The Mortgage Disclosure Improvement Act (MDIA) (available here) became effective for mortgage loan applications received on or after July 30, 2009. Much has been written already about the impact the MDIA will have on the operations of mortgage brokers and lenders. See, for example, here. This article will review specifically the effect the MDIA has on loan documentation requirements and the changes DocMagic has made to accommodate those effects.

SAS 70 certification validates that DocMagic operates as a certified and trusted, document processing service and software that meets the rigorous operational controls associated with Sarbanes Oxley compliance. For your reference, we're providing a summary of the auditor's report. For current DocMagic customers who wish to receive a complete version of this report, you must complete and return the Non-Disclosure Agreement (NDA) to http://www.docmagic.com/compliance/contact or fax: 800-564-1362.

Ellie Mae has recently notified its users that effective September 1, 2009, DocMagic products and services will no longer be available through either the ePASS Network or the Encompass Closer Persona platform.  A number of you have contacted us expressing concern over this change and the impact it will have on your ability to continue to access DocMagic products and services.

The New Mexico Regulation and Licensing Department, Financial Institutions Division ("Division"), has finalized NM ADC 12.19.8.12, which now states as follows:

DocMagic Online (DMO) now makes available to its customers a Loan Detail Report that displays not only a summary of the loan transaction-specific details of the DMO loan worksheet (as shown in each tab of DocMagic), but also the results of the various compliance audits performed by DMO for the specific loan transaction.  As before, customers will continue to see audit messages on their computer screen when processing a worksheet, but now they will be able to view a dynamic report of those audits and print, if needed.  Within the "Compliance Audit" screen of the Loan Detail Report (as shown below), a DMO user also has the ability to view high cost details from the screen by clicking on the "+" symbol next to some of the line items in the high cost details section.  An example of the "Transaction Details" screen can be accessed here, and the "Compliance Audit" screen can be accessed here.

As the DocMagic Compliance Website receives thousands of visitors each week, we're always looking for better ways to provide relevant information.  Based on the article popularity and your feedback, we've recently revamped our Compliance Topics, High Cost, and DocMagic Compliance Matrices pages to make the information easier to find.

At DocMagic, our goal has always been to make our compliance rules and processes as transparent as possible to DocMagic customers.  We created our Compliance website in an effort to push as much information out to DocMagic customers in an easy to search and otherwise accessible manner.  Today DocMagic is pleased to announce that we are introducing a FAQs section to the DocMagic Compliance website.

This month DSI posts updates to the loan program of GMAC Bank 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 Investor Updates page.

Please note that last month's article regarding Nevada's Mortgage Broker License Disclosure has been updated.  To view the updated article, please click here.

To view all other At Your Service Articles, 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 July, 2009.

The U.S. Treasury security yield values for August 2009 may be viewed online here. The yield is determined as of the 15th day of the month immediately preceding the month in which the creditor receives the application. The yield value is used for Section 32 and most state high-cost tests. These values will, therefore, be used for loan applications received by the creditor in September 2009.

To view this month's list of announcements or newsletters related to our mortgage industry, please click here.