The primary reason that DocMagic Inc.'s customers use the DocMagic application is because they need loan documents throughout the loan origination process.  However, there is no doubt that their overriding reasons for ultimately selecting and staying with DocMagic are that the loan documents are backed by comprehensive compliance services and superior customer service that can be relied upon from Day 1 of using the DocMagic application.

In a February, 2006 interview with Dominic ("Don") Iannitti, President and CEO of DocMagic, Inc., dba Document Systems, Inc. ("DSI"), Don could not emphasize enough that customer service is DSI's number 1 priority:

"I think our most successful achievement is consistently providing superior customer service. Our goal is simple... complete customer satisfaction.  Typically, companies say that but they don't accomplish it consistently. It's the companies that actually do, that do well and stand the test of time.  That is the type of company we are and we are very proud of it."

Don further added:

". . . From the beginning, it has been our goal of always providing exemplary customer service that has driven DSI. . .Many firms talk about providing service to the customer, but to me, you cannot separate excellent service from the customer.  You can't have one without the other.  Our software has been and continues to be one way we deliver on that customer service promise."

From Customer Service to Enterprise Investor Relations, Technical Support and Information Technology, In-House Fulfillment Services and the Compliance Department, and throughout every other level of the DocMagic organization, DocMagic's employees understand that customer service must be an integral part of their department's function.  Appreciating the fact that the DocMagic customer may be at the closing table when they call on DocMagic personnel for assistance, DocMagic maintains an open-door policy so that any level within the organization can interface with another easily and quickly.

DocMagic knows that possessing the ability to deliver a high level of customer service and scalable technology (so that no matter what time of the month it is and how many loans must be processed, documents can be generated in 4-5 seconds) as well as providing integration services with numerous loan origination software companies is invaluable to the customer.  DocMagic also recognizes that processing loan documents without any compliance backing could leave the customer in a vulnerable position, subject to negative consequences in which the customer's loan cannot be sold to a secondary market investor or where the customer's regulator orders that the customer pay a fine or refund the borrower for noncompliance on some level. 

Accordingly, another way that DocMagic delivers on its customer service promise is providing compliance services that work in tandem with the DocMagic application.  DocMagic's in-house Legal/Compliance Department works tirelessly to ensure that forms and documents appearing in a customer's loan package are always compliant with applicable federal and state laws and government sponsored enterprises' guidelines.  In addition, compliance resources are posted on DocMagic's Compliance website, providing transparency on the nuts-and-bolts of DocMagic's high-cost tests and compliance audits.

As DocMagic has received many inquiries about the nature and extent of its compliance services in the last couple of months, following is a brief summary of many, but not all, of the services that the Compliance Department provides:

• SAS 70 - Type II Certification. Customers have the assurance that the customers' and its borrowers' sensitive information will be secure due to operational controls implemented by DocMagic to meet the rigorous operational controls associated with the Sarbanes-Oxley Act.  For more information, see our article here.
• Higher-Priced Mortgage Loan ("HPML") Audit. Loans for which a creditor receives an application on or after October 1, 2009 will be subject to compliance with this new category of loans under Regulation Z.  This audit will identify whether a loan is a higher-priced mortgage loan.  In addition, the Compliance Department has created an HPML prepayment audit in cases where the terms of an HPML provide for a prepayment penalty. 
• Mortgage Disclosure Improvement Act (MDIA) Audits, including:
  • the seven-business-day waiting period audit;
  • the three-business-day waiting period audit; and
  • the APR threshold variance audit.
• Predatory Lending Tests. The DocMagic application provides predatory lending tests, including Section 32; the Fannie Mae/Freddie Mac 5% Points and Fees Test; state high cost tests and audits, including the Connecticut Nonprime Home Loan Audit, Maine Rate Spread Home Loan Audit, Maryland Higher-Priced Mortgage Loan Audit, New York Subprime Home Loan Audit, and North Carolina Rate Spread Home Loan Audit.
  • Each high cost test (not audit) and the Fannie Mae/Freddie Mac 5% Points and Fees Test includes a high-cost details screen.
• Compliance Audit Screen. Each DocMagic loan worksheet provides a compliance audit screen.
• Loan Packages. DocMagic offers a number of different loan packages, including:
  (1) Application; (2) Predisclosure; (3) Forms List for interim processing disclosures; (4) Pre-Closing; (5) Closing, and (6) Loan Modification, among others.
• TILA Calculations are guaranteed.
• eDisclosure. Predisclosure packages can be sent electronically using DocMagic's eDisclosure product, which complies with the federal E-Sign Act.
• Click-Sign. For a nominal fee, customers can arrange to have the borrower(s) electronically sign predisclosure documents using Click-Sign.
• Loan Programs. DocMagic has thousands of loan programs that customers may use.  In addition, DocMagic, upon customer request, has created unique loan programs, including, but not limited to, FHA's Hope for Homeowner's Program and the Good Neighbor Next Door Program, a New York CEMA program, HELOC programs, and Fannie Mae's Home Affordable Modification Program (HAMP).
• Compliance Website. The Compliance Department's website is abundant in compliance resources, such as disclosure matrices, a late fee matrix, a state-specific permissible fee matrix, and many, many more.
• The Compliance Wizard. The Compliance Department publishes a complimentary monthly, electronic compliance newsletter that apprises its readers of legal developments in the mortgage industry, introduces new compliance resources that have been posted recently to the Compliance website, and informs its customers on how the DocMagic application has been enhanced to address those legal developments.
• On-Call Compliance Department. Members of the Legal/Compliance Department are available on a daily basis to handle compliance-related emails and telephone calls.

ALL of the above-mentioned compliance features are included in DocMagic's loan processing fee, which comprises a very small fraction of the loan amount.  Many other services are included in the processing fee, including data validation audits and many other compliance audits not mentioned above.  Plus, phone calls to any department within DocMagic to handle customer inquiries are free of charge.  Feel free to contact DocMagic's Customer Service Department, at (800) 649-1362, or its Compliance Department if you have any questions regarding the contents of this article.