As a result of feedback received from the CFPB through clients, DocMagic is making an update to the display of payoff items disclosed in the Payoffs and Payments table on the Alternate CD, when generated through an integration. There are no changes to generations through DocMagic Online.
Currently, when building the display of items in this table, DocMagic includes payoffs here based on liabilities that are indicated “to be paid off” with the payee name and the phrase “payoff to”. This results in general payoff descriptions such as “Payoff to Lender Bank” for example.
Based on the sample form published as H-25(E) in Appendix H to Regulation Z, DocMagic is making an update to also include in the description of the payoff the type of liability, such as “mortgage loan” or “revolving account”. Accordingly, a general payoff description for a mortgage loan may appear as “Payoff of Mortgage Loan to Lender Bank” for example.
DocMagic will automatically be making this update to the Payoffs and Payments table for all data processed through an integration on or after February 11th March 1. DocMagic Online continues to provide for a freeform text field for entering the payoff descriptions for use on the CD so that transactions entered through DMO are not impacted.
This release is currently scheduled for March 1st.
If you have any questions about this change, please contact the DocMagic Compliance department.
