Fixed Issues for Version 24.2 (Broker Edition)

When working with interest only loans that use simple interest, an Application Error was triggered when attempting to open the Amortization Schedule tool. This error occurred because at the end of the interest only period there was not enough unpaid balance (i.e., the final payment due was greater than the unpaid balance). This issue has been addressed and the Application Error is no longer triggered in this scenario. The final payment amount is now set to the unpaid balance amount for interest only loans that use simple interest.

Tip: Encompass does not support simple interest amortization for bridge loans. Encompass supports simple interest amortization for closed end loans (including calculations updates to handle simple interest payment schedules and simple Interest P&I payment) and 0% interest payment loans for lenders originating down payment assistance loans for affordable housing, for example Habitat for Humanity and state and local housing agencies.

In Encompass, any fee on the 2015 Itemization form’s Origination Points [line] 802e, 802f, 802g, or 802h marked as paid by Broker or Other was excluded from discount point calculations and section 32 points and fees calculations. However, the Mavent compliance review includes discount points paid by Other when running points and fees tests. This can result in the compliance review results being different than the 802e-h values in the loan file, including ATR/QM screens presenting Pass results for discount points, but the compliance review presenting Fail results. To address this, Encompass has been updated so that the amount on line 802e, 802f, 802g, or 802h that is paid by Broker or Other is included in the Section 32 Points and Fees amount in the Fee Details pop-up window. This amount is populated to the Total points and fees applicable under section 32 (S32DISC.X48) field. This field is used by Mavent for its points and fees tests.

Migration Information:

For non-active loans (1393), the current Section 32 Points and Fees value in the Fee Details pop-up window for lines 801e-f (NEWHUD2.X951. NEWHUD2.X984, NEWHUD2.X1017, NEWHUD2.X1050) will be locked/retained to preserve data integrity since the data may have already been reported to HMDA. To apply the new system calculation to this field in an existing loan, click the gold Lock icon.

An issue was occurring intermittently with Alternate Closing Disclosures where the Total Closing Costs (J) “other charges” value on the input form was not matching the value on the printed output form. Specifically, when the Total Closing Costs (J) amount disclosed on the Alternate Loan Estimate differed from the amount disclosed on the Alternate Closing Disclosure and the resulting “other charges” field (CD3.X131) in the Remarks column was set to Total Other Costs (I), the printed output form indicated See Total Loan Costs (D) and Total Other Costs (I).

This issue has been fixed and the input form and printed output form now both display the same See Total Other Costs (I) value for in the last column in this scenario.

Before:

After:

On the 2010 version of the Closing RegZ input form (i.e., the input form provided when the Forms > RESPA-TILA Form Version is set to RESPA 2010 GFE and HUD-1), the Purpose of Refinance field’s (299) dropdown list now displays the refinance options correctly. Previously this list was empty, with no options listed.

When a loan template set was applied to loans (even with the Append template data checkbox selected), the values in the Intent to Proceed (3197) and Earliest Fee Collection (3145) fields in the Compliance Timeline panel in the Disclosure Tracking Tool were being cleared out (i.e., blanked out). This issue has been resolved and the values are no longer cleared out when the loan template set is applied with the Append template data option is selected.

When the Discount Points field (1093) on the 1003 URLA - Lender input form is locked by the user (i.e., they click the blue lock icon to manually enter a value), the Estimated closing costs field (137) was cleared if it was unlocked as shown below. Updates have been made to ensure that when the Discount Points field is locked, the Estimated closing costs field is no longer cleared in this scenario.

For VA Non-IRRRL (i.e., Purchase and Cash-Out) transactions in Encompass, they are not subject to the ATR/QM Points and Fees test. Regulation 1026.43 (e)(2) states that 1026.43 (e)(4) contains an exception to the general QM rules. The exception in 1026.43 (e)(4) states that loans identified as qualified mortgages by the government agencies are designated as QM regardless of the other qualifications for General QM loans.

However, these loans were failing the Agency/GSE Qualified Mortgage Points and Fees Limit testing in previous Encompass releases. (This was evidenced by the red flag displaying in field QM.X68.) Encompass 24.2 has been updated so that field QM.X68 will always display a green flag (indicating the loan meets the ATR/QM standard) regardless of the Total points and fees applicable under section 32 (S32DISC.X48). The calculations associated with the Ability-to-Repay Loan Type (QM.X121) and Qualified Mortgage Loan Type (QM.X122) are not necessary on VA Non-IRRRL loans.

On the Transmittal Summary input form, the calculation logic for the Broker / Correspondent Name and Company Name field (1133) has been updated. This field will now be populated as follows based on the selection made for the Mortgage Originator (1149):

• When the Seller option is selected, the field remains blank (or clears data previously entered in the field). This is new functionality.

• When the Broker option is selected, the field is populated with the Broker Company Name (VEND.X293) if provided. If not provided, the field is populated with the Loan Originator Company Name (315) if provided. This is existing functionality.

• When the Correspondent option is selected, the field is populated with the Loan Originator Company Name (315) if provided. This is existing functionality.

When using a loan template set to apply a loan program that indicates the Purpose of Loan (19) as Construction - Perm, the Construction-Conversion/Construction-to-Permanent (URLA.X133) checkbox on the 1003 URLA - Lender input form was not selected as expected. (When a loan template set was not used to apply the loan program, or if no templates were applied to the loan, the URLA.X133 checkbox was automatically selected if field 19 was selected.) This issue was fixed so that when a loan program is applied with a loan template set with field 19 indicating Construction-Perm, the ULRA.X133 checkbox is selected as well.

Issues related to Debt-to-Income DTI (740/742) for Construction to Permanent loans have been fixed in this release:

• For Construction to Permanent - Second Home loans, the DTI was not calculating correctly. The DTI was calculated based off the interest only payment for the construction phase instead of the proposed principal and interest payment for the permanent phase. In addition, the DTI was not including the primary home payment from the Verification of Mortgage (VOM field 120).

• For Construction to Permanent - Second Home loans with a primary home with a current mortgage, the First Mortgage P & I (1724) and Total Primary Expenses (1731) were not updating correctly, which resulted in the DTI not updating correctly.

Migration Notes:

• For non-HELOC loans not in active status (i.e., the Action Taken field (1393) is not empty), the First Mortgage P & I (1724) and Second Mortgage P & I (1725) fields will be locked to retain the current values if they are not already locked.

• For Construction to Permanent - Second Home (or investment) loans not in active status (i.e., the Action Taken field (1393) is not empty) and the qualified rate field (1014) is not provided, the subject property’s negative cash flow (462), positive cash flow (1169), rental income (106), and expected net monthly rental income (URLA.X81) fields for the subject property will be locked to retain the current values if they are not already locked.

The North Carolina Compliance Report was pulling the incorrect value for proposed monthly mortgage payments for investment and secondary properties, which resulted in mismatched information between the report and promissory note. Instead of using the First Mortgage P & I field (1724) which is intended for the borrower’s primary residence payments, the report now uses the First Mortgage P & I field (228) for second and investment property payments.

When a reduction was made to the Origination Credit on line 802b on the 2015 Itemization input form due to additional lender credits being disclosed, the Redisclose GFE (Changed Circumstance) alert was not triggered like it should have been. Since the alert was not triggered, users could not redisclose the GFE with a valid changed circumstance. The Variance between LE and Itemization (FV.X24), Difference between LE and CD (Disclosed) (FV.X25), and Variance between CD and Itemization (FV.X26) field calculations have been adjusted to ensure that the Redisclose GFE (Changed Circumstance) alert is triggered when the origination credit amount on line 802b in the loan is reduced. The alert will provide the credit reduction details.

When Encompass populates the subject property City (12) and County fields (13) based on the ZIP Code entered in the Zip field (15), it now uses uppercase for city and county names that are hyphenated. Specifically, if a city or county name includes a hyphen (-), the first letter of the city or county name and the first letter after the hyphen (-) are now both displayed in uppercase. For example, Miami-Dade county now displays as Miami-Dade instead of Miami-dade in the County field. This helps ensure the city and county names indicated in the loan file match the city and county names used by vendors and there are no issues with them processing the city and county names.

When printing the Conversation Log for loans, the items in the log were not printing in an ideal format. There were issues like excessive white space between entries, lines breaking within words or in unnecessary locations within a line of text, and missing content when the log printed past one page. The formatting issues like these have been addressed and the Conversation Logs are now printing in a more uniform and readable format.

(Added on 7/23/2024) 

Green messages in the Loan Log's Alerts & Messages tab in the loan file inform you when information or files have been sent to you or is able to retrieve. When you select the message, a worksheet or other screen opens containing detailed information corresponding to the message. After you read the message or take the needed action to retrieve the information or file, the message will clear from the Pipeline and Loan Log. However, in some instances with messages related to documents not being viewed, document signing being competed, and after a disclosure package has been fulfilled, the message were not being cleared from the Pipeline and Loan Log like the should have been. This issue has been resolved and the messages are now cleared as expected.

(Added on 7/23/2024) 

When managing files in the eFolder's File Manager, an issue occurred for some users when splitting pages in a document. After splitting pages and dragging and dropping the pages to a different document, the message Document is successfully uploaded was then followed by Previous document is still in process. This typically occurred when users were splitting and assigning documents quickly, but the messages were causing confusion and giving the impression that the previous action had not been completed successfully. This issue has been resolved and the Previous document is still in process is no longer displayed in this scenario.

(Added on 7/23/2024) 

When borrowers or service providers attempted to upload files from an Encompass Consumer Connect website or Loan Connect, they received an Error in uploading your document. Please try again. message when the file contained an uppercase file extension (such as file.PDF or file.JPG). This issue has been resolved and uppercase file extensions no longer result in an error when uploading.

(Added on 8/9/2024)

The AUS Data Discrepancy alert logic has been updated to compare the subject property's Proposed Housing Expenses (912) with the Proposed Monthly Payment / Debt total (AUS.X32) from the AUS Tracking log when the loan is for a Primary residence (1811) with a Qualifying Rate (1014) that is not zero (0). In previous versions of Encompass, the alert logic was running regardless of the value entered into the Qualifying Rate field. When AUS was run, AUS.X32 was pulling the proposed payment (912) based on Note Rate (3) and not the Total Primary Expenses (1731) based on the Qualifying Rate (1014). This resulted in the alert being triggered for loans in error. This calculation has been fixed.

On the Closing Disclosure Page 1, when the Changed Circumstance checkbox (CD1.X61) is manually selected, the Changes Received Date field (CD1.X62) is automatically populated with the current date. However, when a Field Triggers business rule that was configured to select the Changed Circumstance checkbox was triggered for a loan, the Changes Received Date field was not auto-populated. This issue has been fixed and now the Changes Received Date field is populated when the business rule triggers the Changed Circumstance checkbox to be selected.

It was discovered that the Loan Lock Status settings for custom documents added to pre-closing document packages were not being recognized by Encompass when the document packages were generated. Custom documents for pre-closing packages that were configured to only be included in document packages for unlocked loans were being generated for locked loans (i.e., loans where the rate lock has been locked in). This issue has been fixed and these custom documents are only included in document packages for unlocked loans.

CBIZ-59351

Some users received an Application Error like this one when attempting to save new changes to loan files. It was determined that the error occurred in instances with duplicate fields in the Encompass Reporting Database (for example, TransUnion/Empirica credit score (1450)) assigned with different borrower pairs. When the duplicate fields were saved in the Reporting Database, and then updated later to be included in the audit trail (as shown below), Encompass was reverting the duplicate fields to all use the 1st pair instead of the borrower pair they were originally assigned with. Thus, the error indicating the same value already existing in the collection was triggered in the loan when attempting to save new changes. This issue has been addressed and updating the fields in the Reporting Database to be included in the audit trail no longer reverts the field’s assigned borrower pair and the error is no longer triggered in loans.