The long-delayed Illinois Predatory Lending Database Pilot Program (the "Pilot Program") is delayed no more. The Illinois Department of Financial and Professional Regulation (the "IDFPR") has announced September 1, 2006 as the inception date for the four-year Pilot Program created by House Bill 4050 that was signed into law in July, 2005. The requirements of the Pilot Program are complex and require careful review. A short description of the Pilot Program together with a number of links to helpful information and a description of a new DocMagic audit follow.

DocMagic recently added a new borrower type, "Non-Title Spouse," to accommodate the scenario when a non-borrowing spouse is not on title but is still required to agree to the security interest in the property. The difference between "Non-Title Spouse" and "Title Only" is that in the latter, the individual is actually on title. The "Non-Title Spouse" is not on title but may have a community property or other marital interest in the property.

This month we added information regarding the Rhode Island Home Loan Protection Act, which becomes effective on December 31, 2006. Please visit our Predatory Lending page to review this and the other high-cost memos that have already been posted on the Compliance page of our website.

The Compliance Department at Document Systems, Inc. ("DSI") continually strives to provide DocMagic customers with compliance tools. To that end, the Department has created a matrix that sets forth whether or not witness signatures are required on security instruments for each state, plus the District of Columbia. In addition, the matrix includes: (a) detailed explanation as to whether or not witness signatures are required; and (b) a citation to the applicable statutes and/or case law. We have even gone a step further and included what Fannie Mae's authorized changes are with regard to witness signatures and described whether or not these witness lines are present in DSI's 1st lien security instruments.

In an effort to continually serve its customers, Document Systems, Inc. ("DSI") has hired a number of new employees in many of its departments this past year. As DSI has acquired a number of new accounts, Edylaine Mascardo and Trisha Espe have joined the Customer Service Department to enable the Department to better handle the growing number of daily customer service inquiries. The Technical Support Department has hired Robert Hoffman to assist with technical support inquiries. Tawny Matau is a new addition to the In-House Department to assist with the fulfillment of an increasing number of predisclosure as well as closing packages. Howard Hoagland and Maple Moriji have joined the Software Development team. Gina DeRuise, Juliet Henry-Okonkwo, Philip Reese, and Michelle Alonzo familiarize prospective customers with the DocMagic and LoanMagic products and set up new customers in the New Accounts/Set-Up Department. Alice Gastelum is a new member of the Forms Template Department. And, last but not least, Mark Delgadillo joined the Compliance Department as a paralegal, and Edna Guevara was hired as its legal assistant.

DSI is proud to have these new members on its team!

This month DSI posts loan programs of NovaStar and WMC Mortgage on its Compliance page. Revisions have also been made to the matrixes of Bear Stearns, Countrywide, EMC Mortgage, and New Century to reflect loan programs that have been either added or deleted by the respective investor. Find out the description of each investor's loan programs, which promissory notes, prepayment riders and addenda are used, and what the rate caps and interest-only periods are for variable rate loans by visiting our Compliance page.

Effective March 15, 2006, the Utah Consumer Credit Code was amended by Utah Senate Bill 252, enabling borrowers to waive their rights to participate in a class action related to a closed - or open - end consumer contract. To contract for the waiver, the lender must disclose the waiver to the borrower in the contract. However, beginning with a closed-end or open-end consumer contract entered into on or after August 1, 2006, the lender must make the disclosure in bold type or all capital letters.

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, 2006.