Our Platinum web service software is now integrated with Calyx Point 6.0 through the Point Closing Documents interfaces.  Exchange loan data between Point and ProClose Platinum with a couple of mouse clicks.  Data is exported from Point based on the MISMO (Mortgage Industry Standards and Maintenance Organization) "dictionary" of mortgage data elements into ProClose Platinum.   

"ProClose Platinum is paving a new path, giving lenders a more economical option for compliant closing documents.  After 20 years, we are doc prep experts.  We understand the gap between your LOS and the final documents.  Lenders wanted seamless?  Now they've got it.  Platinum solves the problem once and for all.  Platinum reads any MISMO XML and enhances it for a perfect loan, every time," states Christine Kirby, President and CEO of Mortgage Banking Systems.  "The first of its kind, Platinum is the most scalable, most intelligent doc prep system on the market today. The built in efficiencies in ProClose Platinum bring great savings to the bottom line. No mistakes, No training needed, No IT support required, Platinum Service is best in class."
 
No more waiting for Client Support to add programs to your system.  Your favorite investor programs are available at your fingertips.  The Platinum business rules automatically verify the critical loan data to ensure the correct loan plan, accurate calculations and the correct forms in the closing package every time. 

Platinum features include

• Automatic updates
• Dynamic fee page displays only the fees applicable to the loan 
• Closing Cost and Disbursement Summary calculations viewable on-line
• PDF versions of 1003, GFE, TIL, HUD-1 and Initial Escrow Statement available anytime during the process of the loan
• Electronic Courier package through SAS-70 certified server
• Closing package is in PDF format delivered through our secure server rendering the documents unalterable and uncompromised
• Automatically generated courier package password email to the settlement agent

To learn more about Point to Platinum integration, register for a free trial or demo at http://www.proclose.com/demo/.  Interested ProClose clients, that are currently doing Point to ProClose Classic loans, can be added to the Classic to Platinum transition plan.  Contact your client support representative for more details.

As the mortgage and housing market, along with the overall economy, continue to struggle in early 2008, delinquencies and declining home prices are prevalent.  Investors respond with everything from exiting portions of the industry to eliminating programs, raising LTVs and raising credit score requirements.  Below are some of the bigger investor announcements and responses to these times in the start of the new year.

Aurora Loan Services
Lehman Brothers, parent company of Aurora Loan Services, announced that effective January 17th, they have eliminated Aurora's wholesale and correspondent lending divisions.  The last day to fund loans is February 17th, 2008.   Aurora will continue to originate loans through its direct lending channels.  In their posted announcement to their clients, Aurora stated ".that it will substantially reduce its resources and capacity in the U.S. residential mortgage origination space in light of the dislocation in the mortgage markets."  Aurora was ranked 11th largest correspondent lender in the 3rd quarter of 2007.

BB&T
In response to FNMA/FHLMC's announcing they are installing a .25% Market Condition Delivery fee for all conforming loans, BB&T is incorporating this fee into all of their rate sheets.  Since it is now computed into their rate sheet pricing, no additional .25% fee needs to be assessed.  See more details on this new fee below - compliance article.

Chase
Chase eliminated the following products:  Alt A, 103% Fixed Rate and LIBOR ARM, DreaMaker Opportunity Interest Only and their My Community Interest Only. 

CitiMortgage
Like BB&T, Citimortgage also announced that they are including a .25 adjuster for FNMA/FHLMC Agency and My Community loans.  The adjuster will be listed as an Adverse Market Delivery Charge.  More details on this in the New Fee. compliance article below.

Countrywide
On January 11, 2008, Bank of America announced its agreement to purchase Countrywide Financial Corp.  This will make it the biggest mortgage lender and loan servicer.  For now, Bank of America will keep Countrywide's wholesale and correspondent business open.  In their press release, Bank of America Chairman and Chief Executive Officer Kenneth Lewis said: "Countrywide presents a rare opportunity for Bank of America to add what we believe is the best domestic mortgage platform at an attractive price and to affirm our position as the nation's premier lender to consumers."  This adds some stabilIty to Countrywide and the mortgage market in this time of great volatilIty. 

Countrywide is also changing some of their program offerings.  Beginning February 4, 2008, Countrywide is eliminating their PayOption, Payment Advantage and 1-month/6-month Interest-Only LIBOR ARM programs.  The last day to lock those programs is February 1, 2008.

Flagstar Bank
A new mortgage insurance option has been introduced by Flagstar for their conventional loan products.  It is a new Split-MI option, allowing the borrower or seller to pay a portion of the total PMI upfront in cash, reducing the amount of the financed monthly premium.  See their Memo 08011 for more details. 

In program news, Flagstar is offering a new line of FHA HUD products called FHA $100 HUD Repo program.  It allows borrowers to buy a HUD owned home with only a $100 downpayment.  Depending on the market, some additional borrower incentives provided by HUD include as much as $2500 which can be used toward closing costs and prepaid expenses.  The FHA $100 HUD Repo program includes fixed, 1-year, 3/1 and 5/1 ARMS.  Flagstar is also introducing a new Affordable program geared for low to moderate income borrowers.  It includes fixed rate, 5/1 and 7/1 ARMs, including interest-only options.  Flagstar is currently suspending their YES Program effective immediately.  All loans had to be locked by January 3, 2008 and closed and funded by January 15, 2008.  Finally, Flagstar has also discontinued their High LTV ALT-A program.

GMAC Bank
Announced January 24, 2008, TAMI will no longer be available for the following GMAC programs:  Expanded Criteria, PayOption, Payment Advantage, and 1-month/6-month Interest-Only LIBOR ARMs.  GMAC also announced that effective immediately, GMAC is removing their HomeStrength Product as an eligible option from the GMACB suite of My Community Mortgage Products.  Eliminated product codes are A40 30-Year HomeStrength Product and K48 LPMI 30-Year HomeStrength Product.

Indymac Bank
Announced December 2007, Indymac discontinued the following programs:  FlexPay, Consumer Residential Lot Program (Home Construction Lending) and their Bridge Second Mortgage Program (Home Construction Lending).  In a January 17, 2008 bulletin, Indymac introduced a new Decision Credit Score methodology for determining Loan eligibility.  See Bulletin 08-06 for full details.

National City
In a recent letter to their clients from Joe Cartellone (CEO) and Todd Householder (Exec. VP), National City announced their decision to exit the wholesale lending business effective December 31, 2007.  This decision was prompted by, ".continued volatility, coupled with a forecasted ongoing cyclical downturn in orgination activity."  National City will continue to originate their own loans.  Wholesale loans registered need to be delivered by January 8, 2008.  Floating loans, must be locked with an expiration date on or before February 29, 2008. 

US Bank 
Along with several other investors, US Bank announced changes to their pricing system to account for new required delivery fees such as the FNMA/FHLMC fee in the below compliance article.  ProClose is also working on being approved for US Bank's Interest-Only products.  If you are a US Bank correspondent, we ask your assistance in this approval process.  Please contact your US Bank representative and ask that ProClose be included in the approved doc providers for US Bank's Interest-Only products.  ProClose continues to offer all other US Bank products and programs.

New Fee from Fannie Mae and Freddie Mac
Fannie Mae and Freddie Mac have announced that they will be imposing a Market Condition Delivery Fee of .25% for conforming loans delivered to them after March 1, 2008.  They have stated that this fee is in response to the current uncertainty in the mortgage market.  The Mortgage Bankers Association and The National Association of Homebuilders have both expressed their concerns about this new fee, and the impact it will have on borrowers.

Lenders have already begun adjusting their pricing to accommodate the new fees.

FHA 2008 Single Family Mortgage Limits
The 2008 Federal Housing Administration (FHA) single-family mortgage limits were updated in a Mortgagee Letter posted January 23, 2008.  These limits apply to loans that are endorsed for insurance on or after January 1, 2008, and to loans insured under Sections of the National Housing Act.

HUDClips More Accessible
The HUDClips website has moved to http:/www.hud.gove/offices/adm/hudclips.  HUDClips provide HUD Clients with free access on the web to official HUD documentation, including policies, procedures, announcements, notices and handbooks, as well as other official materials.

Pennsylvania Increases the Maximum for Fees on Dishonored Checks
On Feburary 16, 2008, Pennyslvania will increase the maximum limit on a fee charged for a dishonored check.  Their legislature passed a bill that will change the fee from $20 to $50.

Massachusetts Attorney General Amends Regulations - Nixes Disclosures
The Massachusetts Attorney General, Martha Coakley, has amended the regulations relating to unfair and deceptive acts and practices found in 900 CMR 8.00.  Initially, she had required new disclosures, but after industry response she has amended the regulation further to eliminate the disclosure requirement entirely.  The regulation now only states that it is an unfair and deceptive act or practice "to fail to make any disclosure, or fail to provide any document, to a consumer required by and at the time specified by any applicable state or federal law, regulation or directive." 900 CMR 8.05(1).  As a result, MA4PO1 and MA4PP1 are obsolete and will be pulled from the database.

The changes took effect on January 2, 2008.

When choosing the program for an Investor in ProClose, why does it give the option for Freddie Mac docs and Fannie Mae docs?

Answer:

Some investors like Flagstar will accept either document.  Some lenders prefer using Fannie over Freddie or vice versa.  ProClose allows for both options and makes sure the Fannie notes use the appropriate Fannie riders and Freddie notes use Freddie riders.  Just for reference, most Investor ARM disclosures work with either.  It's mostly to be flexible for a lender's preference and ProClose matches the Investor seller guide.