Revised February 21, 2007 (revisions are highlighted in yellow)

The Rhode Island Department of Business Regulation, Division of Banking, adopted emergency regulations to implement the Rhode Island Home Loan Protection Act (RIHLPA). Among other items, the emergency regulations further define terms used in the RIHLPA and create standard disclosure forms that must be used in a loan transaction. Although the emergency regulations are effective immediately, the Department of Business Regulation will not take any enforcement action related to the use of the disclosures until April 1, 2007. Document Systems, Inc. will make these disclosures available on February 21, 2007.

On January 19, 2007, Governor Rod R. Blagojevich ordered the Illinois Department of Financial and Professional Regulations (IDFPR) to immediately suspend the Illinois Predatory Lending Database Pilot Program, also known as HB 4050. The Governor also instructed the Department to continue developing a system that effectively meets the goals of fighting predatory lending and protecting Illinois homebuyers. Click here for the Governor's order and here for the Secretary of the IDFPR's announcement withdrawing all previously designated zip codes from the Pilot Program.

A new usury audit for Tennessee junior lien mortgage loans has recently been implemented for DocMagic users. The federal Depository Institutions Deregulation and Monetary Control Act preempts usury limits on first lien mortgage loans. The following limitations also do not apply to lenders registered as Industrial Loan and Thrift Companies in Tennessee.

Effective immediately, DocMagic users must download new loan programs of Deutsche Bank. And, effective Wednesday, January 17, 2007, Document Systems, Inc. ("DSI") will be releasing new loan programs of Freedom Mortgage and SunTrust Mortgage. On January 17, preexisting loan programs of Freedom Mortgage and SunTrust Mortgage will be purged. DSI's release of these new loan programs is designed to match these investors' loan programs so that they are readily identifiable to the DocMagic user.

The "high rate" portion of predatory lending tests generally involves a comparison between, on the one hand, a loan's APR and, on the other hand, "the yield on Treasury securities having comparable periods of maturity on the 15th day of the month immediately preceding the month in which the application is received by the creditor," plus a certain percentage.  Of course, this process is completely automated within the DocMagic high cost tests.  The purpose of this memo is to explain where to find Treasury security yield information and, once there, which yield value to use.

Depending on how you are licensed, many states impose limitations and/or restrictions on the maximum interest rate that a borrower may be charged. DocMagic's Compliance Department has created a matrix that provides an overview of the states, licenses, and loan types to which these restrictions apply.

Here is the matrix: Maximum Interest Rate Matrix.

Rosa joined Document Systems, Inc. ("DSI") in July, 1998 as an In-House Representative and has been so since. In addition to her duties with the In-House Department, Rosa also answers phones at the front desk and organizes the kitchen in the office.

This month DSI posts loan programs of Deutsche Bank and Freedom Mortgage and updates to the loan programs of Bear Stearns, EMC Mortgage Corporation, Encore Credit Corporation, Impac Funding Corporation and SunTrust Mortgage 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 by visiting our Compliance page.

In response to numerous customer requests, DocMagic has added the following language immediately after the Borrower signature lines of its Fannie Mae/Freddie Mac multistate fixed rate note if the security property is located in Louisiana:

You've entered all of your loan-specific information onto DocMagic, and you are now ready to process the Websheet or Worksheet. When processing the Websheet or Worksheet, DMO offers a number of options to suit the user's needs. Click here if you use DocMagic Online. If you use DocMagic for Windows, click here.

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 2006.