MORTGAGE INDUSTRY BLOG

Read all the latest information about our solutions, compliance updates and company culture

The Real Impact of Integrated Disclosures

Posted by DocMagic on 10/27/2014

By Tim Anderson,
Director of eServices,
DocMagic, Inc.

What can the industry expect when the CFPB’s final rule and new forms take effect next year?

When federal regulators change the rules governing the requirements for originating a mortgage loan, it can mean pain for both the industry and the consumers it serves. But this time, the move to an integrated disclosure may surprise you and translate into an unexpected side benefit to all parties—that benefit is the eMortgage.

For almost a decade and a half, proponents of all-electronic lending have urged lenders to take the paper out of the process in favor of fully electronic mortgage origination. Despite its significant benefits, eMortgage adoption gave way to the critical mass of lenders unwilling to abandon their legacy systems and paper-intensive processes.

Meanwhile, behind the scenes, lenders’ partners have been implementing systems that allow them to complete more of their loan origination workflow without stopping to paper out. The reality is that a fair amount of lenders have, in fact, been operating fundamentally without paper up until the loan closing, when they print all of the forms for their borrowers’ signatures.

We all know regulation drives change, and the new integrated disclosures lenders will begin using next year provide all the incentive needed to let go of the paper once and for all. Here’s why.

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Increase Profits by Controlling Compliance Costs

Posted by DocMagic on 10/24/2014

By Dominic Iannitti
President and CEO,
DocMagic, Inc.

When the Mortgage Bankers Association released the most recent MBA Quarterly Mortgage Bankers Performance Report, few industry professionals should have been surprised to learn that loan originators achieved the lowest average profit per loan since the MBA began tracking performance in 2008. Likewise, loan origination expenses were the highest recorded in any quarter since the Performance Report was created midway through 2008.

How far has loan origination profitability fallen? The average per-origination profit among independent mortgage banks and mortgage banking subsidiaries of chartered banks in 4Q 2013 weighed in at an anemic $150, according to the MBA report. That’s down from $743 per loan in the third quarter. Meanwhile, loan production expenses increased by $591, to $6,959 per loan from the previous quarter.

Certainly the drop in mortgage originations, approaching 40% for some of the nation’s largest lenders, along with the inclement weather much of the nation received earlier this year, contributed to mortgage bankers’ current financial performance. Coupled with the precipitous rise in compliance-related expenses the industry has been experiencing, the lending side of the mortgage business is feeling the squeeze. According to the MBA, lenders are earning only 7% of what they had been making just one year ago. Obviously, this is not sustainable.

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Podcast: The DocMagic Moment – Episode #20 – The Compliance Edge™

Posted by DocMagic on 10/13/2014

There is no more pressing matter to DocMagic’s clients than compliance.

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Webinar: Flood Certifications- What you need to know!

Posted by DocMagic on 09/03/2014

DocMagic and Servicelink present a FREE Flood Certification webinar!
Wednesday, September 10th, 10:00AM PT

You'll Learn:
■ What you need to know about flood compliance
■ Why mapping is everything when it comes to flood determination
■ The latest industry news

Our special guest speaker, Mike Hanson, Senior VP at ServiceLink National Flood has over 22 years in the flood determination and compliance industry. Mike will bring his unique perspective on the latest compliance regulations, explain recent developments in risk mapping, and demonstrate a wide-ranging knowledge of the Flood Insurance Industry.

Ron Carillo, DocMagic’s Training Manager will demonstrate DocMagic’s dedicated and proprietary flood app through ServiceLink! Learn how to access existing flood cert orders, order 2nd certifications for FREE, edit borrower information online in real time, service transfer capabilities, upload and view documents and much more.

Register Now, It's FREE >

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CFPB Approves 2nd eMortgage Pilot for DocMagic

Posted by DocMagic on 08/22/2014

Press Release:
Leading Doc Prep and Compliance Firm Plays Key Role in Historic eClosing Pilot Program

TORRANCE, Calif.-August 21, 2014-DocMagic, Inc., the leading provider of fully-compliant loan document preparation, compliance, patented eSign and eDelivery solutions for the mortgage industry, announced today that the Consumer Financial Protection Bureau has granted DocMagic approval on another eClosing pilot. In this second pilot, The CFPB approved DocMagic's joint proposal with Mountain America Credit Union to participate in its eClosing pilot program. DocMagic will play a key role in the pilot for compliance and loan documentation. DocMagic was also approved in a joint proposal with Franklin First Financial and Pavaso.

"We're excited about being selected to participate in this pilot program as it will demonstrate proven solutions to problems faced by both borrowers and industry participants," said Dominic Iannitti, President and CEO of DocMagic. "Lenders must find more efficient ways to ensure compliance without increasing their loan origination costs or cutting corners. Implementing a secure electronic process with built in compliance audits is the best way to accomplish efficiencies, ensure compliance and keep costs down. Lenders who take advantage of these new technologies will have a competitive advantage over their peers and will see higher borrower pull thru and customer satisfaction levels as well."

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New Penn Approves DocMagic eSign Platform for Correspondents

Posted by DocMagic on 08/07/2014

DocMagic Inc. has announced that its eSign and eDelivery process has been approved by New Penn Financial to deliver compliant initial disclosures for approved correspondent lenders who sell their production to the mortgage company.

“Helping correspondent lenders grow their businesses while reducing their compliance risk is something we do well,” said Dominic Iannitti, president and CEO of DocMagic. “We’re very pleased to introduce our existing customers to New Penn Financial as an investor for their loans and look forward to providing our services to their existing correspondents, including our secure eSign, electronic document technology and industry-leading legal compliance services.”

As part of the relationship, DocMagic will provide New Penn Financial’s investor initial disclosure packages with DocMagic’s secure eSign service.

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Are Third-Party-Paid Fees Included in High-Cost Determinations?

Posted by DocMagic on 07/17/2014

By Melanie Feliciano

More than a month after the January 2014 implementation date of the Dodd-Frank Act’s rules, many in the industry still have questions about how fees and charges paid by a third-party (a third-party is a party other than the lender and the borrower), including the seller, should be treated for the purposes of calculating Section 32 and Qualified Mortgage (QM) total points and fees.

In September of 2013, the Consumer Financial Protection Bureau (CFPB) issued a final rule amending, among other things, the Official Staff Interpretation (the “Commentary”) for Section 32. A comment was added for paragraph 1026.32(b)(1) that states, “Under §1026.32(b)(1), points and fees may include charges paid by third parties in addition to charges paid by the consumer. Specifically, charges paid by third parties that fall within the definition of points and fees set forth in §1026.32(b)(1)(i) through (vi) are included in points and fees (emphasis added). In calculating points and fees in connection with a transaction, creditors may rely on written statements from the consumer or third party paying for a charge, including the seller, to determine the sources and purpose of any third-party payment for a charge.” The Commentary then goes on to provide examples of charges that would, or would not, be included in points and fees.

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Podcast: The DocMagic Moment – Episode #16 – Take the pain out of QM

Posted by DocMagic on 05/07/2014

In this edition of the DocMagic moment, Ron looks back on how the CFPB’s January rules changes have impacted the industry.

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DocMagic CEO Awarded as Mortgage Industry All-Star Technologist

Posted by DocMagic on 03/18/2014

Press Release: With over 25 years of experience in solving industry problems, Iannitti is recognized

TORRANCE, Calif.—March 18, 2014—DocMagic, Inc., the leading provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions for the mortgage industry, announced today that its Chief Executive Officer, Dominic Iannitti, has made an exclusive list of top industry technologists. This year’s Mortgage Banking magazine Tech All-Star list only includes 8 talented executives.

“It’s an honor to be recognized, however, our work has never been in pursuit of accolades,” Iannitti said. “We know we’ve done the job well when our customers tell us so and I am proud to say they tell us that every single day. I thank the editors of Mortgage Banking Magazine and look forward to serving this industry for many years to come.”

Iannitti founded DocMagic in 1988 when personal computers were new and business solutions that capitalized on technological tools were rare. He foresaw the day when all documents used to originate mortgage loans would be generated automatically in a fully compliant manner, provided in an electronic format and securely stored indefinitely. That goal was achieved this month when DocMagic became the first in the industry to originate an FHA mortgage with every document except the note executed in a completely electronic format.

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DocMagic Listed As A Top Industry Service Provider

Posted by DocMagic on 02/24/2014

Press Release:
A new take on the industry’s leading firms puts DocMagic at the top this year.

TORRANCE, Calif.—DocMagic, Inc., the leading provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions for the mortgage industry, announced today that the company has been listed among the Top 50 Mortgage Service Providers in America by Mortgage Executive magazine. The listing was published in the 4Q 2013 issue.

“Being listed among the industry’s best service providers is important to us because it demonstrates that we are driven to innovate while others wait," said Dominic Iannitti, CEO of DocMagic. We are proud to be included on this list and thank the editors for the work they put into developing it.”

For more than 25 years, DocMagic has led the industry in pursuit of a single mission: the electronic, fully compliant, paperless mortgage. The leading competitor in its space, the company is committed to customer service and focused on making custom forms easy and delivering a robust and compliant document preparation process.

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