Qualify

Use the Qualify tab to select the program and pricing that will be submitted for your rate lock request. The Qualify tab displays a list of eligible products, rates, and prices. The product with the best pricing at the selected rate displays in expanded mode at the top of the list.

The Program column displays the product name and documentation type, the rate lock period as of the date and time listed, and an FHA or VA icon if the program is for an FHA or VA loan. The profit margin is also visible if your administrator has given you the right to view holdback amounts. In addition, a LTV/CLTV link displays, which opens to its help topic to provide information on how they are calculated based on product type.

The remaining columns list the rate, compensation, price, the borrower's principal and interest payments for the program and the borrower's debt-to-income ratio.

The pop-up windows (Details, Guidelines, and Detailed Ineligible Reasons) can be moved so you can see the information underneath them. To move a window, click in the blue top bar and then drag the window to other areas on the page.

If your administrator has enabled the Qualified Mortgage settings, hover text displays when you place your cursor over a rate. The text indicates how many points can be excluded from the 3% maximum fee test for qualified mortgages and/or whether a rate passes the rate reduction discount point exclusion test.

If both Qualified Mortgages settings are disabled, no hover text displays.

ClosedRate Reduction Discount Point Exclusion Test

The rate reduction discount point exclusion test will be run for each rate on the Qualify tab.

  • If True, then the rate passes the rate reduction discount point exclusion test. Otherwise, the rate fails.
  • If False, that rate is highlighted with a pink background to make it easier to determine whether a loan passes the Qualified Mortgage criteria.

The test only applies to Encompass buy side transactions or if the user entered ICE PPE directly.

ClosedDiscount Point Exclusion Test

The discount point exclusion criteria affects the discount points that can be excluded from the 3% fee cap for qualified mortgages. Three tests are run on each program block to determine the appropriate discount point exclusion category. A different color asterisk (*) will display next to rates that fall within one of the three categories.

The test only applies to Encompass buy side transactions or if the user entered ICE PPE directly.

  • If the undiscounted rate of the program block is less than or equal to the comparable APOR + Threshold 1, the asterisk is green. If you click the details hyperlink for the rate, the new Qualified Mortgage Analysis section includes a statement indicating how many discount points may be eligible for exclusion.
  • If the undiscounted rate of the program block is greater than the comparable APOR + Threshold 1 and the undiscounted rate of the program block is less than or equal to the comparable APOR + Threshold 2, the asterisk is yellow. If you click the details hyperlink for the rate, the new Qualified Mortgage Analysis section includes a statement indicating how many discount points may be eligible for exclusion.
  • If the undiscounted rate of the program block is greater than the comparable APOR + Threshold 2, the asterisk is red. If you click the details hyperlink for the rate, the new Qualified Mortgage Analysis section includes a statement indicating how many discount points may be eligible for exclusion.

The Qualify tab is accessed as part of the process for creating a loan, or while reviewing or editing a loan that has a status of Prospect or Qualified. Before you can access the Qualify tab, you must complete the required fields on the preceding tabs that are used in the loan creation process.

To View and Select Programs:

  1. On the Home tab, click the My Loans tab, and then click Create new loan or click the borrower name for an existing loan with a status of Prospect or Qualified.
  2. Complete the General tab, and then click Next.
  3. Complete the Borrower tab, and then click Next.
  4. Complete the Finances tab, and then click Next.
  5. Complete the Property tab, and then click Next.

If you have entered enough information to begin the qualification process, a Qualify button will display on the General, Finances, and Property tabs. Click the button at any time to open the Qualify tab.

  1. On the Qualify tab, adjust your search criteria by enter values in the Target Price and Target Rate fields, and then click Go.
  2. To search for rates offered by a specific lender, select a lender from the dropdown list.
  3. If enabled (by your administrator) and you are submitting a historical pricing request via the Encompass Worst Case Pricing Tool or an Encompass re-lock request, you can limit the displayed loan program to only the one selected in the last lock transaction by selecting the Current Program checkbox. Otherwise, all eligible loan programs are displayed.

By default, the Current Program checkbox is not selected when running a historical pricing request.

  1. To search for agency or non-agency products, select the Agency and Non-Agency checkboxes as needed.
  2. Select the Classic or BestEx view, if available, to view rates grouped by investor loan program or unique loan product type.

By default, all users will only have the Classic view enabled. Your Client admin will determine whether you have the Classic view, the BestEx view, or both.

  • Classic view groups rates by investor loan program.
  • BestEx view groups rates by unique loan product types.
  1. Select a loan term option tab (All, 30 Year Fixed, 15 Year Fixed, or 5 Year ARM) if available to view applicable programs.
  2. If the guideline links are enabled, click a link to view a pop-up window with the AllRegs Market Clarity content.

The AllRegs Market Clarity content provided does not require a special license. It is available to all ICE PPE customers.

  1. Click a program name to open an expanded view of the program.
  • If the program references a Rate Doc flagged as "Repricing", it will be displayed as ineligible until the reprice is complete. In addition, a Program Note, “This Program is being repriced. Pricing is currently disabled.” will be displayed.
  1. If a program view is expanded, click Show all rates to view all available rates for the product.
  2. To view details for a product, click details in the Det column.
  • In the Bona Fide Discount Point Assessment section:
  • The average prime offer rate (APOR) for the rate is displayed.
  • The Starting Adjusted Rate and Starting Adjusted Price are displayed.
  • If the rate failed the rate reduction discount point exclusion test, information on why the rate failed the test is displayed.
  • If the current price is equal or above par, the APOR is displayed and the section indicates the rate reduction discount point exclusion test and discount point exclusion test were not run.
  1. To view all products available, including those for which the loan is not eligible, select the Show ineligible checkbox at the bottom of the page.

If the state and/or county is missing from the loan, a message stating the "State and County not specified" is displayed.

  • The details hyperlink displayed for each ineligible product opens the Detailed Ineligible Reasons pop-up window.
  • In the Program section, the message, "Some failure reasons indicated here may override general guidelines shown below" is provided as an explanation of the ineligible guidelines.
  • The Loan Limits section provides a loan limit table for the current state and county.
  • For a historical pricing request, the information displayed will be the ineligibility details and loan limit table in effect at the time of the loan's effective (lock) date.
  1. When finished, click an entry in the Rate column to select a product and open the Summary tab.
  • A Flag icon displays next to a product name if the product does not match one of the criteria selected on the General tab in the right panel.