Early last year, we published an article describing the changes we made to DocMagic for Windows (DMW) and DocMagic Online (DMO) regarding the creation of a bona fide discount point "flag" for purposes of the state-specific high cost tests we perform. Before the bona fide flag was created, the state-specific high cost tests had generally assumed that all discounts points paid by a borrower to a lender were bona fide and, therefore, were excludable from points and fees to the maximum amount permitted. Now, discount points are treated as bona fide if the bona fide box is checked; if the bona fide box is left blank, the discount points are not treated as bona fide. This method of designating discount points as bona fide or not has worked well since its inception.

Today we announce the availability of a bona fide discount point flag for DocMagic Direct (DMD) customers. DocMagic Direct permits direct, secure HTTP posting of a MISMO-standard XML file to our servers for processing loan documents. DocMagic has partnered with a large number of LOS providers to offer DocMagic Direct. Comparable to how DMW and DMO function, discount points will be treated as bona fide if the bona fide flag is sent; if the bona fide flag is not sent, the discount points are not treated as bona fide. Accordingly, discount points are now treated uniformly across all DocMagic product lines.

We have released the development specifications required to permit our LOS partners to transmit the bona fide flag to us. Please note that, unlike DocMagic for Windows and DocMagic Online, it is entirely up to the LOS provider to collect the bona fide discount point data and to transmit that data to our servers. If you have any questions as to how your LOS is handling this, we encourage you to contact them for further information.