Closing RegZ
The Closing RegZ form provides the borrower with an overall view of the terms of the loan and its costs over time. It also contains information specific to the requirements for requesting closing documents.
Many of the fields will already be completed, based on entries on the 1003 and Truth-In-Lending Disclosure statement.
Section Information
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Loan Program - When working with this feature, a "loan program" is a template of predefined values that display primarily on the Truth-In-Lending Disclosure statement and the 1003 application. Here you can use the Loan Program button to select a loan program to use with the loan. The data from the template is copied to the loan forms. Once applied to the loan, you can leave the data as is or change values as needed. The original data on the loan program template is not affected. Click the Loan Program button to select a loan program to apply to the loan.
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Select Only apply Loan Program template fields that contain a value checkbox to apply only those fields that are populated in the template to the loan file.
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If the selected loan program template has a closing cost template associated with it, select Only apply Closing Cost template fields that contain a value checkbox to apply only those fields that are populated in the closing cost template to the loan file.
If you select a loan program associated with a plan code, the plan code data cannot be edited in the Select Loan Program Template window.
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If your company is licensed to use the Encompass Docs Solution, and if you select a loan program that is associated with a plan code, the plan code data is applied to applicable fields as well.
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To view the loan program data that will be applied to the loan if selected, click to select the loan program. The details display in the Details section (located on the right side of the Select Loan Program Template window).
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To change the loan program data for this loan only, make your changes in the Details section of the Select Loan Program Template window.
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Plan Code - Use the Plan Code feature to select a loan program that will be applied to the closing documents.
Use the Plan Code feature to select a loan program that will be applied to the closing documents. Here you can select from a list of investor-specific plan codes or create your own custom plan code.
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To apply a new plan code to the loan file (and the associated closing documents), click the Plan Code button, click to select a plan code, and then click Select.
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Only plan codes that match the current loan data are listed. To view all plan codes, click the Clear Filter button.
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If there is an investor associated with the plan code, the Apply Investor Info dropdown list displays in the lower-left corner of the Select Plan Code window. To apply investor information to the loan file and closing documents, select the investor from the dropdown list. The forms to include in the closing documents and/or the address to print on the forms for servicing may be determined by the investor you select here.
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You can perform a search by typing data into a field above a plan code column or by selecting an option from a column's dropdown list. Only plan codes containing the specified data are displayed.
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Click a column header to sort all plan codes in ascending or descending order based on the information in a column.
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To add a plan code to the list, click the New icon, and then select the plan code to add. To view a plan code's details, including the values that will be added to the loan file if selected, select the plan code, and then click the View Plan Code Details icon (magnifying glass). For detailed instructions about working with plan codes, view the Closing Doc Plan Codes help topic.
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If any values in the loan file are different from the corresponding values in the selected plan code, the Plan Code Conflict window displays showing the affected fields. Conflicting loan data is identified by a red alert icon.
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Click the Import Plan Data button to overwrite the current loan data with the selected plan code data. These changes are applied to the loan immediately.
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Click Skip Import to continue ordering the closing documents without resolving the plan code conflicts.
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Click Cancel to close the Plan Code Conflict window without making any changes to the loan data. You can then update the applicable fields in the loan file to resolve any conflicts that were found.
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Alt Lender - Use the Alternate Lender feature to view alternate lender information (code number and description) that appears on the closing documents.
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On the Closing RegZ form, click the Alt Lender button to view alternate lender information (code number and description) that appears on the closing documents.
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In the Alternate Lenders window, select a lender, and then click Select to replace the current lender information in the loan with the selected lender's information.
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Check Closing Document Data - The Closing Document Data button on the Closing RegZ input form enables you to review and confirm the accuracy of the lender and investor data that will be applied to the closing documents. If necessary, you can change this data and replace the old data in the loan file. Please note, any changes you make here are applied to the current loan file only.
The Check Closing Document Data feature is available only for companies licensed to use the Encompass Docs Solution to generate their initial disclosures or closing documents.
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On the Closing RegZ input form, click the Closing Document Data button on the top-right of the form.
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In the Closing Document Data window, click the Lender Info tab and the Lender Info Cont. tab to view lender data that is currently included in the lender settings. This information is added as part of the initial Encompass Docs Solution set up performed by ICE Mortgage Technology and your administrator. This information will print to your closing documents.
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Click the Investor Info tab to view the investor data that is currently in the loan file. This information is populated based on the plan code currently applied to the loan.
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To change a field on a tab, click the slider to the left of the field and enter or select a new value. Changes made here are applied to the current loan file only.
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To make changes to the default lender and investor data that is applied to the closing documents, contact your ICE Mortgage Technology account representative.
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When finished, click OK.
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Print 01/2001 Version of Uniform Instruments checkbox – When the checkbox is cleared, Encompass generates the 2022 versions of the Fannie Mae and Freddie Mac Uniform Legal Instruments (Notes, Security Instruments, etc.). Select the checkbox to generate the old 01/2001 versions of the Uniform Legal Instruments.
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If authorized by your administrator, you can click the blue Lock icon
next to a field, and then enter data manually. When you click the blue Lock icon, it changes to a gold Lock icon 
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After entering data manually, you can click the gold Lock icon
to replace the manually entered data with data calculated by Encompass. -
If closing documents have not been ordered yet, the Last TIL Sent Date, Borrower Received Date, Disclosed APR, and Disclosed Finance Charge fields are populated with data pulled from the corresponding fields in the Disclosure Tracking tool when the gold Lock icon is clicked.
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If closing documents have been ordered, the values in the Last TIL Sent Date, Borrower Received Date, Disclosed APR, and Disclosed Finance Charge fields revert back to the values that were set when the closing documents were ordered when the gold Lock icon is clicked.
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This section displays the name and address of the borrower and seller, the loan amount and terms, including the monthly payment, purpose, and details for the loan type. Most information will already be completed with information from the 1003 and REGZ-TIL forms. Information specific to the Closing RegZ includes selecting a Plan Code and Alt Lender information, and entering closing-related dates.
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To select the Rescission Date, click the Calendar icon, and then select the date after which the borrower cannot cancel the loan. Typically, this is three days after the document date.
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To indicate the loan is exempt from the TILA Right of Rescission requirements that are checked when an Encompass Compliance Service preview or review is performed, select the Exempt from Right of Rescission checkbox. Note that is checkbox is available for non-Purchase loans only.
If not already populated from the Borrower Summary form, enter the loan amount, followed by the additional terms required for the loan.
Enter the terms of the Buydown subsidy.
Enter the terms of the Buydown subsidy.
Enter the number of months that payments will be applied to the interest rate only. Select the Qualify using P&I checkbox to qualify the loan using an estimated payment that includes both principal and interest.
Select a method of calculation for the repayment schedule. For each option, the value represents the number of days per year used to calculate the loan's daily interest.
Select the checkbox to require mortgage payments every two weeks, rather than every month. For more information about biweekly loans, refer to the Process a Biweekly Loan topic.
In the first two fields in the Adjustable Rate Mortgage section, enter the maximum percentage that the loan can adjust at the first adjustment period and the number of months from the close of the loan to when the first rate adjustment can occur.
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In the Adj Cap field (field ID 695), enter the maximum percentage that the loan rate can change at each adjustment, after the first adjustment.
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In the Adj Period field (field ID 694), enter the number of months between rate adjustments, after the first adjustment.
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In the Life Cap field (field ID 247), enter the maximum percentage (above the initial note rate) that the rate can adjust during the life of the loan.
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The Max Life Int. Rate field (field ID 2625) displays the maximum interest rate cap for the life of the loan.
Click the Get Index button to look up the current index (based on the ARM Index Type indicated on the REGZ-TIL). The Index field (field ID 688) is updated with the most current index and is used as the basis for the rate of the loan
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Due to a change of policy by the ICE Benchmark Administration effective September 2, 2014, all LIBOR index rates are updated one business day after the index’s effective date. LIBOR rates obtained using the Get Index button reflect the prior business day’s LIBOR rate.
The following ARM Index Types are impacted:
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LIBOR - 1 month 1 Month London Inter-Bank Offering Rate (LIBOR)
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LIBOR - 3 month 3 Month London Inter-Bank Offering Rate (LIBOR)
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LIBOR - 6 month 6 Month London Inter-Bank Offering Rate (LIBOR)
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LIBOR - 12 month 12 Month London Inter-Bank Offering Rate (LIBOR)
Potential Negative Amortization
Enter the terms for a negative amortization loan.
Enter the additional payment to be made every month to reduce the loan balance in the Extra Payment field (field ID 312).
For more information about construction loans, refer to the Process a Construction Loan topic.
Select a method for calculation of interest. Method A (also known as Half Loan or On Advance When Made Method): Interest is payable only on the amount advanced for the time it is outstanding. Assumes one half of the commitment amount is outstanding at the contract interest rate for the entire construction period. Method B (also known as Full Loan): Interest is payable on the entire amount regardless of actual dates or amounts of disbursement. Assumes the entire commitment amount is outstanding at the contract interest rate for the entire construction period.
Select a method for calculation of the repayment schedule. In each option, the first value represents the number of days per year used to calculate the loan's total interest and the second number represents the number of days per year used to calculate the daily interest. 360/360: Total interest is calculated based on the months in the loan period multiplied by 30 (partial months are not allowed) / Daily interest is calculated based on 360 days in a year. 365/360: Total Interest is calculated based on the total days in the loan period (partial months are allowed) / Daily interest is calculated based on 360 days per year. 365/365: Total Interest is calculated based on the total days in the loan period (partial months are allowed) / Daily interest is calculated based on 365 days per year.
HELOC - Draw/Repayment Period Edit icon
Use the Edit icon 
for the Draw/Repay Period to set up example payment data that
is used on the HELOC custom form, "Important Terms of Our Home Equity
Line of Credit." You can apply data from a predefined template, edit
the applied template data, or set up data from scratch.
To add or select HELOC information, the loan type must be designated as HELOC on the Borrower Summary form.
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Click the Edit icon to open the Edit HELOC Table window.
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Click Select From Template.
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Select a Table Name and click Select.
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Click Yes to override current Draw/Repayment settings.
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Click OK on the Edit HELOC Table window.
Edit existing data or set up data from
scratch
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Click the Edit icon to open the Edit HELOC Table window.
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Click Add.
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In the Minimum Monthly Payment window, create sample data for each year:
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Type the Year, such as 2001.
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Select a Period Type: Draw or Repayment.
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Type the Index %, Margin %, and APR % for the year.
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Click OK.
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Repeat step 3 to add additional entries to the table.
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Select an entry in the table, and then click Edit to modify the entry.
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Select an entry in the table, and then click Delete to delete the entry.
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When finished, click OK on the Edit HELOC Table window.
Use the Edit icons in the Mortgage Insurance section to calculate the mortgage insurance premium and term. For detailed instructions, refer to Calculating Mortgage Insurance Premiums.
Interest Rate and Payment Summary
The Interest Rate and Payment Summary table displayed on the form is determined by the purpose of the loan, its amortization type, and the term of the loan. For more information, refer to the REGZ-TIL Interest Rate and Payment Summary Tables document.
The table states the following:
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The initial interest rate together with the corresponding monthly payment, including any estimated escrow account for taxes and property insurance and/or private mortgage insurance.
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For adjustable-rate and buydown loans, the maximum interest rate and payment that can occur during the first five years and a “worst case” example showing the maximum rate and payment possible over the life of the loan.
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Click the View Payment Schedule button to view the loan's Amortization Schedule.
The Payment Schedule is calculated using values from the loan terms and loan type fields. You can also enter custom values as follows.
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Select the Customize checkbox.
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Type values in the Number of Payments, Interest Rate,and Monthly Payment fields as needed.
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Click Calculate Payment to recalculate the payment schedule.
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Clear the Customize checkbox to return to the original schedule.
Select any features or conditions that apply to the loan.
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Required Deposit - The calculated annual percentage rate does not take into account the borrower's required deposit.
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Demand Feature - The terms of the loan allow the lender to demand immediate and accelerated repayment of the loan balance.
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Variable Rate Feature - The loan contains a variable interest rate feature.
Indicate the type of insurance required and, if appropriate, the annual premium.
These sections contain information related to loan conditions such as early payoff, late charges, and assumability.
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Filing Fees are typically the government recording and transfer charges from section 1200 of the Good Faith Estimate.
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Click the Prepayment Penalty button to enter detailed prepayment penalty information.
Enter prepayment penalty information
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To create up to five entries for prepayment penalties, select the type of prepayment penalty (Hard or Soft).
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Type the number of months in the prepayment period, and the percentage of the prepayment.
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The Hard Prepayment Period and Prepayment Penalty Period fields are calculated based on previous entries.
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In the Prepayment Penalty Fee field, enter the number of months of advanced interest that the prepay penalty cannot exceed
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In the Penalty Based on field, select the amount or balance on which the prepayment penalty is based.