgage secured by a one- to four-unit investment property or a two- to four-unit principal residence.|
|The Multistate Second Home Rider (Form 3890)||Required for a mortgage secured by a second home.|
|The applicable Multistate Adjustable Rate Rider (and, if applicable, an addendum to the rider)||Required for all adjustable-rate mortgages. There are a number of different versions of this rider, based on the applicable ARM plan or index. Fannie Mae also requires a special ARM rider for Texas Section 50(a)(6) loan adjustable-rate mortgages.|
|The model Multistate Renovation Loan Rider to Security Instrument (Form 3732) and the Multistate Renovation Investor Rider to Security Instrument (Form 3733)||May be appropriately modified and used for HomeStyle Renovation mortgages. For other special-purpose documents for these HomeStyle products, see B8-5-03, HomeStyle Renovation Mortgage Documentation Requirements.|
|Revocable Trust Rider||May be used to amend security instruments for mortgages with inter vivos trust borrowers. Fannie Mae has developed a sample rider for mortgages that are made to inter vivos trust borrowers and are secured by California properties. See B8-5-02, Inter Vivos Revocable Trust Mortgage Documentation and Signature Requirements, for more information about the use of this rider and similar riders.|
|A rider that includes a cross-default provision||Must be used to amend security instruments for mortgages secured by leasehold estates so that a default on the lease is a default on the mortgage. Fannie Mae does not publish a standard rider that includes this provision.|
|A construction loan rider||Must be used to amend security instruments for HUD Section 184 mortgages that are combination construction/permanent mortgages. Fannie Mae does not publish a standard construction loan rider for government mortgages.|
The table below provides references to the Announcements that have been issued that are related to this topic.