DocMagic Compliance Wizard

RESPA 2010 Update: YSPs and Our Origination Charge Changes Effective February 3, 2010

Thu, 18 Feb 2010 18:52:42 -0800

With one month of living with the new RESPA 2010 rule under our belts, many of the issues that seemed so daunting just a short time ago are gradually being resolved. Undoubtedly, many of the remaining issues will be resolved in the upcoming days and weeks as the industry becomes more familiar with the effects of the new RESPA 2010 rule. In response to recent clarifications from the Housing and Urban Development (HUD) (including, without limitation, HUD's latest RESPA FAQs, dated January 28, 2010 and direct conversations with HUD representatives), feedback from our LOS partners and DocMagic customers who use LOS's, and interactions with compliance professionals in the residential mortgage lending industry, DocMagic has enhanced its software accordingly as specifically described below.

DocMagic’s RESPA 2010 Audits

Thu, 18 Feb 2010 18:52:37 -0800

It has been almost two months since the RESPA 2010 Rule went into effect. Based on the nature of customer inquiries into DocMagic's Customer Service and Compliance Departments, industry professionals seem to have acquired a greater comfort level regarding the new RESPA requirements. As DocMagic's prior articles have addressed the "basics" of the RESPA 2010 Rule and explained how the DocMagic software operates to handle RESPA's 2010 requirements, it is appropriate now to introduce the various RESPA 2010 audits that DocMagic implemented in January, 2010:

Two Additional GFE Categories Added

Thu, 18 Feb 2010 18:52:31 -0800

The article, DocMagic Updates Software for New RESPA Requirements Effective January 1, 2010, has been updated to describe the additional fee categories that have been added to the DocMagic application. Click here for the updated article.

DocMagic’s GFE Amt Link

Thu, 18 Feb 2010 18:52:25 -0800

C'mon - I bet you've wondered about that mysterious "GFE Amt" link in the "Charges/Fees/Premiums" screen of DocMagic shown below:

RESPA Resources Page

Thu, 18 Feb 2010 18:52:21 -0800

As DocMagic's Compliance Department has published numerous materials regarding the new RESPA 2010 requirements, a new "RESPA Resources Page" has been created for the convenience of visitors to our Compliance site. To access the RESPA Resources Page, please click here.

New FAQ Posted to “Compliance FAQs”

Thu, 18 Feb 2010 18:52:16 -0800

A new FAQ has been posted to the Compliance FAQs page regarding "How do you enter "no cost" loans into our DocMagic System?" Click here for the FAQ.

2010 Conventions, Conferences, Tradeshows and Expos

Thu, 18 Feb 2010 18:52:10 -0800

Find the mortgage lending convention, conference, trade show and expo schedules in one location on DocMagic's website. Bookmark this page and check back often. We'll be updating this list throughout the year. Also, look for DocMagic at the events marked with an * so that you may stop by and say hello!

At Your Service: P.O.C. Indicator Removed from Description of Yield Spread Premium

Thu, 18 Feb 2010 18:52:03 -0800

Based on the below RESPA FAQ, Lines 801, 802, and 803 of the HUD-1 may not contain any "Paid Outside of Closing" (P.O.C.) items.

Tech Tip of the Month: DocMagic Screen Updates

Thu, 18 Feb 2010 18:51:57 -0800

To better facilitate the software enhancements covered in our article titled "RESPA 2010 Update: YSPs and Our Origination Charge Changes Effective February 3, 2010," we have made changes to our DMO and DMW displays as follows: (1) Removed the "Payoffs/Premiums" tab; (2) Moved the "Payoffs" information under the "Providers/Prior Liens" tab; and (3) Moved the "Premiums" information under the "Charges/Fees" tab. Please see the screen shots below.

Investor Updates - February 2010

Thu, 18 Feb 2010 18:51:50 -0800

This month DSI has no new or updated loan programs of any investors to post to its Investor Updates page. However, please visit the Investor Updates page to review a description of each investors' current loan programs, including the promissory notes, prepayment riders and addenda that are used in a particular loan program, and any rate caps and interest-only periods that may be applicable to investors' variable rate loan programs.

New/Revised Documents – February 2010

Thu, 18 Feb 2010 18:51:42 -0800

In order to keep DocMagic software users better apprised of document changes and additions as they occur, DSI posts listings of all newly created and revised documents. Here is the list of forms created or modified in January, 2010.

U.S. Treasury Yields - February 2010

Thu, 18 Feb 2010 18:51:38 -0800

The U.S. Treasury security yield values for February 2010 may be viewed online here. The yield is determined as of the 15th day of the month immediately preceding the month in which the creditor receives the application. The yield value is used for Section 32 and most state high-cost tests. These values will, therefore, be used for loan applications received by the creditor in March 2010.

Industry-Related Announcements/Newsletters – February 2010

Thu, 18 Feb 2010 18:51:33 -0800

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

DocMagic Updates Software for New RESPA Requirements Effective January 1, 2010

Tue, 09 Feb 2010 16:18:13 -0800

Updated: February 3, 2010

This article has been updated to describe the additional fee categories that have been added to the DocMagic application. The updated sections are highlighted below in yellow.

Today we are pleased to announce the release of an updated and enhanced version of DocMagic Online (DMO) into production. Corresponding changes to DocMagic for Windows (DMW) should be released within the next week or so. The updates and enhancements (which in number and scope represent the largest, single software upgrade in DocMagic's twenty plus years of operation) have been implemented to ensure compliance with the new Good Faith Estimate (GFE) disclosure and HUD-1 Settlement Statement requirements that become mandatorily effective for any GFE and HUD-1 issued on or after January 1, 2010. We have incorporated screen shots from DMO, as enhanced, to better illustrate the nature of the changes in conjunction with an explanation as to why those changes are necessary. This article is not designed to answer all or even most questions about the implications of, or the subtleties and ambiguities often associated with, the data entered into particular fields. In addition to this article, we also will be posting additional articles in the very near future describing, for example, documents that have been created, revised and/or rendered obsolete by, and audits that we will be implementing to ensure compliance with, the new RESPA requirements.

RESPA 2010: YSPs, the New GFE and Lender Credit to Borrower

Fri, 22 Jan 2010 17:04:29 -0800

Updated: February 3, 2010 (Revisions are highlighted in yellow)

Please note: the procedures described in this article are no longer the default procedures utilized within the DocMagic software and have been superseded by the procedures described in the article available here. If you wish to use the procedures described in this article, please contact a DocMagic Customer Service Department representative for additional assistance.

California DRE Publishes New Good Faith Estimate Form Requirement

Fri, 22 Jan 2010 17:04:25 -0800

Beginning January 1, 2010, mortgage brokers who arrange federally related mortgage loans must use the new Good Faith Estimate (GFE). Two of the three California Department of Real Estate (DRE) Mortgage Loan Disclosure Statement (MLDS) forms (RE883.MSC and RE885.MSC), include a HUD-approved version of the old GFE. Therefore, the GFE provisions in both forms are not compliant with the new Real Estate Settlement and Procedures Act (RESPA) rules, effective January 1, 2010. The DRE is in the process of getting approval from HUD to combine the new GFE with the RE883.MSC and RE885.MSC forms.

Red Flags Rule Delayed Once Again

Fri, 22 Jan 2010 17:04:16 -0800

Our previous article, written by Anna DeSimone, announced that the Federal Trade Commission (FTC) had delayed enforcement of the Red Flags Rule until August 1, 2009. However, at the request of Members of Congress, the FTC has delayed enforcement of the Rule for a third time until June 1, 2010, to provide further compliance guidance to covered financial institutions and creditors. The Red Flags Rule's original effective date of November 1, 2008, continues to apply to covered entities regulated by the federal banking agencies or the National Credit Union Administration. For the FTC's announcement regarding the delay, please click here.

At Your Service: Non-Title Spouse and Notice of Right to Cancel

Fri, 22 Jan 2010 17:04:12 -0800

Contrary to what was stated in the article, New Borrower Type: Non-Title Spouse, Part I, and in this article, New Borrower Type: Non-Title Spouse, Part II, DocMagic's Notices of Right to Cancel (NORTC.MSC and NORTCI.MSC) now contain the signature of the Non-Title Spouse ("NTS"). DocMagic's Compliance Department decided recently to add the signature of the Non-Title Spouse to its Notices of Right to Cancel, because a number of investors require the NTS's signature. If you wish to omit the NTS' signature from the Notices of Right to Cancel, please contact Customer Service, at (800) 649-1362. Please note that the article, DocMagic Changes Default Print and Header Rules for Certain Loan Documents, has been updated accordingly.

Investor Updates - January 2010

Fri, 22 Jan 2010 17:04:08 -0800

New/Revised Documents – January 2010

Fri, 22 Jan 2010 17:04:03 -0800