February 2008

Impact of Economic Stimulus Act of 2008 on High Cost Tests

Thu, 21 Feb 2008 10:22:18 -0800

On February 13, 2008, President Bush signed the Economic Stimulus Act of 2008 (the "Act") into law. The Act provides for, among other things, an increase in the Fannie Mae/Freddie Mac conforming loan limits to the higher of either (a) the 2008 conforming loan limit for a residence of the applicable size ($417,000 for a single family dwelling), or (b) 125% of the area median price for a residence of the applicable size but not to exceed 175% of the 2008 conforming loan limit ($729,750 for a single family dwelling). HUD must publish the applicable house prices and mortgage principal obligation limits as soon as practicable but not more 30 days after enactment of the Act. The Act applies to loans originated on July 1, 2007 through December 31, 2008.

Massachusetts Mortgages and Assignments Updated

Thu, 21 Feb 2008 10:21:21 -0800

DocMagic, Inc.'s Compliance Department has updated Fannie Mae's/Freddie Mac's Massachusetts mortgage as well as its other mortgages and assignments to comply with Section 3 of Chapter 206 of the Acts of 2007. Section 3 adds a new Section 6D to Massachusetts General Laws, Chapter 183, which requires mortgage broker information, including the name, post office address, and license number, to be included on the mortgage and assignment when recorded. If applicable, the name, post office address and license number of the mortgage loan originator must be included as well. This endorsement, or notation that no mortgage broker or mortgage loan originator was involved in the mortgage, if known, shall be recorded as part of the mortgage or assignment of mortgage. Despite the foregoing requirements, failure to comply with this section shall not affect the validity of any mortgage or the recording of any mortgage or assignment of mortgage.

District of Columbia Passes Mortgage Disclosure Amendment Act of 2007

Thu, 21 Feb 2008 10:20:18 -0800

Beginning February 29, 2008, new disclosure requirements pursuant to the "Mortgage Disclosure Amendment Act of 2007" (the "Act") will go into effect. The Act amends the Mortgage Lender and Broker Act of 1996. Within 3 business days of an application for a "non-conventional mortgage loan," the mortgage lender must provide the borrower with written disclosures required under new subsection (a-1) under D.C. Official Code Section 26-1113.

Updated HELOC Important Terms Disclosure

Thu, 21 Feb 2008 10:19:18 -0800

DocMagic recently updated its generic HELOC Important Terms Disclosures for both interest - only and $100 - minimum payment disclosures. Changes have been made to conform to the 2008 index values and are reflected in the Disclosures, in both the minimum payment and historical examples. For more information on HELOCs, click here.

2008 Conventions, Conferences, Tradeshows and Expos

Thu, 21 Feb 2008 10:18:18 -0800

Find the mortgage lending convention, conference, trade show and expo schedules in one location on DocMagic's website. Bookmark this page and check back often. We'll be updating this list throughout the year. Also, look for DocMagic at the events marked with an * so that you may stop by and say hello!

Investor Updates

Thu, 21 Feb 2008 10:08:18 -0800

This month DSI posts updates to the loan programs of Chase - Wholesale Division, CitiMortgage, Inc. (Correspondent Division), Freedom Mortgage Corporation, GMAC Bank, JPMorgan Chase Bank, N.A. (Correspondent), and U.S. Bank, N.A. 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.

At Your Service: Colorado Division of Real Estate Adopts Emergency Rule on Mortgage Broker Disclosures

Thu, 21 Feb 2008 09:58:18 -0800

On January 25, 2008, the Colorado Division of Real Estate adopted an emergency rule, entitled "Mortgage Broker Disclosures," to clarify the disclosure requirements under § 12-61-914 of the Colorado Revised Statutes. Section 12-61-914 requires mortgage brokers, within three (3) business days after receipt of a loan application or any moneys from a borrower, to disclose specific details of a loan transaction to the borrower. Some of these details include, but are not limited to: the annual percentage rate; finance charge; amount financed; total amount of all payments; third party costs; terms of a lock-in agreement; transfer of documents; and that moneys paid by the borrower are held in a trust account. The emergency rule was adopted based on findings that uncertainty exists in the mortgage industry regarding how and when to provide these details.

New/Revised Documents - February 2008

Thu, 21 Feb 2008 09:48:18 -0800

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 January 2008.