MDIA 2010 Enhancements Completed

The SCEX, WinLoan-32, and eWinLoan now support the Mortgage Disclosure Improvement Act act of 2010.As promised in our Recent News segment on November 16, 2010, we are happy to announce that the January release of the Sherman Calculation Engine with XML Interface (SCEX), WinLoan-32, and eWinLoan provides outputs enabling our partners to comply with the new Mortgage Disclosure Improvement Act (MDIA) requirements. The eWinLoan disclosure page below illustrates this new functionality. WinLoan-32 disclosures are similar.

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Commercial Loan Calculations in eWinLoan

The eWinLoan now supports commercial loan calculations with almost any loan structure imaginable.Commercial Loans are now available in eWinLoan, after first being added to the SCEX and then WinLoan-32.

The Commercial module can handle literally any loan structure imaginable. Here are some possibilities: timewise irregular payments, multiple accrual methods, multiple payment streams (even interlocking), multiple advances, fees occurring beyond the loan date, interest capitalization during the loan term, changing interest rates during the loan term. If you can imagine it, the Commercial module can calculate it.

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MDIA Amendments to TILA and Regulation Z

Work is under way to directly support the Mortgage Disclosure Improvement Act (MDIA) of 2010 in the SCEX, WinLoan-32, and eWinLoan.The Truth in Lending Act (TILA), now in effect for decades, was designed to provide consumers with the costs associated with their credit obligations. One of the primary purposes of TILA is to provide meaningful disclosures to enable consumers to compare credit terms available in the marketplace more readily and avoid the uninformed use of credit.

The Mortgage Disclosure Improvement Act (MDIA), was enacted in July 2008 as an amendment to the Truth in Lending Act (TILA). This latest interim rule, with the statutory effective date of January 30, 2011, adopts the provisions of the 2009 Closed-End Proposal requiring disclosure of interest rate and payment summary tables as proposed. The full text is available here.

Under this interim rule, creditors will be required to disclose in a tabular format the contract interest rate together with the corresponding monthly payment, including any escrows for taxes and property and/or mortgage insurance. Special disclosure requirements are imposed for adjustable-rate or step-rate loans to show the interest rate and payment at consummation, the maximum interest rate and payment at any time during the first five years after consummation, and the maximum interest rate and payment possible during the life of the loan. Additional special disclosures are required for loans with negatively-amortizing payment options, introductory interest rates, interest-only payments, and balloon payments.

Currently, all three of our main products, Sherman Calculation Engine with XML Interface (SCEX), WinLoan-32, and eWinLoan, provide outputs that enable our partners to comply with the new requirements, but these are not clearly identified as the separate elements that the interim rule specifies, for example “the maximum interest rate within the first five years.”

To make the process as easy as possible for our clients, we have decided to add, where applicable, the specific outputs required in the tabular format. We have already sent our SCEX partners the specifications for the new XML inputs and outputs so they can make the associated modifications to their systems to be in compliance. We will be providing an interim release of the SCEX prior to the end of 2010, which will allow our partners sufficient time for testing. The appropriate additions to the disclosure screens of our end-user products, WinLoan-32 and eWinLoan, will be made available in our early January, 2011 release.

Please contact us with any questions regarding this new regulation or our products.


Commercial Loan Calculations in WinLoan-32

The WinLoan-32 now supports commercial loan calculations with multiple advances and overlapping payment streams - the WinLoan-32 can handle it all!Some loans are so complex that they don't fit into a simple category. Accrual methods may change during the course of the loan; multiple payment streams can exist, or payments may have no regular periodicity. For these situations, and others, our commercial loan module was designed.

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SCEX Loan Server for Linux

The SCEX now includes a Loan Server for the 32/64-bit Linux platforms, to match functionality with the SCEX on 32/64-bit Windows platforms.The SCEX Loan Server goes one step beyond the SCEX, turning the SCEX into a multi-platform calculation engine, allowing applications hosted on platforms without the SCEX to harness the power of the SCEX. Some of our customers like to think of it as a loan calculation server. The SCEX Loan Server provides a TCP/IP communication wrapper around the SCEX. So long as the platform on which your application resides can communicate via TCP/IP, you can use the Sherman Calculation Engine in your product.

As of the October, 2010 release, Sherman and Associates is pleased to announce that the SCEX Loan Server is now available for the 32-bit and 64-bit Linux platforms. The server is implemented as a preforked, multi-process model that can take advantage of systems with multiple CPUs or cores, which are frequently encountered within today's servers. As an added bonus, the SCEX Loan Server is written in Python, so your developers can extend or modify the application as you see fit.

If you are interested in the SCEX Loan Server Service, the SCEX for 32-bit and 64-bit platforms, or have any other questions, please feel free to contact us for further information.