MORTGAGE INDUSTRY BLOG

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

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.

Read More

Podcast: The DocMagic Moment – Episode #19 – Why Compliance Matters

Posted by DocMagic on 09/23/2014

Grow your business without the fear of non-compliance.

Read More

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.

Read More

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.

Read More

DocMagic, OpenClose Complete Seamless Integration

Posted by DocMagic on 02/05/2014

Press Release:
New interface is tightly embedded in OpenClose’s LOS with full QM compliance

TORRANCE, Calif.—DocMagic, Inc., the leading provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions for the mortgage industry, and OpenClose, an enterprise-class end-to-end loan origination system (LOS) provider, announced today that the two companies have established a new seamless integration. The integration allows users to access DocMagic’s services, including its full compliance suite for QM and High-Cost loans, without ever having to leave OpenClose’s LOS.

“Both DocMagic and OpenClose are very progressive, innovative technology companies that have engineered true software-as-a-service (SaaS) applications, which work very well together,” said Dominic Iannitti, CEO of DocMagic. “We have many clients in common that can take advantage of our robust document system, eSigning and eDelivery functionality from within OpenClose. Establishing a tight, seamless integration with the LOS platform is a best practice that will serve our customers well.”

Read More

Subscribe Here!

See all