We have been noticing that many of our customers have been re-processing worksheets that were previously processed in 2005 in order to obtain the necessary information to prepare IRS Form 1098. Save yourself the additional processing fee and instead use the reporting capabilities offered by DocMagic Online (DMO) or DocMagic for Windows (DMW). Obtaining a 1098 report via DMO and DMW is free.

HUD issued its final rule on June 27, 2005, requiring up-front mortgage insurance premiums (UFMIP) on rehabilitation (Section 203(k)) and condominium mortgages (Section 203(c)) closed on or after January 1, 2006. Prior to January 1, an up-front premium was not required on these types of FHA-insured loans. Implementation of this rule is designed to keep FHA's rehabilitation and condominium loan programs in line with its single family housing (203(b)) program.

Beginning with this month's issue, DSI will post on a monthly basis its largest investors' loan programs on its Compliance page and update them as program changes are made. Find out the description of each investor's loan program, which promissory notes, prepayment riders and addenda are used, and what the rate caps are for variable rate loans. This month, we post information about Countrywide, IndyMac Bank, and Washington Mutual Bank's loan programs. Visit our Compliance page next month to see other investors' loan programs.

As you all are aware by now, Fannie Mae has increased their 2006 maximum loan limits. For a copy of Fannie Mae's announcement, click here. The increased Fannie Mae loan limits for 2006 are: $417,000 for a single unit dwelling, $533,850 for a 2-unit dwelling, $645,300 for a 3-unit dwelling, and $801,950 for a 4-unit dwelling. Many state high cost loan laws and regulations reference the Fannie Mae loan limits, usually in the form of a ceiling above which the state specific high cost loan provisions do not apply. Here is a quick and brief recap of the impact of Fannie Mae's maximum loan limit increases on state specific high cost calculations:

This month, we added additional high cost information for the states of Minnesota and New Mexico and update the high cost information for Illinois to incorporate information concerning the high cost ordinances in Cook County and Chicago. Please visit our High Cost/Predatory Lending Page to review these and the other high-cost memos that have already been posted on the Compliance page of our website.

The recently updated Uniform Residential Loan Application (Fannie Mae Form 1003) now has a section at the top of the form that enables the borrower and co-borrower to indicate their intention to apply for joint credit. This added section renders the use of Document Systems, Inc.'s Evidence of Joint Application (EOJA.MSC) form unnecessary or obsolete in those cases where the 1003 application form is used. However, because the 1003 application may not be used as the application for some types of loans (for home equity lines of credit, for example), we want to hear from you whether or not, and under what circumstances, our stand-alone form EOJA.MSC should be removed from loan packages.

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, in future issues of The Compliance Wizard, we'll let you know which events we'll be attending so that you can stop by and say hello!

Document Systems, Inc. has posted its Terms, Notices and Conditions of Use of its website. Click Here to read them.

Some customers have inquired into the meaning of the following audit:

[&TX_FEE_TEST]_________ FEES EXCEED 3% OF PRINCIPAL LOAN AMOUNT

The above audit pertains to Texas, cash-out, non-purchase money loans secured by owner-occupied properties and was implemented in response to customer requests.

A new version of DocMaster has recently been released to all DocMagic users. This new version contains a number of enhancements to increase your productivity and make viewing, editing and printing your documents that are generated by DocMagic as easy as possible. Below is a brief list of these new features:

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 December, 2005.