Loan Estimate Page 1
Working with 2015 RESPA-TILA Regulations
The Loan Estimate input forms (pages 1-3) enable you to review, edit, or enter information that is populated to the Loan Estimate output form that is provided to the borrower no later than the third business day after the loan application is received. Use the Loan Estimate Page 1 to review basic Loan Estimate disclosure information, lender information, loan details, loan terms, the projected payments (including estimated monthly taxes, insurance, assessments, and a balloon payment, if applicable), and the costs at closing. This form is used to populate page 1 of the Loan Estimate output form.
Disclosure Information
The Disclosure Information section displays information about the most recent Loan Estimate, the reason and changed circumstance for any redisclosure, and information about the most recently disclosed Loan Estimate that has not been excluded from the Disclosure Tracking timeline.
The Reason section enables a user to select the reason for redisclosing a Loan Estimate.
This checkbox and new Change of Circumstance Fee-Level Management features were introduced in Encompass 18.3 (View the release notes.)
The Fee Level Disclosures checkbox (field ID 4461) is provided above the list of changed circumstance reasons on the Loan Estimate (LE) Page 1 and Closing Disclosure (CD) Page 1 input forms. By default, this checkbox is NOT selected, which indicates that loans will be disclosed at a disclosure level. When this checkbox IS selected, fees must be redisclosed at the fee level (i.e., users must send revised disclosures when a fee is changed). You can document disclosure reasons with and without a changed circumstance when doing a fee level disclosure. Certain informational disclosure reasons on the LE Page 1 are available to select and enter details about, and they will be reflected in the Disclosure Tracking tool as applicable. This enables fee changes to continue to be documented at the fee level with the added benefit of permitting disclosure reasons to be identified at the disclosure level.
The following changed circumstance fields and reasons on the LE Page 1 are now always enabled so they can be selected to indicate a changed circumstance reason:
- Changed Circumstance (field ID 3168)
- Changes Received Date (if Changed Circumstance field is selected) (field ID 3165)
- Changed Circumstance text box and Lookup (magnifying glass) icon (if Changed Circumstance field is selected) (field ID 3169)
- Comments box (if Changed Circumstance field is selected) (field ID LE1.X86)
Reasons:
- Any Changed Circumstance that does not have a specific reason assigned to it. (Using the Changed Circumstances Setup tool in Encompass Settings, the administrator can assign a specific reason to a Changed Circumstance option.)
- Other (field ID LE1.X84 and CD1.X59)
You can also open the Good Faith Fee Variance Violated alert and enter information in the alert that will then be populated to these fields as applicable.
Note that administrators use the Changed Circumstances section of the Disclosure Tracking Settings screen to control if this checkbox is selected or not. If the administrator configures this checkbox to be selected, users will not be permitted to change it.
It is important to consider that the disclosure level that is set with the Fee Level Disclosures checkbox is established once the initial disclosure (typically the LE) is sent. Once this initial disclosure has been sent, you cannot change the Fee Level Disclosures checkbox. Once you have disclosed at a fee level, you must continue to redisclose at a fee level for the remainder of the loan’s lifecycle (and vice versa if you have initially disclosed at a disclosure level). The Fee Level Disclosures checkbox will no longer be editable (i.e., it will be grayed out) once the loan is disclosed. For loans started in earlier versions of Encompass before this checkbox was available, the checkbox will not be selected.
Indicate the reason for a redisclosure
The Changed Circumstance section enables users to enter or edit details about a changed circumstance that results in a redisclosed Loan Estimate.
Indicate a changed circumstance
The area below the Reason section displays information about the most recent Loan Estimate disclosed to the borrower that has not been excluded from the timeline in the Disclosure Tracking tool. These fields are populated after a Loan Estimate has been disclosed to the borrower. The fields are read-only and cannot be edited.
Last Sent Date - Date when the Loan Estimate was sent.
By - Encompass user who sent the Loan Estimate.
Sent Method - Method used to send the disclosure.
Received Date - If the most recently disclosed version of the disclosure is the initial Loan Estimate, the LE Received Date from the Disclosure Tracking tool. If the most recently disclosed Loan Estimate is a revised Loan Estimate, the Revised LE Received Date from the Disclosure Tracking tool.
The area below the Intent to Proceed section records the borrower's intent to proceed with the loan and provides information about the Loan Estimate that is being used for the loan. This section is enabled for editing only after a disclosed Loan Estimate has been received by the borrower (the current date is on or after the LE Received Date on the Disclosure Tracking tool for the most recently disclosed Loan Estimate).
Complete the Intent to Proceed section
Lender's Info
The Lender information is populated based on the Lender entry in the File Contacts tool or the Lender information entered in other Encompass forms.
Click the Address Book icon to copy lender information from your Business Contacts.
Loan Details
This section contains information about the borrower and co-borrower; the subject property address, value and sale price; the loan term, purpose, product, and loan type; and rate lock information. Most fields in this section are populated from other Encompass forms.
In the LE Date Issued field, enter the date when the Loan Estimate disclosure is sent to the borrower, or click the Calendar icon to select a date.
Click the Lock icons to edit the associated fields.
Loan Terms
The information in the Loan Terms section is populated from other Encompass forms and varies based on the selections made on the other forms. To edit the fields, select the Customize checkbox at the top of the section.
Can this amount increase after closing?
The Loan Amount, Interest Rate, and Monthly Principal & Interest display on the left.
The Can this amount increase after closing? column contains a dropdown lists for each of the entries listed above.
If No displays in the dropdown list for any of these entries, no additional information displays.
If Yes displays in the dropdown list, additional details about the increase display to the right of the dropdown list. Use the Lock icons or dropdown lists, if available, to manually change details. Click the buttons, if available, to view additional information.
Does this loan have these features?
This section contains rows for Prepayment Penalty and Balloon Payment.
The Does this loan have these features? column contains a dropdown lists for each of the entries listed above.
If No displays in the dropdown list for any of these features, no additional information displays.
If Yes displays in the dropdown list, additional information about the feature displays to the right of the dropdown list. Use the Lock icons or dropdown lists, if available, to manually change details. Click the buttons, if available, to view additional information.
Projected Payments
The Projected Payments section shows the estimated payments (monthly or biweekly, depending on the loan type), the final balloon payment, if any, and the estimated monthly taxes, insurance, and assessments. Click the View Payment Schedule button in the section header to view the payment schedule.
The Project Payments table is read-only by default and displays information based on the type of loan. Use the Customize checkbox and Edit button at the top of the section to customize the Projected Payments section for construction loans and other loan types that require specialized setup for the Projected Payments table.
The top of the section lists the estimated payments (monthly or biweekly, depending on the loan type). A column on the left lists the type of information displayed in each row:
Time period
Principal and interest
Mortgage insurance
Estimated escrow
Total estimated monthly or biweekly payment
Up to four columns on the right display payment amounts, including payments for various time periods when the principal and interest payment change, mortgage insurance payments end, or a balloon payment is due.
For example:
A 30-year fixed rate loan displays only one column if monthly payments do not change during the life of the loan and there is no mortgage insurance or balloon payment.
A 5/3 ARM Interest Only loan may have four columns due to periodic interest rate adjustments and the termination of mortgage insurance payments.
All adjustable rate (ARM) loans will generate a four column Projected Payments table based on the following loan triggers:
Periodic Principal and Interest Payment Changes
The Apply Actual Payment Change checkbox is provided at the top of the Projected Payments table for ARM loans only. Select this checkbox to revert to the previous Projected Payments table trigger logic used in Encompass 15.2.0.0 (and earlier) and apply the actual payment change. This checkbox is hidden if the Projected Payments table’s Customize checkbox is selected.
Total Estimated Payment
The Total Estimated Payment label displays as Total Est. Monthly Payment or Total Est. Biweekly Payment, depending on whether the Biweekly option is selected or cleared the Amortization type (field ID 423).
Final Balloon Payment
For balloon loans, the date and the amount of the final balloon payment display in the row labeled Final Balloon Payment on.
Estimated Taxes, Insurance, & Assessments
The total for the Estimated Taxes, Insurance, & Assessments is populated based on information entered in the 2015 Itemization.
The This estimate includes checkboxes are selected based on the checkboxes that are selected on line 1001 on the 2015 Itemization.
The In escrow? fields are populated with YES or NO based on the criteria below:
Property Taxes - Whether the property taxes have been added to the Aggregate Escrow Account Setup tool
Homeowner's Insurance- Whether one or more of the following insurance items have been added to the Aggregate Escrow Account Setup tool:
Homeowner's insurance
Flood insurance
One of the user-defined fees that has the Insurance checkbox selected in the Fee Details pop-up window on the 2015 Itemization form.
Other- Fees in lines 1007, 1008, and 1009 on the 2015 Itemization form that do not have the Insurance or Taxes checkbox selected on the Fee Details window on the 2015 Itemization:
YES - If all are escrowed in the Aggregate Escrow Account form.
NO - If none are escrowed in the Aggregate Escrow Account form
YES, SOME - If some are escrowed in the Aggregate Escrow Account form
Costs at Closing
This section lists the closing costs based on fees in the various sections of the Loan Estimate Page 2 input form, including Loan Costs, Other Costs, Lender Credits, Total Closing Costs, and Total Cash to Close. Details about the Total Closing Costs and Total Cash to Close are available on the Loan Estimate Page 2.
When the alternate version of the Calculating Cash to Close section is being used on the Loan Estimate Page, this sections displays an additional text box at the end of the Total Estimated Cash to Close line that indicates whether the amount is paid To Borrower or From Borrower.