Feature Enhancements in June 2019 Service Pack

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Support for Non-Qualified Mortgages (Non-QM)

Why we made these updates: Additional functionality and fields have been added to the Maintain Risk Grades, Maintain Conditions, and Maintain Matrices sections of the Custom Program Management (CPM) module, the General tab, and the Finances tab, to ensure Non-QM loans can be accurately qualified,

Encompass TPO Connect and Encompass Consumer Connect

As part of the updated Non-QM functionality within EPPS, the newly added fields must be manually updated after a loan has been submitted through Encompass. Products that apply to these field requirements to price are currently not supported within Encompass TPO Connect or Encompass Consumer Connect.

To access these new programs, your Client Administrator (Client Admin) must enable them under Admin>Programs to receive qualifications. In addition, your Client Admin should disable the old programs because they will no longer supported.

The ability to create Risk Matrix Definitions has been added to the Risk Grades Listing page to ensure Non-QM are qualified properly,

In addition, the following updates have been made to the Risk Grades Listing page:

  • Renamed the Investor field to Custom Investor.
  • Replaced the existing actions (edit and hide) with the view, versions, and hide actions.
  • Added the Effective column to display the Effective date and time of the current or most recent Production version.
  • Added the NP and PC columns to display the number of Development and Production versions.

Detailed Procedures

ClosedTo Create a Risk Matrix Definition

  1. Log into EPPS as a client admin.
  2. Click on the CPM tab.
  3. Click on Maintain Risk Grades in the Custom Programs section.
  1. Click the Enter a new Risk Matrix Definition link.

  1. Enter a unique Name for the risk matrix definition. This is a required field.
  • In prior releases, this field was labeled Investor.
  • A best practice for maintaining risk grades is to identify a concise and descriptive universal naming convention for all your Client admins to follow.
  1. In the Custom Investor field, select an investor.
  2. In the Effective field, enter the date the risk matrix definition should begin. You can also click on the Calendar icon to display a calendar where you can select a date. This is a required field.
  • The Effective date cannot be identical to the Effective date of any existing Production or Development versions.
  1. The Profile will be set to Development by the system.
  1. Under Add a Risk Grade, complete the following fields.
  • Grade – The risk grade for the matrix (e.g., A, A-, etc.).
  • Min Credit – The minimum credit score. This is an optional field.
  • Max LTV – The maximum LTV in decimal format is equal to 80%). This is an optional field.
  • Max CLTV – The maximum CLTV in decimal format. This is an optional field.
  • Max HCLTV – The maximum HCLTV in decimal format. This is an optional field.
  • Late30/60/90 – Maximum 30 day, 60 day, and 90 day lates allowed for the matrix.
  • Late 30x24/60x24/90x24 – Maximum 30 day, 60 day, and 90 day lates in the past 24 months allowed for the matrix.
  • Chapter 7/Chapter 11/Chapter 13 – Indicates when last bankruptcy was filed.
  • Short Sale – Indicates when last short sale occurred.
  • Deed in Lieu – Indicates when last deed in lieu was transacted.
  • Foreclosure/Default – Indicates when last foreclosure/default occurred.
  • Guideline – The guidelines available are based upon the selected custom investor. This is an optional field.
  • Rate – The rates available are based upon the selected custom investor. This is an optional field.
  1. Click Save.
  2. Repeat steps 5 through 9 to add additional risk grades.

ClosedTo View a Risk Matrix Definition

  1. Log into EPPS as a client admin.
  2. Click on the CPM tab.
  3. Click on Maintain Risk Grades in the Custom Programs section.
  4. On the Risk Grades Listing page, click the view action next to the risk matrix you want to view.
  5. The Risk Matrix Definition page opens to the current production version in read-only mode.
  • If no current Production version exists, a message “No current Production Version Exists.” is displayed.

ClosedTo View All Versions of a Risk Matrix Definition

  1. Log into EPPS as a client admin.
  2. Click on the CPM tab.
  3. Click on Maintain Risk Grades in the Custom Programs section.
  4. On the Risk Grades Listing page, click the versions action or on the risk matrix name.
  5. A list of all versions of the risk matrix definitions is displayed.

ClosedTo Hide/Unhide a Risk Matrix Definition

  1. Log into EPPS as a client admin.
  2. Click on the CPM tab.
  3. Click on Maintain Risk Grades in the Custom Programs section.
  4. On the Risk Grades Listing page, click the hide action next to the risk matrix you want to hide/unhide.
  5. A prompt “Are you sure you want to hide/unhide this Risk Matrix?” is displayed.
  6. When you click OK:
  • If the matrix is not hidden, it is no longer displayed in the list, unless the Hidden check box is selected.
  • If the matrix is already hidden, it is displayed in the list.
  1. If the Hidden check box is selected, a Hidden column is displayed on the right side of the grid.
  • True – The risk matrix is hidden.
  • False – The risk matrix is displayed.
EPPS-20558, EPPS-20563, EPPS-21050, EPPS-21565, EPPS-21706

The ability to create and manage Risk Matrix Definitions has been added to the Risk Matrix Versions page to ensure Non-QM loans are qualified properly,

Detailed Procedures

ClosedTo Create a New Version of a Risk Matrix Definition

  1. Log into EPPS as a client admin.
  2. Click on the CPM tab.
  3. Click on Maintain Risk Grades in the Custom Programs section.

  1. Click on versions next to an existing risk matrix definition or click on an existing risk matrix name.
  2. Click the Create a new version of this Risk Matrix link.
  3. Follow steps 5 through 9 in To Create a Risk Matrix Definition.

ClosedTo Edit a Version of a Risk Matrix Definition

  1. Log into EPPS as a client admin.
  2. Click on the CPM tab.
  3. Click on Maintain Risk Grades in the Custom Programs section.
  4. Click on versions next to the risk matrix definition you want to edit or click on its risk matrix name.
  5. Click on the edit action next to the risk matrix definition version you want to edit.

  • A unique Name must be entered.
  • The Effective field must be completed and cannot be identical to the Effective date of any existing Production or Development version.
  • Use the Order column to list the risk grades in the order you want them to be.
  • Use the Add a Risk Grade to add additional risk grades.
  1. Make your changes.
  2. Click Save.

ClosedTo Copy a Version of a Risk Matrix Definition

  1. Log into EPPS as a client admin.
  2. Click on the CPM tab.
  3. Click on Maintain Risk Grades in the Custom Programs section.
  1. Click on copy next to the risk matrix definition you want to copy. A copy of the selected risk matrix definition is created and is set to a “Development” profile. All parameters of the risk matrix definition are copied except the effective date (will be blank).
  • Copy is helpful when there are simple changes to the risk matrix definition. You can copy the version, edit it, select an effective date to test, and then promote it.
  • A unique Name must be entered.
  • The Effective field must be completed and cannot be identical to the Effective date of any existing Production or Development version.
  1. Click Save.

ClosedTo Clone a Version of a Risk Matrix Definition

  1. Log into EPPS as a client admin.
  2. Click on the CPM tab.
  3. Click on Maintain Risk Grades in the Custom Programs section.
  4. Click on clone next to the risk matrix definition you want to clone. A new risk matrix definition, based on the one selected, is created and is set to a “Development” profile. All parameters of the risk matrix definition are cloned except the name (will be Clone of Xxx) and effective date (will be blank).
  • Clone is helpful to reduce the data entry required to create a new risk matrix definition that contains components of an existing one.
  • A unique Name must be entered.
  • The Effective field must be completed and cannot be identical to the Effective date of any existing Production or Development version.
  1. Click Save.

ClosedTo Promote a Version of a Risk Matrix Definition

  1. Log into EPPS as a client admin.
  2. Click on the CPM tab.
  3. Click on Maintain Risk Grades in the Custom Programs section.
  4. Click on promote next to the risk matrix definition you want to promote.
  5. A prompt “Are you sure you want to promote this version to production?” is displayed.
  1. Click OK to change the Profile to “Production”.
  • If the Effective field is blank, a message “Please enter a valid Effective Date for this Version.” is displayed.
  • The Effective date cannot be identical to the Effective date of any existing Production or Development versions.

ClosedTo Delete a Version of a Risk Matrix Definition

  1. Log into EPPS as a client admin.
  2. Click on the CPM tab.
  3. Click on Maintain Risk Grades in the Custom Programs section.
  4. Click on delete next to the risk matrix definition you want to delete.
  • If you delete a Production version of a risk matrix, an error message “Version in production cannot be deleted.” is displayed.
  • If you delete a Development version of a risk matrix, a prompt “Do you want to delete /undelete this Risk Matrix version?” is displayed.
  1. When you click OK:
  • If the matrix is not deleted, it will no longer be displayed in the list, unless the Deleted check box is selected.
  • If the matrix is already deleted, it will be displayed in the list.
  1. If the Deleted check box is selected, a Deleted column is displayed on the right side of the grid.
  • True – The risk matrix is deleted.
  • False – The risk matrix is not deleted.
EPPS-21707, EPPS-21708, EPPS-21709, EPPS-22203

New expressions have been added to condition and matrix definitions.

This change does not apply to rate matrix definitions.

  • Bankrupt7 – Evaluated in Qualification when Bankruptcy Type is Chapter 7.
  • Bankrupt11 – Evaluated in Qualification when Bankruptcy Type is Chapter 11.
  • Bankrupt13 – Evaluated in Qualification when Bankruptcy Type is Chapter 13.
  • DefaultShortSale – Evaluated in Qualification when the Notice of Default (NOD) Type is Short Sale.
  • DefaultDeedinLieu – Evaluated in Qualification when NOD Type is Deed in Lieu.
  • DefaultForeclosure – Evaluated in Qualification when NOD Type is Foreclosure/Default.
  • DSCR – Debt service coverage ratio (DSCR) for the current loan.
  • IsDSCR – This is “True” when the DSCR for the current loan is not null.
  • PPPDisp – Sets or resets the prepayment penalty fee in case of disposition of the subject property.
  • PPPYears – The loan program’s prepayment penalty terms.
EPPS-19656, EPPS-20364, EPPS-21604, EPPS-21727

The PPPYears variable has been added to Matrices to enable prepayment penalty terms to be added to loan programs,

EPPS-21726

A new required PPP Terms section has been added to the Custom Program Definition to enable loan programs with prepayment penalty options to be available to users,

For a loan program to be included in the Qualification results, the prepay penalty term selected here must be the same as the one selected on the General tab.

EPPS-21728, EPPS-21734

A new Prepay Penalty Term field has been added to enable loan programs with prepayment penalty options to be included in the Qualification results.

The options displayed in the drop-down list are populated based on the prepayment penalty terms selected in the eligible loan programs chosen in Admin>Programs.

For a loan program to be included in the Qualification results, the prepay penalty term selected here must be the same as the one selected on the Custom Program Definition.

When the Penalty Term (field ID 2964) is mapped from Encompass to this new field, the values from Encompass are mapped as follows:

  • Blank is mapped to “none”

  • “1 Year” is mapped to “1 yr”

  • “2 Years” is mapped to “2 yrs”

  • “3 Years” is mapped to “3 yrs”

When the Prepay Penalty Term is mapped from this new field to the Penalty Term in Encompass, the values from EPPS are mapped as follows:

The EPPS values will only update the Penalty Term in Encompass if the Prepayment penalty term option is enabled under Admin>Settings>Encompass Update Elements.

  • “none”, “4 yrs”, and “5 yrs” are mapped to Blank
  • “1 yr” is mapped to “1 Year”
  • “2 yrs” is mapped to “2 Years”
  • “3 yrs” is mapped to “3 Years”
EPPS-20376, EPPS-21722, EPPS-21723, EPPS-21724, EPPS-21734

Updated on 7/13/2019

  • A new Non-QM Doc Level field in the Documentation Type section has been added to ensure Non-QM loans are qualified based on the Non-QM documentation provided by the borrower.

  • This field is only displayed if Non-QM is selected in the Standard Products section on the General tab.
  • The available options for the Non-QM Doc Level field will change when “Full Income” or “Alternative Income” (formerly “Limited Income”) is selected for Income.
  • When "Full Income" is selected, the following options are available:
  • 24 Months W-2/Tax Returns (Default)
  • 12 Months W-2/Tax Returns
  • When "Alternative Income" is selected, the following options are available:
  • 24 Months Personal Bank Statements (Default)
  • 12 Months Personal Bank Statements
  • 24 Months Business Bank Statements
  • 12 Months Business Bank Statements
  • The Non-QM Doc Level field is not displayed if “Lite Income”, “Stated Income”, or “No Income” is selected for Income.
  • New NOD Type and Bankruptcy Type fields next to the Notice of Default (NOD) and Bankruptcy fields, respectively, have been added to enable loans to be qualified based on different NOD and bankruptcy types.

  • A new DSCR field has been added to enable loans to be qualified using rent payments.

  • For the new field to be displayed, the “Non-QM” Standard Product on the General tab and the “No Income” option in the Income drop-down list on the Finances tab must be selected.
  • The field accepts numerals to two decimal places with a maximum value of 9.99.
  • A new No Credit Scores check box has been added to enable loans to be qualified without credit scores.

  • When No Credit Scores is selected:
  • The credit score validations will not be performed when the loan is qualified.
  • The credit score fields are disabled for all borrowers.
  • The credit score values are set to zero.
EPPS-18990, EPPS-18991, EPPS-22111

The Summary tab has been updated to display the Prepay Penalty Term for the selected loan program from the Qualification results.

EPPS-22112

A new optional PPP request parameter has been added to the EPPS Web Services and APIs. The value defaults to “none” if no value is present.

EPPS-21852, EPPS-21869

Additional Enhancements

The EPPS zip code database has been updated to match the Encompass zip code database to ensure consistency between EPPS and Encompass.

  • For each new zip code added to EPPS, the appropriate county will be added to the EPPS County table.
  • If there are county names in Encompass that do not match county names in EPPS, the EPPS County table will be updated to match Encompass.
  • Zip codes and counties will only cover the 50 US States, Guam, and Puerto Rico.
EPPS-22058

 

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