April 29, 2022

PPDocs Announces Services for Commercial Loan Documents, PPDocs and Full Skope Announce "Lights Out" Integration with Full Skope's Innovative SkopeLend Loan Origination Platform, and more!

Read more below!

April 29, 2022

PPDocs Announces Services for Commercial Loan Documents

Over the years, our clients have repeatedly asked us whether we would consider entering the commercial loan document business. While we have considered several options for documenting negotiated commercial loans in the past, we have never found a solution that we believed would provide our clients the level of service they have come to expect from PPDocs, Inc. That is, until now!

PPDocs has entered into an agreement with Full Skope LLC and the Texas law firm of Kennedy Sutherland LLP to offer our clients a full-service commercial loan document solution. We are confident that Full Skope, powered by Kennedy Sutherland, will bring the same excellent service, quick turnaround times, and competitive pricing to your commercial loan document business you have come to expect from PPDocs.

If you are ready to get started or just want to virtually “kick the tires,” go to: www.fullskope.com/skopedocs If you are interested or would like to learn more, please contact Dallas Rivera at dallas@ppdocs.com or 972.679.7116, Doug Hogan at Doug.Hogan@fullskope.com, or Dub Sutherland at dsutherland@kslawllp.com.

About Full Skope:

Full Skope LLC is a financial technology and services company with offices in downtown San Antonio, TX. Full Skope offers a range of leading, innovative products for banks, credit unions, and non-bank lenders, in addition to its flagship product, SkopeLend Loan Origination System. For more information visit www.fullskope.com.

About Kennedy Sutherland:

Kennedy Sutherland LLP is a Texas based law firm with offices in San Antonio and Austin. From the beginning, Kennedy Sutherland has represented financial institutions and appreciates the value they bring to their towns and regions. For more information visit: www.kslawllp.com.

PPDocs and Full Skope Announce "Lights Out" Integration with Full Skope's Innovative SkopeLend Loan Origination Platform

PPDocs and Full Skope, creator of the lending industry's latest and most flexible loan origination platform, have announced the integration between their two platforms, PPDocs and Full Skope's SkopeLend Loan Origination System, making it simpler than ever for banks and credit unions to originate loans via SkopeLend LOS.

PPDocs provides mortgage document preparation as well as compliance and regulatory support across all fifty states, with turn times of 2-3 hours for full-service loans and 1-2 hours for legal reviews.

Because SkopeLend has a modern integration framework that simplifies the creation and transmission of custom data elements, one of the key benefits for PPDocs and SkopeLend customers is that it allows them to enable "lights out" integration for a broader set of PPDocs products. This type of integration means that customers do not need to log in to multiple systems to enter additional or different data elements required for commercial loan documents, consumer loan modifications, or attorney legal reviews, most all of which is not supported by legacy loan origination systems today.

With the new integration, PPDocs customers now have access to a modern, configurable loan origination platform that delivers a seamless end-to-end experience from digital application through loan document generation and e-signature. The SkopeLend platform supports all loan types, consumer or commercial, including SBA, USDA, and more.

Mike Patterson, CEO of PPDocs explains "PPDocs and Full Skope share similar values in that we both believe in a strong personal touch with our customers and picking up the phone. We've found that to be the case in working with Full Skope on our integration, as well as some other exciting projects we're working on together that we'll announce soon."

"We're proud to partner with a leader and fellow Texas-based technology company in PPDocs that complements our system and brings so much value to our mutual customers" says Doug Hogan, CEO of Full Skope, "We're unlocking new capabilities and creating efficiencies that didn't exist yesterday, and that's what we're all about."

Frequently Asked Question

Question: With interest rates rising, if the interest rate increases after we provide the initial Loan Estimate, how do we disclose that? Also, how would we disclose an interest rate increase occurring after we provided the CD?

Answer: As to your first question, assuming the interest rate change is not because of a written rate lock agreement between the bank and consumer, which triggers a revised LE, you can reflect the change on the initial CD. The APR is not tested from LE to CD, just from CD to subsequent CD. A variance at this stage is fine.

As to your question about an interest rate increase after the CD is issued, if the interest rate change created an APR tolerance issue, you would have to reissue the CD and restart your three-business day wait for closing. If there is no APR tolerance violation, then you may disclose the updated interest rate on the final CD at closing or, if this is a home equity loan, on the final CD at least one business day before closing.

For changes that happen after you issue the initial CD, the following rules would apply:

  • As long as the changes are not increasing the fees that are subject to the 0% tolerance test or if the increased fees are subject to the 10% tolerance test and they are not changing by more than 10%, any adjustments can be reflected on the final CD, as it would not be considered a changed circumstance.

  • If changed fees are subject to the tolerance tests, a revised CD would have to be provided to the applicants within three business days of learning of the changed circumstance or on the final CD, whichever comes first, in order to adjust the tolerance comparison. You should document the changed circumstance in your files as you would for one during the LE disclosure phase.

  • If the changes are not related to fees subject to the tolerance tests or the changes do not rise to the level of a changed circumstance, a lender may always provide a revised informational CD can to the applicants prior to closing.

  • A copy of the CD must always be available for review upon request by the applicant one day prior to closing.

  • If the loan is a TX Home Equity loan, then TX law requires that the lender deliver a final CD to the applicants one day prior to closing.

A new three business day wait period during the CD disclosure phase is required under the following circumstances:

  • The annual percentage rate disclosed becomes inaccurate, as defined in § 1026.22. An over disclosure of the APR with a corresponding over disclosure of the finance charge is not considered inaccurate under 1026.22.

  • The loan product is changed, causing the loan product information disclosed to become inaccurate.

  • A prepayment penalty is added, causing the statement regarding a prepayment penalty to become inaccurate.

The APR tolerance is .125% for regular transactions and .25% on irregular transactions.

1026.22(a)(2): As a general rule, the annual percentage rate shall be considered accurate if it is not more than 1/8 of 1 percentage point above or below the annual percentage rate determined in accordance with paragraph (a)(1) of this section.

1026.22(a)(3): In an irregular transaction, the annual percentage rate shall be considered accurate if it is not more than 1/4 of 1 percentage point above or below the annual percentage rate determined in accordance with paragraph (a)(1) of this section. For purposes of this paragraph (a)(3), an irregular transaction is one that includes one or more of the following features: multiple advances, irregular payment periods, or irregular payment amounts (other than an irregular first period or an irregular first or final payment).

PPDocs has a stop audit set in the system to call to the attention of the client that the APR increased by more than the allowed tolerance. If an investor is involved, you will need to check with them for any additional requirements they may impose.