We receive numerous calls on a daily basis from our DocMagic customers asking us how we arrive at our high cost determinations. In an effort to better explain our calculations, we have decided to publish detailed information regarding our calculations online.

In the past, we have published detailed information about our California Covered Loan Law calculations in our articles Compliance Update: CA Covered Loan Law and YSP's Not Included In CA's Covered Loan Law Calculations. This month, we add detailed high cost information for the states of Georgia and Massachusetts. In addition, we add detailed information about our Section 32 high cost calculations. The Section 32 information is useful, not only because it explains our Section 32 calculations, but also because a number of states have adopted high cost provisions that simply track Section 32 in terms of how high cost home loans are defined. Those states include, for example, Maine, Nevada and Ohio.

Document Systems, Inc. ("DSI") is in the process of creating the disclosure forms required by Texas House Bill 1547 (H.B. 1547) in accordance with proposed rules and regulations of the Texas Office of Consumer Credit Commissioner ("OCCC"). You may recall that our May, 2005 issue of The Compliance Wizard, we introduced H.B. 1547 to our readers in an article entitled TX Legislature Proposes Amendmenr to "Plain Language" Statute Involving Consumer Loan Contracts. H.B. 1547, which amends Texas Finance Code Section 341.502, passed and becomes effective on September 1, 2005.

If you have been following coverage on Supreme Court Justice nominee, John G. Roberts, a case entitled National Collegiate Athletic Association ("NCAA") v. Smith is one of the cases highlighted by the media in which Roberts argued before the U.S. Supreme Court on behalf of the NCAA. What is important about the NCAA v. Smith case is not that Justice nominee Roberts was involved, but that Document Systems, Inc.'s ("DSI's") very own Renee M. Smith was the "Smith" in that case!

ATTENTION: Please Contact Customer Service When an Investor's Prepayment Penalty Addendum/Rider Includes a Soft Prepayment Provision

When entering data for a loan that involves a "soft prepayment" provision, the DocMagic user normally enters the number of months in the "Prepayment" field to represent the period of time under which the borrower is subject to a prepayment penalty on their loan and the number of months in the "Soft Prepayment" field to indicate the number of months under which the "soft prepayment" period applies. (See "Screen Shot 1" below.) The multistate prepayment addendum and/or rider that include a "soft prepayment" provision then automatically generates in the loan package.

DSI has added another enhancement to DocMagic - the Plan Selection Filter. This enhancement enables DocMagic users to search loan programs faster than ever before. With competition in the mortgage industry heating up, lenders have been forced to offer a greater number of loan program types to facilitate the needs of an increasingly diverse customer base. With more loan programs to choose from, selection of the correct loan program at document processing time can become time consuming and error prone.

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 July, 2005.