Coordinated by Art To Grow On Children's Art Center Inc. and sponsored by DocMagic Inc., the unique art boxes were prepared and delivered to patients with assistance from Girl Scout and Brownie Troops, community patrons, families, grandparents, students, and local community volunteers

Torrance, Calif. Dec. 21, 2018—DocMagic, Inc.a comprehensive eMortgage software solutions provider, announced that it has purchased 100 custom designed Art Boxes to Art To Grow On Children’s Art Center Inc., which delivered the Art Boxes to patients being treated at the Children’s Hospital Los Angeles (CHLA) a non-profit, pediatric academic medical center that provides patient care, education, and leading-edge research to help children in need.

Each Art Box contains a master artist lesson inspired by architect Frank Lloyd Wright, a holiday frame, a journal, a sketchbook, colorful markers, wooden cars, hearts or animals for coloring and decorating, and foam snowflakes or snowman with holiday stickers.

“We are grateful to DocMagic for realizing the immense value that our Art Boxes provide children who are being cared for at Children’s Hospital Los Angeles,” said Lauren Dennis-Perelmuter, founder and president at Art To Grow On Children’s Art Center, Inc.

Founder and President Lauren Dennis-Perelmuter [left] and Volunteer Director [right] for Art To Grow On’s Holiday Art Box Campaign.

She added, “These Art Boxes accomplish something that other gifts such as one-time use toys and electronic devices are unable to do. They give children a respite from the daily realities of staying in a hospital, inspiring and allowing their imagination to soar, their critical thinking skills to be exercised and refined, and their self-esteem and self-confidence to be elevated. These essential life skills are critical not only in the healing process, but brings joy and relief to them directly during their stay at the hospital.”

Notable is that the Children’s Art Center worked tirelessly for more than a year prior to creating and packaging the Art Boxes, going through an extensive vetting process to ensure that they were non-toxic and environmentally safe for patients residing in a medicinal setting. The Girl Scouts and other community volunteers joined forces to assemble to boxes, which was a very hands-on and involved group effort. Video here.

Perelmuter says that the Art Boxes become a one-of-a-kind, very rewarding memory not only for the children, but for their families trying to bring a sense of normalcy to their lives while in a hospital. She adds that the right kind of exposure to art not only gives children opportunities to invent, create, innovate and discover, but also allows them to become optimal, independent thinkers and problem solvers who possess strengthened imaginations.

“We are honored to participate and happy to help with this noble and highly creative cause that Art To Grow On Children’s Art Center is providing kids at Children’s Hospital Los Angeles,” stated Dominic Iannitti, president and CEO of DocMagic. “DocMagic is proud to be a part of having a very unique and positive impact on the lives of these children, opening up a new world of creativity and imagination that they themselves construct.”

Dominic Iannitti, CEO of DocMagic, and his son Dominic Jr., helping with the Art Box project.

DocMagic is an award-winning Southern California-based software firm that automates key parts of the mortgage lending process, ensuring compliance, increasing efficiencies, making what can a confusing and complex undertaking for borrowers much easier, while at the same time removing enormous amounts of paper that lenders and borrowers traditionally deal with. The company is known for its charity work and philanthropy efforts both locally and nationally.

Perelmuter says that the art boxes will be delivered through January 1 for the holiday season but they can also be purchased anytime throughout the year. They are ideal for a myriad of different occasions. Anyone can order the boxes from individuals, to families, schools, Girls Scouts, Boys Scouts, organizations, companies, and other entities.

Lender achieves full eClosing benefits, faster and more reliably, as the result of DocMagic’s consultative implementation process, single-source platform, and intuitive UI

Torrance, Calif. and Salt Lake City, Dec, Dec. 19, 2018—Annual CUNA Lending Council Conference - DocMagic, Inc., the premier provider of fully-compliant loan document preparation, regulatory compliance and comprehensive eMortgage services, and QRL Financial Services (QRL), and SecurityNational Mortgage Corporation (SNMC), an independent national mortgage banker, jointly announced that they successfully rolled out DocMagic’s comprehensive Total eClose™ platform.

Since rolling out Total eClose in September, SNMC has reduced borrower time at the closing table to as little as 15 minutes, and become one of the first national lenders to offer a true eClosing solution that involves no paper whatsoever. It has dramatically sped up the closing process, ensuring accuracy and loan quality, and delivering newfound efficiencies for borrowers, notaries and settlement providers. Total eClose enables SNMC’s customers to preview documents prior to closing, eSign all documents, and complete both remote and in-person eNotarizations. As a result, SNMC is now positioned to capture more market share, reduce operational costs, expedite closing times and elevate the borrower experience.

“Our goal was to perfect a completely digital eClosing process, not to be just another lender offering a basic hybrid closing,” said Steve Johnson, president of SNMC. “Achieving our goal required a powerful end-to-end technology, a perfectly executed seamless implementation, and an intuitive interface that everyone—staff, settlement service providers and borrowers—could use immediately, without a steep learning curve. We got that and more with DocMagic. Plus, the DocMagic implementation team was with us all the way. We never had to worry about a thing.”

The two companies approached the project as partners to ensure swift adoption and a quick understanding of the new workflow-driven eClosing process for both SNMC’s staff and customers. DocMagic worked hand-in-hand with the lender, leveraging its vast eMortgage expertise to help sculpt a unique strategy and a successful go-to-market launch. Unlike other document and eClosing solution providers, DocMagic takes an ultra hands-on approach to implementations, from developing the project roadmap, to training all parties—such as staff, title agents and notaries—to synchronized testing of each facet of the Total eClose platform.

“Our implementation teams function like expert consultants—we work very closely with each client, guiding them literally every step of the way,” said Dominic Iannitti, president and CEO of DocMagic. “There is a huge number of moving pieces in an eClosing solution. As a single source solution, we have intricate knowledge of every one of them, so there are none of the issues that plague other providers—not only immediately after the implementation, but over the long haul as well. In contrast, lenders who choose incomplete or cobbled-together eClosing technologies may have to hit the restart button within 12 to 18 months and search for a comprehensive solution.”

DocMagic is a recognized eClosing pioneer, and has been a part of virtually every state-first eClosing in the U.S.

“We’re pleased to work with companies like SecurityNational Mortgage that truly understand the value of implementing a 100 percent paperless eClosing process,” said Iannitti. “They have taken a leadership position in facilitating eClosings and are ready for an inflow of new business that will be conducted very efficiently.”

DocMagic’s comprehensive suite of eSolutions and eServices also includes SMARTDocs, eNotes capability, eVault technology, eWarehouse lending, and even loan servicing.

Gains competitive advantage, speeds funding process, results in fewer exceptions

Anaheim, Calif., Oct. 29, 2018—Annual CUNA Lending Council Conference - DocMagic, Inc., the premier provider of fully-compliant loan document preparation, regulatory compliance and comprehensive eMortgage services, announced that QRL Financial Services (QRL), a nationwide provider of residential mortgage lending services for community banks and credit unions, has leveraged its eVault technology to purchase eNotes. The announcement was made during the 24th Annual CUNA Lending Council Conference at the Disneyland Hotel in Anaheim, Calif.

Implementing an eVault means QRL can increase new business by extending its reach to lenders that are ready to implement eClosings and sell eNotes. In addition to providing improved service, they will competitively position themselves for the future. The deal will make QRL one of the first investors outside of the GSEs to begin purchasing eNotes.

“QRL is a farsighted organization, and by implementing eVault technology now, they stand to capitalize on marketplace opportunities as eNotes continue to gain adoption,” stated Dominic Iannitti, president and CEO of DocMagic. “We tend to partner with early adopters like QRL, who will reap the benefits of their industry insight. We look forward to the success they realize by utilizing our eVault and supporting technology.”

Because QRL is using DocMagic’s SmartDocs, all documents retain a tamper evident seal to ensure data and document integrity. Using static documents, that don’t include SmartDoc transactional (XML) metadata, means some organizations have the difficult, costly and time-consuming task of confirming that data and documents are in sync.

“Offering a truly paperless solution is the future. Consumers will expect and demand a closing experience that is more timely, convenient and informative," says Alex Rivera, managing director at QRL Financial Services. "QRL’s ability to purchase and service eNotes will allow the credit unions and community banks that we service to stay ahead of the technology curve as they compete with the larger institutions in the race to improve the mortgage experience.”

The solution will also create greater secondary market process efficiencies because of reduced cycle times. QRL will be able to fund faster with fewer post-closing document issues.

Contact Michael Chaney, michael@docmagic.com to schedule a meeting. 

Online eMortgage Education Module was developed to help attorneys, title agents and notaries successfully conduct eClosings

WASHINGTON, D.C., Oct. 15, 2018—Secure Insight, a New Jersey-based data intelligence and vendor management firm, announced today at the MBA’s Annual Convention & Expo that it teamed with DocMagic, Inc., the premier provider of fully-compliant loan document preparation, regulatory compliance and comprehensive eMortgage services, to develop and host an online training program to teach attorneys, title agents, notaries and other entities how to accomplish clear, compliant and completely paperless eClosing transactions.

Secure Insight noted that while lenders have made good progress installing digital mortgage point-of-sale solutions, it is just the initial step to implement a true eClosing solution. DocMagic developed Total eClose™, a comprehensive solution that enables a 100 percent paperless eClosing process from start to finish using a single-source vendor.

“Getting over the adoption hump starts with ease of use and adequate training so users feel comfortable conducting business within the eMortgage ecosystem,” stated Andrew Liput, president of Secure Insight. “We partnered with DocMagic because their Total eClose solution is one of the easiest and most intuitive in the industry, which is conducive to adoption for title agents, attorneys and notaries to understand and leverage.”

Secure Insight has an extensive database of more than 70,000 closing professionals that can take advantage of this vital training program, which provides the educational foundation that paves the way for their business practices to include eMortgages and eClosings. Lenders are increasingly seeking well-qualified professionals to work with and this wide-scale training program is poised to significantly move the adoption needle.

Company officials at Secure Insight say their ultimate goal is to become the industry’s go-to resource for lenders to access settlement professionals who are well-trained in eClosings, similar to what the Nationwide Multi-state Licensing System & Registry (NMLS) provides for loan officers. Lenders can provide a list of approved title companies and Secure Insight then works to implement a common and consistent process for training on a national level.

Tim Anderson, director of eServices at DocMagic stated: “The new training program and centralized database will provide key information and knowledge for professionals about our industry-leading Total eClose technology and assist lenders in locating professionals who are qualified to leverage it for the benefit of consumers. Further, one of the primary issues it solves is that in a purchase market, lenders really don’t choose the settlement professionals and typically don’t have direct relationships with them either nor the dedicated resources to continually train them to effectively support full eClosings. The online training eMortgage Education Module helps alleviate this impediment.”

The online training is officially set to launch on November 15, 2018 and will be available through a link on Secure Insight’s website. To learn more, contact Secure Insight at info@secureinsight.com or (877) 758-7878.  The company will also be holding discussions at the MBA’s Annual Convention & Expo from Oct. 14 – 17 at the Walter E. Washington Convention Center in Washington, D.C.

DocMagic supplies its signature pink slippers at a breast cancer awareness event and blood drive to assist cancer patients and local hospitals

TORRANCE, Calif., Oct. 9, 2018—DocMagic, Inc., the premier provider of fully-compliant loan document preparation, regulatory compliance and comprehensive eMortgage services, announced that it has donated a shipment of its popular custom-made pink bunny slippers, which will be handed out at a blood drive event for Breast Cancer Awareness Month. Twenty percent of all donated blood will be given to cancer treatment and research.

The upcoming event is being hosted by Golden Heart LA, a non-profit organization dedicated to helping children who suffer from life-threatening diseases or disabilities, and IET Capital, a real estate financing firm. Hundreds of the soft, fuzzy slippers will be on hand; anyone who participates in the event is welcome to a pair as part of the fun spirited giveaway.

Founded in 1987 by Dominic Iannitti, DocMagic has had a long-time mascot named “Doc,” a bunny that has become a recognizable part of DocMagic’s brand within the mortgage industry. In 2016, the bunny slippers were officially introduced and handed out at a mortgage technology convention where they ended up being in surprisingly high demand. Over the years the slippers have grown in popularity.

“I was at a mortgage trade show and was asked by a cancer survivor if she could have a pair for a friend going through chemo and that’s what spawned the idea to donate them to worthy causes,” stated Margaret Wendt,” a strategic business advisor and consultant for DocMagic. “Given that it is Breast Cancer Awareness Month, we wanted to offer participants, donors and volunteers at this important blood drive something fun to take home. If the pink slippers bring a simple smile to someone’s face, then it’s a win in our book.”

Incidentally, IET Capital, a sponsor of the event, happens to be a mortgage originator and an actual end user of DocMagic’s loan document preparation software, which is a widely utilized technology in the mortgage banking industry.

Event Details

• What: a dual-purpose event to support Breast Cancer Awareness month and donate blood
• When: Saturday, October 13th
• Time: 10 a.m. - 3 p.m. PDT
• Location: 8056 Telegraph Road, Suite A in Downey, CA 90240 - inside the Bloodmobile

LifeStream says that it is proud to join local and national organizations to increase breast cancer awareness. To make a contribution or donate blood, people can show up at the event or contact LifeStream to make an appointment at 800-879-4484 or visit their website https://www.lstream.org/expresspass. For financial contributions, go to https://www.lstream.org/financial-gifts/.

To learn more about breast cancer, visit https://www.breastcancer.org/, which is a non-profit organization dedicated to providing the most reliable, complete, and up-to-date information about breast cancer.

Golden Heart LA can be found on Instagram @goldenheartla and IET Capital’s website is https://ietcapital.com/.

MBA and ALTA are collaborating to make it easier for states to accept remote online notarizations

NEWPORT BEACH, Calif., Sept. 27, 2018—DocMagic, Inc., the premier provider of fully-compliant loan document preparation, regulatory compliance and comprehensive eMortgage services, and NotaryCam the leader in online notarization solutions, announced an integration that eliminates the need to wet-sign loan documents in the physical presence of a notary by allowing loan documents to be quickly and compliantly eNotarized online.

The integration works inside Total eClose™, DocMagic’s comprehensive end-to-end eClosing solution. It allows customers to initiate eNotarizations using NotaryCam’s remote service with just a few clicks, thus extending the convenience of a fully online eClosing experience through notarization – the final step in loan closing — without any hard stops or papering out.

“More and more states are permitting remote online notarization and as they do, we can expect to see consumer demand and expectation for remote eNotarizations to grow,” said Dominic Iannitti, president and CEO of DocMagic. “This integration allows DocMagic customers to meet consumer demand without any delays, which is a big part of our value proposition for all DocMagic products.”

The Mortgage Bankers Association has been collaborating with the American Land Title Association (ALTA) to prepare model legislation that would provide a framework for any state to adopt remote online notarization processes.

“Mortgage eClosings have progressed incrementally, and both DocMagic and NotaryCam have been pioneers and champions in the adoption the industry has achieved—so this integration is a natural fit,” said Rick Triola, founder and CEO of NotaryCam. “Our companies are very similar in what we deliver: the industry’s most flexible and customer-friendly experiences, backed by unfaltering accuracy, data integrity and compliance. We are looking forward to moving the industry forward, together.”

Prior to the addition of NotaryCam, DocMagic’s Total eClose solution supported eNotarizations by leveraging in-person notaries equipped with electronic notary signing technology, which it will continue to offer in addition to remote online notarizations, where permitted. Both DocMagic and NotaryCam are approved eMortgage technology vendors with the GSEs, having passed an extensive approval process.

Technology to validate data, assure quality and compliance for all pre-funded home loans

TORRANCE, Calif., Sept. 18, 2018—DocMagic, Inc., the premier provider of fully-compliant loan document preparation, regulatory compliance and comprehensive eMortgage services, announced today that Freddie Mac has implemented its SaaS-based eVault technology and SmartREGISTRY™ platform.

DocMagic’s eVault provides a secure electronic repository for storing documents and performing automated eNote certification to Freddie Mac eMortgage lenders via Loan Selling Advisor®. By automating the eNote certification process, Freddie Mac will speed the funding process, thereby improving liquidity in the mortgage markets and reducing lender’s warehouse line costs.

“Freddie Mac is committed to streamlining the mortgage process for lenders and borrowers, and has been a leader in purchasing eMortgages since 2006,” said Andy Higgenbotham, Freddie Mac’s Single Family Chief Operating Office. “We rolled out our automated certification process in 2015 to speed up the funding process, thereby improving liquidity in the mortgage markets and reducing lender’s warehouse line costs. We are now expanding this process to include the DocMagic platform.”

DocMagic’s eVault provides safe and secure storage for sensitive loan documents. It also automatically parses and validates data in a SmartDoc eNote against data in the user’s core system of record. Additionally, DocMagic’s SmartREGISTRY platform enables holders of eNotes to securely transfer these electronic documents to other eVault systems, such as those used by investors, conduit aggregators and servicers. Ultimately, it facilitates real-time access, delivery, storage and much needed control of electronic loan files.

“Freddie Mac has been a long-time visionary and champion of eMortgages over the years and has made great strides with their unwavering commitment to automation across the supply chain,” stated Dominic Iannitti, president and CEO at DocMagic. “Now, with the successful rollout of SmartDoc eNote data validation prior to funding, this demonstrates the advantages and a clear-cut ROI of going completely ‘e.’ We look forward to ongoing collaboration with Freddie Mac and to further adoption of the digital mortgage process.”

Notable is that that Freddie Mac encourages the use of ‘SMART’ (securable, manageable, archivable, retrievable, transferable) eNotes because static documents do not contain source data, and thus make it difficult, costly and time consuming to confirm the data on documents match.

DocMagic established a process that guides lenders on how to begin using SmartDoc eNotes. The company’s eVault technology is integrated with its Total eClose™ platform, which is a comprehensive eClosing solution that creates a 100 percent paperless digital mortgage process — from origination through eClosing, eWarehouse lending, investor eDelivery and eServicing.

About DocMagic: DocMagic, Inc. is the leading provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions for the mortgage industry. Founded in 1988 and headquartered in Torrance, Calif., DocMagic, Inc. develops software, mobile apps, processes and web-based systems for the production and delivery of compliant loan document packages. The company’s compliance experts and in-house legal staff consistently monitor legal and regulatory changes at both the federal and state levels to ensure accuracy. For more information on DocMagic, visit www.docmagic.com.

Heading to Las Vegas for the Digital Mortgage Conference?

Whatever your unique business model, we can help you prepare for your next generation of buyers! Our suite of technology solutions advances the mortgage process at every stage, improving the experience for lenders and settlement service providers with:

• An extensive eDocument Library plus eSignature technology
• MISMO category one compliant SMARTDoc® eNotes
• eNotary Technology for all 50 states
• Direct connectivity with MERS® eRegistry
• An irrefutable Audit Trail for proof of compliance
• A secure, certified eVault
• An Investor eDelivery channel

We'll be at kiosk #318, ready to support your eMortgage process. Book some time directly to your calendar!

Introduction to TRID 2.0

Throughout the month of September Chief Compliance Officer, Gavin Ales, will introduce some of the major changes coming with TRID 2.0 and provide clarification for each topic along with expert commentary on the new regulations, what has changed and what it means to be compliant.

Training and Education Manager, Ron Carillo, will show you how and where to get started testing TRID 2.0 implementation inside DocMagic.

Below, you’ll find the topics for current and upcoming episodes of TRID Talks.

Got questions about TRID 2.0? Contact us at trid@docmagic.com

TRID Talks Episodes

• Introduction to TRID 2.0
• Rounding & Truncation on LE & CD
• Seller Credits
• Trusts & Non-borrowers
• Closing Costs Expiration Date
• Simultaneous, Subordinate Lien Loans
• Construction/CTP Changes
• Principal Reduction

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Overview of TRID 2.0

When do you need to comply with the new rules?

• The Consumer Financial Protection Bureau (CFPB) has set the mandatory effective date of TRID 2.0 for October 1^st, 2018.

What to expect from 2.0?

• Closing the ‘Black Hole’ effective earlier this year in June
• Clarification of “no tolerance fees”
• Several additions to Appendix D/Construction loan clarification
• Written List of Providers (WLP)
• Re-disclosures after Rate Lock
• Cost reductions after initial LE

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Rounding & Truncation on the LE & CD

Prior to TRID 2.0 for percentages stated that you could disclose percentages up to three or four decimal places. DocMagic took the position that we would always disclose three decimal places. Anywhere you see a percentage shown on the loan estimate or the closing disclosure in your loan terms or in your calculations disclosures it will be calculated to three decimal places. The current rules also state that where there is a whole number disclosed as a percentage, for example 4.000, it would not be disclosed to three decimal places, but rather would be disclosed as a whole number. 

• Whole numbers disclosed as a percentage are not disclosed to three decimal places but as a whole number
• The rule for disclosing percentages to three or four decimal places has changed
• If there’s a trailing zero we will truncate before the trailing zero
• Prepaid daily interest should now be disclosed to two decimal places

Another change would be to the prepaid daily interest amount that occurs on both the Loan Estimate (LE) and Closing Disclosure (CD). The daily interest is the amount that is being multiplied by the number of prepaid days to get a total prepaid interest number. DocMagic currently displays that number to four decimal places because there is no restriction on that under the original TRID rule and we have always used up to four decimal places in our calculations. TRID 2.0 specifically says that the prepaid daily interest amount should be disclosed to two decimal places. So, we’ll be truncating at the second decimal place, but please note, our calculations will continue to operate on a calculation that’s based on four decimal places.

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Seller Credits & Negative Prepaid Interest

Seller Credits - Did this change?

When Calculating Cash to Close on the Closing Disclosure, if the amount disclosed for seller credits on the last disclosed LE differs from the amount disclosed on the CD, the creditor must include a disclosure referring the borrower to the seller credit amount. Currently, this disclosure would only refer the borrower to page 2 where closing costs paid by seller are itemized. Under the Rule, this disclosure must also refer to the general credit that is disclosed in the Summaries of Transaction. DocMagic has automatically updated the language disclosed in the “Did this change?” section to reflect this change.

Negative prepaid interest and the impact on 'Total Interest Calculations'

Traditionally DocMagic has always considered the negative prepaid interest amount in the total interest calculation. Our systems treat it consistently in other calculations such as total payments, finance charge, and APR. Under the original TRID rule the effect of negative prepaid interest was not clear. TRID 2.0 clarifies that rule:

• The negative prepaid interest amount must be considered as a negative in the total interest percentage

The new TRID 2.0 rule only addresses the effect of negative prepaid interest in the total interest percentage. The rule indicates that you must consider negative prepaid interest in the total interest percentage. DocMagic believes that this should be treated consistently across these calculations based on informal guidance received from the CFPB. If you have an existing configuration option set to ignore negative prepaid interest in your calculations, it will need to be removed to be compliant with the new TRID 2.0 rule.

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Trusts & Non-borrowers

Changes to Borrower Situations

There are two borrower situations that vary from the typical borrower situation where there is a borrower that is both on the loan and on the title.

Rescindable Transactions (e.g. re-finance)

The first example of one of these situations would be a rescindable transaction, a re-finance being the most common example where you have persons that are only on title but are not borrowers. In this situation you are required to provide the closing disclosure to those persons.

The Original TRID Rule

• Defined those non-borrowing persons who are on title only, or maybe not even on title, still as a borrower
• Non-borrowing persons would still appear on page 1 of the closing disclosure under the label borrower
• They would also appear on the signature lines for them to sign and confirm that they received a copy of the closing disclosure in compliance with the original TRID requirement
• Non-borrowing persons receive the closing disclosure because they have a title interest in the property

The TRID 2.0 Clarification

• Requires those non-borrowing persons who are on title only, or maybe not even on title, still as a borrower
• Does not require Non-borrowing persons would still appear on page 1 of the closing disclosure under the label borrower. (They do have a right to rescind.)
• Limits the borrower listing on page one to those persons who are actual borrowers on the loan

This helps with some of the confusion where persons, who are non-borrowers, may wonder why they would be listed as a borrower.

Inside DocMagic

Under TRID 2.0, if you have a title only person or a non-borrowing spouse (which is called a non-title spouse here at DocMagic) you would enter those as you have previously.

We have automatically updated our systems, to not show that person as a borrower on page one but they will still appear on page five under the signature lines, if you have signature lines.

Trusts

The other unique situation that is clarified under TRID 2.0 is making a loan to a trust. A trust is an entity that may not otherwise meet the definition of consumer, meaning a natural person.

However, in the original TRID rule there was discussion about how the rule still applies to loans that are made to trusts. In those situations, you would look through the trust to find who will be the beneficiary of the loan, as well as the beneficiary of the trust and that would be the individual(s). According to the consumer protection statute seeking to protect consumers, that would still apply in a loan to a trust.

The one change, based on that analysis, was that the rule indicated the disclosure should be provided to the beneficiaries of the trust (aka the actual consumers who are benefiting from the loan).

However, recognizing the legal relationship of the trust as borrower, the rule clarifies that your disclosure should be made to the trustees as representatives of the trust.

As a DocMagic user these configurations will take care of themselves in the programming. You can continue to enter in transactions as usual.

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Changes to the Closing Costs Expiration Date

The first change to the Closing Costs Expiration Date in TRID 2.0 is how many days are allowed between the issue date on the LE and the Closing Costs Expiration Date. The Closing Costs Expiration Date is the date by which your consumer must provide an Intent to Proceed to lock-in the closing cost estimates.

Under the original rule it was written in a way that limited the number of days to only allow 10-business days between your issue date and the Closing Cost Expiration Date.

The Original TRID Rule

• Only allowed 10 days between your issue date and the Closing Costs Expiration Date

This rule seems to unintentionally contradict the original GFE rules from 2010 that state the requirement had always been to be at least 10 days.

The TRID 2.0 Clarification

• Now allows at least 10-business days or more between the issue date of the LE and the Closing Costs Expiration Date.

To accommodate that change DocMagic has added a configuration option to our system to allow users to indicate the number of days they would like to use for calculating the Closing Cost Expiration Date.

Changes to the Closing Costs Expiration Date after the Initial Disclosure

The next change to the Closing Costs Expiration Date is what happens once the Initial Disclosures are finished and you're now issuing a re-disclosed LE.

The Original TRID Rule

• Once the Closing Costs Expiration Date was set that would be the date that would appear on the subsequent LE’s once the borrower had provided their Intent to Proceed

That could be confusing for borrowers because the Closing Costs Expiration Date would not update and could result in the date sometimes being in the past. For example, if you issued a disclosure on the 13th but had previously issued a Closing Costs Expiration Date with a date of the 10th.

The TRID 2.0 Clarification

• Once the borrower has provided an intent to proceed, then you would blank out your Closing Costs Expiration Date on your subsequent LEs

DocMagic users don’t need to update their configurations as this is already taken care of in the programming of our form. However, if you are not providing an Intent to Proceed date before, under the original TRID rules, you would want to do that now. If DocMagic has an Intent to Proceed date, it will blank out the Closing Costs Expiration Date. But if there’s no intent to proceed date, the Closing Costs Expiration Date would continue to appear.

Subordinate Lien Transactions

Disclosing Simultaneous Subordinate Lien Transactions

Under the original TRID rule the Cash to Close for Subordinate Lien Transactions would show large amounts, amounts that could be somewhat off putting to consumers.

The Original TRID Rule

• Cash to Close could show large amounts especially in the Sale Price

The TRID 2.0 Clarification

• The main change is to ignore Sale Price

The CFPB streamlined their rules for how to do the Cash to Close for simultaneous transactions. Users now ignore sale price both for the Cash to Close and the disclosures. There is also the option to remove any reference to a seller on these transactions.

Inside DocMagic

At DocMagic we’ve added a new data point to our model so that we know when to trigger these new rules. DocMagic online will indicate when a transaction is a simultaneous subordinate lien transaction.

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Construction and Construction-to-Permanent Loans

Changes made for Inspection and Handling Fees

One of the changes that the CFPB made in TRID 2.0 relates to post-consummation inspection and handling fees and how those are disclosed on the LE and CD. These are fees that would usually be collected during the period of the construction phase, for example, for multiple draws and if there is a draw fee for each, and for inspections that need to take place prior to the lender approving the draws, and there's a fee for that inspector. Those would be examples of post-consummation inspection and handling fees.

Under the original rule says these fees are not disclosed as normal closing costs like every other cost to the loan on the Loan Estimate and Closing Disclosure. Rather, they need to be disclosed to the borrower, but not as closing costs.

• Post-consummation inspection and handling fees need to be disclosed on an addendum to the LE and the CD.
• On that addendum you will see an aggregate amount of these inspection and handling fees instead of an itemized listing of each of the construction and inspection and handling fees.

Additionally, because these fees are not closing costs, it means that they won't be considered in the Cash to Close that the borrower needs to bring to the closing table.

The TRID 2.0 Clarification

• The new rule says that these costs need to be defined as loan costs

It typically refers to those costs that are in the origination charges section and in the services you can, borrower did, and cannot, and borrower did not shop for section.

On the Loan Estimate those are the charges on the left side of the form or on the CD those are the charges on the top half. It's important to note this because it means that while they're not considered closing costs and not considered in the Cash to Close calculations, they are considered in certain other disclosures, like the TRID total of payments amount. the TRID total of payments amount includes all payments of principle interest, MI, and loan costs. It also means that these charges are considered in the in-five-years calculations and they also need to be considered as finance charges.

Inside DocMagic

DocMagic is taking care of all of that for users: the disclosures, the consideration and total of payments, the consideration of in-five-years, and the consideration as a finance charge and in the APR

TRID 2.0 Changes to Construction Loans

The changes to Construction Loans relate primarily to how Appendix D requires a creditor to disclose a construction loan. There are generally two options under Appendix D that you can disclose a construction loan.

1. The amount of the advances is not known nor is the time at which those advances would take place
2. The other one is when the entire commitment amount is dispersed at closing

DocMagic follows option #1 where the amounts are not known nor is the time at which they're going to be made. So that means that you disclose the interest only payment during the construction phase as equal to the interest payment on half of the commitment amount, meaning the amount of money that's dispersed at close, or dispersed during the construction phase to the borrower. However, the construction loan agreement will indicate that the borrower, nevertheless, is required to pay interest on the amounts outstanding for the period of time they are outstanding.

The Original TRID Rule

• Under the original TRID rule you were allowed to disclose the appendix D amount and leave it at that, and that first bullet point under the original TRID rule would have referred to the first change that could have occurred but would have ignored those changes that would have occurred during the construction phase.

The TRID 2.0 Clarification

• Under TRID 2.0 you must disclose the amount based on half the commitment amount, but in the loan terms section on page one of the Loan Estimate it asks, “may this amount increase after closing”.

So, where you've got the monthly principle and interest amount, that amount would be based on half of the commitment amount. And then where you see the question, “Can this amount increase after closing?” you’ll see that we're answering, yes.

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Principal Reductions

Principal Reductions for a tolerance cure

A tolerance cure is where a lender has exceeded the legal limit amount that was based on the amount that they originally disclosed on the loan estimate for a charge.

At closing, if the amount exceeds the tolerance for either zero percent or the 10 percent amount, that amount must be cured. The rule requires that certain language appear on the form to indicate that the amount includes or is for amounts that exceed those legal limits.

The Original TRID Rule

• A Tolerance cure was only done through lender credits

If there was a tolerance cure you would see it at the bottom of the closing cost details and the general lender credit amount. You would see language about this amount includes X dollars that exceeds legal limits. And then that same language pretty much would also appear in the cash to close table for the total closing cost amount, as well, under the did this change disclosure.

The TRID 2.0 Clarification

• The rule recognizes that you can also provide a tolerance cure via a principle reduction.
• It also modifies the ‘did-this-change’ language that would appear in the cash to close table for total closing costs and will refer the borrower to the principle reduction language that they'll see in the summaries of transaction or in the payoffs and payments table in the alternate disclosure.

Inside DocMagic

The change requires the ‘did-this-change’ language to be different in the cash to close table when it's a principle reduction for a tolerance cure, DocMagic had to control how when that data was being entered as a tolerance cure.

Under the original TRID rule, if there was a principle reduction, you could simply type that into the summaries of transactions and you could do that with our service of DocMagic online or through your LOS.

Just simply free form in your principle reduction language and your amount into the summaries of transaction table and that would automatically adjust the cash to close in the cash to close table as well as at the bottom of the summaries of transactions. That functionality will still exist under TRID 2.0. Additionally, if you have a principle reduction that's not for a tolerance cure, you would continue to enter that principle reduction in the same way.

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Maintaining an effective Compliance Management System (CMS) entails each lender’s structured plan for meeting regulatory compliance. Developing training manuals and documents — the people, training, procedures — is just part of implementing a working CMS. It’s critical for lenders to implement automated technology solutions to ensure standardization, consistency and verifiable compliance across their entire operation. 

Electronic document generation coupled with automated compliance is key to delivering a verifiable service protecting all parties in the mortgage process. Providing a scalable and adaptable set of tools, DocMagic’s automated compliance solution allows lenders to respond quickly and easily to shifting regulatory requirements. 

What sets DocMagic apart

DocMagic’s automated compliance solution provides data validation checks and audits throughout the entire mortgage process. Maintaining an unbroken chain of electronic evidence is critical for mitigating risk and to deliver proof of compliance to auditors. 

With automated compliance integrated within a suite of digital mortgage technology, everything can be offered in one streamlined system. “Compliance automation technology supplied by a single vendor means flexibility, scalability and real efficiency of due diligence efforts,” said Dominic Iannitti, president and CEO of DocMagic.

How it works

DocMagic’s automated compliance solution consists of in-house compliance, seamless XML document preparation, the Automated Audit Engine, Loan Detail Report, an extensive library of electronic SMARTDocs, eSign, eDelivery, and eClosing technology along with integrated eNotary, eVault and SmartREGISTRY technology. 

Utilizing embedded signatures and notary tags from the start, data is audited at the loan level; including data validation, compliance review, TRID tolerance, QM/ATR, predatory lending, RESPA, GSE salability analysis and more. 

Every process, audit and data transaction is electronically tracked, logged and recorded. The eVault houses the entire audit trail, accessible at any time to support a lender’s CMS requirements. “Our certified eVault preserves the authoritative digital ownership of electronic records. This is crucial for clients looking to the future as the loan market continues to transition to a paperless process,” Iannitti said.

“We tell lenders not to settle for short-term fixes but to focus on the long term. DocMagic’s  automated compliance supports your CMS now, and readies you for digital adoption,” Iannitti said.

What Customers Say:

Customers know that at any given time, a complete audit trail can be provided to show proof of compliance. Our compliant process ensures authentication of original documents passing between owners, regardless of how many duplicate electronic files there may be of the same record. DocMagic’s eVault has been thoroughly vetted by Fannie Mae, Freddie Mac, and MERS to compliantly support eVaulting services.  And to back it up, DocMagic offers lenders an extensive set of reps and warrants backed by an insurance guarantee.

As featured by HousingWire, July 2018