DocMagic is adding new generic SOFR interest only loan programs which will use the 30-day Average SOFR index:
|
DocMagic Plan ID |
Description |
|
36SIO |
3/6 Mo 30-day Avg SOFR 10 YR IO 2/1/5 Caps |
|
56SIO |
5/6 Mo 30-day Avg SOFR 10 YR IO 2/1/5 Caps |
|
76SIO |
7/6 Mo 30-day Avg SOFR 10 YR IO 5/1/5 Caps |
|
106SIO |
10/6 Mo 30-day Avg SOFR 10 YR IO 5/1/5 Caps |
|
36SIO2 |
3/6 Mo 30-day Avg SOFR 3 YR IO 2/1/5 Caps |
|
56SIO2 |
5/6 Mo 30-day Avg SOFR 5 YR IO 2/1/5 Caps |
|
76SIO2 |
7/6 Mo 30-day Avg SOFR 7 YR IO 5/1/5 Caps |
DocMagic’s new programs include the following SOFR interest only notes and riders:
- 3441IO.NOT: Interest Only Adjustable-Rate Note 30-day Average SOFR
- 3141IO.RID: Interest Only Adjustable-Rate Rider 30-day Average SOFR
- 3442IO.NOT: Interest Only Fixed/Adjustable-Rate Note 30-day Average SOFR
- 3142IO.RID: Interest Only Fixed/Adjustable-Rate Rider 30-day Average SOFR
The notes and riders have been modified to allow interest rate caps and adjustments to populate based on the provided transaction information or plan default.
Generic multistate and state-specific interest only forms will also reflect the new SOFR index as applicable, including the Adjustable Rate Disclosure for Interest Only (DocMagic Form ID: ARMIO.DSC).
The plans are now available in DocMagic’s testing environment and will be available in production on September 10, 2020. It is important to note these documents are not Uniform Instruments as they are not provided nor accepted by Fannie Mae or Freddie Mac. Users must ensure the documents are appropriate for their situation before use.
To view a complete list of multistate and state-specific versions of the SOFR interest only notes and riders, click here. If you have any questions, please contact DocMagic’s Compliance Department.
