DocMagic is making updates to our maximum borrower fees test applicable to Texas A6 loans. Currently DocMagic uses both an audit and a “high-cost test” to cover the 2% maximum a borrower may pay on a Texas Home Equity Loan. We also utilize a specific DSI loan plan for coverage of a Texas A6 loan transaction.
The current test results apply to a Texas loan that is a cash out refinance of a primary residence. A Texas home equity loan may, nevertheless, also include a refinance of a prior home equity loan that does not currently include cash out.
DocMagic will be updating our A6 test results to return based on use of the A6 loan plan (or a custom A6 plan) rather than relying on logic for a cash-out refinance. This will align the test logic with the form logic for A6 applicable documents.
The existing 2% maximum borrower fees audit, separate from the test results, will continue to return as it currently does.
