Encompass Docs Solution August 2018 Critical Patch

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Update to Address Issue with Monthly Principal & Interest Values Printed on Loan Estimate and Closing Disclosure Output Forms

Recent changes mandated by Know Before You Owe 2 (KBYO2) rules required that the Monthly Principal & Interest line in the Loan Terms table on the Loan Estimate Page (LE) 1 and Closing Disclosure (CD) Page 1 printed output forms for Construction Only and Construction-to-Permanent loans when Method A is selected as the Estimated Interest On option (field ID SYS.X6) be updated to state “Adjusts every month starting in month [x]”. This requirement was addressed in Encompass 18.3 and this new verbiage was printed to the LE Page 1 and CD Page 1 output forms accordingly for these types of loans. (For Construction Only and Construction-to-Permanent loans using Method B, the verbiage printed to the Loan Terms Monthly Principal & Interest line was not impacted and continued to print “Adjusts once in month [x]” just like it did in Encompass 18.2 and earlier versions.)

However, this update resulted in the following issues on the LE and CD printed output forms if a customer disclosed Construction Only or Construction-to-Permanent loans with Method A selected (field SYS.X6) that were originated in Encompass 18.2 (or earlier):

• The Loan Terms Monthly Principal & Interest row displayed an incomplete phrase “Adjusts every ___ starting in Month [x]”. (The term “month” or “year” should have been printed in the blank space between “every” and “starting” (based on the value entered in field LE1.X20.)
• For Construction Only loans with Method A selected only, the LE and CD output forms generated with a blank AP table.

This update to the Encompass Docs Solution being released on August 30, 2018 addresses these issues.

• For Construction-to-Permanent loans using Method A (field SYS.X6) that are being managed in Encompass 18.2, the Loan Terms Monthly Principal & Interest row now displays the language that existed prior to the KBYO2 updates that were introduced in Encompass 18.3: “Adjusts once in month [x]”.
• For Construction Only loans using Method A or Method B that are being managed in Encompass 18.2, the LE and CD printed output forms no longer generate an AP table.

Please note the following known issue is not being addressed at this time:

• For Construction Only loans using Method A (field SYS.X6) that were originated in Encompass 18.2 and then migrated to Encompass 18.3 after upgrading, the LE and CD printed output forms will continue to generate with a blank AP table if the loan is re-disclosed from Encompass 18.3. This issue is targeted to be fixed in a future Encompass Docs Solution update.