In basic chemistry, we learn that two or more elements combine to form a compound.  Those compounds (along with the elements that form them) form our world.

Let's consider your systems and compliance needs.  Are there voids in those systems?  Be honest.  If you're like most in the industry, there have to be some holes that need to be filled.  Well, we have the solutions to your problems.  Let's take an example.  Do you have issues with the HUD requirements (i.e. the new disclosures, the GFE, the HUD 1 and 1A, closing docs, etc.)?  If you take two of the ZMathElements, you form your very own ZMathCompound.  Take the ZMathElements, ZMathGFE and ZMathAggEscrow and you have a compound that will plug any void that HUD requirements throws your system.  And, you can have the solution implemented virtually overnight.

How about another example?  Let's say you want to offer loan scenarios on your web site.  As a part of that, you want to calculate a payment amount and an APR.  Should you write your own?  Should you try to shoe horn your current system information into it?  No way!  We have ZMathElements that would work nicely for just that sort of thing.

The lesson is, why struggle with issues that can easily be addressed by an Element or Compound.  Contact us and let us help formulate your solution.

Math Corporation today made its next product, ZMathElements, available for license.  ZMathElements, as the name infers, are some of the base elements (i.e. functions and tasks) that make up the ZMathEngine.  It is targeted to those that only need a part or parts of the ZMathEngine, instead of the entire solution.  Go check out the product page and let us know what you think.  If you have Elements that you'd like to see, let us know.

As many of you are painfully aware, new HUD GFE requirements went into effect on January 1, 2010.  Those requirements included a new GFE form that has some fairly complex calculations associated with it, particularly in the "Summary of your loan" section.  The complexity of the calculations actually precipitated HUD to defer enforcement of the new rules for an additional 120 days.  This deferment is strictly enforcement.  You must still produce and distribute the form as prescribed by the regulations.

On December 1, 2009, Math Corporation released new versions of our components and software packages that include the data necessary for the new disclosures.  If you need to comply with the new regulation, don't labor over it, contact us and bring your systems up to 100% compliance!

I'm not one that makes New Years resolutions very often as I see them as a formula for failure because we always set goals that are unrealistic.  However, as I sat down and assessed Math Corporation's 2009, I saw one glaring issue that needed to be addressed for improvement in 2010 and that was my own performance in blog posting here, on Twitter and Facebook!  So, as I sit here, I resolve that I will try to be more regular in my blog postings going forward.  We would still love to have input from you, our users, for blog postings and would love to have submissions that we would post.  So, if you have something you would like to see addressed, let us know!  Here's to a great 2010 for us all.

The eZMathReverse application has been updated.  This update represents a complete rewrite of the previous version.  Not only does the new version incorporate both the original and new HECM principal rate factors, it also outputs the Truth-in-Lending statement, if applicable.  You can now use eZMathReverse as your one source of calculated figures for your reverse mortgage operation.  Give it a run and let us know how we did!

Late on Wednesday, September 23, HUD announced that there was a new factor table that was to be used for all HECM loans with a case number assigned on or after October 1, 2009.  Math Corporation began implementing the new factors Thursday morning and on Friday, September 25 at 2:00 CDT released ZMathReverse with both new and old factors incorporated.  Our eZMathReverse will be updated later this week to incorporate the changes.  If these changes affect you, please notify us and we will get the new version of the component to you.

Come follow us on twitter.  I don't know how many tweets you'll see but we'd love to have you follow along.  If you'd like, we'll follow you too.  Happy tweeting!

http://twitter.com/mathcorp

 

Math Corporation is announcing the addition of a new version of our component products.  We now have Silverlight versions available for distribution.  If your current or future development plans include Silverlight, contact us for further information.

Well, I am long overdue for a posting to this blog.  I'm sure all of you know how it goes when you get swamped by a project or two or three or....  Anyway, it's tough to find a few free moments.  I will have to try to be better about my responsibilities out here.

Our newest news is that we now have a Facebook page.  We invite you to view it at Facebook.  Just search us out and become a fan.  Let us know if you have any troubles finding it.

In this entry, we are going to provide instructions on how to add insurance to almost any loan you structure using eZMath or ZMath.

First, there are two main types of insurance that eZMath and ZMath calculate.  They are mortgage insurance and credit insurance.  Generally, mortgage insurance is for use on mortgages where the loan-to-value ratio is less than 80%.  This generally happens when the borrower does not have a sufficient downpayment.  Credit insurance is an insurance coverage that is generally offered on consumer loans (i.e. auto, boat and personal loans).  This insurance has two components, life and accident and health.  eZMath and ZMath calculate both premiums.

 Let's cover mortgage insurance first.  Once you have selected a loan type, click on Options and Variations and the screen below is displayed.  Mortgage insurances are covered in FHA, VA, PMI Standard, PMI Monthly and PMI Split Premium.  FHA is insurance offered through HUD loans.  VA is a funding fee charged on loans offered through the VA.  PMI is private mortgage insurance offered through insurance companies.  Standard is the old way of calculating the insurance where the first year's premium is prepaid at closing.  The second year's premium is collected with the monthly payments beginning in the first year, etc.  You are always one year ahead in this form of insurance.  Monthly is where there is no upfront premium and you are not paid one year in advance.  Split premium is like monthly but it has an upfront premium as well.  Make sure that you select the correct type of insurance by clicking on the correct radio button as the pane that is set up on the terms screen will be determined by your selection.

When you return to the terms screen, you will see a pane that has entries which are required for the calculation of the insurance.  What you need for these entries are the correct insurance rates.  These rates are readily available from the insurance carrier that you are using (including HUD and the VA).  These rates are usually stated as a rate per hundred dollar of indebtedness.  That is how we want the number entered.  For example, a common rate for FHA renewals is 0.50 per hundred.  That is what we want entered; 0.50.  You also need to enter what year the rate for that renewal period is valid through.

In addition to the rates, you must tell the engine what the premiums are calculated on; the beginning level balance or a declining balance.  If it is on the declining balance, you must select the beginning, average or ending balance.  In the same section of the insurance terms pane, if you have an upfront premium you are asked whether any of the upfront premium is financed.  You can enter that as a percentage or dollar amount.  You also enter the number of months, if any, of premium that are escrowed.  If there are months escrowed, please click on the radio button as to whether the escrowed months are used or refunded.  You can also select a number of months of premium to be prepaid.

One of the most important entries follows.  It is the LTV Cutoff value.  You are telling eZMath and ZMath where to cutoff the collection of insurance premiums.  This is required by regulation so accuracy with this entry is extremely important.  Generally, this value will be 80 or 78.  The final entry is what the appraised (or sale price, whichever is less) value of the property is.  This is the number that the LTV will be calculated on.  Again, since this is a regulatory requirement, accuracy is extremely important.

Once your entries are made, click on calculate.  At the output screen, your Truth-in-Lending figures will reflect the collection of insurance, your payment streams will reflect the effect of insurance premiums by being added to the regular principal and interest payment amounts, a total premium figure will be shown on the output, etc.

This is how mortgage insurace is added to mortgage loans in eZMath and ZMath.  Our next entry will cover credit insurance which is a different type of insurance.  As always, if you have any troubles with this or any other aspect of eZMath and ZMath, please feel free to contact us.