June 13, 2007, we will present and discuss the many features and benefits of ComplianceEase It's not too late to sign up for the ProClose ComplianceEase Free Webinar!  At 2 p.m. EST on testing within ProClose.  Whether a current ComplianceEase user or a potential one, you are encouraged to join us! 

The Compliance Department here at MBS strongly urges you to attend.  The webinar will break down how to handle stricter, more complex laws and regulations in addition to tighter reviews being done by the secondary market on your loans.

As the premier compliance testing software on the market today, ComplianceEase offers automated compliance testing at the Federal, State and Local levels, crosschecked against lender licenses.  ComplianceEase testing through ProClose is Mortgage Banking Systems' most comprehensive compliance offering - ensuring that its clients' loans are compliant with all applicable laws and regulations.  In the webinar, the ProClose Compliance Department and ComplianceEase representatives will explain how ComplianceEase testing works, how it assists you in selling to the secondary market and answer any questions you have.

If you are interested in attending this free webinar, register online or contact the ProClose Compliance Attorney, David Wickman, at dwickman@proclose.com or (703) 761-3148.  We look forward to hearing from you!

1ST National Bank of Arizona introduces several new programs under their AZ Express product.  They include a 3/1, 5/1, 7/1 and 10/1 program, all with interest-only options.  Also added are 40-year terms for their Fixed products.

BB&T adds new 40 year loan terms to their fixed products and introduces a new 5/1 LIBOR ARM with 5/2/5 caps.

We have updated our Chase offerings to include their 40-year terms along with their new DreaMaker products including a 5/1, 7/1 & 10/1 LIBOR ARM.

Coming Soon - Flagstar PITI Advantage programs 5417 currently being added to ProClose.  This program will allow the seller to prepay up to 6 months of the borrower's total PITI payment.  Products include 3/6, 5/6 and 7/6 LIBOR ARMS (30 & 40 year terms).

Did you know - MBS offers the Indymac Consumer Residential Lot Loans?   Both the 30 due in 5 Libor ARM and the interest-only option are available through ProClose.

Virginia notary sections (often seen on notes and addenda) must be on the same page as the signature lines starting July 1, 2007.  While not all investors require a notary on their Virginia documents, those that do must follow this new legislation.  All Virginia generic and investor documents have been reviewed in the ProClose system and any that needed reformatting will be released before the July 1, 2007 deadline.

Indiana Changes Requirements for Recorded Conveyances

The State of Indiana recently amended its requirements for recorded conveyances of real property.  Specifically, the amendment states that a conveyance cannot be recorded unless a statement is attached which includes the street address or rural route of a grantee. These new recording requirements become effective on July 1, 2007.  ProClose® forms comply with the most recent mortgage laws and regulations.  The ProClose® Compliance Department has reviewed this new Indiana law and made the necessary changes to the Indiana recorded conveyance documents.

Multiple States Pass Bills Allowing Consumers to Freeze Credit Reports

In response to the growing problem of identity theft, Montana, Mississippi, North Dakota and Maryland passed bills allowing consumers to "freeze" their credit reports.  With a credit freeze, identity thieves cannot open any form of credit in your name.  Furthermore, a credit freeze prevents potential lenders, insurers and employers from gaining access to your credit file. 

Even though the primary purpose of this bill is to address identity theft, it also has an important impact on mortgage lenders and brokers.  A credit freeze prevents mortgage lenders and brokers from accessing a borrower's credit report.  These bills allow mortgage lenders and brokers to treat an application for credit as incomplete when they are denied access to this crucial loan application information. 

Since identity theft is a growing problem, it is very likely that other states will introduce credit freeze legislation.  There are currently a number of states with credit freeze bill proposals which are nearly identical to the ones passed in Montana, Mississippi, North Dakota and Maryland.  ProClose customers should be aware of the states that allow credit freezes because it will have a substantial effect on the mortgage application process. 

Montana Amends the Formatting Requirements for Recorded Documents

In April, the State of Montana passed a bill that amends the formatting requirements for recorded documents.  This bill requires that any document submitted for recording must have at least ½ inch margins on the sides of each page.  Furthermore, all signatures, initials, dates, handwriting and notary stamps must appear in blue or black ink.  Notary acknowledgments are exempt from the new color, typeface and font requirements.  This bill became effective on April 28, 2007.  The ProClose Compliance Department has reviewed all of our Montana recorded documents and they satisfy the new color, typeface and font requirements.