On July 30, 2008, President Bush signed the Housing and Economic Recovery Act of 2008 (the "Act") into law.  The Act amends the National Housing Act to create a new temporary FHA mortgage insurance program called HOPE for Homeowners (H4H).  This new Program, as described in Mortgagee Letter 2008-29, is designed to assist borrowers at risk of default or foreclosure with refinancing into an affordable 30-year, fixed rate mortgage that is insured by FHA.  The Program is effective for endorsements on or after October 1, 2008 and ends September 30, 2011.  Below is a description of the new Program along with a description of DocMagic, Inc.'s plans for implementing the requisite documents under the H4H Program.

We have received numerous questions regarding changes to the North Carolina High-Cost Home Loan law ("NCHCHL"), effective October 1, 2008.  As a result of these recent amendments to the NCHCHL law, there is uncertainly whether certain fees that had previously been excluded from the definition of "points and fees" under the NCHCHL law must now be treated as "points and fees" under the NCHCHL law.  For the reasons stated below, we believe that with very limited exceptions, these recent amendments have not greatly expanded the definition of "points and fees" under the NCHCHL law.

DocMagic, Inc.'s Compliance Department has created a Lock-In Agreement (MTLIA.MSC), Prepayment Penalty Disclosure (MTPPD.MSC) and Loan Commitment (MTLC.MSC) pursuant to HB 69, which enacted the new Montana Residential Mortgage Lender Licensing Act, Mont. Code Ann. §§ 32-10-101 et seq. The law became effective October 1, 2008, but, due to a grammatical oversight, the law applies to mortgage loans made on or after October 2, 2008.  These new disclosures will select if the secured property is located in Montana, the property type is not multifamily, commercial, or land & lots and occupancy status is owner-occupied, regardless of lien status.

Updated: November 5, 2008 (Revisions are highlighted in yellow)

Beginning November 3, 2008, DocMagic users will begin to see the standard 1-4 Family Rider (US3170.RID) in FHA closing packages whenever the property securing the FHA loan is owner-occupied, not a second home, and the property type is a 1-4 unit property or in rare instances permitted by HUD, such as for the purchase of HUD real-estate owned (REO) property, the property type is investment property (i.e., non-owner-occupied and not a second home).  Note that the FHA-required non-occupancy rider (NOOR.LSR) and the Borrower's Contract with Respect to Hotel and Transient Use of Property, Form HUD-92561 (92561.HUD), already appear in these packages.  Although HUD does not require the 1-4 Family Rider in FHA loan packages, some investors do require it.  Therefore, DocMagic, Inc.'s Compliance Department has decided to add the 1-4 Family Rider to enhance the salability of customers' loans.  Customers wanting the 1-4 Family Rider deleted from their FHA closing loan packages must contact DocMagic, Inc.'s Customer Service Department, at (800) 649-1362.