Buydown Disbursement Summary
This feature is not available in Encompass Broker Edition.
The Buydown Disbursement Summary provides a schedule of the buydown terms, subsidy, fund requirements, and current fund balance.
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The buydown terms entered in the Buydown Mortgage section on the REGZ-TIL are used to calculate the monthly buydown subsidy, the total fund for each buydown period and the current fund balance for each period.
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The fund balances are reduced as payments are recorded on the Interim Servicing Worksheet.
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The bottom of the form shows the total and remaining buydown fund for the life of the buydown subsidy.
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The Sec 32 Seller Paid Buydown field indicates the seller’s buydown contribution amount. (This field is provided in the Fees included in Points and Fees Test section of the ATR/QM form’s Qualification tab.)
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Depending on the scenario, authorized users can unlock this field and manually enter the amount. (Note that the Encompass Compliance Service (ECS) does not include this new field QM.X378 in its points and fees calculation.)
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By default, this field and its Lock icon are disabled (i.e., grayed out) by default. The field will be enabled, and the locked state of this field will vary, according to the following conditions:
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When the buydown contributor is indicated as the Seller, field QM.X378 will display the same value as the Buydown Fund (field ID 3119) on the Borrower Disbursement Summary input form. (The fund is the amount deposited in advance into an escrow account, and includes the total amount needed to fund all the monthly buydown subsidies throughout the loan’s buydown period.) In this scenario, the QM.X378 field is locked and the blue Lock icon displays. The total amount from the Buydown Fund (field ID 3119) is included in the calculation for the Total points and fees applicable under section 32 (field ID S32DISC.X48). Authorized users can click the blue Lock icon to unlock the field and manually enter the seller paid buydown amount.
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When the buydown contributor is indicated as anyone except the Seller, the field and the Lock icon will be disabled. If an amount was previously populated to this field, it will be removed.
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