1.Section 1 – Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges

Language has been removed that previously allowed lenders to hold unapplied funds without paying interest if the borrower was not current on payments. The deleted text addressed how lenders could apply partial payments toward principal balances before foreclosure proceedings.

2.Section 2(a) – Application of Payments or Proceeds

Prior language regarding voluntary prepayments has been removed. Specifically, the deleted text required voluntary prepayments to be applied first to any prepayment charges before applying to other loan obligations as outlined in the Note.

3.Section 26(c) – Notice of Sale; Sale of Property

The revision eliminates the borrower’s prior waiver of personal service of notice related to foreclosure sales under the security instrument.

4.Effective Date Timeline

The updated Form 3049 is now effective, and lenders must transition to using the new form within six months of the publication date. Mortgage companies and servicers operating in West Virginia should review their closing documents and update templates accordingly to remain compliant with Fannie Mae and Freddie Mac guidelines.