Commercial lending is complex enough without getting tripped up by last-minute compliance issues. When state laws shift, title companies evolve their requirements, or third-party platforms like MERS update their policies, the burden of staying compliant falls squarely on the lender—and any delay can cost days, dollars, or even the deal.
At GoDocs, we monitor these developments in real time and adapt our platform accordingly. Our mission is to eliminate compliance friction before it slows you down. We’re more than a document automation solution—we’re a compliance partner.
Here’s what lenders need to know about three recent regulatory and policy developments, and how GoDocs is helping our customers stay ahead:
Hawaii: Title Company Pushback on Construction and Fix N Flip Mortgages
What changed:
A Hawaiian title company requested more explicit language in mortgage documents identifying loans as construction or rehab lines of credit. While GoDocs’ documents already met the substance of Hawaii statutory requirements, a lender working with a new title company encountered unexpected pushback.
Why it matters:
Inconsistent expectations across title companies can delay closings—even when documents are legally compliant.
What GoDocs did:
We updated our Hawaii ConstructionDocs and Fix N Flip Mortgages to make the construction or rehab loan purpose language more explicit, preventing future challenges arising from varying title company interpretations. These updates were implemented system-wide through a new lender setting, ensuring smoother closings across all Hawaii transactions.
MERS: Loan Types That Can’t Be Registered
What changed:
Mortgage Electronic Registration Systems, Inc. (MERS) maintains specific exclusions for the loans it accepts. Two key categories are disallowed:
- Loans with borrowers enrolled in state confidentiality programs
- Mortgages that list multiple properties under a single security instrument
Why it matters:
If a disallowed loan type is submitted to MERS, it can delay the transaction or derail the ability to sell the loan in the secondary market.
What GoDocs did:
We added a platform prompt that alerts users to these MERS exclusions—especially multi-property mortgages. This reminder protects lenders from making avoidable mortgage or deed of trust registration errors that could stall transactions.
Compliance Protection Built In, Not Bolted On
Each of these examples reflects a broader truth about commercial lending: Regulations shift quickly, and the cost of missing something is high. Waiting until issues arise at closing, or worse, post-closing, isn’t sustainable in a competitive lending environment.
That’s why GoDocs takes a proactive stance. We aren’t just here to help you generate loan documents faster. We’re here to ensure they’re right, legally sound, jurisdiction-aware, and aligned with evolving third-party requirements.
- We monitor feedback from customers (including their experiences with title companies during closings), legal sources, and industry developments.
- We embed protections directly into the platform—via alerts, validations, and intelligent defaults.
- And we act fast to update our system when laws or industry norms evolve.
We believe compliance shouldn’t be a burden; it should be a competitive advantage.
Chief Legal Officer
