Process a HELOC Loan

User Guide: Working with HELOC Loans

Encompass enables lenders to configure the type of HELOC loans that they offer borrowers and dynamically generate content for each HELOC loan type on the HELOC Agreement and Important Terms Disclosure output forms.

• A HELOC Management input form provides a central, consolidated location for entering and accessing HELOC loan information in Encompass.

• Dynamically generated HELOC output forms (the HELOC Agreement and the Important Terms Disclosure) are populated with data and language specific to the HELOC configuration for a loan.

• The HELOC Tables setting in the Encompass settings enable the creation of dynamic HELOC historical data tables used to populate example loan payment data on the Important Terms Disclosure output form.

The HELOC Management input form includes a HELOC Program tab that provides a central dashboard for HELOC loan program information and an Important Terms and Agreement Language tab that contains options used to dynamically populate language on the new dynamically generated HELOC Agreement and the Important Terms Disclosure output forms.

Most of the fields on the HELOC Management input form can be populated by applying loan program templates, by using business rules or Dynamic Data Management triggers, or by a combination of these methods. Users can also manually enter data on this tab to adjust the terms for the HELOC, for example by capturing an index and margin, capturing adjustment caps if needed, defining an introductory teaser rate for a specified number of months, setting a minimum initial advance, or selecting a different predefined historical table.

When using the HELOC features, the policy makers at your company need to review the HELOC programs offered by your organization and determine the types of HELOC loans your company will offer to prospective borrowers. The policy makers can then work with Encompass administrators to create loan templates, business rules, Dynamic Data Management triggers, pricing for HELOC loans, and HELOC historical tables that can be applied to the HELOC Management form for different types of HELOC loans.

For detailed descriptions about the content on each of the tabs and how data on each tab affects the dynamically generated output forms, refer to the Working with HELOC Loans guide in the Resource Center.