Ever wonder whether a document preparation fee may be charged to a borrower in a particular state? Or whether a particular state has any restrictions on who may prepare certain closing documents? Wonder no more…The Compliance Department is adding another compliance tool to its Compliance page to further serve its customers. The Department has prepared a matrix that answers these very questions for each of the 50 states, plus the District of Columbia, and provides citations to applicable law. Let the Compliance Department know what you think of the matrix!

Here is the matrix: Document Preparation Fee Matrix.

Currently, the default late charge for Alabama first-lien loans is 5% of the unpaid installment if payment is not made within 15 days from its due date. The DocMagic software defaults to this late charge based on a provision of the Alabama's Interest and Usury Statute that the late charge may be freely negotiated between the parties as long as it is not unconscionable. See §§ 8-8-1 et seq.

To accommodate those customers whose loans are secured by a leasehold estate, Document Systems, Inc. ("DSI's") has added the following provisions as the second sentence of the last paragraph in Section 9, entitled "Protection of Lender's Interest in the Property and Rights Under this Security Instrument," of the Fannie Mae security instruments:

Borrower shall not surrender the leasehold estate and interests herein conveyed or terminate or cancel the ground lease. Borrower shall not, without the express written consent of Lender, alter or amend the ground lease.

Document Systems, Inc. now offers you the opportunity to participate in a WebEx training session with a live trainer. Allow us to take you on a personal tour of the DocMagic features that provide the best solutions for your unique loan document production and delivery needs.

This month DSI posts loan programs of Chevy Chase Bank, Sovereign Bank - Wholesale and The Winter Group on its Compliance page. 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.

A contract for a loan under Chapter 342 of the Finance Code (i.e., a secondary mortgage loan with an effective rate of greater than 10 percent) or a home equity loan regulated by the Texas Office of Consumer Credit Commissioner ("OCCC") must be written in "plain language." In accordance with these Plain Language Contract Rules, the OCCC provides model notes and security instruments for second lien home equity loans and second lien purchase money loans. Because the lender must use the OCCC model forms, DSI provides these in the following generic plan codes:

1_TX1 Texas Purchase Money Homestead or Second Home
1_TX5 Texas Homestead Cash-Out or Refi With Cash-Out

Document Systems, Inc. (DSI) has added another enhancement to DocMagic's Plan Selection Filter. DSI has revised the "Add a Program" feature to allow DocMagic users to view loan programs and investors that currently exist in the user's DocMagic system in black text and loan programs and investors that the user currently does not have in red text.

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 September 2006.