Streamlined Loan Documents Reduce Mortgage Closing Costs

By Karen Lawson Columnist

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Fannie Mae and Freddie Mac have announced the implementation of master mortgage/deed of trust documents and short-form mortgage and deed of trust forms.

These forms, which are currently available in 27 states, enable lenders to reduce paperwork and costs associated with recording home mortgage loan documents. In some areas, recording fees can cost more than $20 per page. The new mortgage/deed of trust documents are expected to reduce the cost of a new home loan and save time during the loan origination process.

New Mortgage Documents Save Time and Money

Mortgage lenders may record a master mortgage form within a specific area, typically a county, where they provide new home loans. The master form indicates the terms shared by a group of mortgage loans. It includes the name of the lender, interest rate, length of mortgage, payment adjustment schedules if applicable, and other mortgage terms. The individual short-form mortgage or deed of trust is made a part of the master document, and includes your name(s) as borrower(s), and property information. You'll receive a copy of the master document and short- form mortgage/deed of trust after recording. Here are some details:
  • » Master documents conform with state law
  • » Some states require a mortgage, others use a deed of trust
  • » A mortgage or deed of trust contains all terms and conditions of your new home loan.
Mortgage lenders can provide information about the availability of these new home loan documents in your area.

Fannie Mae

About the Author
Karen Lawson is a freelance writer with extensive experience in mortgage banking. She holds BA and MA degrees in English from the University of Nevada, Reno.

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