Recently we wrote about the changes we made to the DocMagic software's treatment of negative prepaid (also known as "odd-days" or "per diem") interest for Countrywide-specific loan plans to bring them in line with Countrywide's policies. That prior article provides some useful background and is available here.

After careful review, we have decided to adopt the same approach for all loan plans accessed through our DocMagic software products. The necessary programming changes to comply with this new approach will be completed shortly. Regardless of the loan plan selected, if a loan has negative odd-days interest, no deduction is made from finance charges, nor is the negative odd-days interest amount taken into account for APR calculation purposes. Please note, however, that the amount of the negative odd-days interest will continue to appear in the Itemization of Amount Financed, the HUD-1 and any other documents that normally display per diem interest (e.g., closing instructions, funding worksheets and the like).

Please feel free to contact the DocMagic Compliance Department if you have any questions regarding the content of this article.