UPDATED: July 9, 2010 (Revisions are highlighted in yellow.)

California Assembly Bill 260, which was signed into law on October 11, 2009, established a new category of California "higher-priced mortgage loans" ("HPML").  AB 260 amends the California Financial Code by adding Division 1.9 (commencing with Section 4995) (the "California HPML Law") and becomes effective for all higher-priced mortgage loans originated on or after July 1, 2010.  This article describes some of the features of, and the audits DocMagic is implementing in connection with, the new California HPML Law.

Note: This updated and modified article incorporates much of the information contained in a number of separate articles regarding the Illinois Anti-Predatory Lending Database Program published in prior editions of the Compliance Wizard.  A list of those articles appears at the bottom of this article.

The Illinois Anti-Predatory Lending Database Program (the "ILAPLD") has been in effect for owner-occupied, one-to-four family properties located within Cook County, Illinois since July 1, 2008.  Effective July 1, 2010, the ILAPLD has been expanded to also apply to owner-occupied, one-to-four family properties located in Will, Kane and Peoria counties.  No other changes have been made to the ILAPLD other than this expansion of the program to properties located in the foregoing three counties.

With RESPA 2010 and MDIA regulations now in effect, being able to communicate quickly with borrowers to minimize waiting times has become more important than ever to mortgage lending institutions.  DocMagic's electronic delivery of disclosures through its eDisclosure product, with positive read-receipts, minimizes the waiting periods that are present when disclosures are delivered via U.S. Mail.  Currently, eDisclosure is available for PreDisclosure and Pre-Closing package types as well as individual documents via the Forms List.  However, beginning in July, 2010, DocMagic will extend its existing and widely-used eDisclosure delivery method to include the Application package type.

The following article is reprinted with permission from the National Flood Observer Quarterly Newsletter for Summer 2010 here. 

Most people know that recent inaction of Congress to reauthorize the National Flood Insurance Program made the NFIP unable to sell new policies, increase coverage on existing policies, or issue renewal policies from midnight March 28 to April 15.  As a result of the lapse in authority, many lenders and homebuyers were looking for guidance from FEMA.

DocMagic is proud to announce a new "fee-based" matrix specific to state fee limitations for notary acknowledgments.  The Notary Acknowledgment Fee Matrix (1) outlines the fee that may be charged by a notary public for taking an acknowledgment, as established by applicable state law; (2) provides citations to the governing legal authority in each jurisdiction that establishes the notary fee; and (3) identifies  the names of agencies having jurisdiction over notary publics registered in that jurisdiction.  To view the Matrix, click here. 

Based on Fannie Mae Seller Guide D1-2-04 and Announcement SEL-2010-01, DocMagic is now offering an Acknowledgment of Right to Request Credit Reports (ARRCR.MSC) that informs the Borrower as follows:

On December 1, 2009, the Board of Governors of the Federal Reserve System, Commodity Futures Trading Commission, Federal Deposit Insurance Corporation, Federal Trade Commission, National Credit Union Administration, Office of the Comptroller of the Currency, Office of Thrift Supervision, and Securities and Exchange Commission jointly amended their privacy rules under Title V of the Gramm-Leach-Bliley Act ("GLBA").  Under the GLBA, institutions must notify consumers of their information-sharing practices and of their right to opt out of certain sharing practices.  The revised rules added model notices that provide safe harbor protection in that financial institutions that use the model privacy notices will be deemed to satisfy the disclosure requirements for giving notices under the GLBA.  For more information, click here.

This month DSI posts updates to the loan program of GMAC Bank and U.S. Bank 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.

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 May, 2010.

The U.S. Treasury security yield values for June 2010 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 July 2010.

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