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.