DocMagic Compliance Wizard

DocMagic Adds New York Subprime Home Loan Audit

Fri, 29 Aug 2008 17:43:01 -0700

The State of New York has created a new category of loans called "subprime home loans." The new law is set forth in new Section 6m of the New York Bank Law (a copy of the bill enacting this new section is available here). The new law applies to loans closed on or after September 1, 2008. Many investors, including but not limited to Fannie Mae,1 have already announced that they will not purchase and/or securitize New York subprime home loans. Below is a description of the new law along with a description of the audit DocMagic is implementing to identify New York subprime home loans.

DocMagic Changes Default Print and Header Rules for Certain Loan Documents

Thu, 21 Aug 2008 13:48:49 -0700

Periodically, DocMagic, Inc.'s Compliance Department reviews its form selection, print, signature and header default rules for its core loan documents (i.e., documents returning in all closing loan packages) to determine whether the rules need updating based on new legal requirements, customary practice, or for other reasons. After a recent periodic review, the Compliance Department modified the print and/or header (the top of page 1 of the form identifying the borrowers, lender, loan number, etc.) default rules for certain core loan documents, because it was determined that lenders seldom request the forms identified below for those borrower types that were excluded from the rules. Changes to these default rules will be implemented in the coming weeks.

California DRE Amends Regulations, Updates DRE Forms 882, 883 and 885

Thu, 21 Aug 2008 13:30:37 -0700

The California Department of Real Estate (DRE) has amended its regulations, effective August 15, 2008, pertaining to DRE Forms 882, 883 and 885. The most obvious change to each one of these DRE Forms is the addition of an Informational Sheet. Please click here to access the text of the DRE's adopted changes and the updated versions of DRE Forms 882, 883, and 885.

DocMagic Adds FHA LIBOR ARM Loan Programs

Thu, 21 Aug 2008 12:43:54 -0700

DocMagic, Inc.'s Compliance Department has added the following FHA LIBOR Loan Programs under "Generic Plans" as the "Investor" pursuant to Mortgagee Letter 2007-13:

At Your Service: Washington State Disclosure Updated Once Again; Two Disclosures Created

Thu, 21 Aug 2008 11:25:42 -0700

In our June, 2008 issue, we published an article about a new model disclosure prescribed by WAC 208-600-200, which was adopted, in draft form, pursuant to new Section 3(1) in Substitute House Bill 2770. Section 3(1) requires a separate, residential mortgage loan disclosure summary of all material terms to be provided to the borrower and, pursuant to Section 3(2), mandates that the Washington Department of Financial Institutions (DFI) adopt, by rule, a model mortgage loan summary disclosure meeting the requirements of Section 3(2).

Regulation Z Amendments Create New “Higher-Priced Mortgage Loans” Category

Wed, 20 Aug 2008 18:54:29 -0700

On July 30, 2008, the Board of Governors of the Federal Reserve Board (the "Board") published a final rule amending Regulation Z. The final rule, the main provisions of which do not become mandatory until October 1, 2009, is available here. The stated goals of the final rule are: (1) to protect consumers from unfair, deceptive and abusive lending and servicing practices; (2) to improve mortgage advertising; and (3) to provide consumers with disclosures early.

FIS Flood Services Changes Name to LPS National Flood

Wed, 20 Aug 2008 18:25:08 -0700

Effective September 1, 2008, FIS Flood Services is changing its name to LPS National Flood. The name change is being made in connection with the spin-off of Lender Processing Services, Inc. from Fidelity National Information Services, Inc. that was completed on July 2, 2008. We have been assured that there will be no service interruptions, key personnel changes, customer service center location changes or database location changes as a result of either the spin-off or the name change. In other words, with the exception of the name change and some changes in marketing materials, we expect that customers will continue to receive the same level of excellent service from LPS National Flood to which they have grown accustomed. For additional information about Lender Processing Services, Inc., click here. For additional information about LPS National Flood, click here.

DocMagic Uses Deed of Trust for New Mexico Uniform Instrument

Wed, 20 Aug 2008 18:14:10 -0700

As of the middle of August, 2008, the DocMagic software returns a deed of trust in a closing loan package for all non-FHA loans when New Mexico is the state in which the secured property is located. Both Fannie Mae and Freddie Mac will mandate on September 1, 2008, that a New Mexico deed of trust be used instead of a mortgage. DocMagic, Inc.'s Compliance Department changed the New Mexico Uniform Instrument from a mortgage to a deed of trust, as Fannie Mae and Freddie Mac documents are considered Uniform Instruments under DocMagic's License and User Agreement.

Maryland Prohibits Prepayment Penalties

Wed, 20 Aug 2008 18:08:50 -0700

The article regarding Maryland's prohibition of prepayment penalties, originally published in the June, 2008 issue of The Compliance Wizard and updated in the July, 2008 issue, has once again been updated. To view the updated article, please click here. We thank Maryland attorney Marjorie A. Corwin, Esq., of Gordon, Feinblatt, Rothman, Hoffberger & Hollander, LLC, for her valuable input on this topic.

Industry-Related Announcements/Newsletters – August 2008

Sun, 17 Aug 2008 12:43:34 -0700

To view this month's list of announcements or newsletters related to our mortgage industry, please click here.