Connecticut has created a new category of loan, the so-called "nonprime home loan."  The new law is contained in Connecticut Public Act 08-176 (the "Act").  Below is a description of the audit DocMagic is implementing to identify such nonprime home loans.

Preliminary Note: According to Section 2133 of the Housing and Economic Recovery Act of 2008, beginning on October 1, 2008, and for a period of 12 months thereafter, a moratorium on FHA's implementation of its risk-based premiums policy, as described in ML 2008-16, will become effective. Accordingly, the contents of the article below apply only until September 30, 2008.

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:

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.

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.