Worst Case Pricing Tool

To Run Worst Case Pricing:

1. From the Pipeline, open the loan you want to perform worst case pricing on. If the loan does not fulfill the criteria, a message, "To use the Worst Case Pricing Tool, you must first lock the loan using EPPS" will display and you will not be able to use the Worst Case Pricing Tool.

   • The loan must have used EPPS for the initial Get Pricing request.

   • The loan must be locked (but does not have to be active).

   • In Encompass 18.2 and later:
   • For inactive locks, the message requiring the loan to be locked using EPPS will not be displayed.
   • For non-product related price adjustments:
   • All existing re-lock fees and custom price adjustments (CPAs) from the current lock is populated.
   • If a re-lock limit is set (on the Product and Pricing setting), and that limit is exceeded, an error message "The Re-Lock occurrence limit has already been reached. This loan will need to be locked manually" is displayed.
   • The Submit Historical Pricing and Submit Current Pricing buttons will be disabled.

2. Click the Tools tab, and then select Worst Case Pricing.

   • Or click on the Lock icon and then select Worst Case Pricing.

3. The Historical Pricing section is populated with the lock information from the most recently confirmed snapshot.

The Current Pricing section is empty unless the loan is a correspondent loan associated with a Third Party Originator (TPO).

• In Encompass 17.2 and later, if the loan is confirmed with an extension, the following additional fields are displayed:
• Original Lock Expiration Date
• Current Lock Expiration Date
• Days to Extend
• New Lock Expiration Date
• Price Adjustment
• In Encompass 18.2 and later, the Commitment Type and Delivery Type are displayed if the loan is a correspondent loan and the loans is associated with a TPO on the TPO Information tool.
• The fields in both the Historical Pricing and Current Pricing columns are populated from the last "confirmed" lock snapshot.
• If the correspondent loan is part of a trade, an error message, “The Worst Case Pricing tool cannot be used with loans that are assigned to a correspondent trade. The loan must first be removed from the trade to enable Worst Case Pricing.” is displayed.
• The Delivery Type is populated based on the selected Confirmation Type:
• The available commitment types are based on the types specified on the External Company Details Commitments tab of the TPO client associated with the loan.
• If the Commitment Type is “Best Efforts”, then the Delivery Type will be “Individual Best Efforts”.
• If the Commitment Type is “Mandatory”, then the Delivery Type will be “Individual Mandatory”.

• In Encompass 18.2 and later, for inactive locks:
• You can apply re-lock fees and/or custom price adjustments to revised locks on inactive locks in the Re-Lock Fees and/or Custom Price Adjustments sections.
• Up to ten (10) fields are available.
• Negative numbers are accepted.
• Values up to three (3) decimal places are accepted.
• The column is populated from the most recent active lock for the loan, including any lock extensions, re-lock fees, and custom price adjustments.
• All fields except Loan Program and calculated totals can be edited.

4. Click Get Historical Pricing to request pricing based on the loan data at the time of the lock from EPPS.

When EPPS opens, only the Qualify and Summary tabs are displayed.

• At the top of each tab, "Currently showing historical prices!" is displayed to differentiate between a historical pricing request and a current pricing (or future pricing) request.

• On the EPPS Qualify tab, select a loan program and line of pricing, and then click Qualify.

• On the Summary tab, review the information, if needed, and then click Submit.

The original lock date and expiration date remains unchanged.

• When the Encompass Product and Pricing Service Pricing Import pop-up window displays, click OK.
• The Historical Pricing section is populated with the lock information from the program you selected.
• In Encompass 17.2 and later, if the loan is confirmed with an extension, the Lock Date, Lock # Days, Original Lock Expiration Date, Current Lock Expiration Date, Days to Extend, New Lock Expiration Date, and Price Adjustment are copied to the lock request snapshot.
• In Encompass 18.2 and later, if a re-lock is available and there are non-product related price adjustments:

• The next available (blank) Re-Lock Fee field in the Historical column is populated with a description that matches the occurrence (e.g., Re-Lock Fee #3 field is populated with the description “Re-Lock #3).

• If a re-lock fee is established (on the Product and Pricing setting), that fee is populated in the associated Re-Lock Fee amount field.

5. Click Get Current Pricing to request pricing based on the current loan data from EPPS.

When EPPS opens, only the Qualify and Summary tabs are displayed.

• On the EPPS Qualify tab, select a program, and then click Qualify.
• On the Summary tab, review the information, if needed, and then click Submit.
• When the Encompass Product and Pricing Service Pricing Import popup window displays, click OK.
• The Current Pricing section is populated with the lock information from the program you selected.

The original lock date and expiration date will be reset.

• In Encompass 17.2 and later, if the loan is confirmed with an extension, the Lock Date, Lock # Days, and Lock Expiration Date are copied to the lock request snapshot.
• In Encompass 18.2 and later, if a re-lock is available and there are non-product related price adjustments, all non-product related fees (extensions, re-lock fees, and CPAs) are cleared from the Current Pricing column.

6. Determine which pricing scenario you want to submit, and then click Submit Historical Pricing or Submit Current Pricing.

   If historical pricing is submitted, the original lock date and expiration date remain unchanged. If current pricing is submitted, a new lock date is recorded and the expiration date is updated.

• In Encompass 17.2 and later, if the loan is confirmed with an extension and Submit Historical Pricing is selected, the Request Type on the Secondary Lock Tool will be set to “Request” and the five new extended lock fields will be displayed.
• In Encompass 18.2 and later, if the loan is confirmed with a re-lock and Submit Historical Pricing is selected but Get Historical Pricing was not clicked, then a warning message, “A Re-Lock Fee has not been generated for this request. If you wish to continue without a Re-Lock Fee click OK, otherwise click Cancel.” is displayed.

7. Click Submit in response to the confirmation message.

8. In the pop-up window, click whether you want to Exit Loan or Keep Loan Open.

   All data on the Worst Case Pricing Tool is blanked out.

9. Go to Secondary Registration to view the new lock request (including the latest loan data).

10. Lock and confirm the loan.

    If the Enable Auto Lock and Confirm upon lock request Admin setting is enabled, the lock request will be automatically locked and confirmed.