Release Notes Change Log for Version 18.1

Some clients received an application error related to the "timeout period elapsed prior to completion of the operation or the server is not responding" when attempting to delete an unused Organization folder from the Organization/Users hierarchy (in the Company/User Setup tool in Encompass Settings). This issue has been resolved and unused folders can now be deleted from this hierarchy successfully.

Encompass 18.1 can now be successfully installed and operated on machines using Microsoft's Windows 10 Spring Creators Update operating system (64-bit version only).

In the HMDA Profiles setting (Encompass > Settings > Loan Setup > HMDA Profiles), the fields for Respondent Contact Information and Parent Mailing Address in the Respondent Information section are now mandatory. These fields are marked with a red asterisk (*) and must be completed before a HMDA profile can be saved.

As a best practice, be sure to review the HMDA Profile and provide all mandatory information before generating a HMDA report,

The following updates have been made around the Rate Spread field (field ID HMDA.X15) used for 2018 HMDA reporting. This field indicates the spread between the loan’s APR and the APOR of comparable maturity.

• To comply with the Final HMDA Rule reporting requirements (reference: 1003.4(a)(12)-7 and 1003.4(a)(12)-8), the field mapping logic for HMDA.X15 has been updated to take into account certain options that can be selected from the Action Taken dropdown list (field ID 1393) on the 2018 HMDA Information form. For 2018 HMDA reporting (i.e., 2018 is entered in the HMDA Reporting Year field (HMDA.X27)), if 3. Application denied, 4. Application withdrawn by applicant, 5. File closed for incompleteness, 6. Purchased Loan, or 7. Preapproval request denied is selected from the Action Taken (1393) dropdown list, NA will be automatically populated to the Rate Spread (HMDA.X15) field. NA will also be populated to the Rate Spread field when 1. Reverse mortgage is selected from the Reverse Mortgage dropdown list (field ID HMDA.X56). If any other options are selected for the Action Taken or Reverse Mortgage fields, then the Rate Spread field will remain an editable field. Authorized users can click the Lock icon for the field to enter a value or they can click the Rate Spread button on the 2018 HMDA Information form to calculate the rate spread and populate this field. In earlier versions of Encompass, NA was populated to the Rate Spread field only when 6. Purchased Loan was selected from the Action Taken dropdown list or 1. Reverse mortgage was selected from the Reverse Mortgage dropdown list.

• An issue occurred where the Rate Spread field (HMDA.X15) was being populated with values with more than three decimal places (for example, 1.82000000) when an Encompass Compliance Service (ECS) review was run and the Rate Spread value was imported to the field. In addition, the rate spread did not match the rate spread amount calculated by the Encompass Compliance Service when the rate spread value went beyond three decimal places. This issue has been resolved so that the correct value is being imported from the ECS and the value is adhering to the HMDA Profile settings configured by the administrator. (Some users also reported the Rate Spread field being blanked out automatically when the ECS value should have been imported here. This fix resolves that issue as well.) Prior to this fix, if the Display Rate Spread to 3 decimal places option in the HDMA Profiles setting was set to Yes, the ECS imported value was still beyond three decimal places. If this setting was set to No, the rate spread value from ECS was not imported.

It is important to note that this fix to the Rate Spread value formatting issue has been addressed in Encompass as described above. However, starting on the evening of January 4, 2018 the HMDA Rate Spread Loan Enterprise Rule Reviewer in the ECS will be updated to only run on loans with a final action (originated, declined, withdrawn, closed, etc.) taken before January 1, 2018. The HMDA Rate Spread Loan Enterprise Rule Reviewer will be turned off for loans with a final action on or after January 1, 2018. (For more details about this update, refer to the ECS Rules January 2018 Critical Patch 1 release notes.) Therefore, while this reviewer is turned off, rate spread values will not be available to import from ECS into field HMDA.X15 for 2018 loans. The HMDA Rate Spread Loan Enterprise Rule Reviewer is scheduled to be turned back on in an upcoming ECS release in January to work with loans with a final action on or after January 1, 2018. Once this reviewer is turned back on, the fix to the Rate Spread field in Encompass 18.1.0.2 as described above will be evident.

• Until the HMDA Rate Spread Loan Enterprise Rule Reviewer is turned back on, please go to the following CFPB/FFIEC website to obtain the applicable rate spread needed to complete field HMDA.X15 in Encompass for loans subject to 2018 HMDA reporting requirements: https://cfpb.github.io/hmda-platform-tools/rate-spread

• For the prior Rate Spread Calculator for loans with a final action date before January 1, 2018, please go to the following CFPB/FFIEC website: https://www.ffiec.gov/ratespread/newcalc.aspx

The following updates have been made around the Rate Spread field (field ID HMDA.X15) used for 2018 HMDA reporting. This field indicates the spread between the loan’s APR and the APOR of comparable maturity.

• To comply with the Final HMDA Rule reporting requirements (reference: 1003.4(a)(12)-7 and 1003.4(a)(12)-8), the field mapping logic for HMDA.X15 has been updated to take into account certain options that can be selected from the Action Taken dropdown list (field ID 1393) on the 2018 HMDA Information form. For 2018 HMDA reporting (i.e., 2018 is entered in the HMDA Reporting Year field (HMDA.X27)), if 3. Application denied, 4. Application withdrawn by applicant, 5. File closed for incompleteness, 6. Purchased Loan, or 7. Preapproval request denied is selected from the Action Taken (1393) dropdown list, NA will be automatically populated to the Rate Spread (HMDA.X15) field. NA will also be populated to the Rate Spread field when 1. Reverse mortgage is selected from the Reverse Mortgage dropdown list (field ID HMDA.X56). If any other options are selected for the Action Taken or Reverse Mortgage fields, then the Rate Spread field will remain an editable field. Authorized users can click the Lock icon for the field to enter a value or they can click the Rate Spread button on the 2018 HMDA Information form to calculate the rate spread and populate this field. In earlier versions of Encompass, NA was populated to the Rate Spread field only when 6. Purchased Loan was selected from the Action Taken dropdown list or 1. Reverse mortgage was selected from the Reverse Mortgage dropdown list.

• An issue occurred where the Rate Spread field (HMDA.X15) was being populated with values with more than three decimal places (for example, 1.82000000) when an Encompass Compliance Service (ECS) review was run and the Rate Spread value was imported to the field. In addition, the rate spread did not match the rate spread amount calculated by the Encompass Compliance Service when the rate spread value went beyond three decimal places. This issue has been resolved so that the correct value is being imported from the ECS and the value is adhering to the HMDA Profile settings configured by the administrator. (Some users also reported the Rate Spread field being blanked out automatically when the ECS value should have been imported here. This fix resolves that issue as well.) Prior to this fix, if the Display Rate Spread to 3 decimal places option in the HDMA Profiles setting was set to Yes, the ECS imported value was still beyond three decimal places. If this setting was set to No, the rate spread value from ECS was not imported.

It is important to note that this fix to the Rate Spread value formatting issue is dependent on an update to the Encompass Compliance Service (ECS) as well. The ECS critical patch release to address this issue is currently scheduled for the evening of January 4, 2018. Once this critical patch is released, the fix to the Rate Spread field in Encompass 18.1.0.2 as described above will be evident.

Please note that the following update, while visible in Encompass Settings, is not intended for use at this time. This feature will be fully functional for use with Encompass TPO Connect in a future release. Please do not use this option at this time.

A new option has been added to the Conditions setting to enable Encompass TPO Connect users to upload loan attachments to conditions quicker, without having to create a document container first. With this option, each time an underwriting condition is created in this setting, the administrator can automatically link a document with the condition.

• Document with same name as condition - With this option selected, the document with the same name as the condition name is linked with the condition.
• Default Document - With this option selected, the administrator can click the Select Document button and then select the document to link with the condition.

The following forms have been consolidated from multi-page forms into single-page forms in the Encompass Print window. In addition, the single-page version of the form has been migrated to the Encompass Docs Solution while the multi-page versions have been archived.

• IRS4506 – Copy Request (Page 1, Page 2) (Name printed on form: Request for Copy of Tax Return)

• IRS4056 – Copy Request (Classic) (Page 1, Page 2) (Name printed on form: Request for Copy of Tax Return)

• IRS4506T – Trans Request (Page 1, Page 2) (Name printed on form: Request for Transcript of Tax Return)

• IRS4506T – Trans Request (Classic) (Page 1, Page 2) (Name printed on form: Request for Transcript of Tax Return)

The content of these forms have not been changed. This is simply a change in how the forms are listed in the Print window. For example, when printing the Request for Copy of Tax Return form in earlier versions of Encompass, you would see IRS4506 – Copy Request Page 1 and IRS4506 – Copy Request Page 2 listed on the Standard Forms tab in the Print window. Starting in Encompass 18.1, this form is listed only once as IRS4506 – Copy Request and it includes the two pages of the form. The other three forms listed above will now be presented in the Print window in a similar fashion.

In order to make the new single page version of this form available in your Encompass system(s), the administrator or other authorized user must use the Documents tool in Encompass Settings to add the form as a new form. For instructions to add a new form, refer to the Documents topic in the Encompass online help.

In addition to this update to these forms in the Print window, there is also an impact on these forms when they are being sent electronically to a borrower or another recipient and when they are to be included in a eDisclosure package. Going forward, in order for the proper eSigning points to be applied to these forms when being sent electronically or as part of an eDisclosure package so that they can be eSigned by the recipient, you must indicate who the form is intended for by selecting an option from the Tax Form is for dropdown list on the applicable input form:

• Field ID IR0101 on the Request for Transcript of Tax input form
• Field ID IRS4506.X1 on the Request for Transcript of Tax (Classic) input form
• Field ID AR0101 on the Request for Copy of Tax Return input form
• Field ID IRS4506.X1 on the Request for Copy of Tax Return (Classic) input form

Visit the Encompass Docs Solution Help site for more information on forms, this migration, and the Encompass Docs Solution FAQs.

The following forms have been consolidated from multi-page forms into single-page forms in the Encompass Print window. In addition, the single-page version of the form has been migrated to the Encompass Docs Solution while the multi-page versions have been archived.

• IRS4506 – Copy Request (Page 1, Page 2) (Name printed on form: Request for Copy of Tax Return)

• IRS4056 – Copy Request (Classic) (Page 1, Page 2) (Name printed on form: Request for Copy of Tax Return)

• IRS4506T – Trans Request (Page 1, Page 2) (Name printed on form: Request for Transcript of Tax Return)

• IRS4506T – Trans Request (Classic) (Page 1, Page 2) (Name printed on form: Request for Transcript of Tax Return)

The content of these forms have not been changed. This is simply a change in how the forms are listed in the Print window. For example, when printing the Request for Copy of Tax Return form in earlier versions of Encompass, you would see IRS4506 – Copy Request Page 1 and IRS4506 – Copy Request Page 2 listed on the Standard Forms tab in the Print window. Starting in Encompass 18.1, this form is listed only once as IRS4506 – Copy Request and it includes the two pages of the form. The other three forms listed above will now be presented in the Print window in a similar fashion.

In order to make the new single page version of this form available in your Encompass system(s), the administrator or other authorized user must use the Documents tool in Encompass Settings to add the form as a new form. For instructions to add a new form, refer to the Documents topic in the Encompass online help.

Visit the Encompass Docs Solution Help site for more information on forms, this migration, and the Encompass Docs Solution FAQs.

A new API User checkbox is now provided on the User Details screen when administrators are creating a new user. The purpose of the API User checkbox is to give Encompass administrators the means to grant a consulting Encompass Partner with access to their company's Encompass instance and access to their company's APIs stored in Encompass Developer Connect. This checkbox is intended for use with consulting Partners only and should not be used for users within your organization. Note that once the consulting Partner and the Encompass administrator complete the required process (described below) the Partner will be able to access the company's Encompass instance via the APIs in Encompass Developer Connect, but they will be restricted from logging into the company's live Production system via a client machine like a typical user in the organization would.

In order for a consulting Partner you are working with to access the APIs you have stored in Encompass Developer Connect, they must first request an API Client ID from Ellie Mae by sending an email to Ellie Mae. This dedicated email address will be activated and available soon, but it is not currently active. Once they receive this client ID they can provide it to you. At that point, you must create a new user profile for the consulting Partner by performing the following steps.

Please note that new users indicated as an "API User" as described here do count against your company's enabled user license limits.

The County field is now populating correctly in Encompass TPO Connect when importing FNMA 3.2 files that include the County field. Previously the County field (field ID 13) on forms such as the 1003 Page 1 was not being imported properly from a FNMA 3.2 file unless the loan was an FHA or VA loan. This issue has been resolved and the County field is now being imported properly into Encompass TPO Connect when the field is included in a FNMA 3.2 loan file.

The County field is now populating correctly in Encompass TPO Connect when importing a FNMA 3.2 file that was created by right-clicking a loan on the Encompass Pipeline and then clicking the Investor Services > Export Fannie Mae formatted file option. Previously the County field (field ID 13) on Encompass forms such as the 1003 Page 1 was not being exported properly to the FNMA 3.2 file unless the Loan Type (field ID 1172) in Encompass was FHA or VA. This issue has been resolved and the County field is now being properly exported to the FNMA 3.2 file and imported properly into Encompass TPO Connect.

Encompass 18.1 can now be successfully installed and operated on machines using Microsoft's Windows 10 Creators Update (version 1703) operating system (64-bit version only).

Encompass 18.1 can now be successfully installed and operated on machines using Microsoft's Windows 10 Spring Creators Update operating system (64-bit version only).

Encompass has expanded its ATR/QM analysis to include ratios for construction-to-permanent loans based on the length of the construction term for purposes of 1026.43(e)(2)(iv)(A) and determining ATR/QM Qualified Mortgage status. Updates have been made to the calculations Encompass uses for the maximum interest rate that may apply during the first five years for construction-to-permanent loans. The following table describes the ATR/QM reviews used for construction loans based on the Purpose of Loan and Construction Term.

Encompass has expanded its ATR/QM analysis to include ratios for construction-to-permanent loans based on the length of the construction term for purposes of 1026.43(e)(2)(iv)(A) and determining ATR/QM Qualified Mortgage status. Updates have been made to the calculations Encompass uses for the maximum interest rate that may apply during the first five years for construction-to-permanent loans. A construction phase of 12 months or less is now excluded from the analysis, but will be included for loans with construction terms greater than 12 months.