DocMagic, Inc., a provider of fully-compliant loan document preparation, compliance, eSign, and eDelivery solutions, recently announced the development of a set of new reps and warrants for its calculations, documents, and data.
The new system is designed to provide lenders peace of mind when it comes to compliance TILA-RESPA Integrated Disclosure (TRID) rule.
“Now more than ever, our clients need assurance that they are operating in full compliance at all times,” said Dominic Iannitti, president and CEO of DocMagic, Inc. “That is why we invested in developing and integrating the Premium Compliance Guarantee into DocMagic’s suite of products, including the TRID-based SmartCLOSE™ collaborative closing portal, for every user on every transaction.”
According to the announcement, the greater risk of civil liability under the new TRID disclosure requirements means lenders and investors may face liability for incorrectly completing various sections on the TRID disclosures. With DocMagic’s TRID-ready systems and now the premium compliance guarantee, the company has implemented a solution that mitigates lender risk of non-compliance. With the premium compliance guarantee, the loan estimate and closing disclosure are guaranteed to be accurate and complete.
Rich Horn, the former Consumer Financial Protection Bureau (CFPB) attorney who led the TRID rule making stated, "Long before the initial August 1 TRID effective date, DocMagic's industry-leading compliance, legal and technology teams proved that their systems were fully TRID compliant. This enabled DocMagic to provide an insurance-backed guarantee on their products and services, including TRID disclosures prepared using SmartCLOSE™, which speaks volumes about the confidence they have in their solutions."
DocMagic also noted that the premium compliance guarantee ensures timely electronic delivery of initial disclosures, compliance with federal and state high cost/HPML laws and accurate document selection logic resulting in compliant loan packages. The guarantee also ensures that all other compliance and data validation audits will trigger at the appropriate times during the loan process, providing critical warning messages to help lenders stay in compliance with applicable laws.
The offering is backed by a $5 million dollar guarantee (up to $50,000 per loan) and DocMagic customers will enjoy a 36-month claim filing period. Beginning February 15, 2016, all new DocMagic customers will automatically receive the new premium rep and warrant offering. Existing DocMagic customers will be given the opportunity to protect their future loan files for an additional nominal fee.
“With the integration of the Premium Compliance Guarantee into DocMagic’s suite of services, significant lender risk is virtually eliminated," said Melanie Feliciano, chief legal officer at DocMagic. "DocMagic has developed the most advanced and effective compliance solution in the industry – and we’ve backed it with a solid guarantee we are proud to offer our clients.”