On April 14, 2020, Fannie Mae and Freddie Mac (the “GSEs”) made a joint announcement that the redesigned Uniform Residential Loan Application (“URLA”) and automated underwriting systems (“AUSs”) implementation timeline has been updated with extended milestone dates that move the required use date to March 1, 2021. 

Federal agencies, along with Fannie Mae and Freddie Mac (the “GSEs”) have issued temporary guidance urging that additional due diligence be taken in verifying borrower income and employment information prior to closing.  The guidance does not include specific disclosure requirements but allows for flexibility in verifying that a borrower’s ability to repay a loan has not been negatively impacted by the COVID-19 pandemic. 

On April 1, 2020, Fannie Mae and Freddie Mac (the “GSEs”) issued additional guidance regarding the transition from LIBOR to SOFR ARM loans including eligibility, underwriting and delivery requirements.  New Secured Overnight Financing Rate (“SOFR”) ARM products will use the 30-day average SOFR index published by the Federal Reserve Bank of New York.

In order to keep DocMagic software users better apprised of document changes and additions as they occur, DocMagic posts listings of all newly created and revised documents. Here is the list of forms created or modified in April, 2020.

To view all New/Revised Documents, click here

Due to the impact of the Coronavirus, many investors and agencies are providing updates to their available loan programs.  DocMagic is keeping abreast of these changes and will be making updates accordingly.

Alabama Housing Finance Authority:  Alabama Housing Finance Authority (AHFA) is suspending acceptance of new reservations effective immediately. Updates will be sent when the acceptance of reservations resume.

Modification to add checkboxes for post-fill for the amount of child care expenses as per week or per month. (Date of Release to Production: 03/26/2020)

Updated to support eNotarization. Page count increased to 2 pages and form is now on letter size. (Date of Release to Production: 04/02/20)

Updated to 2/20 version. (Date of Release to Production: 05/07/20)

Updated to 2/20 version. (Date of Release to Production: 05/07/20)

Updated to dynamic signature lines and use of Borrower instead of Mortgagor. (Date of Release to Production: 04/02/20)