DocMagic is making various updates for the selection of forms in redisclosure packages based on changes from prior disclosures to the loan’s rate type or loan type. These changes will help clients ensure a loan receives all required disclosures that may not have been included in the initial disclosure package because the loan terms changed after the initial disclosure package was generated.
Redisclosure packages will now include forms which if not provided at the time of initial disclosures, would otherwise not be provided at any point.
Loan Type Change:
Form selection will be updated for redisclosure packages with a loan type that is different from the initial disclosures, such as a change from a conventional loan to FHA or VA, or vice versa.
If a conventional loan is disclosed and later changed to an FHA loan, applicable FHA forms will be added to a redisclosure package, such as the FHA Loan Underwriting and Transmittal Summary, HUD Addendum to Uniform Residential Loan Application, HUD Appraised Value Disclosure, and Informed Consumer Choice Disclosure Notice.
Similarly, forms will be included for conventional loans redisclosed with a loan type of USDA or VA as applicable. Some of the VA forms that will be return in the redisclosure packages include the Loan Analysis (26-6393), VA Loan Summary Sheet (26-0286), and VA Relationship Letter.
Rate Type Change:
Loans with a change in rate type from fixed to adjustable after initial disclosures will have an ARM disclosure added for redisclosure packages. State specific forms such as Tangible Net Benefit Worksheets will also be provided when applicable.
In order to detect these differences, DocMagic will rely only on packages that have actually been delivered prior to the processing of the redisclosure package. If the prior delivered initial disclosure packages indicated a rate or loan type change with the redisclosure package, these changes will trigger these forms for inclusion in the redisclosure package.
This update will be available beginning on October 5, 2023. If you have any questions, please contact DocMagic’s Customer Service.
