By popular demand, a pre-closing package will soon be added to DocMagic's repertoire of package types.  A number of customers have been requesting a pre-closing package that includes a number of federal and state-specific disclosures that should, but may not be legally required to be, re-disclosed to the borrower because of a change in fees and charges and/or the interest rate in the loan transaction in addition to state-specific disclosures that applicable state law requires be delivered to the borrower prior to the closing date of the loan either because of a material change in the loan terms or the applicable statute or regulation requires that the disclosure be given within a certain number of days prior to closing.

Currently, as the pre-closing package does not yet exist, the DocMagic software includes state-specific disclosures that are deemed pre-closing disclosures in both its predisclosure and closing loan packages.  A DocMagic user may print these "pre-closing disclosures" from the predisclosure or closing loan package at the time the customer would need to provide them to the borrower.  With the pre-closing package added to the selection of package types, the customer will no longer need to cull pre-closing disclosures from application or closing disclosures.  What would be included in the package are only those disclosures that are required by law or are preferred to be disclosed between the application and closing stage of the mortgage loan process.

The "core" documents that would be included in the pre-closing package consist of the following federal disclosures:

• Uniform Residential Loan Application (1003)
• HUD/VA Addendum to the Uniform Residential Loan Application (FHA/VA only)
• Good Faith Estimate of Settlement Costs
• Itemization of Amount Financed
• Truth-in-Lending
• Uniform Settlement Statement (HUD-1 or HUD-1A)
• Initial Escrow Account Statement

Designated state-specific disclosures that will appear by default in pre-closing packages will be able to be viewed soon from DocMagic's state disclosure matrices posted here.

Customers who have requested this new package type have advised that state regulators look favorably upon pre-closing disclosures that are provided to the borrower, because when loan terms change, proper disclosure before closing avoids any scrutiny that "bait and switch" tactics were employed by the lender or broker licensee.  Other customers acting in the capacity of a mortgage broker have advised that a pre-closing disclosure is essential, because they do not participate in the closing process, but need to provide certain disclosures to the borrower prior to closing.

The upcoming DocMagic pre-closing package will, hopefully, provide a viable solution for those customers who have expressed to DocMagic a need for such a package as well as offer an additional option for providing proper and timely disclosure to its others customers.  DocMagic will formally announce when this new package type becomes available.

Please contact DocMagic's Customer Service Department, at (800) 649-1362, if you have any questions concerning the pre-closing package type.