It has been Fannie Mae’s stated policy for quite some time now not to purchase or securitize any mortgage where total points and fees exceed five percent of the mortgage amount, or any mortgage loan that is subject to the requirements of the Home Owner Equity Protection Act of 1994 (“HOEPA”). In an announcement dated April 14, 2006, Fannie Mae is, in its own words, “now expanding its policy prohibitions to include certain mortgage purchase eligibility requirements based on housing goals regulations issued by [HUD] to which Fannie Mae is subject,” effective for all loans delivered to Fannie Mae on or after June 1, 2006.

Are you tired of re-keying loan information to register your loan with MERS when using the DocMagic Online (DMO) software? With DMO's current Release Version 3.30, a solution is immediately available to you. DocMagic and MERS now have an XML interface, enabling the DMO user to register a loan directly with MERS by selecting "Register MERS Loan" in the Document Processing Screen of DMO. No additional inputting is required. Like magic, loan-specific information is automatically transferred to MERS through DMO, ensuring accuracy of the MERS-specific information and enhancing efficiency with document preparation.

The DocMagic audit system has been updated recently to calculate the New Century and Home 123 (collectively, “New Century”) limitation on maximum points and fees. It is New Century’s policy not to accept loan submissions where any combination of points and fees exceed either 5% (excluding rebate) or 6% (including rebate) of the loan amount. These rules are intended to be read in conjunction with both federal and state high cost loan limitations and do not supersede any more stringent federal or state high cost loan restrictions. “Points and fees” are defined as the total prepaid finance charge minus both per diem interest and up to two (2) bona fide discount points. The audit will run whenever a New Century loan plan is selected. Please contact a Customer Service representative if you have any questions regarding this audit.

This month DSI posts loan programs of Credit Suisse First Boston, Flagstar Bank, and Netbank to its Compliance page. Find out the description of each investor’s loan program, which promissory notes, prepayment riders; and addenda are used; and, what the rate caps and interest-only periods are for variable rate loans. Visit our Compliance page next month to see other investors’ loan programs.

She is an inspiration to everyone at Document Systems, Inc. (“DSI”), always chasing opportunities to serve. Her service transcends departmental lines at DSI, and, by now, everyone knows she serves with speed, a warm smile, and confidence. I’m talking about Brenda Jurado, DSI’s Employee of the Year for 2006. Before receiving this distinguished honor, Brenda was awarded Employee of the Quarter Award and numerous “On-the-Spot” recognitions in past years.

Electronic invoices for DocMagic's services are now available!  To receive DocMagic’s invoice via email, simply email the following information to accounting@docmagic.com:

Customer ID:
Company Name:
Contact Name:
Email Address:

You may include more than one invoice recipient by adding the recipients’ contact name and email address.  All you need is Adobe Reader® to view the electronic invoice.

This month Document Systems, Inc. (“DSI”) has added a software enhancement to DocMagic to accommodate a situation where an Inter Vivos Revocable Trust (“revocable trust”) is the borrower under a loan. Enhancements to DocMagic are consistent with Fannie Mae guidelines in that the signature block (where the trustee is also the settlor/grantor/trustor) in the promissory note and addenda would read like so:

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 April, 2006.