Underwriter Summary

Use the Underwriter Summary to assemble the key information needed to determine the creditworthiness of the consumer(s), the value of the subject property, and if the loan should be approved. Most of the information on the form will already be completed using data entered on other loan input forms.

Underwriters may indicate that a specific factor has been evaluated on this input form. The Debt-to-Income Ratio assessment in the ATR/QM Management tool’s ATR/QM Eligibility matrix is based partly on the underwriter’s sign off of debt-to-income factors on the Underwriter Summary. The indicators for the Monthly Payment and Consider and Verify factors on the ATR/QM Eligibility matrix also are triggered by the factors on the Underwriter Summary. If one or more of the factors have not been evaluated, blue flag indicators will display in the ATR/QM Eligibility matrix to indicate that data required for the Monthly Payment or Consider and Verify assessment is missing.

Underwriter Summary

On the Tools tab, click Underwriter Summary.
On the top section of the form, enter the loan number and date, and any necessary information that is not already populated in the sections for Borrower and Property Information, Loan Information, and Income, Assets, Liabilities, and Expenses.
On the Loan Information bar, click Subordinate Financing to enter or edit information about 1st, 2nd, and additional mortgages. Click the Prepayment Penalty button to record or change details related to the prepayment penalty, if any.
To change the prepayment penalty wording on the REGZ-TIL (for loans using 2010 RESPA forms) or the Loan Estimate Page 1 and Closing Disclosure Page 1 (for loans using 2015 RESPA-TILA forms), select an option from the Prepayment Penalty dropdown list in the Loan Information section.

Ratios and Funds Needed

Record the ratios that describe the borrower's primary housing expenses compared to income and liabilities.
Select the HMDA DTI checkbox to indicate that the underwriter did not use the debt-to-income ratio (either the default Encompass value or the value specified in the HMDA Profile setting) when making an underwriting decision for the loan.
Complete information about loan funds that were gifted to the borrower or provided by other interested parties, such as the co-borrower.
Record information about the borrower funds need to close and the borrower's remaining reserves after closing.

Credit Information

Enter the credit scores for the borrower and co-borrower, the minimum credit score required for the loan program, and the credit score that is being used for the decision-making process.
Use the Credit Score for Decision Making, Credit Scoring Model, and Other Scoring Model fields in the center of the section to select or enter the credit scoring information when collecting 2018 HMDA information.

This feature was introduced in Encompass 17.2. (View the release notes)
For a refinance loan, include the total debt to be paid off.

Escrow Information

Enter the escrow impounds including payments for taxes and insurance.
To view and edit information related to the Section 32/High Cost Loan entry, click Section 32 HOEPA to open the Section 32 HOEPA form.

Underwriting Decision

After a loan has been approved, suspended, or denied, type the name of the underwriter who recommended the action or click the Address Book icon to select an underwriter from your business contacts.
Record the date when the action was taken, and then enter expiration dates for any approvals.
Select one of the three checkboxes directly below the approve/suspend/deny fields if a method other that AUS is being used to ensure that a loan is eligible for Agency/GSE QM status.
- checkboxes selected here will also be selected in the Risk Assessment section on the Qualifications tab on the ATR/QM Management form.
Complete the fields in the Modified Terms section if the underwriter recommends approving the loan under modified terms. Click Copy Modified Terms to Loan to replace the current loan terms in the loan file with the modified terms.

When suspending a loan

When rejecting a loan

Field Mapping Between Underwriter Summary Evaluation Fields and ATR/QM Eligibility Matrix

This section describes how the fields in the ATR/QM Eligibility matrix are populated with a green check mark (meets ATR/QM standard) or blue flag (needs to be reviewed or evaluated by underwriter) based on which checkboxes are selected (or not selected) on the Underwriter Summary tool. When a checkbox is selected, a green check mark is populated to the corresponding field. If the checkbox is not selected, a blue flag is populated to the corresponding field.

Underwriter Summary Fields:
Monthly Covered Loan Payment (field ID QM.X338)
Monthly Simultaneous Loan Payment (field ID QM.X339)
Monthly Mortgage Related Obligations (field ID QM.X340)
Debt Obligations (field ID QM.X341)
Child Support Obligations (field ID QM.X342)
Alimony Obligations (field ID QM.X343)
Current Employment Status (field ID QM.X344)
Current or Expected Income (field ID QM.X345)
Current or Expected Assets (field ID QM.X346)
Credit History (field ID QM.X347)
Debt to Income Ratio (field ID QM.X348)
Residual Income (field ID QM.X349)

	General ATR	General QM	Agency/GSE QM	Small Creditor QM
Consider and Verify
Employment	QM.X344 checkbox	QM.X344 checkbox	QM.X344 checkbox
Income	QM.X345 checkbox	QM.X345 checkbox	QM.X345 checkbox	QM.X345 checkbox
Assets	QM.X346 checkbox	QM.X346 checkbox	QM.X346 checkbox	QM.X346 checkbox
Debt Obligations	QM.X341 checkbox	QM.X341 checkbox	QM.X341 checkbox	QM.X341 checkbox
Alimony	QM.X343 checkbox	QM.X343 checkbox	QM.X343 checkbox	QM.X343 checkbox
Child Support	QM.X342 checkbox	QM.X342 checkbox	QM.X342 checkbox	QM.X342 checkbox
Credit History	QM.X347 checkbox	QM.X347 checkbox	QM.X347 checkbox	QM.X347 checkbox

In order for these fields in the Agency/GSE QM column to be populated with a green check mark, the AUS Recommendation field (field ID 1544) must contain an Approve/Eligible, Accept/Eligible, Approve Eligible, or Accept Eligible or Accept, Approve, Approve/Eligible, ApproveEligible, Approve Eligible, AcceptEligible, Accept/Eligible, or Accept Eligible recommendation (in addition to the corresponding checkbox on the Underwriter Summary being selected). This field is populated based on the findings returned from the loan’s underwriter or from an automated underwriting service such as Freddie Mac’s Loan Prospector (LP) risk assessment tool or Fannie Mae’s Desktop Underwriter (DU). Encompass also accepts one of the three manual underwriting methods as an alternative to AUS results.

HMDA Factors Not Relied Upon in Decision

Use the HMDA Factors Not Relied Upon in Decision section to select the factors not relied upon in the underwriting decision for 2018 HMDA reporting purposes. This section displays on the Underwriting Summary form only when the HMDA Reporting Year (field ID HMDA.X27) is 2018 or later. Select the appropriate checkboxes to indicate that the debt to income ratio, HMDA income, or HMDA CLTV were not relied upon for underwriting decision purposes. The default fields used for the relied upon factors are configured in the Relied Upon Factors section in the HMDA Profiles setting.

Underwriter Summary