Create a GSE Commitment
This feature is not available in Encompass Broker Edition.
The GSE Commitments tab enables multiple commitments to be attached to a Fannie Mae PE MBS pool with multiple guaranty fees. It also allows for multiple products and multiple Buy Up/Buy Down grids. Currently, the MBS Pools tab only accepts one guaranty fee and one Buy Up/Buy Down grid per pool.
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Click the Trades tab, and then click the GSE Commitments tab.
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Click the New icon.
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Click OK.
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Complete the Details tab.
Use the GSE Commitment Info fields to enter information about the GSE Commitment.
- The Commitment ID is a required field and must be unique.
In the Select Product Names section, you can add Fannie Mae loan products to the commitment. The available list of products can be managed through the new section, Fannie Mae Product Name Values, in the Trade Management Setup setting.
In the Fannie Mae PE MBs Pools section, you can allocate multiple Fannie Mae PE MBS Pools to the commitment. In addition, you can allocate all or a portion of the pool amount to the commitment.
The commitment with the allocated Fannie Mae PE MBS Pools is also displayed in each individual Fannie Mae PE MBS Pool’s Commitments section on its Details tab.
To Allocate a Fannie Mae PE MBS Pool:
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Click the Trades tab and then the GSE Commitments tab.
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Create a new commitment or select an existing one.
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On the Details tab, in the Fannie Mae PE MBS Pools section, click Allocate Pool.
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Select one or more pools.
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Or, use the Filter section to search for pools.
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To allocate all or a portion of the pool amount, double-click in the Allocated Pool Amount column and enter the amount you want to allocate to the commitment.
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Highlight the Fannie Mae PE MBS Pools rows and then click Allocate.
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A confirmation message displays.
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Click Yes to continue.
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Click the Save icon.
In the Pair-Offs section, you can add and manage Pair-Offs.There is no limit to the number of Pair-Off entries that can be added.
To Add a Pair-Off:
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Click the Add icon.
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Enter or select the Pair-Off Date.
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Enter the Trade Amount.
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The Gain/Loss amount is calculated automatically.
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On the Pricing tab, you can define guaranty fees and the range of rates for the loans in your commitment.
In the Guaranty Fee Pricing grid, you can add and manage guaranty fees.
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Click the Add Guaranty Fee icon.
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Select a Product Name.
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Enter a Coupon.
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Enter a Guaranty Fee.
- Enter a CPA.
This field was added in Encompass 17.2.
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Click Add Another and repeat steps 2 through 4 to add additional guaranty fees.
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When finished, click OK.
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Click the Save icon.
To delete an entry, select the entry and click the Delete icon.
In the Buy Up grid, you can create multiple buy up grids by product.
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Click the Trades tab and then the GSE Commitments tab.
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Create a new commitment or select an existing one.
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Click on the Pricing tab.
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From the Select Product for BU and BD Grid dropdown list, select the product you want to add a buy up grid to.
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In the Buy Up section, click the Add Buy Up icon.
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Enter the GNR Min (Gross Note Rate Minimum), GNR Max (Gross Note Rate Maximum), and Buy Up Ratio.
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Click Add Another and repeat step 5 to add additional buy up ratios to cover the range of rates in the commitment.
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When done, click OK.
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Click the Save icon.
To delete an entry, select the entry and click the Delete icon.
In the Buy Down grid, you can create multiple buy up grids by product.
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Click the Trades tab and then the GSE Commitments tab.
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Create a new commitment or select an existing one.
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Click on the Pricing tab.
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From the Select Product for BU and BD Grid dropdown list, select the product you want to add a buy down grid to.
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In the Buy Down section, click the Add Buy Down icon.
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Enter the GNR Min (Gross Note Rate Minimum), GNR Max (Gross Note Rate Maximum), and Buy Down Ratio.
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Click Add Another and repeat step 5 to add additional buy down ratios to cover the range of rates in the pool.
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When done, click OK.
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Click the Save icon.
To delete an entry, select the entry and click the Delete icon.
In this grid, you can create a table of pricing adjustments based on the note rate of each loan. For Fannie Mae PE MBS Pools, you can view the Pricing Adjustments grid for a product by selecting it from the Product dropdown list.
To Add an Adjustment Template:
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Click the Trades tab and then the GSE Commitments tab.
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Create a new commitment or select an existing one.
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Click on the Pricing tab.
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In the Pricing Adjustment section, click the Template.
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Select a template.
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To add the template data to an existing list of adjustments (instead of replacing the list), select the Append template to existing data checkbox.
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Click Select.
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Click the Save icon.
To delete a pricing adjustment, select the entry and click the Delete icon.
To Add an Adjustment:
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Click the Trades tab and then the MBS Pools tab.
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Create a new pool or select an existing one.
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Click on the Pricing tab.
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In the Pricing Adjustment section, click the Add Adjustment icon.
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Enter a percentage value for the price adjustment when the condition is met in the Price Adjustment field.
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If the investor will pay the adjustment amount when the condition is met, enter a positive value. If the investor will receive a discount, enter a negative value.
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Click the Add Filter icon.
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In the Field field, click the Find icon to select a field from the list. The list includes a default set of loan fields and any loan fields added to the Reporting Database.
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Or, type one or more characters in the field at the top of the window and click Find. The first occurrence of the characters in any column will be found.
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Select an Operator, enter any required Values, and then click OK.
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The Operator and Value define how the field will be used to define the adjustment. For example, Field ID = 1109 (Loan Amount), Operator = Greater than, Value = 250000.
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For compound filters, use the AND/OR button to indicate how the filters are applied. Use and when you want all the selected filters to apply to the loans. Use or when you want to locate loans that match any of the selected filters.
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Use Parentheses to control the order in which the filters are evaluated. Click Parentheses, select the filters to group, click the New icon, and then click OK.
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To adjust the price adjustment directly on the Price Adjustment list, click the cell in the Price Adjustment column, and type a percentage value for the adjustment when the condition is met.
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If the investor pays the adjustment amount when the condition is met, enter a positive value. If the investor receives a discount, enter a negative value.
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Click the Save icon.
To edit a price adjustment, select an entry, click the Edit icon , make your changes, and then click Apply.
To delete a pricing adjustment, select the entry and click the Delete icon .
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On the Loans tab, you can you can view the loans attached to the Fannie Mae PE MBS Pool that is allocated to the GSE Commitment.
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On the Notes/History tab, you can add notes about the MBS Pool and manage your history items.
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Click the Trades tab and then the GSE Commitments tab.
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Double-click a commitment, and then click the Notes/History tab.
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Click the Date Stamp button, and then type the required notes.
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Click the Save icon.
Saving the Commitment and Update Loans
After creating a commitment, and assigning and allocating loans, save the commitment and update the loans.
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Click the Save icon
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When asked if you want to update the loan files, click Yes.
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When you click Yes, the Loan Data Synchronization window displays any loan and commitment fields that are not synchronized.
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If a checkbox is selected, the loan fields will be overwritten by the value entered in the commitment field.
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If a checkbox is cleared, the loan fields will not be synchronized with the commitment fields.
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By default, the selected loan fields are updated for all loans, so the Apply to All Loans checkbox at the bottom of the window is disabled.
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About Saving and Updating Commitments
Using the Save Icon - When you save a commitment using the Save icon, you have the option of updating only the commitment, or both the commitment and its assigned loans. Until you update the assigned loans, the data in the commitment will not be synchronized with the data in the loan files.