An issue occurred where the Redisclose Closing Disclosure (NBO Updated) alert was not being triggered like it should have been when an NBO (non-borrowing owner) was added to a loan file with multiple borrower pairs where the Initial Closing Disclosure had already been disclosed to the borrower and co-mortgagor. This issue has been resolved and this alert is now triggered as expected when an NBO is added after the initial CD has already been disclosed.

When Fannie Mae’s EarlyCheck was run in Encompass, AUS Data Discrepancy alerts were being triggered in error, preventing user from viewing the order in the AUS Tracking Tool or the Underwriting Center. This issue has been addressed and these alerts can no longer be trigged in EarlyCheck orders.

On Construction-Only loans that are using the Full Loan (Method B) amount to calculate the interest amount (SYS.X6), the qualifying payment used to calculate the proposed monthly first mortgage payment (1724) is now using the full loan amount. Previously, the qualifying payment was using only half of the loan amount. The calculation for field 1724 is now based on the number of days value (1962) that is used to calculate the repayment schedule when a qualification rate (1014) is not provided in the loan file.

This update ensures the calculation for the proposed monthly first mortgage payment for (1724) Construction-Only loans using the Full Loan amount is calculated using the full loan amount just like the proposed monthly first mortgage payment on the (228) 2015 Itemization and 1003 Page 2 is calculated.

Migration Notes:

For existing Construction-Only loans for a primary residence (1811) where the qualification rate has been disclosed and for existing non-active loans (1393), fields 1724 and 1725 (proposed monthly second mortgage payment) are locked in Encompass 24.3 to retain the current values.

In Encompass 24.1, Encompass started treating Construction Only and Construction-Perm loans as irregular for the purposes of APR tolerance, regardless of the amortization type. This update ensured these Construction loans had an APR tolerance of 0.25%. However, even when the initial APR tolerance was increased or decreased by less than 0.25% in these loan types, a red exclamation alert to indicate that a redisclosure was now required due to this new APR was incorrectly displayed next to the Annual Percentage Rate field (799). This issue has been resolved and the alert icon is no longer displaying when the APR tolerance is less than 0.25%.

An issue occurred in loans for second loans and investment properties (1811) or subordinate liens (420) where Encompass was including the proposed monthly mortgage payment (228) twice in the calculation for the maximum total payment at the initial rate (QM.X113). This issue has been resolved and this payment amount is now included only once.

Prior to Encompass 24.3, the Fannie Mae Refinance Cash Out Amount (ULDD.RefinanceCashOutAmount) was not calculating correctly for cash-out refinance loans because it was not taking all lender credits into account. This could result in an incorrect cash out amount being sent to Fannie Mae. Starting in Encompass 24.3, for cash-out refinance loans (19), Encompass now includes (adds) all credits (URLA.X152) and includes (adds) the Payoff Amount (FL0016) from the Verification of Liabilities when a second mortgage is being paid off when calculating the Refinance Cash Out Amount field.

For the Freddie Mac [Refinance] Cash Out Amount (CASASRN.X79), the calculation was not including (adding) the closing costs paid by the lender. When cash-out refis were submitted to Freddie Mac, the cash out amount would be short the amount of any lender-paid fees. Starting in Encompass 24.3, for cash-out refinance loans (19), Encompass now includes (adds) all credits (URLA.X152) and includes (adds) the Payoff Amount (FL0016) from the Verification of Liabilities when a second mortgage is being paid off when calculating the Refinance Cash Out Amount field.

In previous versions of Encompass, the Prepayment Penalty Payoff amount (NTB.X16) was being included in the Section 32 Points and Fees Threshold (S32DISC.X48) and the RegZ Total Loan Amount (QM.X120) when:

• The Refinance with Original Creditor (QM.X2) checkbox was selected, OR

• The Purpose of Refinance (299) was Cash-Out with Original Lender or No Cash-Out with Original Lender, OR

• Any value was populated in the Existing Loan was field (NTB.X34).

In Encompass 24.3, the Prepayment Penalty Payoff (NTB.X16) is only included in the Section 32 Points and Fees Threshold (S32DISC.X48) and the RegZ Total Loan Amount (QM.X120) when:

• The Refinance with Original Creditor (QM.X2) checkbox was selected, OR

• The Purpose of Refinance (299) was Cash-Out with Original Lender or No Cash-Out with Original Lender, OR

• The Originated by the same broker and is funded by the same creditor or the Made or is currently held by the same creditor or an affiliate of the creditor option is selected for the Existing Loan was field (NTB.X34).

This update helps prevent the threshold for Section 32 Points and Fees being exceeded due to the prepayment penalty payoff amount being included.

The Refinance with Original Creditor (QM.X2) checkbox logic has been updated as follows to ensure consistent behavior across the input forms where this checkbox is used:

• When the Purpose of Loan (19) is set to Purchase, Construction, Construction-Perm, or Other, the Refinance with Original Creditor Yes/No checkboxes (QM.X2) will be cleared/not selected.

  • In this same scenario, the Yes/No checkboxes are deactivated/grayed out.

In loans where fields 2864 (Transaction Details Form List Template File Applied) and 2865 (Transaction Details Miscellaneous Data Template File Applied) were used, applying multiple loan templates resulted in the values for these two fields being cleared out. After applying one template to the loan, the values remained on the input form (typically the Custom Fields input form) as expected. But when a different loan template was applied later, the values for these fields were cleared out when the second loan template did not contain any data for these fields.

Starting in Encompass 24.3, if a loan template does not have any data for fields 2864 and/or 2865, and the Append template data checkbox provided on the Apply Loan Template pop-up window when applying the loan template is selected, then the values in fields 2864 and/or 2865 are not cleared from the input form.

The only time these values will be cleared from the form is if the loan template does not have any data for the fields and the Append template data checkbox is not selected.

Users submitting construction loans to Encompass Compliance Service (ECS) received warning messages in the compliance review due to the proposed monthly payment (first principal and interest payment) in the loan being one cent less than the calculated payment expected by ECS. This discrepancy was due to Encompass calculating and then rounding the amount slightly differently than ECS did. This calculation in Encompass 24.3 has been updated to match the calculation used by ECS to address this discrepancy.

This update impacts only Construction-Only and Construction-to-Perm loans using Method A.

When a value is provided in the Veteran Information for field (VASUMM.X31) (which would be Borrower or Co-Borrower) the VAELIG.X66 (VA Veteran Is Borr/Co-Borr (VA Cert of Eligibility)) and VAVOB.X51 (VA Vet Status Veteran Is Borr/Co-Borr on VA 26-8261A Veteran Status) fields are updated accordingly. However, if VASUMM.X31 is modified by a business rule instead of directly on the input form, the other two fields were not updated accordingly. This issue has been resolved the now the fields are updated accordingly whenever the VASUMM.X31 field is modified.

When choosing a business contact for the Lender Company Name (1264) and Sponsor/Agent Company Name (1111) on the FHA Management input form by clicking the Address Book icon and then selecting the contact, Encompass was populating and/or overwriting the FHA Lender ID (1059) and the Sponsor’s ID # (1060) with the Company License number data from the Business Contacts tool for the selected contact. Starting in Encompass 24.3, the FHA Lender ID (1059) and Sponsor’s ID # (1060) will not be populated with the company license number from the business contact, nor will existing data be overwritten.

Users utilizing the Auto Assign feature in eFolder (and using the new document viewer) experienced an issue where the file auto assigned to a document was not reflected correctly in the File Manager Document Viewer, giving the impression that the file had not been attached to the document folder or, where applicable, had not been attached to a condition. This issue has been resolved and the file is now clearly indicated as attached to the document or condition when attached via Auto Assign.

In OTP (one-time password)-enabled Encompass Consumer Connect borrower portals, the expected branch contact information was not provided on the eConsent Agreement sent to borrowers. The contact information provided here is determined by the Encompass Settings > Docs Setup > eDisclosure Packages settings, where administrators can elect to use their company’s branch address in the borrower consent agreement for electronic document requests and eDisclosure packages, but this setting was not being applied in the OTP-enabled borrower portals. Instead the organization’s address and phone number was provided on the eConsent Agreement. This issue has been resolved the Consents setting for eDisclosure Packages is now being applied as expected and the branch address and phone number is used for the agreement.

(Added on 11/12/2024)

The Status Online Tool is used to publish loan status updates to a secure website (Encompass Consumer Connect, Loan Connect, or TPO Connect ) for viewing by your borrowers and partners. When you use the Status Online tool to publish updates, you can also edit any notification emails that are sent with the updates. An issue occurred with loans originated from a TPO Connect site where Encompass was not sending notification emails after a TPO Connect file was saved and the user exited the loan even though the Status Online tool was set to automatically send TPO notifications after updating the loan. This issue has been resolved. Status Online is now working as expected for TPO Connect loans. After updating the loan and then exiting, Encompass users will see the Status Online pop-up window indicating Publishing... and once completed, the emails would be sent and could be viewed on the TPO Connect site by TPO contacts.

When adding, editing or deleting fields in the Encompass Reporting Database, the changes were sometimes failing to be saved due to Invalid column name errors. These errors occurred due to the database and the cache files that are automatically generated to store subsets of the data being out of sync. The cause of this issue was identified and addressed so that administrators can save updates to the database successfully.

Some users experienced an issue where the Login Access setting for users in sub-organizations were being changed to match the settings of the parent organization erroneously. Any time a change was saved to a parent organization, its Login Access setting was applied to the users in its sub-organizations even though the Use Parent Info option was not selected, and the sub-organizations should not have been updated. As a result, scenarios occurred where users assigned with Restricted Access (login supported only through SSO) were being changed to Full Access (login supported via SSO or user ID/password) any time a change was saved to their parent organization (since the parent organization was set up with Full Access). This issue has been resolved and users in sub-organizations now retain their Login Access settings as expected when the Use Parent Info option is not being used for their organization.

An issue occurred where the selections for the Encompass eClose (and related) options in the Personas setting were not retained when upgrading from Encompass 24.1.0.x to 24.2.0.x. For example, in Encompass 24.1, the Encompass eClose option was not selected for a specific persona, but after upgrading to Encompass 24.2, the Encompass eClose option was selected. This issue has been resolved and the Personas settings for Encompass eClose are now retained when upgrading Encompass.

When using the Personas tool in Encompass Settings to manage access to the Disclosure Tracking tool and its features, administrators can select the Exclude/Include Records option (Encompass Settings > Company/User Setup > Personas > Forms/Tools tab) to grant access to the Include in Timeline button in the Disclosure Tracking Tool’s Disclosure History panel. However, after clearing the Exclude/Include Records option, the Include in Timeline button was still available to the persona. This issue has been resolved and the button is now deactivated (grayed-out) for users with personas where the Exclude/Include Records option in Personas is not selected.

Persona access to fields business rules set up to manage user access to the Base Price field (2101) on the Lock Request Form were working correctly in terms of users navigating to the form and being able to view the field or enter or modify data in the field based on their persona rights and the rule, but the business rule was not being enforced in lock request alerts. When a lock request alert was triggered, a user could open the alert and view or update the Base Price field in the alert screen even though the business rule should have restricted the user from being able to perform these tasks based on their persona. This issue has been resolved and the persona access to fields business rules for the Base Price field are now enforced in alerts and all areas where this field is used in a loan file.

When defining the persona’s field access for a selected condition in the Persona Access to Fields business rule, an issue occurred where the value at the top of the Rights list persisted at the top of the list when the administrator sorted the values in the Description list. When sorting the Description list, the rights in the right panel would change positions based on the Description, except for the topmost item in the Rights column which never moved. This could result in the wrong right being assigned to the persona. This issue has been resolved and now the rights stay with the assigned persona as expected when the list order changes based on the Description in the left panel.

Using the Encompass Admin Tools > Settings Manager, administrators can use the TPO Originator policy to determine the Loan Originator name the system will populate to field 1612 on the 1003 Page 3 (along with the originator’s contact information in applicable fields). When Keep_TPO_Originator is selected for the policy, the name and associated information of the TPO that originated the loan from an Encompass TPO Connect website should be populated to the Loan Originator and related fields. However, in previous versions of Encompass, when a loan officer imported a MISMO 3.4 file, this policy was not being applied and the current data from the MISMO file was being overwritten with the name and information belonging to the loan officer who imported the MISMO file instead of the retaining the data from the original TPO like it should have. This issue has been resolved. The fields that were being overwritten (State License ID # (3629), Phone (1823), and Unit Type (URLA.X189)) are no longer overwritten and the original TPO information is retained as expected based on the Keep_TPO_Originator policy.

(Added on 12/4/2024)

To support the revisions to the 203(k) Rehabilitation Mortgage Insurance Program announced by HUD in Mortgagee Letter 2024-13 effective November 4, 2024, new enumerations have been added to the Rehabilitation Period dropdown list (MAX23K.X133) provided on the FHA Management input form (FHA 203k tab):

With the new revisions to the 203(k) Rehabilitation Mortgage Insurance Program, the rehabilitation period for the Standard 203(k) program was extended to not exceed 12 months. The rehabilitation period for the Limited 203(k) program was extended to not exceed nine months.