Loan Estimate Page 2

The alternate Calculating Cash to Close section displays the amounts for the following cash-to-close items:

• Loan Amount

• Total Closing Costs (J)

• Estimated Total Payoffs and Payments - Click the Lock icon to edit the amount.

• Estimated Cash To Close (From Borrower or To Borrower)

• Estimated Closing Costs Financed

  To View and Edit Payoff Entries:

  1. Click the Payoffs & Payments button to open the Payoffs and Payments pop-up window. The pop-up has the following sections:

     • Disbursement to Others - This section lists the liabilities with balances, including a checkbox to indicate whether the liability is Paid Off, a checkbox to indicate that the paid off amount will be included for that borrower pair in the Payoffs and Payments (K) field (field ID CD3.X84), and columns for the number assigned to the borrower pair, Creditor Name, Description of Purpose, Balance, and Payoff Amount.

     • Calculating Cash to Close - This sections displays the information from the Calculating Cash to Close section on the Closing Disclosure - Page 3.

  2. In the Disbursement to Others section, select a Paid Off checkbox to mark the disbursement as paid and to include the paid off amount for that borrower pair in the calculated Refinance field (field ID 1092) on the borrower pair’s 1003 and other forms.

  3. Select the Include checkbox to include the paid off amount for that borrower pair in the Total Payoffs and Payments (K) field. To exclude the paid off amount for a borrower pair, clear the Include checkbox.

  4. Click an entry in the Description of Purpose column to edit the description for a disbursement. By default, the purpose is populated from the Purpose field for the VOL entry on the VOL input form.

  5. The following data is updated as the Paid Off checkboxes are selected or cleared:

     • The Total Payoffs and Payments field at the bottom of the Disbursement to Others section displays the total amount for all disbursements that have the Paid Off checkbox selected.

     • The Calculating Cash to Close section is updated based on the selections in the Paid Off checkboxes.

  To Add Non-VOL UCD Adjustment Data:

  1. Click the Payoffs & Payments icon.

  2. On the Payoffs and Payments pop-up window, click the Add button.

  3. On the Add Other Adjustments pop-up window, complete the following information:

     • Adjustment Type – Select Gift, Grant, Rebate Credit, or Other from the dropdown list:

       When the Other option is selected, a Credit checkbox displays on the Add Other Adjustment pop-up window. By default, the checkbox is cleared, indicating that the entry is a charge to the borrower. When a user selects the checkbox and clicks OK, the item is added to the Payoffs and Payments window as a negative value that reduces the Total Payoffs and Payments amount and total Cash to Close amount. When a user does not select the checkbox and clicks OK, the item is added to the Payoffs and Payments window as a positive value that is added to the Total Payoffs and Payments amount and total Cash to Close amount.

     • Adjustment Description – Enter a description of the adjustment (up to 100 characters)

     • Adjustment Other Description – If Other is selected for the Adjustment Type, enter a description of the Free Entry Field.

     • Adjustment Amount – Enter the amount of the adjustment.

  4. When finished, click OK.

  • Double-click a non-VOL entry to open the Add Other Adjustments pop-up window for the entry.

  • The Paid Off checkbox is disabled for non-VOL entries.

  • The Include checkbox is selected by default and indicates that the paid off amount for that borrower pair will be included in the Total Payoffs and Payments (K) field. To exclude the paid off amount for a borrower pair, clear the checkbox.

  • When the Include checkbox is selected for an entry on the Payoffs and Payments table, the adjustment is included in the calculation for the Estimate Total Payoffs and Payments (field ID LE2.X31) on the Loan Estimate Page 2, the K. Total Payoffs and Payments (field ID CD3.X80) on the Closing Disclosure Page 3, and the Final Payoffs and Payments (K) (field ID CD3.X84) on the Closing Disclosure Page 3. For purposes of calculation, all adjustments added via non-VOL process are treated as credits (reducing borrower cash to close). When the Include checkbox is cleared or when a record is deleted, Encompass updates the calculations to remove the adjustment from the three fields mentioned in the preceding bullet point.

  • When there are non-VOL based entries in the table and a user switches from alternate to standard disclosures, a confirmation message notifies the user that switching to standard disclosures will delete all non-VOL entries from the pop-up window. The user can then click OK to proceed or Cancel to continue using alternate disclosures. When no non-VOL entries are in the table, a confirmation message does not display when the user switches from alternate to standard disclosures.

  • Non-VOL data is transferred to the Encompass Docs Service for inclusion on the disclosure forms for the Closing Disclosure Page 3 and its Addendum. If there are more than 15 entries in the Payoffs and Payments table, including the non VOL based adjustments, the data prints on the Addendum.

  To Add a Non-Cure, Non-VOL Principal Reduction:

  1. Click the Payoffs & Payments button.

  2. On the Payoffs and Payments pop-up window, click the Add icon.

  3. On the Add Other Adjustments pop-up window, select Principal Reduction from the Adjustment Type dropdown list.

  4. Enter an Adjustment Amount and select a Paid By option from the list.

  5. Select the appropriate checkbox on the lower-left to indicate whether the reduction is a Credit or POC (Paid Outside Closing).

  6. When finished, click OK.