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:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.