DocMagic will be making updates for Department of Veterans Affairs (“VA”) guaranteed loans throughout February. The updates are being made for VA loans following a periodic review of lending and disclosure requirements to ensure that loan packages are as accurate as possible.
The updates include:
- New optional plan feature to change how discount points are calculated for VA Interest Rate Reduction Refinance Loans (“IRRRLs”): By default, DocMagic utilizes the remaining balance of the prior VA loan to calculate discount points on the subject loan. A plan feature is now available upon request to change this setting to calculate discount points for VA IRRRLs using the new subject loan amount instead of the prior VA loan remaining balance.
- DocMagic recently updated eSign functionality for three forms to enhance the signing experience. Most notably, signers will no longer need to click through each field on the form that is available for postfill. The system will automatically move the signer to the next section of the form if no information is added, without the signer having to click through each line. When information is added, fields related to the specific information that must also be completed will be highlighted in red. Additionally, an indicator will identify if a field that is open for postfill is optional or required to be completed prior to being able to sign the disclosure. The three forms are Request for Certification of Eligibility (Form ID: 261880.VA), Request for Certificate of Veteran Status (Form ID: 268261A.VA), and Certificate of Loans to One Borrower (COLTOB.MSC).
- New audit to trigger if the remaining balance is not provided for the loan being refinanced in a VA cash-out refinance or VA IRRRL loan: The audit will be returned when the subject loan is a refinance of a prior VA loan, and the prior lien balance is not provided. For VA IRRRLs, the prior lien balance is used to calculate discount points, when present, unless the new optional plan feature is added to use the subject loan amount instead. Also, the prior lien amount is used to complete the discount point amount on the VA Interest Rate Reduction Refinancing Loan Worksheet (Form ID: 268923.VA). The new audit will be applied in production beginning on February 1, 2024.
- Update to programming for VA Request for a Certificate of Eligibility (Form ID: 261880.VA): Borrower names provided for military service will be listed under field 2B, Other Name(s) Used During Military Service. Additionally, programming for field 11A, Active Service, will now print the date separate from active service when provided. The updates will be available in production beginning on February 15, 2024.
- Update to programming for VA Loan Summary Sheet (Form ID: 260286.VA): Section 13, Purpose of Loan, and Section 14, Loan Code, are being updated to check one box in each section based on the same programming found in VA Report and Certification of Loan Disbursement (Form ID: 261820.VA) Section I. Purpose, Amount, Terms and Security for Loan. The update will ensure that the same data mapping is used for the forms, so the information provided is consistent. The updates will be available in production beginning on February 22, 2024.
These changes are currently available for testing on our stage environment and will be available in production as of the dates stated above. There is no action needed to be taken unless you would like to apply the optional plan feature for VA IRRRL discount point calculation to your account. To request an account setting change, or if you have other questions, please contact CustomerService@DocMagic.com.
