Knowledge Base
      Back to home
      1. Help Center
      2. Knowledge Base

      🏛️ GoDocs Louisiana Mortgage Update: MIM Integration and Conventional Use Cases

      Ensuring Compliance and Flexibility for Cross-Collateralized and Conventional Loan Structures in Louisiana

      🔍 Why These Updates Were Made

      GoDocs is committed to delivering market-ready, legally compliant documentation tailored to each jurisdiction we serve. In Louisiana, mortgage law presents a unique challenge: conventional mortgages cannot be used to cross-collateralize multiple loans. To address this, we’ve introduced support for Multiple Indebtedness Mortgages (MIM) across our ApartmentDocs, CommercialDocs, and InvestorDocs offerings.

      A MIM allows a lender to secure one or more loans or extensions of credit—whether originated simultaneously or at different times—under a single mortgage instrument. MIMs are widely used in Louisiana, including for single, one-off loans, and are especially valuable when securing future advances or structuring revolving lines of credit.

      The key advantage of a MIM is its ability to support cross-collateralization. Unlike a conventional Louisiana mortgage, which cannot legally secure other loans, a MIM enables the lender to tie multiple obligations to the same collateral property. This ensures flexibility and legal enforceability for lenders who require cross-default or cross-collateralization provisions.

      To support this functionality, our platform offers three options under the “Cross-Default” UI:

      • No – No cross-default or cross-collateralization language is included.

      • No – Generic CD/CC All Loans – Generic language is added to cross-collateralize all loans at the lender’s option.

      • Yes – Specific cross-default and cross-collateralization language is added, allowing users to designate which loans are linked.

      If "Specific cross-default" is selected for a Louisiana CRE order, the system will automatically generate a MIM to ensure the mortgage can legally secure those obligations. If “No” is selected, a conventional Louisiana mortgage will be generated instead.

      These updates ensure that your loan documentation reflects the correct mortgage type based on your selections, maintaining compliance while supporting your business structure.

      🧭 Guide: Using the Updated Louisiana Mortgage Logic

      🖥️ 1. UI Prompt Logic (Property Tab)

      A new informational prompt appears under the “Property” tab when the following conditions are met:

      • Product Type = ApartmentDocs, CommercialDocs, or InvestorDocs

      • Loan Type = Any

      • Cross-Default Selection = “Specific Cross-Default”

      • Property State = Louisiana

      đź“Ś Prompt Text:

      “Based on your “Cross-Default” selection, the loan document package generated for this order will include a Multiple Indebtedness Mortgage. Louisiana law does not permit the collateral real property subject to the lien of a standard (conventional) mortgage to serve as cross-collateral for another loan whether already existing or to be originated in the future. Please contact Customer Support with any questions.”

      This prompt is informational only and does not block validation.

      đź“„ 2. Louisiana Conventional Mortgage Template Logic (Non-MIM)

      For clients choosing a conventional Louisiana mortgage rather than a Multiple Indebtedness Mortgage (MIM), GoDocs has updated its documentation logic to ensure compliance with Louisiana law and clarity in your loan package.

      These updates apply when:

      • The loan is secured by property located in Louisiana

      • The selected product type is ApartmentDocs, CommercialDocs, InvestorDocs, ConstructionDocs, or Fix N Flip

      • The “Cross-Default” setting is either “No” or “Generic”

      • The loan does not require a MIM based on your selections

      Depending on the loan type and whether a Repair Agreement is included, your conventional mortgage documents will be tailored to reflect Louisiana’s legal requirements. This ensures that:

      • Your mortgage is properly structured for single-loan scenarios

      • Cross-collateralization language is excluded when not legally permitted

      • The documentation aligns with your selected loan structure and product type

      If your business decision requires cross-default or cross-collateralization for Louisiana loans, GoDocs will automatically generate a MIM to support that structure. Otherwise, your loan package will include a compliant conventional mortgage tailored to your selections.

      For questions about how these updates affect your documentation, or to confirm which mortgage type is appropriate for your transaction, please contact GoDocs Customer Support.