| In this Issue |
Letter from our President - The Changing Face of Mortgage Technology
DX Announces Flood Plug-In with MORvision
Credit Cards are Accepted - Pay your next invoice with a credit card
Compliance Updates & Industry News PLUS Introduction of DX Compliance Memos
NEW! Follow us on
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| Upcoming Events |
IAMP Mortgage Madness Mini-Marketplace
March 9, 2010
The Carlisle
Lombard, IL
MBA's National Technology in Mortgage Banking Conference & Expo
April 25-28, 2010
Hyatt Regency
Chicago, IL
Del Mar Datatrac Client Conference
June 9-11, 2010
ARIA Hotel
Las Vegas, NV
MBA Annual Convention
October 24-27, 2010
Georgia World Congress Center
Atlanta, GA |
| LOS Interfaces and Partners |
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Letter from our President
Paul Fosco, President
THE CHANGING FACE OF MORTGAGE TECHNOLOGY
"HUD ISSUES NEW MORTGAGE RULES TO HELP CONSUMERS SHOP FOR LOWER COST HOME LOANS", "RADICAL CHANGES TO RESPA TO TAKE EFFECT JANUARY 1, 2010", "ARE YOU READY FOR SOME RESPA REFORM?" You've been reading the headlines for quite some time now and you're still losing sleep because you aren't sure if you're in compliance with the new regulations. All players involved in the loan process are concerned, and rightfully so. After all, these changes are more than just the implementation of a new form or two. They constitute an entirely new way of doing business and are widespread. Lenders and loan officers are confused about what new disclosure forms to use. Correspondent lenders are typically required to deliver loans that are fully compliant with all federal, state and local laws, rules and regulations. Investors are afraid that they will be held responsible for the errors of others. Brokers are worried about compliance, and oh, what about the yield spread premium? Settlement providers aren't sure about changes to the new HUD-1 form and how it is affected by the new Good Faith Estimate. Before I address these concerns, let's take a look at some of the more important RESPA changes first.
For the first time in over 30 years, HUD has instituted sweeping changes to RESPA. While amendments to RESPA have been discussed and even proposed by previous administrations, the onslaught of home foreclosures and the ongoing housing market instability has created a new sense of urgency for lending and settlement reform. Under the new regulations, lenders, brokers, title companies, attorneys and others who provide loan and settlement services are subject to the tighter, stricter standards. In fact, because the changes are so noteworthy, HUD has announced that it will exercise restraint in enforcing the new regulatory requirements for the first four months of 2010.
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Document Express Releases Flood Plug-In with MORvision
 February, 2010 - We are excited to announce the release of our Flood Plug-In with MORvision. MORvision users are able to access our plug-in on ISGN's Plug-In Partner website under the Flood category.
The plug-in sends the loan data from MORvision to CyberDocs where the data is then sent to our partner, LPS National Flood. Based on the property address, LPS determines whether or not the property is in a flood zone. If manual research is not required, the completed flood certificate is returned to MORvision and attached to the file as a PDF document in a matter of seconds! If manual research is required, the flood certificate will be emailed to the MORvision user within 24-hours. It is that simple!
Contact us today at 800-476-3627 to add this service to your account!
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Credit Cards are Accepted
Use a Credit Card to Pay your Bill
Document Express wants to remind its clients that credit cards are an acceptable form of payment for monthly invoices.
Please keep an eye out for March's invoice which will contain a credit card authorization form. If you wish to pay the invoice using a credit card, simply fill out the form, sign it for authorization and mail it back with your invoice slip.
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CyberDocs Changes and Updates
New Borrower Identity and Execution Certification Document Added to Amtrust Mortgage Packages: August, 2009: Effective for all Request Docs Submissions and Doc Redraws on or after 08.13.09, the Security Instrument Rider (for Security Instrument Securing Electronic Note WSL: 640) and the USA Patriot Act Customer Identification (WSL: 288) will be removed from the ink-signed document set for eSignŽ transactions. These forms will be replaced with the new Borrower Identity and Execution Certification form (WSL: 663). On non-eSignŽ transactions, the paper package will be updated to include the Borrower Identity and Execution Certification (WSL: 664) which replaces the USA Patriot Act Customer Identification.
Colorado DRE Disclosures Revised: August, 2009: The Director of the Colorado Division of Real Estate updated rules regarding Mortgage Brokers and their disclosure forms. This is a result of CO 2009 House Bill 1085 which amended 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). The term "mortgage broker" was changed to "mortgage loan originator". All of the Colorado specific disclosure forms have been updated by the Director to reflect the new term "mortgage loan originator". The following forms were affected by this change: VMP-1061(CO) Compensation Disclosure Form, VMP-1062(CO) Dual Status Disclosure, VMP-1077(CO) Lock-in Disclosure Form, VMP-1090(CO) Tangible Net Benefit Disclosure.
Fields Added to the Originating Broker Section in CyberDocs: August, 2009: We added the following fields to the Originating Broker section on the General Loan Information screen to accommodate initial disclosure document changes: Originating Broker Address, Originating Broker City, State and Zip and Originating Broker Phone Number.
Nevada Security Instruments Revised: August, 2009: The Nevada security instruments were revised to include the Mortgage Broker Name and License Number to comply with the NV Division of Mortgage Lending Guidance Letter dated July 29th, 2009 for loans secured by liens on real property offered on or after May 29th, 2009.
MDIA Fields Added to CyberDocs: October, 2009: CyberDocs was updated to include fields to accommodate the Mortgage Disclosure Improvement Act. The fields added were: Initial Disclosure Send Date, Re-Disclosure Send Date, Re-Disclosure Method, Re-Disclosure Received Date and Previously Disclosed APR. If these fields are filled out, CyberDocs will perform a MDIA check to determine if any of the requirements of the MDIA are being violated.
Previous Address Fields Added to CyberDocs: October, 2009: To accommodate changes on the 4506-T, we added fields to insert the primary borrower's previous address on this form. The fields added were: Previous Address, Previous City, Previous State and Previous Zip Code.
Zero-Out Interest Option Added to CyberDocs: October, 2009: A Zero-Out Interest option was added to the Odd Days Interest Paid By question located on the General Screen in CyberDocs. When chosen, any interest being collected will be zeroed out.
APR Fee Changes in CyberDocs: Novemeber, 2009: The following fees have been determined by Document Express to always be APR fees and therefore have been hardcoded as APR'd in CyberDocs with the option to uncheck the APR box removed: Loan Origination, Loan Discount, Lender's Inspection Fee, Mortgage Broker Fee, Tax Service Fee, Processing Fee, Commitment Fee, Underwriting Fee, Escrow Waiver Fee, Closing Fee, Recording Fee - Assignment of Mortgage, Copy/Fax Fee and Courier Fee.
New York Disclosure Added: November, 2009: A New York FHA Mortgage Loan Disclosure (NYFJ3G) was added to all Initial Disclosure and Closing packages to comply with N.Y. Comp. Codes R. & Regs. tit. 3, §38.13(d) which states an FHA mortgage loan correspondent must disclose the following to the borrowers: "I am an approved FHA Mortgage Loan Correspondent. Your loan will be underwritten by my FHA approved sponsor. You will be notified of the name of the sponsor simultaneously with the issuance of an interest rate lock-in agreement or commitment to fund, whichever comes first. If the sponsor approves the FHA insured mortgage loan, I will make the mortgage loan to you".
Deposit/Earnest Money Field Added to CyberDocs: November, 2009: A Deposit/Earnest Money field was added to the Loan Terms screen in CyberDocs to accommodate the HUD-1 Settlement Statement.
Bona Fide Loan Discount Points Fields Added to CyberDocs: November, 2009: A Bona Fide Loan Discount Points section has been added to the Loan Fees screen in CyberDocs to accommodate the Bona Fide Discount Test provided by Interthinx for our HCA users.
New Indiana Disclosure Added: IN House Bill 1176 added Chapter 23.5 to Indiana Code. In Section (8), it requires that a creditor shall provide the prescribed form, no later than 3 business days after receiving a completed written application for a mortgage loan. This document is effective for all transactions taken after December 31, 2009. VMP-996(IN) has been added to all Indiana Initial Disclosure packages.
California Disclosure Changes: January, 2010: Beginning January 1, 2010 CA mortgage brokers who arrange federally related mortgage loans must use the new Good Faith Estimate. The CA Mortgage Loan Disclosure Statement/Good Faith Estimate (RE 883) VMP-766(CA) was removed from WKFS inventory. Brokers who previously used the this form must now provide two (2) separate disclosure forms: CA Mortgage Loan Disclosure Statement, RE 882, VMP-961(CA) or VMP-961S(CA), and The New Good Faith Estimate required by HUD, VMP-116N, VMP-116F. CA Brokers who arrange non-traditional mortgage loans must continue to provide borrowers with the nontraditional combined form RE 885, VMP-766N(CA) CA Mortgage Loan Disclosure Statement/Good Faith Estimate Nontraditional Mortgage Products. However, the GFE portion of the form is no longer sufficient to comply with the new federal requirements. This form must also be accompanied by the new Good Faith Estimate form for all federally related non-traditional mortgage loans. The CA Department of Real Estate hopes to post a new combined form on their website when they receive approval from HUD. The VMP-766N(CA) will be revised to remove the data fields on page one (1) in the Good Faith Estimate section of the eform.
New Idaho Disclosure Added: January, 2010: Section 18.01.39 of the Idaho Administrative Code requires a "Notice of Financial Interest in Title Entity by Producer of Title Business" disclosure to be provided to a borrower at the time the purchase contract is entered into. VMP-1032(ID) has been added to our ID Initial Disclosure packages.
Revised Florida Mortgage Broker Agreement: February, 2010: As a result of the RESPA Good Faith Estimate requirements effective January 1, 2010, the FL Good Faith Estimate of Settlement Costs and Mortgage Brokerage Contract/Fee forms, VMP-275(FL) and VMP-775R(FL), have been removed from our forms library. The obsolete forms have been replaced by our new FL Mortgage Broker Agreement, FLFJ9Z. The new agreement does not contain a GFE, therefore it is recommended that they be used with a new Good Faith Estimate (VMP-116N) even though Florida law is not impacted.
New GMAC Occupancy Certificate Added: February, 2010: GMAC recommends this form is completed for all primary residences and second homes, however may be required, at the discretion of GMAC Bank Correspondent Funding undewriter, to be completed and signed by the borrower(s) prior to closing. We are now including this form in all of our GMAC Initial Disclosure packages.
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Compliance Updates and Industry News
4506-T Borrower Signature Extension
The IRS recently changed it policy on the acceptance period for 4506-T signature forms from 60 days to 120 days. This means you can run additional 4506's without having to get the 4506-T forms signed. This new rule applies to all existing authorizations executive on or after October 19, 2009. As a result, the IRS will provide tax returns and tax return information in accordance with any signed authorization dated on or after October 19, 2009.
FHA Increases Mortgage Insurance Premiums
FHA has announced that it will increase Mortgage Insurance Premiums in an effort to build up capital reserves and bring back private lending. The following steps will occur: 1) Raise the UFMIP to 2.25% from 1.75% and request legislative authority to increase the maximum annual MIP that FHA can charge. 2) If this authority is granted, there will be a shift of some of the premium increase from the UFMIP to the annual MIP. 3) This shift will allow the capital reserves to increase with less impact to the consumer because the annual MIP is paid over the life of the loan instead of at closing. Information regarding this change was included in a Mortgagee Letter released January 21, 2010 and the change will take effect this spring.
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We sincerely hope you enjoyed this issue of our quarterly newsletter. As always, we welcome any suggestions, comments and criticisms to help better serve you. Feel free to contact us anytime at support@documentexpressinc.com or at 800-476-3627. |
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