Create an MBS Pool
This feature is not available in Encompass Broker Edition.
View the "Trade Management: Working with MBS Pools" White Paper
Use the MBS Pools tab to create pools and then:
- Allocate security trades to a pool.
- Allocate GSE commitments to a Fannie Mae PE pool.
- Allocate loans to a pool.
- Assign loans to a pool by importing loan files or entering loan numbers.
When creating an MBS Pool, you must select whether the pool is for Fannie Mae, Freddie Mac, Ginnie Mae, or Fannie Mae PE MBS Pool. Once you make your selection, the pool’s Setup tab provides a set of fields specific to your selected pool type.
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Click the Trades tab, and then click the MBS Pools tab.
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Click the New icon.
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Select the type of pool you are creating (i.e., Fannie Mae, Freddie Mac, Ginnie Mae, or Fannie Mae PE MBS Pool).
The Setup tab for Fannie Mae, Freddie Mac, and Fannie Mae PE MBS Pool are identical, while the Ginnie Mae tab displays a different set of fields.
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Complete the sections on the Details tab.
- Type a Pool ID.
This is the only required field and must be unique.
- Complete the remaining fields as needed.
- If the Investor template information contains a number in the Delivery Time Frame field, the Investor Delivery Date is calculated by adding that number to the Commitment Date.
- The Investor Delivery Date is applied to the Secondary Registration and Shipping Details Tools for each loan.
- To override the calculated Weighted Average Price value, click the Lock icon and then manually enter a price. This price is also reflected in the Weighted Avg. Price field on the Pricing tab.
- The Allocated Pool Amount is used to calculate the Weighted Average Price.
In the Select Product Names section, you can add Fannie Mae loan products to the pool. The available list of products can be managed through the new section, Fannie Mae Product Name Values, in the Trade Management Setup setting.
This section only applies to Fannie Mae PE MBS Pools.
Use the search criteria to find eligible loans. The Simple search uses predefined criteria. The Advanced search allows you to create your own search criteria.
Typically, in a pool, the loans are the same type of program (i.e., Government program or Conventional Fixed/ARM program).
- To save an advanced search, click Advanced Search on the MBS Pools tab, create your search, and then click the Save View icon (next to the MBS Pools View field at the top of the tab).
- To view saved advanced searches, click Saved Searches.
You can allocate multiple security trades (TBAs) to the pool. In addition, you can allocate all or a portion of the security trade amount to the pool. For information on how to allocate security trades, see Allocate a Security Trade to a Pool.
- Click the Trades tab and then the MBS Pools tab.
- Create a new pool or select an existing one.
- On the Details tab, in the Security Trades section, click Allocate TBA.
- Select one or more security trades to allocate.
- Or use the Filter section to search for security trades.
- To allocate all or a portion of the security trade amount, double-click in the Allocated Pool Amount column and enter the amount you want to allocate to the pool.
- Highlight the security trade rows and then click Allocate.
- A confirmation message displays.
- Click Yes to continue.
- Click the Save icon.
In the Commitments section, you can allocate multiple GSE commitments to the pool. In addition, you can allocate all or a portion of the commitment amount to the pool. For information on how to allocate GSE commitments, see Allocate a Commitment to a Pool.
The pool with the allocated GSE Commitments is also displayed in each individual GSE commitment’s Fannie Mae PE MBS Pools section on its Details tab.
This section only applies to Fannie Mae PE MBS Pools.
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Click the Trades tab and then the MBS Pools tab.
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Create a new pool or select an existing one.
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On the Details tab, in the Commitments section, click Allocate Cmt.
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Select one or more GSE Commitments.
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Or, use the Filter section to search for commitments.
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To allocate all or a portion of the commitment amount, double-click in the Allocated Commitment Amount column and enter the amount you want to allocate to the pool.
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Highlight the GSE Commitment rows and then click Allocate.
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A confirmation message displays.
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Click Yes to continue.
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Click the Save icon.
In the Address section, click the tabs and, if contact information is not already entered, type the contact information or click the Address Book icon to import the contact information from your business contacts. We highly recommend you enter the contact information in the Investor template.
If a trade is shipping to an Assignee, enter the Assignee contact information on the Ship To tab.
- On the Setup tab, complete the fields as needed.
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For a Fannie Mae and Freddie Mac loan, when it is allocated to the pool, the ULDD-related fields on the Setup tab are copied to that loan’s Fannie Mae or Freddie Mac ULDD screen.
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The Setup tab for Fannie Mae, Fannie Mae PE, and Freddie Mac pools are identical, while the Ginnie Mae tab displays a different set of fields.
- On the Pricing tab, you can define the range of rates for the loans in your pool by using the Buy Up grid, Buy Down grid, Detailed Pricing Grid, and Pricing Adjustment grid. For Fannie Mae PE MBS Pools, you can display the pricing information for a product by selecting it from the Product dropdown list.
In this grid, you can create Buy Up Ratios within a particular note range in the Detailed Pricing grid. For Fannie Mae PE MBS Pools, you can view the Buy Up grid for a product by selecting it from the Product dropdown list.
- Click the Trades tab and then the MBS Pools tab.
- Create a new pool or select an existing one.
- Click on the Pricing tab.
- In the Buy Up section, click the Add Buy Up icon.
- Enter the GNR Min (Gross Note Rate Minimum), GNR Max (Gross Note Rate Maximum), and Buy Up Ratio.
- Click Add Another and repeat step 5 to add additional buy up ratios to cover the range of rates in the pool.
- When done, click OK.
- Click the Save icon.
To delete an entry, select the entry and click the Delete icon.
In this grid, you can create Buy Down Ratios within a particular note range in the Detailed Pricing grid. For Fannie Mae PE MBS Pools, you can view the Buy Down grid for a product by selecting it from the Product dropdown list.
- Click the Trades tab and then the MBS Pools tab.
- Create a new pool or select an existing one.
- Click on the Pricing tab.
- In the Buy Down section, click the Add Buy Down icon.
- Enter the GNR Min (Gross Note Rate Minimum), GNR Max (Gross Note Rate Maximum), and Buy Down Ratio.
- Click Add Another and repeat step 5 to add additional buy down ratios to cover the range of rates in the pool.
- When done, click OK.
- Click the Save icon.
To delete an entry, select the entry and click the Delete icon.
In this grid, you can create base price tables with a range of note rates and prices for the loans in your pool. For Fannie Mae PE MBS Pools, you can create a detailed pricing grid for a product by selecting it from the Product dropdown list.
The Ginnie Mae Pricing tab is different from the Fannie Mae/Freddie Mac Pricing tab, and does not include the Buy Up and Buy Down grids
- Click the Trades tab and then the MBS Pools tab.
- Create a new pool or select an existing one.
- Click on the Pricing tab.
- In the Detailed Pricing Grid section, click the Add Pricing icon.
- For Encompass 17.2 or earlier:
- Enter a Note Rate.
- The Buy Up, Buy Down, and Excess Servicing, Min Servicing Fee, and Max BU are automatically calculated and are read-only when you add the Note Rate.
- For Fannie Mae PE MBS Pools, a CPA field is displayed. which is mapped from the selected GSE Commitment.
- For Encompass 17.3 or later:
- Enter a Note Rate.
- Enter a Servicing Fee.
The Servicing Fee is mapped from the Fixed Servicing Fee Percent on the Setup tab.
- The Guaranty Fee, BU/BD bps, BU Execution, and BD Execution are automatically calculated and are read-only.
- Click Add Another and repeat step 5 to add additional note rates.
- When done, click OK.
- Click the Save icon.
To delete an entry, select the entry and click the Delete icon.
For users that sell service retained loans, use this section to capture MSR by note rate. When Servicing Type on the Details tab is “Service Retained”, a MSR section is displayed on the Pricing tab.
- Click on Add MSR.
- In the Add MSR Value Data pop-up window, enter a Rate and Value.
- Click OK to save our MSR value.
Or
- Click Add Another to add another value.
In this grid, you can create a table of pricing adjustments based on the note rate of each loan. For Fannie Mae PE MBS Pools, you can view the Pricing Adjustments grid for a product by selecting it from the Product dropdown list.
To Add an Adjustment Template:
- Click the Trades tab and then the MBS Pools tab.
- Create a new pool or select an existing one.
- Click on the Pricing tab.
- In the Pricing Adjustment section, click the Template.
- Select a template.
- To add the template data to an existing list of adjustments (instead of replacing the list), select the Append template to existing data checkbox.
- Click Select.
- Click the Save icon.
To delete a pricing adjustment, select the entry and click the Delete icon.
To Add an Adjustment:
- Click the Trades tab and then the MBS Pools tab.
- Create a new pool or select an existing one.
- Click on the Pricing tab.
- In the Pricing Adjustment section, click the Add Adjustment icon.
- Enter a percentage value for the price adjustment when the condition is met in the Price Adjustment field.
- If the investor will pay the adjustment amount when the condition is met, enter a positive value. If the investor will receive a discount, enter a negative value.
- Click the Add Filter icon.
- In the Field field, click the Find icon
to select a field from the list. The list includes a default set of loan fields and any loan fields added to the Reporting Database.
- Or, type one or more characters in the field at the top of the window and click Find. The first occurrence of the characters in any column will be found.
- Select an Operator, enter any required Values, and then click OK.
- The Operator and Value define how the field will be used to define the adjustment. For example, Field ID = 1109 (Loan Amount), Operator = Greater than, Value = 250000.
- For compound filters, use the AND/OR button to indicate how the filters are applied. Use and when you want all the selected filters to apply to the loans. Use or when you want to locate loans that match any of the selected filters.
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Use Parentheses to control the order in which the filters are evaluated. Click Parentheses, select the filters to group, click the New icon, and then click OK.
- To adjust the price adjustment directly on the Price Adjustment list, click the cell in the Price Adjustment column, and type a percentage value for the adjustment when the condition is met.
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If the investor pays the adjustment amount when the condition is met, enter a positive value. If the investor receives a discount, enter a negative value.
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Click the Save icon.
- To edit a price adjustment, select an entry, click the Edit icon , make your changes, and then click Apply.
- To delete a pricing adjustment, select the entry and click the Delete icon .
- On the Loans tab, you can allocate loans to the pool. For more information on allocating loans, see Allocate a Loan to a Pool.
- On the Notes/History tab, you can add notes about the MBS Pool and manage your history items.
- Click the Trades tab and then the MBS Pools tab.
- Double-click a pool, and then click the Notes/History tab.
- Click the Date Stamp button, and then type the required notes.
- Click the Save icon.
Allocate a Security Trade to a Pool
- Click the Trades tab and then the MBS Pools tab.
- Create a new pool or select an existing one.
- On the Details tab, in the Security Trades section, click Allocate TBA.
- Select one or more security trades to allocate.
- Or use the Filter section to search for security trades.
- To allocate all or a portion of the security trade amount, double-click in the Allocated Pool Amount column and enter the amount you want to allocate to the pool.
- Highlight the security trade rows and then click Allocate.
- A confirmation message displays.
- Click Yes to continue.
- Click the Save icon.
Allocate a GSE Commitment to a Pool
- Click the Trades tab and then the MBS Pools tab.
- Create a new pool or select an existing one.
- On the Details tab, in the Commitments section, click Allocate Cmt.
- Select one or more commitments to allocate.
- Or use the Filter section to search for commitments.
- To allocate all or a portion of the commitment amount, double-click in the Allocated Commitment Amount column and enter the amount you want to allocate to the pool.
- Highlight the commitment rows and then click Allocate.
- A confirmation message displays.
- Click Yes to continue.
- Click the Save icon.
- Click the Trades tab and then the MBS Pools tab.
- Create a new pool or select an existing one.
- Click on the Loans tab.
- Select the View eligible loans checkbox, at the top of the tab, to display a list of loans that are eligible to be added to the pool based on the criteria selected on the Details tab.
- Select one or more loans from the Eligible Loans list, and then click Assign Loans.
- The loans are added to the Currently in MBS Pools list with a status of Assigned – Pending until the pool is saved.
- If the selected loan is already assigned to another pool, you will have the opportunity to transfer that loan to this pool.
- When finished with the pool, click the Save icon.
Assign a Loan to a Pool by Importing a Loan File
On the MBS Pools Loans tab, you can assign loans to a pool by importing a single column CSV file.
- Click the Trades tab and then the MBS Pools tab.
- Create a new pool or select an existing one.
- Click the Loans tab.
- Select the Assign Loans from a file/manual input checkbox, at the top of the tab.
- Click Import.
- Locate the loan file you want to import, and then click Open. The file to be imported must be a single column CSV file with the loan number.
- The loans are added to the Currently in MBS Pools list with a status of Assigned – Pending until the pool is saved.
- If the selected loan is already assigned to another pool, an error message is displayed and that loan cannot be assigned to this pool.
- In Encompass 24.1 and later, when a loan is assigned to an MBS pool and then is assigned to an loan trade, that loan is updated with a Trade Assignment Status of “Removed-Pending” and will be removed from the Loans tab.
- Click the Save icon.
Assign a Loan to a Pool by Entering a Loan Number
On the MBS Pools Loans tab, you can assign loans to a pool by manually entering loan numbers.
- Click the Trades tab and then the MBS Pools tab.
- Create a new pool or select an existing one.
- Click the Loans tab.
- Select the Assign Loans from a file/manual input checkbox, at the top of the tab.
- Click the Add Loan Number icon , and then add the loan numbers for specific loan files.
- You can enter loan numbers separated by commas or line breaks.
- You can copy and paste loan numbers.
- Click the Save icon.
- In Encompass 24.1 and later, when a loan is assigned to an MBS pool and then is assigned to an loan trade, that loan is updated with a Trade Assignment Status of “Removed-Pending” and will be removed from the Loans tab.
Save the Pool and Update Loans
- Click the Save icon
(on the top right of the screen). - When asked if you want to update the loan files, click Yes.
- When you click Yes, the Loan Data Synchronization window displays any loan and pool fields that are not synchronized.
- If a checkbox is selected, the loan fields will be overwritten by the value entered in the pool field.
- If a checkbox is cleared, the loan fields will not be synchronized with the pool fields.
- By default, the selected loan fields are updated for all loans, so the Apply to All Loans checkbox at the bottom of the window is disabled.
Updating Multiple Pools in a Queue
The Loan Data Synchronization enables multiple trades to be processed in an update queue that runs in the background. A new icon 
will be available in the status bar (bottom of the screen, which will open the new Trade Update Queue pop-up window. This window will display the update progress of the selected trades for users with persona access to the Trades tab.
Items of Note:
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You may encounter an issue on the Trade Update Queue for loan trades, MBS pools, or correspondent trades where the Update Progress hangs when you attempt a batch update from the Pipeline screen (select the Update Pending Loans button). If this happens, cancel the affected trades/pools (select the X icon) on the Trade Update Queue page and then update each trade/pool individually from the Pipeline screen.
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You may encounter an issue on the loan trades, MBS pools, or correspondent trades Pipeline screen where the Status does not automatically refresh after a trade/pool status is changed. If this happens, refresh the screen to display the correct Status.
The following are features on the Trade Update Queue:
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The number of jobs is displayed next to the “Job Status” header.
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The checkboxes next to each entry is used to select that entry. The checkbox in the header column (to the left of the Trade/Pool ID) is used to select all the entries in the grid.
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When a job is “InProgress”, a progress bar that displays the progress as a percentage will be displayed in the Update Progress/Results column. Once the job is done, the progress bar will be replaced with the job results.
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To the right of “Job Status”, a Delete and Refresh icon is displayed.
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To delete an entry, select the checkbox next to the entry and then select the Delete icon.
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A prompt “Are you sure you want to delete the selected rows?” is displayed.
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Select Yes, Delete Selected Rows to delete the entry.
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The delete action cannot be undone.
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To delete multiple entries, use the column filters to display the entries you want to delete, select the checkbox in the column header, and then select the Delete icon.
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To refresh the page, select the Refresh icon.
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When the page is refreshed, any new entries will be displayed in chronological order, unless there are search filters that affect the way the entries are displayed.
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When the page is refreshed, any search filters will remain. However, if there are new entries, those new entries may be hidden if they do not satisfy the filter parameters.
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In the Trade/Pool ID, Trade Type, Requested By, and Status columns, you can hover over the column header, select the Search icon, and then enter a search parameter.
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Your previous searches will be listed. If you select a previous search, any entries that match the selected search is displayed.
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The Trade Type column will always display “LoanTrade”, “MBSPool”, and “CorrespondentTrade” as search parameters.
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The Status column will always display “InProgress”, “Completed”, “CompletedWithError”, “Error”, and “Cancelled” as search parameters.
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Once your search parameter is entered, select Enter on your keyboard and any entries that match the search is displayed.
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In the Request Date column, you can hover the column header, select the Calendar icon, and then select a date.
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To search a date range, select the Date Range checkbox and enter a starting and ending date.
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To the right of each entry, a Kebob (
) icon is displayed. -
When the Kebob icon is selected, a Delete and Info(
) icon is displayed. -
When the Info icon is selected, that trade or pool will be opened to its Notes/History tab and the Trade Update Queue will close.
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If a trade update is “InProgress”, the Kebob icon will be disabled, but a Cancel icon is displayed to the left of the Kebob icon.
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Once the Cancel icon is selected, any remaining loans in the job queue are cancelled and no more loans will be processed (loans that have already been processed will remain processed).
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The Status will be set to “Cancelled”.
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The Results will display, in red, the number of loans processed, the number of loans successful, the number of errors, and the number of loans cancelled.
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At the bottom of the page, the number of entries per page and the number of pages is displayed.
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If applicable, you can change the number of entries per page by selecting the down arrow next to “[nn]/page” with [nn] representing the number of entries. By default, 50 entries will be displayed per page.
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If applicable, you can jump to a specific page by selecting the down arrow next to “[n]/[nn]” with [n] representing the page number and [nn] representing the total number of pages.
About Saving and Updating Pools
Using the Save Icon - When you save a pool using the Save icon, you have the option of updating only the pool, or both the pool and its assigned loans. Until you update the assigned loans, the data in the pool will not be synchronized with the data in the loan files.
Update Selected Loans and Update All Loans Buttons - Use these buttons on the Loans tab to synchronize data in the trade with the assigned loans.
- Update Selected Loans - Updates the loans highlighted in the Loans grid. You must highlight at least one loan to enable this button.
- Update All Loans - Updates all loans in the Loans grid.
When an exclamation point displays on the button, it indicates that one or more assigned loans has a Pending status (such as Assigned - Pending). Loans with the following pending statuses will be highlighted in blue:
- Assigned - Pending
- Shipped - Pending
- Purchased - Pending
- Removed - Pending
If a loan is removed from the trade, the loan’s status will change to “Removed - Pending”. If a loan has a Removed-Pending status during the update process, it will be removed from the Currently in Trade list when the update is completed.