7 Myths of Document Preparation - DocMagic

DocMagic, Inc. Copyright ©2013

DocMagic, Inc. Copyright ©2013. All rights reserved.

7 Myths of Document Preparation

Presented by: DocMagic

November 7, 2013


Meet the Presenters

Melanie A. Feliciano Chief Legal Officer

Ron Carrillo Training & Education Supervisor

Melanie manages the Legal and Compliance Department; serves as Editor-in-Chief of DocMagic’s monthly, electronic compliance newsletter, The Compliance Wizard; oversees, negotiates and prepares various agreements involving DocMagic’s customers and strategic partners; manages DocMagic’s risk; and handles legal matters relating to DocMagic’s business operations. Melanie also supports DocMagic’s Chief Compliance Officer, Laurie Spira, and the rest of the Compliance Team with respect to DocMagic’s compliance products and services.

As Training & Education Supervisor, Ron is responsible for training DocMagic's customers on our many products and services. Hosting a live weekly webinar as well as creating training videos and pod-casts, Ron keeps customers informed of current updates, new features and the latest product enhancements. Ron earned his teaching credential from the University of San Diego.


Housekeeping

Everyone on the call today is muted.

Type your questions at any time. Use the

question window in the GoToWebinar control

panel.

During the call you will see several poll

questions.

Please answer polls quickly.


7 Myths of Document Preparation

1. All document preparation companies are the same.

2. My LOS provides compliant disclosures for free.

3. My closers know what documents are needed.

4. There’s no real value in eSigning my documents.

5. I’m already complying with Dodd-Frank today.

6. My processors catch data entry errors.

7. I’m with a bank or credit union and predatory lending

doesn’t apply.


Myth #1

All document preparation

companies are the same


All Doc Prep companies are NOT the same!

Compliance & technology

Document types

Loan programs

Loan packages


Improve your workflow

• Quality of the interface between the document preparation provider and your LOS provider

oAvoid manual steps or uploads

• DocMagic delivers automated compliance technologies at no extra cost:

oData validation audits

oHigh Cost Tests

oCompliance audits

What compliance and document preparation tools are offered?



ABOUT DOCMAGIC For over 25 years, DocMagic has provided the people, systems and technology to deliver

solutions for the national mortgage industry's most pressing document production needs.

OUR SOLUTIONS DocMagic provides error-free, fully compliant document packages instantly. Featuring

integrated electronic signature, compliance auditing and eDelivery technologies.

OUR TECHNOLOGY DocMagic is dedicated to providing you with the tools and technology to thrive in today's

as well as tomorrow's changing business environment.

- Mortgage Technology Magazine as a Top 50 Service Provider for 12 consecutive years

- Finalist for the 2010 Lasting Impact Award, DocMagic

- Finalist for the 2013 Lenders Choice Top Tech-Savvy Lenders and Servicers Award

- Leading member and co-chair of the MISMO Origination Workgroup.

Documents



Myth #2

My LOS provides

compliant disclosures for

free.


Is “free” really FREE?

Does your LOS really provide compliance

disclosures for FREE?

Do you have to set up print groups to use the

LOS disclosures?

• Who manages and maintains those forms and print

groups?

• How much time is spent making sure forms are up-

to-date?

• All this time is money!


DocMagic’s Disclosure Matrices

Multistate Disclosures

All State Disclosures

FHA Disclosures


Myth #3

My closers know what

documents are needed.


How can you be sure?

Human error can lead to an incomplete package.

Errors can be costly

Filter the data you provide to process a complete

package

Options for complete but customizable document

packages


Filter data from LOS

Process a complete

package

Complete, but

customizable packages

Core set of docs you can

add to from the Forms

Library

How can you be sure?


Myth #4

There’s no real value in

eSigning my documents.


The electronic signing process is fast and easy.

Presents your company as a technology leader.

Less stress for your borrowers.

The eSign process is secure.

eSigning documents


The eSign console


Myth #5

I’m already complying

with Dodd-Frank today.


Some Dodd-Frank Rules are already in effect

Escrow Requirements under the Truth in Lending Act (Reg Z)

Loan Originator Compensation Requirements under the Truth in Lending Act (Reg Z) - The

amendment to § 1026.36(h) the lender can’t require you to use an arbitrator instead of suing

in court over mistakes or problems with your loan.

RULES EFFECTIVE IN JANUARY, 2014:

Ability to Repay and Qualified Mortgage Standards Under the Truth in Lending Act (Reg Z)

High-Cost Mortgage and Homeownership Counseling Amendments to the Truth in Lending

Act (Reg Z) and Homeownership Counseling Amendments to the Real Estate Settlement

Procedures Act (Reg X)

Loan Originator Compensation Requirements under the Truth in Lending Act (Reg Z) - The

amendment to § 1026.36(h)

2013 Real Estate Settlement Procedures Act (Reg X) and Truth in Lending Act (Reg Z)

Mortgage Servicing Final

Disclosure and Delivery Requirements for Copies of Appraisals and Other Written Valuations

Under the Equal Credit Opportunity Act (Reg B)

Appraisals for Higher-Priced Mortgage Loans


Dodd-Frank Compliance

DocMagic’s Compliance Engine

Audit at any stage of the loan process

Results return on screen and in summary form

(Compliance Report)

Checks for compliance with applicable federal

and state law, Agency requirements, and

investor guidelines

Processes custom audits that have been

implemented to support your business

Refers to governing law and links to articles for

detailed information


Myth #6

My processors catch data

entry errors.


Data validation audits

Automated compliance audits

Compliance reference tools

Loan Detail Report

Processors are human


Processors are human


Myth #7

I’m with a bank or credit union

and predatory lending doesn’t apply


No exemption for banks or credit unions

• Not exempt as a “creditor”

• Not exempt from Reg Z Section 1026.32

oAPR details

oTotal points & fees explained


Questions & Answers


Thank you!

Contact Sales at DocMagic: 1-800-204-4255

[email protected]

7 Myths of Document Preparation - DocMagic

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Transcript of 7 Myths of Document Preparation - DocMagic