By now you have heard the buzz about our new product ProClose Platinum, but what exactly is it? Platinum is web-service closing software that works with any LOS that produces a MISMO XML. A great example is the Calyx Point web connect to ProClose Platinum. To learn more about Point to Platinum, register for a free trial or live demo. You can also view the short 3-minute demo anytime.

Don't worry - if your LOS does not produce a MISMO XML or you don't have a LOS, we just released a new feature to add a loan from scratch. The system will assist you in determining your loan Program through a series of prompts. Once the prompts are complete, you will be on your way to Perfect Closing Documents and compliance testing!

If you plan to export from your LOS, ProClose Platinum eliminates the re-keying of loan data. Information defined through MISMO automatically imports into Platinum. Platinum has an easy to use Additional Loan Data Screen where you input Closing Specific information that is not included in most LOS systems.

Loan information that does import includes but is not limited to: Borrower information, Property information, Fees and Escrows, Mortgage Insurance information, MIN Number, Closing conditions that have not been met and Agents (i.e. Lender, Investor, and Servicer).

Information that you may need to complete includes: Trustee, Buydown fields, data specific to Platinum Closing Instructions, and additional closing instructions. We also added specific questions so you can add additional documents to the closing package.

Additional Platinum standards and features for both XML and Loans from Scratch:

• Forms for all 50 states and Investor Programs
• Free Compliance Checks
• Automatic updates
• Built-in loan program selection criteria
• Dynamic fee page displaying only the fees applicable to the loan 
• Previewable PDF versions of the forms
• Emailing the closing package through our secure SAS-70 certified server, rendering the PDF documents unalterable and uncompromised
• ProClose Answers - solutions at your finger tips
• Log a support ticket and follow the ticket from start to finish

What the Future holds for Platinum?

• New and Improved Revocable Trust Documents
• Dynamic Signatures (see below article)
• Additional Help files for all questions

Interested ProClose clients 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.

Upcoming Highlight - Dynamic Signature Lines
MBS - ProClose is happy to announce an incredible enhancement coming soon to our closing documents. MBS is planning to release our new Dynamic Signature closing documents in early- to mid- 2009. Currently, the backgrounds of our forms define the number of signers and the length of the signer information allowed. By client request, we are upgrading our documents to allow more flexibility and even easier use!

Based on the type of loan document and its requirements, along with the loan input, the needed signature line(s) will intuitively print. These new dynamic signature lines will allow numerous borrowers and non-applicants along with plenty of space for full trust language. Only the number of signature lines needed will print based on the loan input and form requirements. For example, if a loan has two borrowers signing individually, one with a Power of Attorney and one also with a Trust, all of that information will print on the needed forms. No more blank signature lines! As always, the forms will continue to print non-applicants and trust information only on the applicable forms. We look forward to providing more information as MBS gets closer to the release.

Getting to camp was exciting. Lori and Dorothy were cheered in, given their bags and pink tents for set-up and later followed the crowd to the showers. Showers were in the back of semi-trailers! While the tents were small and the ground hard, camp life was great. They had a hot meal in the "camp town," where several big tents were set up so one could actually watch TV, play bingo, send postcards from the post office, get foot massages, shop for souvenirs or have a hot drink and cookies. One large tent held photos and memories of past walkers and many walkers visited and wrote messages in their honor.

"It was one of the most incredible things I have ever experienced," said Lori. "The miles were long but easier than one would think. We were walking with so many new friends, being cheered on by so many supporters and the 3-day staff was terrific. We were part of something huge, something wonderful and making a difference." And they did. The team Lori and Dorothy joined, Sisterhood of the Traveling Shoes raised over $40,000!

Lori and Dorothy ended their 3-day in downtown Washington, D.C. Friends and family were waiting and cheering them to the finish. Lori and other staff members of MBS-ProClose are already discussing participating in 2009. Learn more at the 3 day.

Investor changes over the last 2 months reflected the many legislative changes in the industry. In compliance with the Department of Veterans Affairs, VA ARM loan programs expired as of September 30, 2008, and the VA ARM listings were removed from several investors' seller guides. However, VA ARM loans were reinstated through S.3023 and investors are beginning to accept VA ARM programs again. (See compliance article below.) Investors also announced that they would no longer accept subprime loans in the state of New York based on the new requirements in NY Senate Bill 8143-A. Several investors reminded lenders that effective October 1, 2008 and in accordance with HUD, property seller-funded down payment assistance programs will no longer be eligible.

BB&T
BB&T announced October 15, 2008, they are reducing the maximum loan amount that can be approved through Mortgage Insurance Company Contract Underwriting from $850,000 to $650,000, effective November 1, 2008. As a result, all loans over $650,000 that close after October 31, 2008 are required to be underwritten prior to closing by BB&T Correspondent Lending. BB&T also released a notice that effective with registrations and locks on or after September 12, 2008, the Non-Conforming 40/30 Balloon Product #121 has been deactivated.

CitiMortgage
In CitiMortgage's #2008-32 bulletin released September 15, 2008, CitiMortgage discontinued the following products: Agency Alt-A SIVA & SISA, Agency 40-year LIBOR ARMS, Agency 40-year Fixed Interest-Only, Non-Agency 3/1 and 3/1 Interest-Only LIBOR ARMs. Effective October 21, 2008 CitiMortgage is discontinuing their Non-Agency 1-year LIBOR. Their Agency 1-year LIBOR remains; however, the only term will be a 30-year and it will no longer have a conversion option.

Countrywide
Effective September 26, 2008, Countrywide eliminated the Non-Conforming Expanded Criteria product line. The last day to lock was September 25, 2008. Loans must be purchased by November 8, 2008. VA ARM products have been removed from Countrywide's seller's guide (though may be returned).

Countrywide has updated or newly released several forms. Included are Countrywide's Loan Purchase Voucher, FHA(203K) and Rehabilitation forms, among others. MBS-ProClose forms production team is currently creating or updating the needed forms and will provide to our clients by the form effective dates.

Flagstar Bank
As a result of US Congress reauthorizing the Department of Veterans Affairs to guaranty ARM products, Flagstar is re-introducing the VA 3/1 and 5/1 ARM products, effective immediately. Effective October 25, 2008, Flagstar Bank is suspending the Jumbo Fixed and ARM Program under Doc 5401. Lock extensions must be done by October 24, 2008. All loans must be funded and purchased by the lock expiration date.

GMAC Bank
On October 6, 2008, GMAC Bank released a completely restated GMAC Bank Correspondent Manual. MBS-ProClose is currently reviewing our GMAC products for conformance with the new manual. GMAC Bank has enhanced their Stimulus Conforming Fixed and ARM Products to permit Lender Paid Single Premium (LPSP) as an eligible Mortgage Insurance (MI) Option for Correspondents only.

Recently GMAC Bank discontinued their Fannie Mae Expressway Product. Program codes were A45 (15 year) and 985 (30 year). These loans must fund on or before October 31, 2008. GMAC Bank also suspended their 40/30 Jumbo programs (product codes P04 through P07, Q82, Q88, Q94, Q98 and R05). The 40/30 Jumbo programs must fund on or before October 21, 2008. Other Jumbo programs are still available. The discontinued programs will be removed from our ProClose offerings after reasonable time allotted for all loans to clear.

Guaranteed Rural Housing Program! An affordable housing loan, the RD Loan Program is eligible to SunTrust Correspondent lenders that already have a working relationship with and approval by Rural Development. These loans are guaranteed (insured) by the U.S. Department of Agriculture. A conforming fixed rate conventional loan program, its features include 100% financing, reduced out-of-pocket expenses, no mortgage insurance and lower interest rates. Please contact your client support representative if you are interested in making this product available in ProClose.

The Agency Express loan program has been eliminated from SunTrust's offered products. Loans under this program must have been closed, delivered to, and funded by SunTrust no later than October 15, 2008.

Taylor, Bean & Whitaker
With the exception of FHA Streamline Refinance and FHASecure loans meeting the standard HUD guidelines and TB&W Credit Policy, TB&W will not accept an FHA transaction with a qualifying FICO score below 580. TB&W announced on October 14, 2008 that effective immediately TB&W will no longer accept any investment property above 80% LTV.  This change is due to recent changes announced by the Mortgage Insurance companies and includes all transaction types: Purchase, Rate and Term Refinance or Cash Out Refinance.  While current guidelines already had a max of 80% LTV on all Investment Rate and Term or Cash Out Refinance transactions, purchase transactions were previously allowing 85% LTV, but now also have a 80% LTV restriction. Several investors have made similar changes to their LTV requirements based on MI company changes.

Hope For Homeowners
The HOPE for Homeowners (H4H) program was authorized by the Economic and Housing Recovery Act of 2008. The program refinances mortgages for borrowers who are having difficulty making their payments, but can afford a new loan insured by HUD's Federal Housing Administration (FHA). H4H started October 1, 2008 and ends September 30, 2011. The program is available to owner occupants only and will offer 30-year fixed rate mortgages. Under this program, the principal balance and interest rate for eligible borrowers is reduced through refinancing into new, affordable FHA-insured loans based on current property values.

Borrowers may be eligible if they meet the following criteria (among other things):

• The property to be refinanced is a 1-unit primary residence, and the borrower has no ownership interest in any other residential real estate such as a second home.
• The existing mortgage was originated on or before January 1, 2008, and at least 6 payments have been made.
• The monthly mortgage payments exceed 31% of the borrowers gross income as of March 31, 2008.
• Without help, the borrower(s) are unable to pay their existing mortgage.
• The borrowers can certify that they have not been convicted of fraud under federal and state law within the past 10 years, that they have not intentionally defaulted on their debts, and that they did not willingly provide material false information to obtain their existing mortgage(s).

Borrowers and participating Lenders should be aware of several things under the H4H, such as a 3 percent upfront mortgage insurance premium and a 1.5 percent annual premium based on the mortgage amount. Usually, FHA-backed loans carry a half-percentage point annual premium. And, most importantly, while borrowers will get to keep their homes, they should be aware that they must agree to share with FHA both the equity created at the beginning of this new mortgage and any future appreciation in the value of the home. Also, the borrower cannot take out a second mortgage for the first five years of the loan, except under certain circumstances such as for emergency repairs.

For our clients' convenience, Frequently Asked Questions about the H4H program have been added to ProClose Answers. Read more about Hope For Homeowners.

Reminder: Pennsylvania also passed the Mortgage Loan Industry Licensing and Consumer Protection Act (MLILCPA). The bill completely replaces both of PA's previous licensing schemes. The new licensing and substantive provisions under MLILCPA must be adhered to by November 5, 2008 .

Save New Jersey Home Act of 2008
On September 15, 2008 New Jersey Governor John Corzine signed the Save New Jersey Home ACT of 2008. The bill is aimed at saving homeowners from foreclosure and loss of their homes, while keeping payments going to lenders. Eligible borrowers can receive a 3-year extension to continue paying their introductory rates on ARM loans, along with deferred payment of additional interest at the fully-indexed rate. Lenders are required, 30 and 60 days prior to the rate reset, to provide specific disclosures informing the borrower of such things as upcoming rate and payment changes as well as any renegotiation or refinancing offered by the lender. Borrowers can apply prior to the reset date for an introductory rate extension by filling out the certification of extension to be provided by the lender.

Borrowers already headed toward foreclosure must be made aware by the lenders of the new legislation, its protections to the borrower and their rights under the new law. A 3 -year suspension on foreclosure proceedings at the introductory mortgage rate is a possible option for foreclosed borrowers who did not already use the 3-year extension. Proponents of the bill believe this is a good compromise as it not only helps the borrower, but it helps investors by keeping fewer empty properties on their books. Interest deferred during the extension is due as a balloon payment at the end of the loan term. The law is set to expire January 1, 2011.

North Carolina High Cost Changes
North Carolina Governor signed House Bill 2188 into law on August 17, 2008. The law went into effect October 1, 2008 and amends the definition of high-cost home loan points and fees under G.S. 24-1.1E(a)(6) Restrictions and Limitations on High-Cost Home Loans. The definition no longer states "payable by the borrower at or before closing" but states "all points and fees" as defined in the statute.

It appears the intent of the amendment is to make it even clearer that Yield Spread Premiums (YSP) are included in the high cost calculation and that all points and fees as defined in the statute, regardless of who pays the fee, are now included in the points and fees threshold. Therefore, all applicable fees paid by borrower, seller, broker or lender are to be included in the calculation for high cost, effective on any loan closing on or after October 1, 2008.

Furthermore, the bill prohibits the payment of YSP for loans that are defined as a "rate spread home loan." If the loan fails either of the threshold tests, no YSP is permitted to be paid to the broker.

Information on the Law can be found at Session Law 2008-227 .

Pennsylvania Prepayment Penalty Changes
Effective for loans that close on and after September 8, 2008, the Commonwealth of Pennsylvania prohibited mortgage lender licensees from assessing prepayment penalties on mortgages of $217,873 or less, a figure that will be adjusted for inflation on an annual basis. The applicable signed bills are S.B. 483, S.B. 484, S.B. 486, and H.B. 2179.

The previous law allowed prepayment penalties on Pennsylvania loans greater than $50,000. We have changed the $50,000 to $217,873 in the background of our generic MBS PA prepayment documents: Prepayment Rider (PANKB1) and Prepayment Addendum (PANKI1).

WHEDA Suspends Lending
Wisconsin 's affordable-housing agency has temporarily stopped issuing mortgages for single-family homes due to its having trouble raising the money needed to make the loans. According to WHEDA'S website, this is a direct impact on the volatility of the capital markets. WHEDA lends to first-time homebuyers of low- to moderate-income status. Regularly, WHEDA raises capital by selling tax-exempt bonds to investors; however, they are struggling to find investors able to buy the bonds. After first raising interest rates to as high as 7.5%, the decision to halt funding was decided. This halt in funding is not permanent; approvals are still being accepted and will stand for 12-months. WHEDA is also waiving its pre-approval fee for applications received on or after October 1, 2008. WHEDA hopes this halt in lending will be short-lived and access to low-cost capital will be restored soon.