In anticipation of the new RESPA requirements that become effective January 1, 2010, DocMagic's Compliance Department has updated its Finance Charge Matrix to add a new column entitled "GFE Category & Default Block." In this column, you will find what the default GFE category for a particular fee will be when that fee is selected in the DocMagic application and the Block number on page 2 of the GFE in which the particular fee will appear (e.g., Block 3) or be a component of the total amount in that Block (e.g., Block 7).
Please note that the DocMagic user can change the GFE default categories based on the facts of their specific loan. For example, the Matrix indicates that a survey fee will default as a Title Services category and appear in Block 4; however, if the loan originator requires the survey and selects the settlement service provider, then the user can change the category to Lender Required and the fee will now appear in Block 3. For an explanation of the GFE categories, please see our "Software Updates for New RESPA Requirements" article here.
Please also note that the descriptions of some of the fee names in the Matrix have changed. For example, "Closing Fee" has been renamed to "Settlement or Closing Fee" and "City Stamp Mortgage" has been renamed to "City County Mortgage Tax Stamps." The Matrix also includes new fee descriptions, including "Recording Deed Fee" and "Recording Mortgage Fee," just to name a few. Finally, the name of the Matrix has been updated from "Finance Charges" to "Fees & Charges List" to more accurately describe the function of the Matrix.
Here is the updated Matrix: Fees & Charges List Matrix.
Click below for our three-part series of articles on finance charges:
If you have any questions regarding the contents of this article, please contact DocMagic's Compliance Department.
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