The Closing Process
View "The Closing Process" Quick Reference Guide
Watch the Closing Process Tutorial
View the "Using the Encompass Docs Solution" White Paper
The closing process enables you to order and receive closing documents using a single source of information without leaving Encompass. When closing documents are returned, the Closer can view, print, and then send the document package.
Implementation and Configuration
Create Users
with a Closer Persona
Use the Organization/Users tool on the Encompass Settings screen to create one or more users with a persona of Closer.
Set Up Loan Programs and Plan
Codes and View Alternate Lenders
A "loan program" is a template of predefined values that display primarily on the 1003 application, the Truth-In-Lending Disclosure statement and Closing RegZ (for 2010 RESPA forms), and the RegZ-LE and RegZ-CD (for 2015 RESPA-TILA forms). If a loan program has not already been applied to the loan, use the Loan Program button to select a loan program that matches the loan data already entered in the loan.
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Click the Loan Program button on the Closing RegZ or RegZ-CD input form to select a loan program to apply to the loan. If you select a loan program that is associated with a plan code, the plan code data is applied to applicable fields as well.
Use the Plan Code feature to select a loan program that will be applied to the closing documents. Here you can select from a list of investor-specific plan code or create your own custom plan code.
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On the Closing RegZ or RegZ-CD form, click the Plan Code button, click to select a plan code, and then click Select.
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Only Plan Codes that match the current loan data are listed. To view all plan codes, click the Clear Filter button.
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If there is an investor associated with the plan code, the Apply Investor Info dropdown list displays in the lower-left corner of the Select Plan Code window. To apply investor information to the loan file and closing documents, select the investor from the dropdown list. The forms to include in the closing documents and/or the address to print on the forms for servicing may be determined by the investor you select here.
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You can perform a search by typing data into a field above a plan code column or by selecting an option from a column's dropdown list. Only plan codes containing the specified data are displayed.
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Click a column header to sort all plan codes in ascending or descending order based on the information in a column.
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To add a plan code to the list, click the New icon, and then select the plan code to add. To view a plan code's details, including the values that will be added to the loan file if selected, select the plan code, and then click the View Plan Code Details icon
. For detailed instructions about working with plan codes, view the Closing Doc Plan Codes help topic.
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If any values in the loan file are different from the corresponding values in the selected plan code, the Plan Code Conflict window displays showing the affected fields. Conflicting loan data is identified by an alert icon.
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Click the Import Plan Data button to overwrite the current loan data with the selected plan code data. These changes are applied to the loan immediately.
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Click Skip Import to continue ordering the closing documents without resolving the plan code conflicts.
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Click Cancel to close the Plan Code Conflict window without making any changes to the loan data. You can then update the applicable fields in the loan file to resolve any conflicts that were found.
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On the Closing RegZ or RegZ-CD form, click the Alt Lender button to view alternate lender information (code number and description) that appears on the closing documents.
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In the Alternate Lenders window, select a lender, and then click Select to replace the current lender information in the loan with the selected lender's information.
Closing Work Flow for Loans Using 2015 RESPA-TILA Forms
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When the Doc Preparation milestone is completed, the Processor assigns the loan to a Closer.
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To accept the file, the closer clicks the Accept File (Clear Alert) button on the Doc Signing worksheet.
Your administrator can create input form templates to be used by different loan team members. When you apply a template, the Forms tab displays only the forms needed to complete the loan work performed a specific set of tasks. If your company has an input form template for closing, apply the template before you begin the closing process.
1. On the Loan menu, click Apply Input Form Set Template.
2. The Apply Input Form Set Template option replaces the current list of input forms on the Forms tab.
3. Double-click a template to apply it to the loan.
The following forms are used to enter data needed to order closing documents. For detailed descriptions of the information needed on each form, refer to the Using the Encompass Docs Solution white paper.
- RegZ-CD - Review the closing doc data, select a Plan Code if one is not already selected, review the information in the Alt. Lender, Disclosure Information, and Loan Information sections, and review or complete the mortgage insurance information based on your company's policy.
The Closing Document Data button on the RegZ-CD input form enables you to review and confirm the accuracy of the lender and investor data that will be applied to the closing documents. If necessary, you can change this data and replace the old data in the loan file. Please note, any changes you make here are applied to the closing documents for the current loan file only.
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At the top-right of the RegZ-CD input form, click the Closing Document Data button.
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In the Closing Document Data window, click the Lender Info and Lender Info Cont. tabs to view lender data that is currently included in the lender settings. This information is added as part of the initial Encompass Docs Solution set up performed by ICE Mortgage Technology and your administrator. This information will print to your closing documents.
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Click the Investor Info tab to view the investor data that is currently in the loan file. This information is populated based on the plan code currently applied to the loan.
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To change a field on either tab, click the slider to the left of the field and enter or select a new value. Changes made here are applied to the current loan file only.
Note: To make changes to the default lender and investor data that is applied to the closing documents, contact your ICE Mortgage Technology account representative.
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When finished, click OK.
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Borrower Information - Vesting - Enter borrower information and define the ownership rights in the property, enter corporation and trust information, if needed, and create the vesting statement that is used in loan documents. You can also use the form to associate signers with borrower pairs, which configures the sequence of signers on the loan documents.
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Closing Vendor Information - Review the Lender, Title Insurance Company, and Docs Prepared By sections to make sure the capitalization and punctuation are exactly as you want them to display on the closing docs.
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Property Information - Complete the information in the Subject Property, Prelim Information, Manufactured Housing Details, Renewal and Extension sections.
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Aggregate Escrow Account - Complete the borrower's escrow account information and set up estimated impounds for the coming year.
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Closing Disclosure Page 1 - Review the mortgage insurance information.
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Closing Disclosure Page 2 - Review the fees. If changes are needed, enter the revisions on the 2015 Itemization input form.
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Closing Disclosure Page 3 - Review the Calculating Cash to Close table, complete the Summaries of Transactions section, and enter seller-paid credits, if any.
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Closing Disclosure Page 4- Review your disclosure information and impounds for the loan. If the loan has an Adjustable Payment (AP) Table or Adjustable Interest Rate (AIR) Table, review the information in these tables.
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Closing Disclosure Page 5 - Review the Loan Calculations section and complete the Contact Information section.
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Closing Conditions - Enter the location where closing documents are drawn, enter the county where the loan will close (optional), and list closing instructions and conditions, which will pull over to the lender’s instructions.
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Additional Forms - Information may be required on additional forms under certain circumstances, for example some states may require additional information on the state-specific disclosure form, and FHA and VA loans will require a review of the FHA Management and VA Management forms.
- On the RegZ-CD or Closing Conditions input form, click the Audit button on the top-right of the form.
- During the audit, the loan file is analyzed by the Encompass Docs Solution and the Encompass Compliance Service (powered by Mavent) for any form or closing document issues and any compliance issues based on a Truth in Lending (TIL), Home Ownership and Equity Protection Act (HOEPA), State and Local High Cost, and Federal High Cost (Section 32) industry regulations and mandates.
Note: If you are an Encompass Compliance Service (ECS) customer, any additional compliance tests that your company has configured using the Compliance Review Setup tool in Encompass Settings will also be performed during this audit. The Encompass Compliance Service is supported in Encompass Banker Edition only.
- When prompted, select the Preview report option, and then click OK.
- When running the preview, the Encompass Compliance Service uses the current APR (field ID 799) and current finance charge (field ID 1206) for the TILA tolerance test.
- On the Closing Docs Audit window, select Closing from the Order Type dropdown list, and then review the list of issues, if any.
- The Data Audit Results section lists issues that were found during the Encompass Docs Solution review. Resolve all required issues (items in red) in this section before ordering closing documents
- The Compliance Review Results section lists compliance issues found during the Encompass Compliance Service review or preview. By the time you draw docs for closing, you should not have any compliance issues. If you do, it is recommended that you resolve all compliance issues, but you can order closing documents without resolving these issues if the administrator has given you permission. Click the PDF icon in the Compliance review section to view the Mavent compliance report.
- To jump to a field and update its value, click the field ID hyperlink in the Go To Field column. An Encompass form opens with the selected field highlighted.
- Select the Always show this window on top checkbox to always display the Closing Docs Audit window on top of all other Encompass windows.
- After resolving an issue, the issues that are resolved are highlighted in yellow in the Closing Docs Audit window. Click the Refresh Audit button to clear the resolved issues from the list.
- Click the PDF icon in the Compliance Review Results section to view the compliance report. The top of the report indicates that it is a preview. The report contains separate sections for each preview performed and provides the result of each preview. When a compliance issue occurs, the data (or missing data) causing the issue is explained in the report.
- On the RegZ-CD or Closing Conditions form, click the Order Docs button on the top-right of the form/window, select Closing from the Order Type dropdown list, and then click the Order Docs button on the Closing Docs Audit window.
- When the Select Documents window displays, the closing documents are listed in the order configured in the stacking template by your administrator.
- Documents highlighted in yellow are documents that are not included in the stacking template, but are still intended to be sent in the closing document package.
- When a closing document package has been ordered and is then redrawn, the list of returned documents on the Select Documents window displays a Modified since last draw icon next to each document that has changed since the initial order. Users can view the list to identify changed documents to print or send instead of printing or sending the entire package. Additionally, a Removed since last draw icon displays next to documents that were included in the initial draw, but are no longer required.
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To use a different template, select an option from the Stacking Template dropdown list.
Note: When the Select Documents window displays, the closing documents are listed in the order configured in the stacking template by your administrator. There are three types of stacking order templates in Encompass. Each is configured in its own setting and is applied from a different area of Encompass. Closing Doc stacking templates are configured by your Encompass administrator in the Doc Setup setting and are applied to the documents in the closing document package.
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To move a document up or down in the list, click to select the document and then use the up or down arrows to move the document.
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Click to select a document, and then drag it to the desired location in the list.
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To update the selected template for all loans going forward, click the Update Template button, and then add, remove, or reorganize the documents as needed. For detailed instructions for updating the Stacking Template, view the Closing Doc Stacking Templates help topic.
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Clear the Document Title checkbox to clear all of the document checkboxes, and then select the checkbox for each document you want to send.
To add additional documents to the package
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Click the Add Additional Docs button.
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On the Add Additional Docs window, select the Add Encompass Forms or Add eFolder Files option.
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Select the borrower from the For Borrower dropdown list.
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Click to select the document to add, click Add, and then click OK to close the confirmation message.
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The document is added to the bottom of the list.
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Preview, Print, and Send the Closing
Documents
After you select the documents, you can preview, print, and send the closing docs from the Select Documents window. You can also preview, print, and send the closing docs at a later time by clicking the View button on the top-right of the RegZ-CD or Closing Conditions form.
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Click Preview to view the selected documents. You can also print the documents from the Preview window by clicking the Print icon.
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Click Print, and then click Print Selected Documents to print the selected documents.
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Click Print, and then click Print Checklist to print a Closing Documents Checklist that lists each document in the package for your reference.
Add Closing Docs to the eFolder
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Click Add to eFolder to add electronic copies of the closing docs to the loan file eFolder.
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Click Send to send selected documents using the Secure Form Transfer tool.
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On the Send window, enter the email address for one or more recipients in the To field.
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Or click the Find icon to select recipients form the Files Contact tool.
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Select the Notify me when the recipient has received the message checkbox on the lower-left to receive a notification when the recipient opens the email.
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Edit the email message as needed.
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Manually edit the message.
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If your administrator has created templates with email messages for different scenarios, select a template from the Subject dropdown list.
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When finished, click Send.
When the closing documents are printed or sent to the recipient via the Order Docs button, the following fields are automatically updated with the values that were disclosed to the borrower on the final RegZ-CD disclosure:
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Disclosed APR (field ID 3121) - Updated with the Current APR (field ID 799)
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Disclosed Finance Charge (field ID 3246) - Updated with the Current Finance Charge (field ID 1206)
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Last CD Sent Date (field ID CD1.X47) - Updated to the current date (today's date)
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Last CD Received Date (field ID CD1.X51) - Updated to the current date (today's date)
An entry is added to the Loan Log each time you order closing documents. Click a Closing Documents Ordered entry to view a list of the documents included in the closing document package.
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On the Loan tab, click the Log tab on the Loan Log.
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Click the Closing Documents Ordered entry.
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Each document included in the closing document package is listed. The results of the data audit and the compliance audit are also displayed for your review.
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Click the View button to open the Select Documents window, where you can preview, print and manage the documents in the package.
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Select Data Audit Results to view the data audit results. The issues listed here are the issues that were not addressed or resolved before the closing documents package was sent.
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Select Compliance Review Results to view the compliance audit results. The issues listed here are the compliance issues that were not addressed or resolved before the closing documents package was sent.