DocMagic Inc. said it will roll out its new qualified mortgage (QM) test to its customers this month. The new functionality, based on the most recent rules handed down by the federal government, is in testing now with a select group of DocMagic clients. “While the new qualified mortgage standard doesn’t go into effect until 2014, lenders need access to the tools now in order to train their internal teams,” said Laurie Spira, DocMagic’s chief compliance officer. “DocMagic will have the tool available to lenders within the month, giving them a head start towards implementation before the regulations go into effect in January of next year.”
A direct result of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the qualified mortgage standards provided much needed industry protection from investor buyback requests and consumer complaints related to the new Ability to Repay rule. Beginning on January 10, 2014, lenders must identify their new loan originations as either a safe harbor qualified mortgage, a rebuttable presumption qualified mortgage or a non-qualified mortgage loan. The Consumer Financial Protection Bureau will oversee and enforce the rule.
The calculations used to determine whether a given loan qualifies as a QM mortgage can be complicated. DocMagic’s new functionality makes it easy, returning a Qualified Mortgage determination to the lender automatically, without forcing users to learn a new process. The new test will be available from within DocMagic’s regulatory audit engine which is relied upon by thousands of lending institutions nationwide.
“As our clients’ trusted regulatory compliance source, DocMagic is proud to provide the tools required to keep their operations fully compliant without compromising the effectiveness of their internal teams,” said Dominic Iannitti, CEO of DocMagic. “With so many regulatory changes being required in rapid-fire succession, our legal and compliance specialists work around the clock to insure that our regulatory auditing and document production systems are always in compliance and ahead of schedule.”