Lightning Docs Update

We have issued an update to the system that modified the following:

Updates have been made to the compliance warnings for the following states:

•  Minnesota (Prepayment Penalties): Updated the statutory threshold for loan size to the 2025 figures ($806,500 for a 1-unit; $1,032,650 for a 2-unit; $1,248,150 for a 3-unit; $1,551,250 for a 4-unit). Additionally updated the hyperlink where these figures can be found.
• Ohio (Prepayment Penalties): Updated the statutory threshold for loan size to the 2025 figure ($112,957). Additionally updated they hyperlink where this figure can be found.
• Pennsylvania (Prepayment Penalties): Updated the statutory threshold for loan size to the 2025 figure ($319,777). Additionally updated the hyperlink where this figure can be found.
• New Mexico (Late Fees): Updated the statutory threshold for loan size to the 2025 figure ($806,500). Additionally updated the hyperlink where this figure can be found.
• Tennessee (Usury / Interest Rates): Updated the hyperlink where the “Formula Rate” can be found (Updates weekly).

System Updates

We have issued an update to the system that modified the following:

1. Modification to Florida Mortgage – Homestead: We have added text to the existing Homestead paragraph that appears in Florida Mortgages. This was to add detail to describe individuals who are not permitted to live in the property.
2. Signature Block and Manual Entry Spacing: Lender signature lines have been spaced out further to allow more room to manually enter printed names and the title of the signer. Additionally, line spaces have been increased in size in various other documents where blank lines appear for manual entry.

Lightning Docs Update

Our goal at Lightning Docs is to provide the most efficient experience possible for all of our users.

One of the questions we constantly ask is: whether all users should see a question in every interview, by default (such as the interest rate); or whether we should hide the question behind a Permission, and let each individual user determine whether they want to see the question (so that users see less questions).

Based on user feedback and a review of our data, we have determined that the features identified below are not commonly used by most of our users. Because of this, we have decided to move these questions from the standard interview, that is used by all users, to the “Permissions” section of Loan Scenarios.

Therefore, if you would like to see the features/questions identified below, you MUST create or modify a pre-existing loan scenario, otherwise you will no longer see these features.

Attached and included in this e-mail are reference material showing you how to set up loan scenarios.

Please Note: This update only affects users of our Lightning Docs 2.0 system and will not affect any user on the Lightning Docs 1.0 system (HotDocs system).

To view and download our guide for creating and editing Scenarios, click HERE.

Under Standard Loan Terms

Will the interest rate automatically increase during the loan term (Step Up)?

To enable you must select “Enable Interest Rate Step Up” under Permissions in Scenarios

Under Special Loan Features

Is this a line of credit?

To enable you must select “Enable Line of Credit” under Permissions in Scenarios

Is this a Bridge Loan that automatically converts to a Permanent Loan?

To enable you must select “Enable Bridge to Perm Loan” under Permissions in Scenarios

Under Customizations To Loan Documents:

Include reference to master Guaranty?

To enable, you must select “Enable reference to Master Guaranty” under Permissions in Scenarios

Under Title Information:

Attach Pro Forma Policy Exhibit?

To enable, you must select “Enable Attaching Pro Forma Exhibit Instead?” under Permissions in Scenarios

In addition, we have issued an update to the system that modified the following:

1. AB2424 Disclosure – Effective January 1, 2025: A new disclosure (Request for Notice Disclosure) will populate as the first document in the stack whenever there is at least one California property securing the loan. Note that this disclosure should have been provided prior to the borrower signing the loan documents. For more information on AB2424 review an article written by Geraci LLP here: https://geracilawfirm.com/ab-2424-what-california-lenders-should-know/
   • An additional Compliance Warning will now show up whenever a California property is included in the interview notifying users to have the borrower execute this document prior to the remaining loan documents.
2. Amendments to Compliance Warnings (ECOA / Hazard Insurance) – Additional Compliance Warnings now provided for all loans:
   • A new instructional warning for the Equal Credit Opportunity Act (ECOA) identifying that this disclosure should have originally been provided to the borrower at time of loan application. The inclusion of this document at loan closing is to further protect the lender.
   • A new instructional warning relating to Hazard Insurance identifying that this disclosure should have originally been provided to the borrower at time of loan application. The inclusion of this document at loan closing is to further protect the lender.
3. MERS Functionality / Assignments – There are now two separate questions for MERS. One question is located on the Standard Loan Terms page, which controls whether MERS language will appear for the Lender. The other is located under the Loan Sale Information section found on the Additional Documents page of the interview which controls whether MERS language will appear for the loan purchaser/assignee.
4. Change to Note for Alaska – When either a property is in Alaska or Alaska is selected as Governing Law, a paragraph will be added to the Note called “Suit on the Note” which is required by law if the lender intends on suing the borrower on the Note in lieu of or prior to foreclosing the property.
5. Variable Interest Rate Changes to All Security Instruments: All security instruments (mortgages and deeds of trust) in all states will contain a notice in the heading whenever a variable interest rate is used, as well as including the variable interest calculation methods – the same as found in the Note.
6. Modification to Connecticut Mortgage: Removed the requirement to attach a copy of the Note with the Mortgage. Upon review with Connecticut counsel we confirmed attaching the Note is not required.
7. Automatic Extension Updates – The Automatic Extension feature has been significantly upgraded. Users are now able to select the number of months for the extension, as well as whether to include an extension fee and/or an increase in the interest rate. This feature is now also compatible with both interest-only and amortized loans, as well as with variable and step-up interest rates.

Lightning Docs Update

We have issued an update to the system that modified the following:

Yesterday, we sent a standalone e-mail letting you know we made substantial updates to the Loan Agreement and Security Instrument primarily related to Cross Default and Assignments of Leases and Rents. Redlines available upon request.

Additionally, the following changes have been made and are now live:

1. Georgia Security Instrument and other recordable documents. Georgia requires that documents be witnessed and attested to by 2 parties – one of which must be an official one (notary) in order to record them. However, GA does not require that they be acknowledged by the notary. In order to avoid confusion, we added “Attest” above the witness signature blocks and removed the acknowledgement.
2. Texas Security Instrument – we updated the Substitution of Trustee provision in accordance with advice from local counsel. It includes more generalized terms rather than specific acts that must be performed.
3. Texas Homestead Certificate – we updated the definition of “Borrower Affiliated Party” to match the language in our standard Certificate of Non-Owner Occupancy.
4. Added option to use Foreign National Equivalent of W-9 form. By request by a few of our users, we added a question on borrower page to ask “Is Borrower a Foreign National” but this question will ONLY be asked if Borrower was selected to be an individual. If YES, and a W-9 is selected later in the interview, then instead of the W-9 form, produce a W8-BEN form instead for that borrower.
5. We added two additional entity types to the interview – Limited Liability Partnership and Professional Limited Liability Company. The LLP will act similar to a general partnership and the PLLC will have the same interview as LLCs

Please note that there was a beta test feature for SNDA/Tenant Estoppels that was accidentally released in yesterday’s update and you will now see the question “Are there, or will there be, Tenant Documents associated with this loan?” showing up in the Property Information Dialogue. Please do not use this feature and make sure the answer remains “NO” to this question. This question will be removed this week in a patch update until this feature is ready for general release.

Lightning Docs Update

We have issued an update to the system that modified the following:

Numerous Style Changes Made

• Upon a thorough review of language with outside attorneys, we made numerous changes to strengthen language throughout the Loan Agreement, Note, and Security Instrument primarily related to Assignments of Leases and Rents, and Cross Default. Redlines available upon request.