2009

A Holiday Message

Fri, 22 Jan 2010 17:02:25 -0800

From Dominic Iannitti, DSI President and CEO

In a time of uncertainty when talk can be cheap, I believe our actions speak to what we represent and who we are. For over twenty years, most of us here at DocMagic have worked together on a daily basis and many of our clients have been with us almost as long. In a year of economic uncertainty, we have continued to grow. Not everyone can say that. We know how fortunate we are to have assembled the hardworking team of people we have here at DocMagic. Their customer service attitude and work ethic is why our company continues to grow year after year despite the vicissitudes of business and life in general.

DocMagic Updates Software for New RESPA Requirements Effective January 1, 2010

Tue, 09 Feb 2010 16:18:13 -0800

Updated: February 3, 2010

This article has been updated to describe the additional fee categories that have been added to the DocMagic application. The updated sections are highlighted below in yellow.

Today we are pleased to announce the release of an updated and enhanced version of DocMagic Online (DMO) into production. Corresponding changes to DocMagic for Windows (DMW) should be released within the next week or so. The updates and enhancements (which in number and scope represent the largest, single software upgrade in DocMagic's twenty plus years of operation) have been implemented to ensure compliance with the new Good Faith Estimate (GFE) disclosure and HUD-1 Settlement Statement requirements that become mandatorily effective for any GFE and HUD-1 issued on or after January 1, 2010. We have incorporated screen shots from DMO, as enhanced, to better illustrate the nature of the changes in conjunction with an explanation as to why those changes are necessary. This article is not designed to answer all or even most questions about the implications of, or the subtleties and ambiguities often associated with, the data entered into particular fields. In addition to this article, we also will be posting additional articles in the very near future describing, for example, documents that have been created, revised and/or rendered obsolete by, and audits that we will be implementing to ensure compliance with, the new RESPA requirements.

2010 RESPA-Related Disclosures, New Itemization of Amount Financed

Fri, 22 Jan 2010 17:03:52 -0800

With the advent of the amendments to RESPA Regulation X and the resulting new Good Faith Estimate (GFE) and HUD-1 Statement, all becoming effective January 1, 2010, DocMagic's Compliance Department has prepared a mandatory disclosure required by Reg. X Section 3500.7 for certain new home purchases and other RESPA-related disclosures that are not required by Reg. X, but intended to document the borrower's receipt of the GFE and the borrower's intent to proceed on the loan application covered by the GFE. In addition, the Compliance Department has prepared a "Total Estimated Funds Needed to Close" disclosure and a new Itemization of Amount Financed that will accompany the Truth-in-Lending Statement and return in the same loan package when a new GFE and HUD-1 Statement will be used in the loan transaction. A more detailed description of each one of these disclosures follows.

Government-Insured Loans and State High Cost Tests

Fri, 22 Jan 2010 17:02:15 -0800

With the recent increased interest in government-insured loans (i.e., FHA, VA, and USDA loans), we have received many questions regarding the impact on high cost tests of certain fees and charges, including upfront mortgage insurance premiums (MIP), VA funding fees and USDA Rural Development guarantee fees paid by borrowers in connection with such loans. For purposes of the federal Section 32 and most state-specific high cost tests, the fact that the loan is government-insured has no impact on the respective high cost tests: finance charges (including MIP, VA funding fees and USDA Rural Development guarantee fees) paid to the respective government entity are points and fees and, consequently, are included in the high cost tests. However, some state-specific high cost tests apply different rules.

Finance Charges Matrix Updated and Renamed

Fri, 22 Jan 2010 17:02:10 -0800

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).

Supplemental Information to New RESPA Rule FAQs

Fri, 22 Jan 2010 17:02:27 -0800

HUD has posted its most current FAQs on the new RESPSA Rule, effective January 1, 2010, on its website here. The FAQs have been updated from time to time since they were first published on August 13, 2009. Despite the frequent updates, a number of fairly basic questions remain unanswered in one way or another. We contacted HUD recently, and they were very helpful in providing the following answers to the questions posed below regarding the GFE.

2010 Conforming Loan Limits Released

Fri, 22 Jan 2010 17:02:28 -0800

On November 12, 2009, the Federal Housing Finance Agency (FHFA) announced that the 2010 conforming loan limits (representing the maximum loan amounts Fannie Mae and Freddie Mac can purchase) will remain at $417,000 for most areas in the U.S. This is the fifth year in a row where the maximum conforming loan limits have gone unchanged. In addition, FHFA announced that the 2010 "jumbo" conforming loan limits applicable in so-called "high cost" areas, will also remain unchanged. To view a copy of FHFA's release, click here. Links to the 2010 high-cost area loan limits and 2010 loan limits for all counties are available in the release itself.

A Call to Action

Fri, 22 Jan 2010 17:02:20 -0800

Written by Loretta Salzano*

The time is now! While we are all struggling with the impending deadline for the new GFE and HUD-1 forms as required by RESPA and Regulation X, let's not forget about an even larger change looming on the horizon. Earlier this year the Federal Reserve Board proposed the most sweeping changes to Regulation Z in a generation. The comment period expires on December 24, 2009. Yes, that's correct, Christmas Eve - only a few weeks away. Perhaps the timing couldn't be worse, but do not let the comment period expire without letting your voice be heard. Countless times industry cries out only after a rule is finalized and the appropriate opportunity to oppose it (or revise it) has long passed.

RESPA, GFE and HUD-1 Resources

Fri, 22 Jan 2010 17:02:16 -0800

With the RESPA 2010 requirements and the new GFE and HUD-1 just around the corner, below is a list of RESPA implementation resources that might be of interest to you. Special thanks to Christopher Cruise* for compiling this list:

Loan Details Report Serves as DocMagic Worksheet

Fri, 22 Jan 2010 17:02:18 -0800

You may have noticed recently that the DocMagic worksheet that appears in the predisclosure, pre-closing and closing loan packages looks substantially different. Indeed, the worksheet has changed and been replaced with the Loan Details Report. We discussed the features of the Loan Detail Report in a prior issue of The Compliance Wizard.

New Compliance Questions Form

Fri, 22 Jan 2010 17:02:30 -0800

Previously, the DocMagic Compliance Department accepted email inquiries. In an effort to better serve our customers, especially in anticipation of a deluge of RESPA-related questions, all compliance requests to the DocMagic Compliance Department must now be submitted through the form located here: http://www.docmagic.com/compliance/contact. Our previous email address, will no longer accept emails.

Chase Wholesale Loan Programs Removed

Fri, 22 Jan 2010 17:02:32 -0800

This announcement is a reminder that as of March 20, 2009, Chase ceased originating through its Wholesale lending division. As a result, DocMagic, Inc. will remove Chase's Wholesale loan programs from its available program list and will update the Chase Wholesale Investor Matrix posted on the Investor Updates page. Chase will continue to purchase retail-originated loans through its Correspondent lending division. DocMagic customers can select JPMorgan Chase Bank, N.A (Correspondent) (Code: CMMC) loan programs from the investor program list.

At Your Service: DocMagic Updates Nevada Security Instruments

Fri, 22 Jan 2010 17:02:11 -0800

In response to legislation in Nevada requiring the disclosure of a Nevada broker's name and license number, effective May 29, 2009 (read prior article here), Fannie Mae published an authorized change to its Nevada security instrument as Item No. 13 of its Instructions, as follows:

Investor Updates - Nov/Dec 2009

Fri, 22 Jan 2010 17:02:22 -0800

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

New/Revised Documents - November 2009

Fri, 22 Jan 2010 17:02:13 -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 October, 2009.

New/Revised Documents - December 2009

Fri, 22 Jan 2010 17:02:06 -0800

U.S. Treasury Yields - Nov/Dec 2009

Fri, 22 Jan 2010 17:02:35 -0800

The U.S. Treasury security yield values for November 2009 may be viewed online here. The December 2009 values will be posted on our site on December 15, 2009, after the Federal Reserve Board publishes the values in its weekly release. 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. Accordingly, the November 2009 values will be used for loan applications received by the creditor in December 2009, and the December 2009 values will be used for loan applications received by the creditor in January 2010.

Industry-Related Announcements/Newsletters – Nov/Dec 2009

Fri, 22 Jan 2010 17:02:37 -0800

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

Update to FHA Loans and TIL Prepayment Penalty Disclosures

Thu, 22 Oct 2009 16:32:35 -0700

FHA Prepayment Penalty Audit removed from HPML Audit

Thu, 22 Oct 2009 16:35:04 -0700

In a letter to HUD Secretary Shaun Donovan dated September 29, 2009, the Federal Reserve Board has reversed its position with respect to the prepayments on FHA loans. Prior to the date of this letter, the staff of the Division of Consumer and Community Affairs of the Federal Reserve Board (the group responsible for issuing official interpretations of Regulation Z) took the position that interest charged on an FHA loan for prepayments made other than on a regularly scheduled payment due date from the date of prepayment until the next installment due date should be treated as a prepayment penalty for disclosure purposes. In this letter, however, the staff takes the position (consistent with HUD's interpretation) that "(l)enders that engage in this [monthly interest accrual amortization] practice would not be required to treat the interest charged from the date of prepayment until the next installment due date as a prepayment penalty for any purpose under Regulation Z." The letter includes a statement that the letter may be relied upon as an official interpretation of Regulation Z that, under TILA, relieves creditors of liability for actions taken in good faith reliance upon the guidance set forth in the letter to the same extent as if set forth in the commentary to Regulation Z. Because of this definitional change, it is permissible for FHA loans to also be HPML loans. The following audit described under the heading "HPML Regulations and FHA Loans" below has been removed from the Federal Higher-Priced Mortgage Loan (HPML) Audit article here:

Virginia High-Risk Mortgage Loan Law and Audit

Thu, 22 Oct 2009 16:32:28 -0700

The Virginia High-Risk Mortgage Loan Law (Code of Virginia, Title 55, Chapter 4, Section 55-59.1:1; available here) (the "Virginia HRMLL") became effective on July 1, 2008. The Virginia HRMLL is quite unlike any other state-specific high cost loan law in that it only becomes relevant following a borrower's default for failing to make any payment under the loan agreement. Because the Virginia HRMLL did not impose any restrictions or limitations on the terms of the loan at origination, at the time the law became effective, DocMagic determined not to create a separate Virginia HRMLL test. However, at the request of some of our customers, DocMagic has created a Virginia HRMLL test and display. Please note that the Virginia HRMLL, unless extended, will expire by its terms on July 1, 2010.

Upcoming Changes to GFE and HUD-1 Statement

Thu, 22 Oct 2009 16:32:24 -0700

It comes as no surprise that DocMagic's Compliance Department has been receiving an increasing number of inquiries regarding the upcoming, significant amendments to RESPA's Regulation X, which become effective January 1, 2010. As many of our readers are aware, the practical effect of these amendments is that the form of each of the Good Faith Estimate (GFE) and HUD-1 Statement will change dramatically.

FEMA's Map Modernization Alters Portfolio Protection

Thu, 22 Oct 2009 16:32:19 -0700

Written by Mark Reedy*

When it comes to portfolio risk, much of the mortgage industry's focus has been directed toward loss mitigation and foreclosures. Of course, that focus is appropriate and important, given the market conditions over the past couple of years. However, servicers must also remain diligent when it comes to keeping other forms of risk out of their portfolios. The ongoing condition of collateral assets is particularly important, because damage to the assets - such as that caused by flooding - can substantially undermine the value of properties in a portfolio.

Free DocMagic Training and Support Available

Thu, 22 Oct 2009 16:32:10 -0700

Did you know? --- DocMagic's Training and Support is Free! We pride ourselves in ensuring that our customers are offered all available resources so that they know how to produce compliant documents accurately and efficiently.

New Form: Indiana Notice to Borrower/Prospective Borrower

Thu, 22 Oct 2009 16:32:06 -0700

DocMagic's Compliance Department has prepared a new disclosure entitled, "Indiana Notice to Borrower/Prospective Borrower" ("Disclosure") to assist customers with complying with Ind. Code § 24-5-23.5-8(a), which was enacted pursuant to Indiana House Bill 1176. Ind. Code § 24-5-23.5-8(a) provides:

At Your Service: South Carolina Supreme Court Addresses Timeliness of Disclosure

Thu, 22 Oct 2009 16:32:00 -0700

In King v. American General Finance, the South Carolina Supreme Court recently addressed the timeliness of the Attorney Preference Form. In the lower court, 11 of the 12 jurors found that the Attorney Preference Disclosure was provided on the day of closing, which the Court found to be too late and stated that providing the form at closing is "nonsensical." Accordingly, this form should be signed and dated with enough time before the loan closing to enable the borrower an opportunity to select and utilize a counsel of his or her choice.

Investor Updates - October 2009

Thu, 22 Oct 2009 16:31:55 -0700

This month DSI posts updates to the loan program of Branch Banking and Trust and GMAC 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.

New/Revised Documents - October 2009

Thu, 22 Oct 2009 16:31:50 -0700

U.S. Treasury Yields - October 2009

Thu, 22 Oct 2009 16:31:46 -0700

The U.S. Treasury security yield values for October 2009 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 November 2009.

Industry-Related Announcements/Newsletters – October 2009

Thu, 22 Oct 2009 16:31:42 -0700

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

Federal Higher-Priced Mortgage Loan (HPML) Audit

Tue, 22 Sep 2009 15:21:20 -0700

In a letter to HUD Secretary Shaun Donovan dated September 29, 2009, the Federal Reserve Board has reversed its position with respect to the prepayments on FHA loans. Prior to the date of this letter, the staff of the Division of Consumer and Community Affairs of the Federal Reserve Board (the group responsible for issuing official interpretations of Regulation Z) took the position that interest charged on an FHA loan for prepayments made other than on a regularly scheduled payment due date from the date of prepayment until the next installment due date should be treated as a prepayment penalty for disclosure purposes. In this letter, however, the staff takes the position (consistent with HUD's interpretation) that "(l)enders that engage in this [monthly interest accrual amortization] practice would not be required to treat the interest charged from the date of prepayment until the next installment due date as a prepayment penalty for any purpose under Regulation Z." The letter includes a statement that the letter may be relied upon as an official interpretation of Regulation Z that, under TILA, relieves creditors of liability for actions taken in good faith reliance upon the guidance set forth in the letter to the same extent as if set forth in the commentary to Regulation Z. Because of this definitional change, it is permissible for FHA loans to also be HPML loans. The audit described under the heading "HPML Regulations and FHA Loans" below has been removed. For more information on FHA prepayment disclosures, click here.

DocMagic – More Than Just a Document Preparation Provider

Tue, 22 Sep 2009 15:21:19 -0700

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.

Connecticut Nonprime Home Loan Changes

Tue, 22 Sep 2009 15:21:18 -0700

This month we updated our memo regarding the Nonprime Home Loan Audit for Connecticut on our Predatory Lending page.

Update to New Mexico Disclosure Requirements

Tue, 22 Sep 2009 15:21:17 -0700

The New Mexico Regulation and Licensing Department, Financial Institutions Division ("Division"), has finalized NM ADC 12.19.8.12, which now states as follows:

New Form: Colorado Mortgage Loan Originator Compensation Disclosure Form; Other Disclosures Updated

Tue, 22 Sep 2009 15:21:16 -0700

DocMagic's Compliance Department has replaced the Colorado Mortgage Broker Compensation Disclosure Form (COMBCDF.DSC) with the Colorado Mortgage Loan Originator Compensation Disclosure Form (COMLOCDF.DSC) as a result of Colorado 2009 House Bill 1085, amending the Mortgage Broker Licensing Act to conform to the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E. Act). Pursuant to HB 1085, which became effective on August 5, 2009, the Mortgage Broker Licensing Act has been re-named to the "Mortgage Loan Originator Licensing Act," ("Act") and the term, ""mortgage broker," replaced with "mortgage loan originator" throughout the Act.

New Form: New York FHA Mortgage Loan Correspondent

Tue, 22 Sep 2009 15:21:15 -0700

DocMagic's Compliance Department has prepared a new disclosure entitled, "New York FHA Mortgage Loan Correspondent" ("Disclosure") to assist customers with complying with N.Y. Comp. Codes R. & Regs. tit. 3, §38.13(d). Section 38.13(d) provides:

Update to Article, “DocMagic Now Offering Loan Modification Programs”

Tue, 22 Sep 2009 15:21:14 -0700

The July, 2009 article, "DocMagic Now Offering Loan Modification Programs," has been amended. Please click here to review the amended article.

DocMagic Payoffs/Premiums Tab

Tue, 22 Sep 2009 15:21:13 -0700

The "Payoffs/Premiums" section of the DocMagic Help page has been updated. Please click here to review the updated "Payoffs/Premiums" section.

At Your Service: Electronic Signatures Not Yet Permitted on FHA Loans, But Electronic Delivery Okay

Tue, 22 Sep 2009 15:21:12 -0700

From time to time, DocMagic's Compliance Department receives questions from customers regarding the U.S. Housing and Urban Development's ("HUD's") acceptance of disclosures via electronic delivery and electronic signatures in the context of FHA loans. In summary, HUD has advised that electronic delivery of an FHA disclosure package is fine as long as it is not signed electronically.

Investor Updates - September 2009

Tue, 22 Sep 2009 15:21:11 -0700

This month DSI has no new or updated loan programs of any investors to post to its Investor Updates page. However, please visit the Investor Updates page to review a description of each investors' current loan programs, including the promissory notes, prepayment riders and addenda that are used in a particular loan program, and any rate caps and interest-only periods that may be applicable to investors' variable rate loan programs.

New/Revised Documents - September 2009

Tue, 22 Sep 2009 15:21:10 -0700

U.S. Treasury Yields - September 2009

Tue, 22 Sep 2009 15:21:09 -0700

The U.S. Treasury security yield values for September 2009 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 October 2009.

Industry-Related Announcements/Newsletters – September 2009

Tue, 22 Sep 2009 15:21:08 -0700

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

Mortgage Disclosure Improvement (MDIA) Act Effective July 30, 2009

Thu, 20 Aug 2009 15:33:58 -0700

The Mortgage Disclosure Improvement Act (MDIA) (available here) became effective for mortgage loan applications received on or after July 30, 2009. Much has been written already about the impact the MDIA will have on the operations of mortgage brokers and lenders. See, for example, here. This article will review specifically the effect the MDIA has on loan documentation requirements and the changes DocMagic has made to accommodate those effects.

DocMagic Receives SAS 70 Type II Certification

Thu, 20 Aug 2009 14:33:58 -0700

SAS 70 certification validates that DocMagic operates as a certified and trusted, document processing service and software that meets the rigorous operational controls associated with Sarbanes Oxley compliance. For your reference, we're providing a summary of the auditor's report. For current DocMagic customers who wish to receive a complete version of this report, you must complete and return the Non-Disclosure Agreement (NDA) to http://www.docmagic.com/compliance/contact or fax: 800-564-1362.

Notice to Ellie Mae ePASS® and Encompass® Closer™ Persona Users

Thu, 20 Aug 2009 13:33:58 -0700

Ellie Mae has recently notified its users that effective September 1, 2009, DocMagic products and services will no longer be available through either the ePASS Network or the Encompass Closer Persona platform. A number of you have contacted us expressing concern over this change and the impact it will have on your ability to continue to access DocMagic products and services.

Update to New Mexico Disclosure Requirements

Tue, 22 Sep 2009 15:21:17 -0700

The New Mexico Regulation and Licensing Department, Financial Institutions Division ("Division"), has finalized NM ADC 12.19.8.12, which now states as follows:

DocMagic Introduces Loan Detail Report

Thu, 20 Aug 2009 11:33:58 -0700

DocMagic Online (DMO) now makes available to its customers a Loan Detail Report that displays not only a summary of the loan transaction-specific details of the DMO loan worksheet (as shown in each tab of DocMagic), but also the results of the various compliance audits performed by DMO for the specific loan transaction. As before, customers will continue to see audit messages on their computer screen when processing a worksheet, but now they will be able to view a dynamic report of those audits and print, if needed. Within the "Compliance Audit" screen of the Loan Detail Report (as shown below), a DMO user also has the ability to view high cost details from the screen by clicking on the "+" symbol next to some of the line items in the high cost details section. An example of the "Transaction Details" screen can be accessed here, and the "Compliance Audit" screen can be accessed here.

DocMagic Compliance Website Revamped

Thu, 20 Aug 2009 10:33:58 -0700

As the DocMagic Compliance Website receives thousands of visitors each week, we're always looking for better ways to provide relevant information. Based on the article popularity and your feedback, we've recently revamped our Compliance Topics, High Cost, and DocMagic Compliance Matrices pages to make the information easier to find.

DocMagic Compliance Frequently Asked Questions (FAQs)

Thu, 20 Aug 2009 09:33:58 -0700

At DocMagic, our goal has always been to make our compliance rules and processes as transparent as possible to DocMagic customers. We created our Compliance website in an effort to push as much information out to DocMagic customers in an easy to search and otherwise accessible manner. Today DocMagic is pleased to announce that we are introducing a FAQs section to the DocMagic Compliance website.

Investor Updates

Thu, 20 Aug 2009 08:33:58 -0700

This month DSI posts updates to the loan program of GMAC Bank and SunTrust Mortgage 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: Nevada Broker License Disclosure Update

Thu, 20 Aug 2009 07:33:58 -0700

Please note that last month's article regarding Nevada's Mortgage Broker License Disclosure has been updated. To view the updated article, please click here.

To view all other At Your Service Articles, click here.

New/Revised Documents - August 2009

Thu, 20 Aug 2009 06:33:58 -0700

U.S. Treasury Yields - August 2009

Thu, 20 Aug 2009 05:33:58 -0700

The U.S. Treasury security yield values for August 2009 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 September 2009.

Industry-Related Announcements/Newsletters – August 2009

Thu, 20 Aug 2009 04:33:58 -0700

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

Mortgage Disclosure Improvement (MDIA) Act Effective July 30, 2009

Thu, 20 Aug 2009 15:33:58 -0700

Notification of Sale, Transfer or Assignment of Mortgage Loans

Thu, 23 Jul 2009 13:31:12 -0700

The Helping Families Save Their Homes Act of 2009 (the "Act") includes an amendment to the Truth in Lending Act that has generated a fair amount of conversation in mortgage compliance circles. Section 404 of the Act amends the Truth in Lending Act to require new creditors that acquire a "mortgage loan" to notify borrowers within 30 days after the sale or other transfer or assignment of the mortgage loan. A mortgage loan is defined as any consumer credit transaction secured by a borrower's principal dwelling. The notification must include: the name, address and telephone number of the new creditor; the date of transfer; how to reach an "agent or party" with authority to act on behalf of the new creditor; the "location of the place where transfer of ownership of the debt is recorded" and any other relevant information about the new creditor. Failure to comply could subject the new creditor or the servicer, or both, to civil liability under TILA. To view a copy of the Act, click here.

New Mexico Amends Home Loan Protection Act Effective July 31, 2009

Thu, 23 Jul 2009 13:21:12 -0700

Extensive revisions have been made to the New Mexico Home Loan Protection Act effective July 31, 2009. Many prohibitions and restrictions that had previously been limited to so-called "high-cost home loans" only will, after the effective date of the amendments, be expanded to apply to "home loans" generally. A home loan is defined generally as any loan secured by a 1- to 4-family, owner-occupied dwelling not exceeding the Fannie Mae conforming loan limit, regardless of lien position or loan purpose. We have modified our memorandum posted online that describes DocMagic's interpretation of the New Mexico Home Loan Protection Act to reflect the effect of the new amendments. To view a copy of the memorandum, click here.

New Compliance Tool: State-Specific Permissible Fees

Thu, 23 Jul 2009 13:11:12 -0700

In response to a number of customer inquiries, DocMagic's Compliance Department has prepared a matrix that lists the permissible fees for each of the 50 states, including the District of Columbia. The Permissible Fees Matrix outlines the allowable fees that a lender and/or broker may charge and collect in a mortgage transaction and is broken down by license type in each jurisdiction. Please note that if the Matrix does not address a specific fee in a particular state or the District of Columbia, it is because the statutes and regulations in that state do not contain any express provisions regarding that fee.

Here is the matrix: State-Permissible Fees Matrix.

DocMagic Now Offering Loan Modification Programs

Thu, 23 Jul 2009 13:01:12 -0700

DocMagic, Inc. now offers loan modification programs that are supported by Fannie Mae's Home Affordable Modification Program (HAMP). The following four (4) loan programs have been added under DSI's Generic Loan Programs:

Nevada Broker License Disclosure

Thu, 23 Jul 2009 12:51:12 -0700

Assembly Bill 151, which was signed by the Nevada Governor on May 29, 2009, and became effective on that date, added a new Section to Chapter 645B of the Nevada Revised Statutes, which reads:

Advance Fee Agreements for Loan Modifications

Thu, 23 Jul 2009 12:41:12 -0700

DocMagic, Inc. has laid out and programmed model Advance Fee Agreements provided by the Washington State Department of Financial Institutions and the California Department of Real Estate. These Advance Fee Agreements are practically identical, and Washington and California law each requires that a signed fee agreement for loan modification services be obtained from the borrower before charging a fee for such services in advance of the services being provided.

Investor Updates - July 2009

Thu, 23 Jul 2009 12:31:12 -0700

This month DSI posts updates to the loan program of California Housing Finance Authority and GMAC 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.

At Your Service: Mississippi Security Instruments, Loan Modification Agreements Updated

Thu, 23 Jul 2009 12:21:12 -0700

DocMagic's Compliance Department has updated its Mississippi security instruments and loan modification agreements to comply with document recording requirements that became effective on July 1, 2009, pursuant to HB 475.

New/Revised Documents - July 2009

Thu, 23 Jul 2009 12:11:42 -0700

U.S. Treasury Yields - July 2009

Thu, 23 Jul 2009 12:01:12 -0700

The U.S. Treasury security yield values for July 2009 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 August 2009.

Industry-Related Announcements/Newsletters – July 2009

Thu, 23 Jul 2009 11:51:12 -0700

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

Mortgage Disclosure Improvement Act

Thu, 18 Jun 2009 12:37:01 -0700

Written by Richard Triplett, CMB*

Effective on July 30, 2009, some of the provisions in the final rule for revisions to the Truth-in-Lending Act (TILA) become effective - 2 months earlier than the original date of October 1, 2009. The specific provisions effective by this "new" rule implement the Mortgage Disclosure Improvement Act (MDIA).

GSE Bona Fide Discount Point Flag Added

Thu, 18 Jun 2009 12:27:01 -0700

We wrote previously about the effect of discount points on various state-specific high cost tests here. As most DocMagic software users are aware, DocMagic software products permit clients to check a box to select whether or not discount points paid by a borrower to the lender in connection with a loan are "bona fide" so that some or all of such discount points can be excluded from points and fees for purposes of the state-specific high cost tests we perform. Today we announce the release of a comparable "GSE bona fide" check box that gives DocMagic software users the ability to designate some or all discount points paid by a borrower to the lender in connection with a loan as "bona fide" for purposes of excluding such discount points from points and fees under the Fannie Mae and Freddie Mae (GSE) 5% points and fees high cost test.1

RESPA Reform: Implementation Considerations

Thu, 18 Jun 2009 12:17:01 -0700

Written by Richard Triplett, CMB*

In a final chapter in this series of articles regarding the RESPA Final Rule, I am going to identify some of the considerations that must be made as you work through the process of implementation. Of course, every individual implementation will be unique but I will try to identify some of the common threads that mortgage lenders and brokers will need to contemplate during the process. Thus far, there has only been a delay in the definition of "required use" regarding the final rule, so pending any additional delays based on the current law suits you must be prepared and have your implementation completed by January 1, 2010. There are a great number of things to consider in this implementation and multiple departments and individuals that will be involved. For purposes of this article, I will not focus on those requirements that are already effective, with the exception of average pricing, which may or may not affect your implementation of the new GFE and HUD-1 forms.

New Form: Nevada Mortgage Broker Fee Disclosure

Thu, 18 Jun 2009 12:07:01 -0700

DocMagic's Compliance Department has prepared a Nevada Mortgage Broker Fee Disclosure ("Disclosure") to assist customers with complying with an amendment to Nevada Revised Statutes Section 645B.305. This amendment became effective on May 29, 2009, when the Nevada Governor sign AB 513 into law. AB 513 amended Section 645B.305 as follows:

Investor Updates - June 2009

Thu, 18 Jun 2009 11:47:01 -0700

This month DSI posts updates to the loan program of GMAC 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.

At Your Service: Updated Home Valuation Code of Conduct Acknowledgment and Waiver Disclosures

Thu, 18 Jun 2009 11:37:01 -0700

In a prior issue, DocMagic, Inc.'s Compliance Department announced the availability of a new Acknowledgment of Receipt of Appraisal Report and Waiver (ARARHVCC.MSC) ("Acknowledgment and Waiver") that satisfies the requirements of the Fannie Mae/Freddie Mac Home Valuation Code of Conduct ("HVCC"). You may read our prior article here. The Acknowledgment and Waiver gives the borrower the option of either acknowledging that he/she received the appraisal report at no additional cost and not less than three days prior to the closing of the loan or waiving the lender requirement of having to provide the appraisal report at least three days before closing.

DocMagic Compliance Frequently Asked Questions (FAQs)

Thu, 20 Aug 2009 09:33:58 -0700

New/Revised Documents - June 2009

Thu, 18 Jun 2009 11:27:01 -0700

U.S. Treasury Yields - June 2009

Thu, 18 Jun 2009 11:17:01 -0700

The U.S. Treasury security yield values for June 2009 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 2009.

Industry-Related Announcements/Newsletters – June 2009

Thu, 18 Jun 2009 11:07:01 -0700

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

Federal Trade Commission Delays Red Flags Enforcement until August 1, 2009

Thu, 21 May 2009 11:34:16 -0700

Written by Anna DeSimone*

The Red Flag Rules are implemented under the Fair and Accurate Credit Transactions Act of 2003 (FACTA) Sections 114 & 315. The final rule became effective January 1, 2008 and full compliance of the rules became effective November 1, 2008. Enforcement of rules were previously delayed until May 1, 2009 , and have just been delayed for a second time, to give creditors and financial institutions and somewhat of a breather, since mortgage lenders have been busy originating loans.

RESPA Reform: Revised HUD-1 Settlement Statement

Thu, 21 May 2009 11:24:16 -0700

Written by Richard Triplett, CMB*

Continuing the series of articles on the RESPA Final Rule, this article will focus on the revised HUD-1 Settlement Statement. There are a number of revisions to the HUD-1 that on the surface seem fairly clear; however, HUD has thrown in some curve balls in accurately completing this revised form. With the inclusion of an additional third page, as well as changes to how and what to include in both the borrower and seller columns, it is wise to take the time to go through the instructions included with the final rule as you begin the process of implementing the new form. Even if you feel you have a grasp of the changes to the GFE, there are a number of changes to the HUD-1 that are not glaringly obvious and should be fully understood for implementation and necessary staff training.

New Compliance Tool: Records Retention Matrix

Thu, 21 May 2009 11:14:16 -0700

DocMagic, Inc.'s Compliance Department has prepared a matrix that shows each state's record retention requirements, including, if provided by applicable law, a description of records that must be retained; the location at which the records must be retained; the length of time they should be retained; the type of medium in which the records must be retained; and the citations to governing legal authority.

To access the Records Retention Matrix, please click here.

Investor Updates

Thu, 21 May 2009 11:04:16 -0700

This month DSI posts loan programs of Bank of America, N.A. (Correspondent) and updates to the loan programs of CitiMortgage - Correspondent Division 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: Is an Application Fee a Finance Charge?

Thu, 21 May 2009 10:54:16 -0700

As DocMagic, Inc.'s Compliance Department has received a number of inquiries in the past week regarding whether or not an application fee constitutes a finance charge, we thought it appropriate to provide an explanation on this topic.

New/Revised Documents - May 2009

Thu, 21 May 2009 10:44:16 -0700

U.S. Treasury Yields - May 2009

Thu, 21 May 2009 10:34:16 -0700

The U.S. Treasury security yield values for May 2009 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 June 2009.

Industry-Related Announcements/Newsletters – May 2009

Thu, 21 May 2009 10:24:16 -0700

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

Countrywide Bank, FSB to Merge With Bank of America, FSB on April 27, 2009

Thu, 23 Apr 2009 12:58:42 -0700

Monday, April 27, 2009, will be an important day for Countrywide Bank, FSB and Bank of America, FSB. On this date, Countrywide Correspondent Lending will further align with Bank of America Mortgage Home Equity and Insurance Services. On April 27, Correspondent Lending clients will notice a transition from the Countrywide brand to the new Bank of America brand. Finally, on this date, it is anticipated that Countrywide Bank, FSB will merge with Bank of America, FSB.

Home Valuation Code of Conduct, Acknowledgment of Receipt of Appraisal Report and Waiver

Thu, 23 Apr 2009 12:48:42 -0700

DocMagic, Inc.'s Compliance Department has prepared an Acknowledgment of Receipt of Appraisal Report and Waiver (ARARHVCC.MSC) ("Acknowledgment and Waiver") that satisfies the requirements of the Fannie Mae/Freddie Mac Home Valuation Code of Conduct ("Code"). The Code, which was designed to help enhance the integrity of the home appraisal process in the mortgage finance industry, becomes effective on May 1, 2009. All lenders, correspondent lenders, and servicers selling loans to Fannie Mae/Freddie Mac will be required to adhere to the Code.

RESPA Reform: Revised GFE – Page 3

Thu, 23 Apr 2009 12:38:42 -0700

Written by Richard Triplett, CMB*

In keeping with the previous articles written on general RESPA reform, Page 1 and Page 2 of the revised GFE, this article will cover the last page (Page 3) of the revised GFE. The page itself is titled "Instructions". Despite the fact that the page is identified as an instruction page to the applicant, this page in conjunction with "Important Dates" on Page 1, and the tolerances regarding charges on Page 2, has the potential to offer various levels of confusion to the typical applicant, in any transaction but particularly in a wholesale transaction. I will discuss what I perceive as areas that still tend to offer confusion with some additional comments below regarding what I call the "Wholesale Triangle". There remain multiple areas of the new mandated GFE in which clarification will be necessary to alleviate some of the possible liability to mortgage brokers and lenders alike. I will start with covering the content of the page and then delve into those confusing areas of the new disclosure.

New Form: Illinois Loan Approval Notice

Thu, 23 Apr 2009 12:28:42 -0700

DocMagic, Inc.'s Compliance Department has prepared an Illinois Loan Approval Notice ("Notice") (ILLAN.MSC) that outlines the terms and conditions of the residential mortgage loan agreed to between the licensee and the borrower. Ill Admin. Code tit. 38, §1050.1305 requires the Notice to be delivered to the borrower immediately upon approval of a residential mortgage loan application. This Notice must be provided to the borrower either personally or via first class United States mail or private delivery service.

Investor Updates - April 2009

Thu, 23 Apr 2009 12:18:42 -0700

At Your Service: New Form - NJ Addendum to Residential Mortgage Loan Application

Thu, 23 Apr 2009 12:08:42 -0700

DocMagic, Inc.'s Compliance Department has prepared a New Jersey Addendum to Residential Mortgage Loan Application (NJARMLA.MSC). This Addendum gives the lender or broker an opportunity to determine if any borrower who intends to use property located in New Jersey to secure a mortgage loan transaction is involved in a civil union. In New Jersey, parties to a civil union have the same property rights as a husband and wife with respect to property occupied as a principal residence.

New/Revised Documents - April 2009

Thu, 23 Apr 2009 11:58:42 -0700

U.S. Treasury Yields - April 2009

Thu, 23 Apr 2009 11:48:42 -0700

The U.S. Treasury security yield values for April 2009 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 May 2009.

Industry-Related Announcements/Newsletters – April 2009

Thu, 23 Apr 2009 11:38:42 -0700

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

Update to FHA Loans and TIL Prepayment Penalty Disclosures

Thu, 22 Oct 2009 16:32:35 -0700

RESPA Reform: Revised GFE – Page 2

Thu, 19 Mar 2009 12:51:52 -0700

Written by Richard Triplett, CMB*

In keeping with the previous articles written on general RESPA reform and page 1 of the revised GFE, this article will cover certainly one of the most controversial aspects of the revised GFE: Page 2. Due to the overwhelming effect this will have on mortgage brokers, lenders, and all third party providers of services, it is the primary reason for threatened law suits to prevent the final rule.

Interim/Processing Disclosures and Forms (Forms List) Available Now

Thu, 19 Mar 2009 11:51:52 -0700

As a lender or broker, have you ever wished that you could select from a list of forms and disclosures that contains, for example, a Uniform Underwriting and Transmittal Summary (Form 1008), Verification of Deposit (1006), Verification of Employment (1005), and Statement of Credit Denial, that you would like to provide to the borrower at a point in the loan process between application and closing. Well, dream no more!

Pre-Closing Package Available Now

Thu, 19 Mar 2009 10:51:52 -0700

DocMagic, Inc. is pleased to formally announce that pre-closing packages are now available in the DocMagic software. This package type became available as of Tuesday, March 3, 2009. For more details about DocMagic's pre-closing package, please refer to this recent article.

Investor Updates - March 2009

Thu, 19 Mar 2009 09:51:52 -0700

At Your Service: Colorado Dual Status Disclosure

Thu, 19 Mar 2009 08:51:52 -0700

Effective March 2, 2009, the Colorado Division of Real Estate requires use of their model form, Dual Status Disclosure ("Disclosure"), if a licensed mortgage broker is also licensed as a real estate broker pursuant to 4 CCR 725-3, Rule 7-1-1. In accordance with Rule 7-1-1, the Disclosure also discloses whether the individual is also acting as a mortgage broker and real estate broker on the same transaction.

New/Revised Documents - March 2009

Thu, 19 Mar 2009 07:51:52 -0700

U.S. Treasury Yields - March 2009

Thu, 19 Mar 2009 06:51:52 -0700

The U.S. Treasury security yield values for March 2009 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 April 2009.

Industry-Related Announcements/Newsletters – March 2009

Thu, 19 Mar 2009 05:51:52 -0700

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

Maryland Higher-Priced Mortgage Loan Audit

Thu, 19 Feb 2009 14:02:07 -0800

We recently wrote that effective March 16, 2009, the Maryland Commissioner of Financial Regulation would begin enforcing the "higher-priced mortgage loans" regulations applicable to mortgage lenders and mortgage originators. Below is a description of how the new higher-priced mortgage loan regulations (COMAR 09.03.06.02, located here, and COMAR 09.03.09.02, located here) work along with a description of the audit DocMagic will be implementing to assist you in identifying such loans.

Treatment of Seller-Paid Fees for Fannie Mae 5% Test

Wed, 18 Feb 2009 18:52:07 -0800

There has been quite a bit of discussion lately regarding the treatment of seller-paid fees and charges for purposes of the Fannie Mae test. The controversy began when in late January 2009 a major investor announced that they had confirmed with Fannie Mae that seller-paid items should be included in the Fannie Mae 5% points and fees test. This struck many compliance professionals by surprise so we decided to ask Fannie Mae. Here is our question and Fannie Mae's response:

Conventional and FHA CEMA Plans Available

Wed, 18 Feb 2009 18:42:07 -0800

DocMagic customers may now request Consolidation, Extension and Modification Agreement ("CEMA") conventional and FHA fixed rate loan programs for New York refinance transactions to be added to their inventory of loan programs. Pursuant to HUD's Mortgagee Letter 2008-26, dated September 25, 2008, DocMagic's Compliance Department has created a new version of the FHA CEMA that matches Fannie Mae/Freddie Mac's CEMA Form 3172, except that all references to "Fannie Mae/Freddie Mac" Notes, Uniform Instruments, and Mortgages have been removed and replaced with references to "Federal Housing Administration."

New Form: Pennsylvania Consumer Mortgage Disclosure

Wed, 18 Feb 2009 18:32:07 -0800

The Pennsylvania Department of Banking ("Department") adopted rules under the Mortgage Loan Industry Licensing and Consumer Protection Act requiring lenders and brokers to provide a new Consumer Mortgage Disclosure Form (on a form prescribed by the Department). Under Pennsylvania Regulations, Title 10, Part IV, §46.2, licensees who take an application for a mortgage loan are mandated to disclose the following information to an applicant:

New Pre-Closing Package Available Soon

Wed, 18 Feb 2009 18:22:07 -0800

By popular demand, a pre-closing package will soon be added to DocMagic's repertoire of package types. A number of customers have been requesting a pre-closing package that includes a number of federal and state-specific disclosures that should, but may not be legally required to be, re-disclosed to the borrower because of a change in fees and charges and/or the interest rate in the loan transaction in addition to state-specific disclosures that applicable state law requires be delivered to the borrower prior to the closing date of the loan either because of a material change in the loan terms or the applicable statute or regulation requires that the disclosure be given within a certain number of days prior to closing.

Treatment of Seller-Paid Fees for North Carolina High Cost Test

Wed, 18 Feb 2009 18:12:07 -0800

In an apparent effort to correct the confusion brought on by the changes to the North Carolina high-cost home loan law (G.S. Section 24-1.1E) by Session Law 2008-227 (House Bill 2188), which changes precipitated the North Carolina Commissioner of Banks to issue Declaratory Ruling 2008-1, the North Carolina legislature has once again amended the definition of points and fees in high-cost home law to insert a requirement that the charges be "paid by a borrower at or before closing." See House Bill 1222 (Session Law 2009-457) here. With this statutory change, it appears that seller-paid Regulation Z Section 226.4(c)(7) charges are not points and fees for purposes of the high-cost home law, even if paid to the lender or lender affiliate and even if the lender otherwise receives a direct or indirect benefit from the payment of the charges. The determination in Declaratory Ruling 2008-1 with respect to seller-paid mortgage broker fees and prospective seller-paid prepayment penalty fees remain unaffected by these statutory changes and remain points and fees under the high-cost home law.

RESPA Reform: Revised GFE – Page 1

Wed, 18 Feb 2009 18:02:07 -0800

Written by Richard Triplett, CMB*

In the previous article (RESPA Reform Final Rule), I discussed the provisions of RESPA reform that become effective on January 16, 2009. This article will focus on the newly revised Good Faith Estimate (GFE), and specifically the first page. Additional articles will follow on each page for your reference in implementing this revised disclosure on January 1, 2010.

Licensing Under the S.A.F.E. Act

Wed, 18 Feb 2009 17:52:07 -0800

Written by Stephanie Ochoa*

If you are in compliance and/or licensing in the mortgage lending world, there's no doubt that you have heard of yet another acronym - the S.A.F.E. Act. The Secure and Fair Enforcement for Mortgage Licensing Act of 2008, technically Title V of the Housing and Economic Recovery Act of 2008 (Public Law 110-289) ("HERA"), sets forth requirements for the licensing and registration of all loan originators by August 1, 2009.1

2009 Conventions, Conferences, Tradeshows and Expos

Wed, 18 Feb 2009 17:42:07 -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 - February 2009

Wed, 18 Feb 2009 17:32:07 -0800

This month DSI posts updates to the loan program of GMAC Bank and CitiMortgage, Inc. (Correspondent Division) 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: Ohio Recordable Instruments and Documents Updated

Wed, 18 Feb 2009 17:22:07 -0800

Although new Ohio Revised Code Section 317.114 governing document recording requirements in the state of Ohio does not apply to documents executed before July 1, 2009 (with some exceptions), DocMagic's Compliance Department has already implemented the required changes to Ohio recordable instruments and documents, namely updating the top and bottom margins of mortgages, assignments, riders, loan modification agreements and other instruments or documents that are required to be recorded with a county recorder in Ohio.

New/Revised Documents - February 2009

Wed, 18 Feb 2009 17:12:07 -0800

U.S. Treasury Yields - February 2009

Wed, 18 Feb 2009 17:02:07 -0800

The U.S. Treasury security yield values for February 2009 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 March 2009.

Industry-Related Announcements/Newsletters – February 2009

Wed, 18 Feb 2009 17:01:07 -0800

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

RESPA Reform Final Rule – Part 1

Thu, 22 Jan 2009 06:31:31 -0800

Written by Richard Triplett, CMB*

Monday, November 17, 2008: The day The Department of Housing and Urban Development sent the mortgage industry into panic mode. On that day, the final rule was published regarding the long-awaited, highly anticipated, and as you would expect, heavily commented RESPA reform (my understanding is that 12,000 comments were received). There is some good news regarding specific portions of the reform final rule versus the proposed rule. I will comment on those differences below.

The Nomenclature of Simple Interest Mortgages

Thu, 22 Jan 2009 05:31:31 -0800

Written by Jack M. Guttentag*

What truly distinguishes simple interest mortgages from others is that they accrue interest daily rather than monthly. All mortgages are simple interest in not charging interest on prior interest, except those that allow negative amortization.

Maryland Adopts Final Regulations on Recorded Security Instruments

Thu, 22 Jan 2009 04:31:31 -0800

On November 25, 2008, the Commissioner of Financial Regulation adopted new Regulations .01 and .02 under a new chapter COMAR 09.03.11 Recordation of Security Instruments for Residential Property. The final regulations require the inclusion of the names and license numbers of mortgage lenders and mortgage originators (or an affidavit of exemption) on recorded security instruments encumbering residential property. These regulations will become effective on December 29, 2008, and may be viewed here.

Investor Updates - January 2009

Thu, 22 Jan 2009 03:31:31 -0800

At Your Service: FEMA Updates Standard Flood Hazard Determination Form

Thu, 22 Jan 2009 02:31:31 -0800

FEMA Form 81-93, Standard Flood Hazard Determination Form (SFHDF), has been updated mandatorily effective as of June 16, 2009. The prior SFHDF had expired on October 31, 2008. Because a replacement version had not yet been created prior to the October 31, 2008 expiration date, FEMA extended the SFHDF expiration date to six months after the replacement SFHDF was approved, which approval occurred on December 16, 2008. DocMagic has already replaced the expired SFHDF with the updated SFHDF. To view a copy of the updated SFHDF, click here.

To view all At Your Service Articles, click here.

New/Revised Documents - January 2009

Thu, 22 Jan 2009 01:32:31 -0800

U.S. Treasury Yields - January 2009

Thu, 22 Jan 2009 00:31:31 -0800

The U.S. Treasury security yield values for January 2009 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 February 2009.

Industry-Related Announcements/Newsletters – January 2009

Wed, 21 Jan 2009 23:31:31 -0800

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