As Fannie Mae and Freddie Mac purchase eligible FHA-insured mortgage loans, VA-guaranteed mortgages, HUD-guaranteed Section 184 mortgages, and Rural Development (RD)-guaranteed mortgages under certain conditions, DocMagic, Inc. will return the appropriate warning messages when auditing under the respective Fannie Mae and Freddie Mac Points and Fees Tests and HOEPA audits that are described here and here.  Previously, these audits did not run for the aforementioned types of loans although the results of the Fannie Mae/Freddie Mac Points and Fees and HOEPA/Section 32 tests were being displayed in the Fannie Mae/Freddie Mac high cost display screens for FHA and VA loans.

As more and more government loans continue to be originated, and Fannie Mae and Freddie Mac purchase certain types of these loans, DocMagic’s Compliance Department has determined it appropriate to expand the coverage of the Fannie Mae and Freddie Mac audit warnings to these loans.  Note that the results of the Fannie Mae/Freddie Mac Points and Fees and HOEPA/Section 32 tests will continue to be displayed in the Fannie Mae/Freddie Mac high cost display screens.

Accordingly, our memos describing the Fannie Mae and Freddie Mac Points and Fees Tests and HOEPA/Section 32 audits have been updated.  You may view them here and here.  If you have any questions, please contact DocMagic’s Compliance Department.