Press Release:
DocMagic puts its money where its mouth is with the most far-reaching compliance guarantee of its kind in the mortgage industry

TORRANCE, Calif., Feb. 16, 2016 -- DocMagic, Inc., the premier provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions, today announced the development of an extensive set of new reps and warrants for its calculations, documents and data, which provides peace of mind to lenders when it comes to compliance with the TRID rule.

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, DocMagic 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.

Additionally, 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.

"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."

Rich Horn, the former CFPB attorney who led the TRID rule making stated, "Long before the initial Aug. 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."

"With the integration of the Premium Compliance Guarantee into DocMagic's suite of services, significant lender risk is virtually eliminated," asserted 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."

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 http://www.docmagic.com/.

Dominic Iannitti, president and CEO of DocMagic, talked candidly about what the mortgage industry needs to do to improve the lending process.

With the TRID deadline behind us, the industry is breathing easy again. But should it? Recently ComplianceEase, a provider of automated compliance solutions to the financial services industry, released an analysis of compliance defects for closed loans and estimated that the cost of correcting these errors is increasing the cost of origination, on average, by approximately $28 for every loan. The analysis was based on a cross-section of 700,000 audits that were performed in ComplianceAnalyzer and RESPA Auditor during the first quarter of 2015. It found that 17 percent of the loans failed for Truth in Lending Act (TILA) reasons. Another 6 percent of the loans—or one in 15—failed for being outside of the Real Estate Settlement Procedures Act (RESPA) tolerances.

So, this industry clearly is struggling with compliance. The answer to ironclad compliance is migrating to a truly data-driven process according to Dominic Iannitti, president and CEO of DocMagic. DocMagic is a 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. Here’s what Iannitti thinks the industry should do to forever revolutionize lending:

Q: How did you get started in the mortgage industry?

DOMINIC IANNITTI: I was originally very interested in data and putting data together, re-packaging data, and being able to sell data in a different format. I read a story that focused on the manipulation and modification of data. I thought that it was wild to be able to take data, and change it, and format it, and turn that into a marketable service. I immediately got interested in this idea, started to look at technology, and created a business plan for a document production company for the mortgage industry. That’s where it all started. We began to migrate and leverage that data to actually select appropriate forms, to apply rules around that process, and make forms very intelligent. Later we added the ability to electronically deliver those forms. In the end, it’s because of that interest in the raw data that brought me really into the mortgage finance area.

Q: Over the time that you’ve been in the industry, how do you think mortgage lending has changed?

DOMINIC IANNITTI: It’s changed a lot. When we first got involved in mortgage lending, we were delivering documents. We would produce those documents and then literally take the packages out to the car and drive them to the client. We were limited in our reach from a customer perspective. Then modems were created and we had a way to actually send the ones and zeros on the form remotely to another office from another location, which was amazing. Then the laser printer was created and that radically changed documentation. The rules engine behind the document became more powerful. We created our own rules engine within the DocMagic product, which enabled us to be very dynamic in selecting forms and making sure the correct forms were there. Ultimately we were leveraging this technology to pick the client’s rules, validate them, make calculations, ensure regulatory compliance, etc. The industry has changed a lot.

Q: What about Doc Magic as a company? How has it evolved since you started it twenty some years ago?

DOMINIC IANNITTI: When we started DocMagic was very focused on documents. It’s still focused on documents, but it’s become much more of a compliance company, much more of a technology company. So, we were very production oriented in the beginning. You would take in information, and create a document, and manually deliver everything. It was all about documents and creating those documents. Today we have evolved into a compliance company that delivers everything electronically. You could also make the argument that we’ve become a software development company, as well. We’ve had to become very quick at creating solutions, and that means having a large development staff. When we think of an idea we have to create a prototype and ultimately bring a product to market. The company is dramatically different as compared to what it was when we first started off. Now we have one particular department focuses on document production, which is all the original company used to do.

Q: Over the past year, you’ve made two acquisitions, eSignSystems and Document Express. How did they come about? How are things going with them now? Where do you see them going in the future?

DOMINIC IANNITTI: DocMagic has become a very large company. We are serving in excess of 7,000 lending institutions at this point. When requests come in, there’s sophisticating systems and metrics and sophisticated technology to make sure that we’re doing what we promised our clients we would do, service their needs as quickly as possible. We’re always looking for ways to improve that efficiency. Real-time data is coming back from our clients about how we performed. It’s not unlikely that we’ll get somewhere in the neighborhood of 8 to 10,000 requests each week. It’s an insane amount of requests that come into the system. So, when we looked at Document Express, it was a small, boutique company, much the same way we were when we first started out. What we liked about that was the fact that they had a good group of clients and they were very boutique oriented in the way that they were handling those clients. It was very hands on. It was very mundane. It was exactly the opposite of what the company had evolved into. Not to say either one is better or worse, but to say we were interested in that acquisition because it reminded us of what we were when we first started. We looked at that acquisition as a way of bringing that mentality back. When we brought them on, every client that they had stayed with the company. We’ve not lost a single client. The group of people that run that organization are phenomenal and they’ve done an incredible job. We extended our toolset to them, as well. Their systems now integrate to all of the DocMagic clients, the DocMagic calculations, and the DocMagic evolving and electronic delivery technologies.

The eSignSystems relationship is a little bit different. There was a different motivation for that acquisition. DocMagic focuses on the mortgage industry and we learned during the time that we were trying to transition the industry to start to think about DocMagic as a compliance company, which we felt was critical, that was an uphill battle. When people think of you as a document production company, it’s difficult to change that mindset. We have been on the cutting edge of electronic delivery, and electronic signature technology here at Doc Magic. All of that is integrated into the Doc Magic products. Our clients don’t have to go out and look for an electronic delivery service because those services are tightly woven into the very fabric of our product because we have that expertise. We realized that in order for the mortgage marketplace, and other industries as well, to consider adopting an electronic signature strategy, it would be necessary for us to bring on another company that has that expertise as a strategic advantage. eSignSystems had great technology. Most of their technology was designed to be on premise. It was designed for much, much bigger organizations. So, we felt that the marriage of the two companies would be great. We would bring our SaaS offering together with the on-premise offering at eSignSystems. Now very large organizations could come to us and we would have the right solution for them. We’ve been doing a lot of work retooling their technology, as well. eSignSystems also gives us the ability to reach beyond the mortgage industry, and expand to serve other industries. For example, now we have a number of insurance clients and we’re hoping to bring on some automotive dealerships. That’s been very exciting.

Q: Are you still in an acquisition mode? Are you actively looking for other acquisitions? Or do you think that those acquisitions were just opportunistic that came up at the time? How would you describe your M&A strategy?

DOMINIC IANNITTI: We’re always actively looking. There are certain companies that we are always watching. We’re also opportunistic at the same time. If the situation presents itself and we feel that we can it work, we are open to acquisitions. Our eyes are always open and we’re absolutely keeping a very close watch on a number of different types of companies that we’re very interested in.

Q: You recently launched a product called SmartCLOSE. Describe the evolution of the product. What’s the value proposition behind the product and where you see it going in the future?

DOMINIC IANNITTI: We realized very early on that collaboration is going to be key to making the mortgage system work. Lenders, settlement agents, and other have to collaborate and the changes to the loan that happen as a result of that collaboration need to happen in real time. If I’m in the system and I make a change, but you don’t see it for five minutes, that’s not collaboration. We researched and came up with a new technology stack that would enable us to provide real-time collaboration, much the same way that Google Docs works. We wanted to allow for real-time updates. If I’m in the system, the settlement agency sees exactly what I’m doing. It is truly dynamic. If I make a change and I need to make sure you know about that change, SmartCLOSE will notify you. So, the communication within the system is very sophisticated. If you’re in the system you will see the update in real time and if you are not in the system you will be notified of the update in real time.

In addition, the system handles data. It handles an immense amount of data. That data moves and hits the disclosure forms, for example. So, the forms are created and updated dynamically. The system also maintains a record of all the changes. I can go into, for example, the origination fee and I can see in that fee all the communication, conversations, and messages that went on about that fee. You know who made every change and why they made that change. We had no idea when we started the project how important communication was. At every step the system is creating a record and audit log.

The most exciting part about SmartCLOSE is the fact that it establishes the relationship between the lender and the settlement agency. That just never existed before. Again, it’s so simplistic, but it comes down to communication. Really, if you play in this arena, you faxes and e-mails and all kinds of things going back and forth, but there’s nothing that brings it all together. There’s nothing that unites all of those communications. SmartCLOSE does that.

Q: DocMagic surpassed 100 million e-signed transactions this year. How did you do that?

DOMINIC IANNITTI: What’s really exciting is that we can create these disclosures perfectly with e-signatures. We feel like we are uniquely situated to move the industry forward when it comes to the usage of electronic signatures. We are so proud of our e-signature number. We have even opened up this service to other industries. You can bring your own docs into our system and apply an electronic signature even if you are not in mortgage. We also have strategic alliances with other companies where they will leverage our electronic signatures for appraisals, for example. There has been an outpouring of interest in electronic signing.

Q: What’s the future of doc prep as an industry category within mortgage lending?

DOMINIC IANNITTI: Doc prep has become much more dynamic. For example, closing disclosures get messy really fast if you’re just using templates. The reality is that you have to create a document dynamically for closings to work these days. Very early on DocMagic realized that there has to be a lot of intelligence embedded in the form itself. For example, our documents can audit themselves. So, if a calculation is wrong it will throw that alert back into the main system to show that something may be out of compliance. In that case, the doc is actually performing a regulatory audit on itself. Increased intelligence within mortgage documentation is something that you are going to see more and more of.

INSIDER PROFILE

Dominic Iannitti is President and CEO of DocMagic, Inc., the mortgage industry’s preeminent provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions. Since founding the company in 1988, Iannitti has been responsible for the company’s wildly successful track record as a leader in closing loan document production software and eServices solutions. DocMagic’s innovative technology and company growth is the result of his leadership and vision. Most recently, Iannitti spearheaded the development of SmartCLOSE™, the leading Collaborative Closing Portal for TRID compliance.

INDUSTRY PREDICTIONS

Dominic Iannitti thinks:

1) Most collaboration closing portals for TRID will fail, with only a handful being viable long-term solutions.

2) Current TRID requirements and the CFPB’s commitment to eClosings will drive lenders to implement a true eClosing process — sooner rather than later.

3) Because of QM, ATR and now the TRID MISMO 3.3 data requirement, many investors will push their post closing QC process to a more automated pre-closing QC process that ensures better data and document integrity, compliance and control.

As featured by Progress In Lending, December 2015

After lenders and their technology providers spent much of 2015 implementing the TILA-RESPA integrated disclosures, forthcoming compliance audits and a government-sponsored enterpriseplan to start collecting data from the new forms will tell if those efforts truly paid off.

Lenders are also looking ahead at other technology initiatives to bolster their competitive advantage at a time when more purchase originations are expected to take a larger share of overall mortgage lending.

"TRID was like the story of the century because it had such an impact on technology, process and regulatory compliance. The story in 2016 will be auditing that compliance," said Tim Anderson, director of eServices at Torrance, Calif.-based document technology provider DocMagic.

"There have been some issues with how the fees are being calculated to estimate the borrower's cash to close. I think people are not applying the fees to the right buckets yet," he continued. "We won't know what is going to be truly accurate until the Consumer Financial Protection Bureau starts auditing and writing up these fines."

While all new mortgage originations must follow the new disclosure rules, the initial transition period has created another point of TRID consternation. Lenders are still working through loans that were started prior to the regulation's Oct. 3 implementation date and use the old Good Faith Estimate and HUD-1 disclosure forms.

"The problem with the way the TRID rollout happened is that there are still two different paths for a loan. Stuff from August that's new construction or a to-be-determined property, all of those are still GFE loans," said Jeff Verry, vice president of technology relations and a senior mortgage banker at Atlantic Bay Mortgage Group in Virginia Beach, Va.

"What we're working on right now is coming up with a date and trying to pick when we're going to swap over and say, 'now everything's a TRID loan.' Then I think TRID will be the new normal at that point."

Building off the industry efforts to implement TRID, Fannie Mae and Freddie Mac plan to start collecting data from the new Closing Disclosure as early as the fourth quarter of 2016. The GSEs plan to make submission of the data mandatory on all loans sold to the enterprises by the second quarter of 2017.

To do this, Fannie and Freddie have developed the Uniform Closing Dataset, a digital file format that enables the individual data points on the Closing Disclosure to be stored in a database and analyzed.

The initiative falls under the auspices of the GSEs' joint Uniform Mortgage Data Program and follows recent technology projects Fannie and Freddie have individually undertaken to verify the accuracy of underwriting data before loans close. Freddie made its automated underwriting system free to use in May 2015, with Fannie following suit a few weeks later. In addition, both companies have introduced their own suites of automated loan review software.

"They're not going to look at that paper file anymore. They're going to audit the data and that's where we'll find the errors because they'll be able to check the calculations," said Anderson.

While managing compliance requirements is a never-ending endeavor, lenders and vendors now have some breathing room to resume projects that have sat on the backburner while they implemented TRID.

"Everybody had to put stuff on hold to be able to figure out what they were going to do when TRID went into effect," said Verry. "Now, we get to focus on the things we want to do, versus the things that we had to do because of TRID."

If industry projections hold true for an overall decline in mortgage originations and purchase loans accounting for a larger share of total volume in 2016, lenders will face increased pressure to compete for business and ensure seamless and timely loan closings — areas where technology can help lenders improve their processes.

"We're going to focus on CRM," said Verry, echoing an interest in customer-relationship management software that lenders also shared in a recent National Mortgage Newssurvey.

Atlantic Bay Mortgage Group is in the process of implementing new CRM software as part of an overall strategy to make its use of technology a competitive differentiator.

"Our industry as a whole has been average, at best, when it comes to technology. Now, we are taking a step to leap forward and become more of a technology leader and innovator," said Verry. "It's not something that everyone is working on, but I think it's the thing that smart companies are focusing on."

An offshoot of the increased emphasis that regulators and the GSEs have put on prioritizing the underlying data of a loan over static documents is that the use of paperless processing is shifting from a low-priority frill to a mission-critical business imperative for lenders. At the same time, rising consumer demands for a more technology-enabled experience should further encourage lenders to upgrade their processes.

"It's in both lenders' and regulators' interest to have the transaction be electronic," said Margo Tank, a partner at the Washington, D.C., law firm BuckleySandler who specializes in electronic transactions. "It provides ease and cost efficiency for the customer, more accurate data for lenders and an ability to look into the transaction and see what actually happened from the regulatory side."

Case in point: the CFPB's electronic closing pilot program. The four-month study in early 2015 found borrowers who participated in an electronic closing completed transactions faster and reported feeling better informed about the process.

Still, widespread adoption of paperless processing and electronic signatures won't come as the result of any one compliance requirement or new technology.

"I don't think one set of disclosures can tip it over, but it is part of an evolutionary process," said Tank. "It demonstrates that this is a better way to do business, combined with regulator demand for transparency and better compliance. All of those things coming together are going to move the paperless spectrum a little bit further down the road."

By Austin Kilgore, As featured by National Mortgage News, December 2015

TRID went live on Oct. 3. Some industry analysts say one consequence of the new consumer-disclosure rules will be that paperless eMortgages will become standard in the post-TRID world. Tim Anderson, director of eServices for DocMagic, spoke to Scotsman Guide News on why the regulations and consumer preferences might inevitably push the industry toward a paperless mortgage.  

How would you define an eMortgage?

My definition of an eMortgage is a full and complete paperless process from initial loan application all the way to closing.

Why is it difficult from a technical standpoint for mortgage lenders to cross over to paperless?

You are dealing with so many different parties from application to closing and also to investor delivery.  Everybody has got to sign off on an electronic process and agree to it. That has been part of the problem. The majority of the steps have all been automated by various partners, like notary, title and closing and [document preparation]. The major obstacle is that you still have to get the investor to buy it. That is the last barrier to adoption. You have [Fannie Mae] and [Freddie Mac], but most of the mid-tier guys don’t sell direct to Fannie and Freddie. They sell to Chase, [Wells Fargo] and others. Until they start buying eNotes, it is still going to be limited adoption.

How far has the industry gone in going paperless?

There is wide adoption on initial disclosures. Already, it is an easy package to put together. You don’t have to sell to an investor. It is the initial three-day application package, and the regulations are only that you have to show that you delivered it, or sent it out within three days of your application. There has been mass adoption [of that], probably close to 70 percent [of companies] already. That is the first step. The consumer says, ‘Well, I can get the initial disclosures that way, why can’t  I do the closing?’ That is the second step. You are seeing pretty quick adoption of the hybrid [closing]. You can execute the majority of the documents you sign, but you still have to paper up the notary or recordable documents.

Why might TRID push companies in the direction of paperless mortgages?

The regulator that designed the rule, the [Consumer Financial Protection Bureau], is pushing hard for eClosings. The regulation itself almost mandates that you start electronic right from the loan estimate. This is all about electronic proof of compliance. Right from the loan estimate, to intent to proceed to the delivery rule around the final disclosures, all of these are critical compliance milestones that the CFPB is going to audit a lender for compliance, and you have to be able to prove this. Again, it is very hard to do in a paper world. Finally, it is just a business decision. In the paper world for a closing, people are projecting 10 to 15 days  added on to the closing process because of the three-day-mail-delivery rule. In the electronic world, I can cut that in half if we go with eConsent and eReceipt-of-delivery. All those things contribute to a better process for compliance and for the consumer.

Are there any other factors aside from TRID that would encourage paperless mortgages?

It is the consumers themselves. The millennials are all online. They want everything immediate, and they want it online. They don’t want to deal with paper. Who mails stuff anymore, right?

How receptive are the government-sponsored enterprises (GSEs) and other investors to purchasing eNotes?

There is no barrier at all from the GSEs. In fact, Fannie has basically doubled down, created a brand-new website to educate lenders and consumers to get on board. There are a lot of myths about whether it is still legal or not. There is a huge educational curve still. It is not an issue on the consumer side. They are already into eSignings and doing everything online. It is basically old, traditional players that have done business for 30 years the same way.

How long do you think it will take for the eMortgage to become the standard?

It is going to be critical when the CFPB begins enforcing compliance, when they start auditing these lenders for compliance around TRID, and not just TRID, but the [qualified mortgage rule] and ability-to-repay [rule]. When [companies] start getting audited, we’ll see mass adoption very quickly because they will not be able to comply in a paper world. It will push them to go electronic to prove electronic evidence at the next audit. Within a year, you will start seeing auditing for compliance. Once they start imposing fines, the pocketbook will force compliance very quickly.

As featured by Scotsman Guide, October 2015

Press Release:

Enables lenders to adhere with TRID requirements and provides the SmartCLOSE™ portal for settlement providers and other parties to collaborate efficiently, compliantly and cost effectively

TORRANCE, Calif., Oct. 1, 2015 — DocMagic, Inc., the premier provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions, announced that PHH Mortgage (“PHH”), one of the largest providers of residential mortgages in the United States, has signed a multi-year license agreement to use its expansive set of products to help ensure compliance with the TILA-RESPA Integrated Disclosure (TRID) rule that goes into effect on Oct. 3, as well as other federal, state and investor requirements.

“We have worked closely with DocMagic for the last year to thoroughly evaluate, test and integrate their technology and compliance solutions, and we will use various components to ensure we are TRID compliant,” said Eric Sadow, chief compliance and fair lending officer. “We are confident that our use of the DocMagic technology and compliance solutions will meet our needs and the needs of our clients, regulators, investors, partners and borrowers.”

PHH, its clients and their borrowers can easily access DocMagic’s eSign/eDelivery technology that enables the electronic delivery of TRID documents and the electronic viewing of closing disclosures and related documentation.  DocMagic’s Audit Engine electronically tracks and logs transactions touched by all parties working with its Compliance Engine as well as its SmartCLOSE™ portal, while continuously comparing the initial Loan Estimate against the final Closing Disclosure to ensure RESPA compliance throughout the process.

“For a lender with the size and reputation of PHH to select DocMagic to comply with TRID, speaks volumes about how sophisticated and scalable our solution really is,” said Dominic Iannitti, president and CEO of DocMagic.

Expanding on its technology and compliance solutions, DocMagic has developed SmartCLOSE, which can integrate with loan origination systems for seamless, bi-directional exchange of data and related information. Additionally, it will integrate with all leading settlement technology platforms and other third party applications used in the loan closing process to allow all relevant parties to share, validate, audit, track and collaborate on documents, data and fees in a secure, collaborative environment.

Iannitti added: “We have designed SmartCLOSE to be the most advanced and effective TRID solution in the industry. That is why we can rep and warrant all documents and calculations generated in SmartCLOSE with a TRID Compliance Guarantee.”

About DocMagic
DocMagic, Inc. is a 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.

About PHH Mortgage
Headquartered in Mount Laurel, New Jersey, PHH Mortgage Corporation, a subsidiary of PHH Corporation (NYSE: PHH), is one of the largest originators and servicers of residential mortgages in the United States. The company originated approximately $36 billion of mortgage loans in 2014 and maintained a total loan servicing portfolio of approximately $227 billion with over 1.1 million customers as of December 31, 2014. PHH Mortgage is dedicated to responsible and ethical lending and servicing practices and offers mortgage solutions to wealth management firms, banks, credit unions, real estate companies, relocation professionals and directly to consumers. For additional information, please visit the Company’s website atwww.phh.com.

Press Release:
Deal Represents Powerful Marriage of SaaS and On-Premise Technologies and Lays Foundation for True eMortgage

TORRANCE, Calif., Sept. 22, 2015 (SEND2PRESS NEWSWIRE) --DocMagic, Inc., the premier provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions, announced that Mid America Mortgage, Inc. will utilize DocMagic's SaaS-based compliance and mortgage loan document engine together with the on-premise solutions of DocMagic's recently acquired eSignSystems patented eSigning, eNotary, eVaulting, eRegistration and eRetention solutions.

This is the first time since the acquisition of eSignSystems in October, 2014 that the combination of technologies will be jointly utilized to facilitate a complete eClosing and validate DocMagic's eMortgage model.

"We made the decision to sign with DocMagic and its subsidiary division eSignSystems because of the unique capabilities of the combined technology components, together with the most powerful eMortgage reputation and expertise in the industry," said Jeff Bode, president of Mid America Mortgage. "The blend of these technologies integrated with our loan origination system (LOS), Mortgage Machine, establishes the path for us to close our loans electronically. DocMagic's solutions are ready today for eClosing, and now that the GSE's are accepting eNotes, their advance readiness for electronic closings is critical to Mid America's short and long-term eStrategy."

"The marriage of our SaaS and on-premise solutions delivers a unique value proposition for Mid America," said Dominic Iannitti, president and CEO of DocMagic. "DocMagic's SaaS model compliantly delivers dynamic, intelligent, data-driven loan documents and disclosures with a full eClosing for borrowers. eSignSystems' on-premise platform provides Mid America with internal controls and tools to configure the solution to their specific business processes and the ability to efficiently work with third parties to achieve an eMortgage." 

About DocMagic:
DocMagic, Inc. is a 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 constantly monitor legal and regulatory changes at the state, federal and international levels to ensure accuracy. For more information on DocMagic, visit http://www.docmagic.com/.

About eSignSystems:
eSignSystems, a division of DocMagic, Inc., is a leading provider of lifecycle management of electronically signed, legally binding documents, contracts and digital transactions. SmartSAFE XL™ enables companies to manage business processes and transactions entirely online. Organizations can adhere better to certain regulatory compliance issues, improve productivity and efficiency in processing transactions, and achieve significant cost savings through the elimination of document transportation costs, processing and storage. For more information, visit http://www.esignsystems.com/. 

About Mid America:
Additional information about Mid America Mortgage, Inc. can be found on the company's website at http://www.midamericamortgage.com/about/. 

The one-month countdown until the TILA-RESPA Integrated Disclosure (TRID) rule is implemented is in full effect. This checklist of the critical items you will need to will not only ensure compliance, but more importantly deliver the electronic evidence when the Consumer Financial Protection  Bureau (CFPB) comes knocking on your door asking you to prove what you said you did to prevent paying fines that could run up to $1 million dollars a day per infraction!

It’s déjà vu’ all over again. I remember in 2010 when the last major RESPA overhaul occurred and the response by everyone, (Lender, LOS providers, DocPrep companies, Title system vendors) was to build a GFE/TIL calculator; however, no one stood behind them and rep and warranted their accuracy.

Now fast forward to 2015 with TRID and you have the same parties building Closing Collaboration Portals (so far I’ve counted twelve) to support the online exchange of fee data prior to closing to ensure more accurate disclosures. The key issue again is who is offering a solution that has all the required steps, features and functions needed to ensure a complete and compliant process (not just the LE and CD) and rep & warrants it to protect the creditor (lender) against future compliance risk, audits or legal challenges.

Clinging to the old paper process is just not going to cut it anymore

So much focus has been on the forms, specifically the CD and the three-day delivery requirement but implementing a true compliant process requires confirmation and tracking of the following critical milestone events.

Application
• Intent to proceed
• Three-day delivery of the initial disclosure package, (not just the LE)
• Changed circumstances and re-disclosure (s)

Pre-closing
• Three-day delivery of final closing disclosure (CD)
• Why just the one form and not all like we do with the initial disclosures?
• Show receipt of delivery

Electronic evidence
• RESPA reconciliation to verify tolerance and other compliance checks
• Date & time stamp audit trail of all consumer communications
• Record retention requirement of three years on LE and five years on CD

Implementing a full electronic (eSign, eDisclosure) process from loan application to closing is the only way to truly be and ensure compliance. There is a reason why the CFPB and now FHFA is standardizing on the MISMO 3.3 data spec and that is because they are moving to support a full automated audit of the data file for compliance and not wading through hundreds of pages of the paper file to verify compliance.

Additional To Dos

Technology Vendors – of course you’ve been working with your technology vendors over the past several months to understand the changes made to their software and how to use the new functionality. However, some lenders that I’ve talked to eased up working with their vendors because they now had more time. Not a good idea.

Training – not only should you be working with your technology vendors to get trained on their software, but you should be training your own people on the new process. A lot of your staff will be involved with TRID in some form or another; make sure they all understand processes, policies and procedures.

Test, Test, and Test Again – you can’t do enough testing. Try to see where their might be holes in your own processes and ensure the right staff has tested and understands how to apply technology that is affected by TRID.

Keep a Watchful Eye – After October 3, there will be a lot going on internally. Just make sure you observe how things are progressing and make necessary improvements or corrections along the way.

Fines - Sure. The CFPB says it will be lenient regarding TRID violations at first, but you want TRID compliance adherence to be air tight from the get go.

Going Digital – only way to truly ensure data and document compliance and integrity

If this reg does not get people to move to and support a full eMortgage process, I don’t know what will. I guess when the CFPB starts auditing for QM, ATR and TRID in earnest and begin accessing large fines for non-compliance, maybe then the origination side, like the servicing side of the business will wake up and finally change the way they do business.

Editor’s note: Portions of Tim Anderson's response appear in the September issue of MReport. To view his response and additional responses from Black Knight Financial Services, NetDirector, ARMCO, Pavaso, Mid America Mortgage, and IDS click here.

As featured by TheMReport, September 2015

Press Release
TORRANCE, Calif., Aug. 21, 2015 -- DocMagic, Inc., the premier provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions, announced that its chief legal officer, Melanie Feliciano, Esq., has been named to the MReport's 2015 Leading Ladies list. MReport is a leading B2B trade publication serving the broader mortgage field.

"The female leaders working in the housing and mortgage industry are indispensable," said Five Star President and CEO Ed Delgado. "Through the recognition of the MReport and the Women in Housing Leadership Forum, a spotlight will be put on the innovators shaping our industry."

MReport states that the 40 women who were selected as Leading Ladies were nominated by their peers in the industry and then evaluated by judges at the Five Star Institute. The winners being cited as having all the qualities that make them strong leaders -- such as their intelligence, drive and pursuit of innovation.

Winners are acclaimed innovators that are making a positive impact in the mortgage industry. They will be profiled in the August issue of the magazine and also honored at the Women in Homeownership Leadership Forum held during the annual Five Star Conference and Expo in Dallas, Texas on Friday, September 18, 2015 from 1:15 p.m. to 2:15 p.m. The event is being co-hosted by Ernst & Young and Aspen Grove Solutions. 

"Melanie is a well-respected expert resource, advisor and thought leader to the mortgage industry on the subjects of complex legal, compliance and mortgage technologies," said Dominic Iannitti, president and CEO of DocMagic, Inc. "She is well-deserving of this award. We are fortunate to have her as a long-standing member of the DocMagic family."

Ms. Feliciano manages the Legal Department at DocMagic; 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. She also supports DocMagic's Chief Compliance Officer, Gavin T. Ales, and the Compliance Team with respect to DocMagic's compliance products and services.

Ms. Feliciano was responsible for implementing RESPA 2010 and TILA/MDIA 2011 across DocMagic's compliance products, including DocMagic's forms and compliance audits. She also supported the implementation of the Ability to Repay/Qualified Mortgage Rule and is active with DocMagic's TILA-RESPA Integrated Disclosure Rule efforts at DocMagic.

Ms. Feliciano is an active participant in the Mortgage Bankers Association (MBA) and regularly shares her perspective and expert knowledge on industry panels, roundtables and in the media. 

The complete list of Leading Ladies can be found here:http://themreport.com/news/origination/07-27-2015/mreport-announces-its-2015-power-players-leading-ladies-honorees.

About DocMagic:
DocMagic, Inc. is a 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 http://www.docmagic.com/.

About The Five Star Institute:
The Five Star Institute is a publishing, communications, marketing, and event planning company. The Institute hosts the largest mortgage event in the United States-the Five Star Conference and Expo. Among its many publications are DS News, dedicated solely to default servicing, and MReport, a B2B trade publication serving the broader mortgage field. Additional information about the Five Star Institute's many business-building opportunities can be found athttp://www.TheFiveStar.com/. More information about the Five Star conference can be found at http://www.TheFiveStar.com/fsc. 

Press Release:

TORRANCE, Calif., Aug. 18, 2015 -- DocMagic, Inc., the premier provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions, announced that it has named Gavin T. Ales as chief compliance officer (CCO).

Mr. Ales has hands-on involvement in the development, implementation and maintenance of DocMagic's compliance products and services. This includes managing DocMagic's library of mortgage loan documents, which are used by lenders and brokers in all 50 states, the District of Columbia, and U.S. Territories, monitoring legal and regulatory changes, and developing and maintaining DocMagic's automated compliance tests and audits.

Prior to joining DocMagic, Mr. Ales was the deputy chief compliance officer at Prospect Mortgage, LLC. He specializes in mortgage banking compliance; federal and state regulatory compliance; financial services law; real estate law; and consumer credit law, among other disciplines. 

"We are pleased to have someone with Gavin's depth of compliance experience and thorough understanding of regulatory rules join our growing team," said Dominic Iannitti, president and CEO of DocMagic. "Gavin's solid background in mortgage compliance will undoubtedly help us effectively manage loan document compliance and continue to provide robust automated compliance audits in today's very fluid mortgage marketplace." 

Mr. Ales holds a JD from American University's Washington College of Law, and a BBA with a concentration in Economics as well as a BA in International Studies, both from the University of Mississippi. He is licensed to practice Law in California as well as Maryland.

About DocMagic:
DocMagic, Inc. is a 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 http://www.docmagic.com/.

Press Release:
Most Feature Rich and Easy-to-Use TRID Solution in the Industry Hits a Home Run

TORRANCE, Calif., Aug. 13, 2015 -- DocMagic, Inc., the premier provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions, announced that after extensive testing by lenders, settlement providers and other relevant parties, SmartCLOSE™ has been honed to perfection and been moved to a secure cloud-based production environment for its official release date of Aug. 15, 2015.

In June, over 250 lenders participated in the testing of DocMagic's new SmartCLOSE collaborative closing portal in order to provide key feedback to DocMagic for continued fine-tuning of the system. As a result of months of preparation and testing, lender and settlement provider feedback and fine tuning the technology, SmartCLOSE is now ready for production.

"The innovative enhancements that DocMagic has added to the portal makes SmartCLOSE the most feature rich and easy-to-use TRID solution in the industry," said Kevin Marconi, COO of United Fidelity Funding. "Even though the TRID deadline was pushed to October 3, DocMagic's early readiness today gives me the peace of mind I absolutely must have to know that I am TRID ready."

"DocMagic really hit a home run with this product. We are extremely impressed with Smart CLOSE; this system is very easy for us and our settlement agent partners to utilize," said Jim Paolino, CEO of LodeStar Software Solutions, a leading technology provider for the title insurance industry. "The fashion in which the screens and workflow were developed is going to make adoption by our settlement agents quick and make their jobs easy in the new post-TRID world order."

"The DocMagic client base and strategic partners say that DocMagic has built the best TRID solution in the industry," states Tim Anderson, director of eServices at DocMagic. "Our team has diligently worked to fine-tune SmartCLOSE largely based on user feedback which has helped us get to where we are today."

DocMagic's Audit Engine maintains electronic evidence to track and log all transactions and its Compliance Engine continuously compares the initial Loan Estimate against the final to ensure RESPA compliance throughout the process. DocMagic also reps and warrants all documents created and calculations provided by the system with a complete TRID compliance guarantee. This compliance "stamp of approval" allows SmartCLOSE users to rest assured that all TRID requirements have been met.

SmartCLOSE integrates with DocMagic's LOS partners to provide seamless, bi-directional exchange of information with the click of a mouse. SmartCLOSE is also being integrated with all leading settlement platforms and other third party applications used in the loan closing process.

About DocMagic:
DocMagic, Inc. is a 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 http://www.docmagic.com/.