On May 1, 2017 we announced updates to our ConformX Late Fee Defaults (see http://blog.docutechcorp.com/late-fee-updates-late-fee-defaults-matrices-updates). We have subsequently reviewed these defaults and will be making the following changes:
- Illinois – Rather than having a separate rule for Illinois high risk home loans, we will be merging this rule with the current rule applicable to Federal high cost mortgages (since the maximum percentage amounts are the same), effectively applying a maximum of 4% when either “HCL – State” or “HCL – Federal” equals “Yes”.
- Kentucky – Regular Kentucky rules will be applied to all Kentucky Housing Corporation loans, except loans using program 100715 “Down Payment Assistance Program – 2nd Lien”, which has a flat $5.00 late charge.
- Oklahoma – An error was discovered in which Conventional or Rural Development loans, with APRs exactly equal to 13%, were not covered by any of the Conventional defaults. This will be fixed so that the standard Conventional rules will apply to such loans.
- Rhode Island – Some inconsistencies were found in the logic to a couple of rules and will be fixed (e.g. two rules could trigger at the same time, due to the lack of a condition distinguishing them). We will also be adding a new condition applicable to Conventional/Rural Development loans which are considered Federal high-cost mortgages.
These changes will be in effect on January 18, 2018. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.