Lightning Docs Updates 5.8.26

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

• Addition of Subordinate Lienholder Authorization from Borrower: We have created a new optional form, Subordinate Lienholder Authorization from Borrower. The form can be provided to a senior lienholder by the borrower to authorize the release of information to a new subordinate lienholder. Selecting a lien position other than first will make the below question appear.

• Updates to Ohio Documents: As part of ongoing outside counsel reviews we have made various amendments to the following documents for Ohio loans if Ohio is selected as the Property State AND the Governing Law jurisdiction:
  • Compliance Warnings – A statement has been added that a Secured Cognovit Note will be provided, which must be notarized and signed in the Ohio county in which it is to be enforced.
  • Lender’s Closing Instructions – Loan Documents. Title of Secured Note will change to Secured Cognovit Note. Title of Guaranty will change to Cognovit Guaranty for all types.
  • Loan Agreement – Definition of Note updated to include Secured Cognovit Note. A reference to Ohio Revised Code has been added in notice.
  • Note – Section added regarding execution and governance of the Note.
  • Security Instrument – The definition of Note has been updated to include Secured Cognovit Note. Added language for Ohio Revised Code under Sums Advanced to Bear Interest and Be Secured by Security Instrument.
  • Guaranty – Reference to Ohio Revised Code added in notice.
  • Assignment of Design Professional – Section added regarding jurisdiction.
  • Assignment of Construction Contract – Section added regarding jurisdiction.