Piggyback Loans Tool
A piggyback loan is a loan that is completed at the same time as a primary
(or 1st) loan. Piggyback loans are also referred to as concurrent
or 80/10/10 loans.
Using the Piggyback Loans tool, you can:
-
Create the 2nd (piggyback) loan using information and verifications already recorded for the first loan.
-
View key loan information for both loans in a side-by-side format.
-
Synchronize information between the two loans.
Note: You can also use the Duplicate Loan feature to create a piggyback loan from the Pipeline. If you do so, you can still work with and manage both the 1st and 2nd loans using the Piggyback Loans tool.
To Create a Piggyback Loan
Start the 1st Mortgage and Gather Information
-
Complete as much information as possible on the
Borrower Summary, 1003, 2015 Itemization, verifications, and other loan forms.
-
Order credit, appraisal, and other services.
Create the Piggyback Loan
-
With the 1st loan open, click the Tools tab, and then click Piggyback Loans.
-
At the top-left of the form, click
New 2nd.
-
When the message window opens, click Yes or No to select a synchronization option.
Note: If you select the option to synchronize loans, the loan values copied to the new loan are those fields that have been specified in the Piggyback Loan Synchronization tool on the Encompass Settings screen.
-
The piggyback loan is created and linked to the 1st loan.
-
The new loan information displays in the 2nd Loan Position column.
-
The loan is added to your Pipeline.
Or Link to an Existing Loan
You can use the Link to Loan option to create an association to an existing, 2nd loan.
-
With the 1st loan open, click the Tools tab, and then click Piggyback Loans.
-
At the top-left of the form, click
Link to Loan.
-
Select the loan that will become the 2nd loan, and then click Link.
-
When the message window opens, click Yes or No to select a synchronization option.
Work with a Piggyback Loan
Synchronize Data
There are two ways to synchronize data between the first and second loans, one field at a time, or all fields at once. In either case, only those fields specified in the Piggyback Loan Synchronization tool are synchronized.
-
Field Update - When you enter or change data in a field in either loan, the data is automatically updated in the other loan.
-
Batch Update - When you click Sync Data, all fields that are not synchronized are updated. The value in the 2nd loan field is adjusted to match the value in the 1st loan.
Switch Between the 1st and 2nd Loan
When you're working in the Piggyback Loans tool, the loan in the left column is considered the Current Input loan. All information on input forms, tools, the Pipeline, Log, and so forth, is for the Current Input loan. If you enter data on any other form or tool, it will be reflected in the Current Input Loan. The icon preceding the loan # (in the Loan Summary area above the form) indicates whether the current loan is the 1st or 2nd loan.
Remove the Link
To break the link between the 1st and 2nd loan, click Remove Link.
See Also:
Piggyback Loan Synchronization
Duplicate a Loan for a Piggyback Loan
Process a Piggyback Loan