Feature Enhancements in Version 18.4
Why we made these updates: The objectives for enhancing support for HELOC loans in Encompass include increasing client satisfaction with the HELOC solution by providing configurable, out-of-the-box accurate calculations, delivering improved accuracy and workflow for subordinate financing calculations while also reducing the need for manual work by Encompass users, and maintaining Ellie Mae's position as leader in market compliance.
Enhancements to Support HELOC Loans
Encompass 18.4 HELOC Support Demo
Encompass 18.4 includes the first phase of a larger HELOC product expansion initiative aimed at streamlining the application and underwriting of HELOC loans. In order to support the unique investor requirements for calculating HELOC payments, both initial and qualifying, Encompass now includes a set of configuration options for both, including support to calculate interest-only and amortizing payments on the basis of a selected rate, a fraction of principal balance, or a percentage of principal balance.
Encompass users can now set up unique HELOC product configurations to qualify loan payments according to lender or investor-specific guidelines. New sections have been added to the RegZ-CD, RegZ-LE, Closing RegZ, and RegZ-TIL input forms where users can define separate bases for both the qualifying payment and the initial payment disclosed to the borrower. These new HELOC sections are also available in the Loan Program Templates setting, enabling Encompass administrators to configure Loan Program Templates for each of the HELOC loan scenarios that your company supports, and in the Loan Program Templates pop-up window that is accessible by clicking the Find icon (magnifying glass) next to the Loan Program field on the 2010 and 2015 Itemization forms. Applying a template populates the loan with most of the data needed to calculate HELOC payments. The only additional data required is the initial note rate, initial draw and total line amount.
Beginning with Encompass 18.4, the calculations used for HELOC loans are now configurable. Administrators need to review their existing HELOC loan programs in preparation for these changes to ensure that HELOC loan programs have been configured correctly. In particular, create a Loan Template Set for each significantly different HELOC loan scenario that your company is likely to support. Ideally these templates should be tied to your rate sheets.
View the Working with HELOC Loans guide for more information about managing HELOC loans in Encompass, including recommended best practices, steps to configure HELOC loan templates, and working through specific HELOC loan scenarios.
New HELOC Qualifying Payment Basis and HELOC Qualifying Payment sections have been added directly below the existing HELOC section on the RegZ-CD, RegZ-LE, Closing RegZ, and RegZ-TIL input forms. The fields in these sections are enabled for editing only when the Loan Type (field 1172) is HELOC.
HELOC Qualifying Payment Basis Section
Use this section to configure the qualifying payment basis for a HELOC loan by selecting one of the following three checkboxes. When you select a checkbox, the fields associated with the checkbox are enabled for editing to select the options for the qualifying payment basis. When you select a checkbox, the fields for the other two options are disabled and cannot be edited:
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Rate – Select Note Rate (taken from field ID 3) or Index (taken from field ID 688), select any additional positive or negative percentage adjustment to the rate, and then indicate whether the payment is interest only. For example, Prime Rate + 2%. By default, the qualifying HELOC payment is calculated as an amortizing payment using the qualifying term and days. If an interest-only qualifying payment is desired, select the Interest Only checkbox to calculate an I/O payment using the qualifying rate, qualifying term, and interest days selected.
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Fraction of Balance – Enter whole numbers to set the fractional amount of the selected balance (draw or full line amount). For example, 1/120 of the total line amount.
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Percentage of Balance – Enter the percentage (to 3 decimal points) of the selected balance (draw or full amount). For example, 2% of the initial draw.
The qualifying payment will be calculated based on the option chosen, using the rate option and the selected balance (either maximum balance or initial draw) to calculate the payment. For fraction and percentage of balance, the estimated payment does not include any projected finance charges.
After selecting a qualifying payment basis, complete the following fields:
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Minimum Payment – The existing Minimum Payment field (field ID 1483) indicates whether or not the payment is forced. If the Force Minimum Payment checkbox is selected, the minimum payment is factored into the qualifying payment calculation. If the checkbox is cleared, the value is available for printing on documents, but does not factor into the qualifying payment calculation.
Example: With a minimum payment of $100, if the calculated payment is $75 and Force Minimum Payment is selected, Encompass uses a qualifying payment of $100, otherwise $75 is used.
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Qualifying Balance – Select Initial Draw (from field ID 1888), Maximum Balance (from field ID 2), or leave the field blank.
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Qualifying Term – This new field can be populated only with a whole number of three or fewer digits. This field is disabled when the Rate checkbox is selected.
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Number of Days – This new dropdown list is enabled only when the Interest Only checkbox is selected. It has the following options, including 365/365 simple interest:
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360/360
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365/360
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365/365
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Support for simple interest (365/365) has been added for HELOC calculations to improve the ability to transfer HELOC loans to servicing platforms and for credit union loans.
HELOC Qualifying Payment Section
Use the HELOC Qualifying Payment section to review and adjust the amounts for the HELOC initial draw and the first and subordinate qualifying payments.
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HELOC Initial Draw – Enter of edit the HELOC Initial Draw amount.
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Total Loan Amount – The loan amount (field ID 2) is populated from other forms and is not editable.
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First Qualifying Payment – This amount is populated from the proposed First Mtg P&I (field ID 1724) on forms such as the ATR/QM Management, HUD-92900LT FHA Loan Transmittal, and Transmittal Summary input forms and the Prequalification tool. Click the Lock icon as needed to adjust the amount. If the HELOC scenario is a first lien HELOC, this payment is calculated using the qualifying payment configuration.
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Subordinate Qualifying Payment –This amount is populated from the proposed Second Mtg. P & I (field ID 1725) on forms such as the ATR/QM Management, HUD-92900LT FHA Loan Transmittal, and Transmittal Summary input forms and the Prequalification tool. Click the Lock icon as needed to adjust the amount. If the HELOC scenario is a subordinate lien HELOC, this payment is calculated using the qualifying payment configuration.
Calculating New HELOC Qualifying Payment
The following calculations are used to populate the Qualifying P&I Payments for HELOC loans based on the selections made in the new HELOC field on the RegZ-LE, RegZ-CD and RegZ-TIL. If the Lien Position Type (field ID 420) is First, the amount is populated to the First Qualifying Payment (field ID 1724). If the Lien Position Type is Subordinate, the amount is populated to the Subordinate Qualifying Payment (field ID 1725). This is the payment used to calculate Debt to Income ratios on the Transmittal Summary.
When the Rate checkbox is selected and the new Interest Only checkbox is not selected:
- An amortizing payment is calculated using the rate (plus or minus any offset defined) selected in the dropdown (field ID 4465), the Qualifying Balance (field ID 4473), and the Qualifying Term (field ID 4474).
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The rate value increases or decreases by the amount entered in the percentage field (field ID 4467), but only if the + or – option (field ID 4466) is selected.
When the Rate checkbox is selected and the new Interest Only checkbox is selected:
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An interest only qualifying payment will be calculated based on the rate selected in the dropdown (field ID 4465) plus or minus any additional amount entered in the percentage dropdown (field ID 4467)
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The HELOC interest per day is calculated based on the Number of Days dropdown (field ID 4491).
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When the Number of Days option is 365/365, the HELOC interest per day is the HELOC Interest Rate divided by 100, then divided by 365, and then multiplied by the Qualifying Balance (field ID 4473) amount.
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When the Number of Days option is not 365/365, the HELOC interest per day is the HELOC Interest Rate divided by 100, then divided by 360, and then multiplied by the Qualifying Balance (field ID 4473) amount.
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The HELOC interest only payment is then calculated based on the Number of Days.
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When the Number of Days is 365/365 or 365/360, the HELOC interest per day is multiplied by the number of days in the month indicated in the 1st Payment Date (field ID 682). If the 1st Payment Date is blank, the HELOC interest per day is multiplied by 30.
- When the Number of Days option is 360/360, the HELOC interest per day is multiplied by 30.
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When the Fraction of Balance checkbox is selected:
- The fraction amount is multiplied by the Qualifying Balance. Example – a program which qualifies at 1/120 of credit limit would be configured as Fraction of Balance with a Qualifying Balance of Maximum Balance. On a $50,000 line of credit, this would result in a qualifying payment of $416.67.
When the Percentage of Balance checkbox is selected:
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The percent amount is multiplied by the Qualifying Balance.
When the Force Minimum checkbox is selected:
- If the Minimum Payment (field ID 1483) is less than the calculated qualifying payment the calculated qualifying payment is populated to the First Qualifying Payment (field ID 1724) or the Subordinate Qualifying Payment (field ID 1725), based on the lien position.
- If the Minimum Payment (field ID 1483) is larger than the calculated qualifying payment, the minimum payment amount is populated to the First Qualifying Payment (field ID 1724) or the Subordinate Qualifying Payment, based on the lien position.
When upgrading to Encompass 18.4, when the Loan Type (field ID 1172) is HELOC, and the Lien Position (field 420) is 1st, the First Mortgage P&I amount (field ID 1724) is retained. Click the Lock icon to recalculate the value. When the Loan Type (field ID 1172) is HELOC, and the Lien Position (field 420) is 2nd, the Second P&I (field ID 1725) value is retained. Click the Lock icon to recalculate the value.
CBIZ-17227, CBIZ-17646, CBIZ-17760
A new HELOC Initial Payment section has been added below the new HELOC Qualifying Payment section on the RegZ-CD, RegZ-LE, Closing RegZ, and RegZ-TIL input forms. Use this section to configure the initial payments for a HELOC loan by selecting one of the following three checkboxes. When you select a checkbox, the fields associated with the checkbox are enabled for editing. The fields associate with the other two checkboxes are disabled and cannot be edited.
- Rate – Select Note Rate (taken from field ID 3), Index (taken from field ID 688), Margin + Index (taken from field ID 1827), or Teaser Rate (taken from field ID 1482). Select any additional positive or negative percentage adjustment to the payment, and then indicate whether the payment is Principal and Interest. For example, Prime Rate + 2%. By default, the initial HELOC payment is calculated as an interest only payment. If an amortizing payment is desired, select the P&I checkbox (field ID 4479) to calculate a payment using the initial rate, initial term, and interest days selected.
- Fraction of Balance – Enter whole numbers to set the fractional amount of the selected balance (draw or full line amount). For example, 1/180 of the total line amount.
- Percentage of Balance – Enter the percentage (to 3 decimal points) of the selected balance (draw or full line amount). For example, 2% of the initial draw.
The initial payment is calculated based on the option chosen, using the rate option and the selected balance (either maximum balance or initial draw) to calculate the payment. For fraction and percentage of balance, the estimated payment does not include any projected finance charges.
After selecting a qualifying payment basis, complete the following fields:
- Minimum Payment – This field is the existing Minimum Payment field (field ID 1483) from pre-18.4 versions of Encompass. Select the Force Minimum Payment checkbox to indicate whether the payment is forced. If the checkbox is cleared, the value is available for printing on documents, but does not factor into the initial payment calculation. Example: With a minimum payment of $100, if the calculated payment is $75, and the force minimum payment is selected, Encompass uses an initial payment of $100, otherwise $75 is used. The Force Minimum Payment checkbox in this section can be selected independently of the Force Minimum Payment checkbox in the HELOC Qualifying Payment Basis section.
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Balance Used – Select Initial Draw (from field ID 1888), Maximum Balance (from field ID 2), or leave the field blank.
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Initial Term – This new field can be populated only with a whole number of three or fewer digits. This field enabled only when the P&I checkbox (field ID 4479) is selected.
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HELOC Initial Payment – This field is populated with the Monthly Pmt (field ID 5). Click the Lock icon to edit the value.
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Number of Days – This new dropdown list is enabled only when the Interest Only checkbox is selected. It has the following options, including 365/365 simple interest:
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360/360
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365/360
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365/365
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New calculations have been implemented to populate the initial payment amount based on the selections made in the Rate, Fraction of Balance, and Percentage of Balance checkboxes and their associated fields.
When upgrading to Encompass 18.4, when the Loan Type (field ID 1172) is HELOC, the Monthly Pmt amount (field ID 5) is not editable for previously existing loans. Click the Lock icon to edit the field. Additionally, Encompass verifies that the proposed First Mtg (field ID 228) amount for a first lien and the proposed Other Fin. amount (field ID 229) for a second lien have the same value as the Monthly Pmt amount (field ID 5).
Calculating New HELOC Initial Payment
The following calculations are used to populate the HELOC Initial Payment (field ID 5) for HELOC loans based on the selections made in the new HELOC fields on the RegZ-LE and RegZ-CD (or RegZ-TIL (if using RESPA 2010 to capture closing costs).
When the Rate checkbox is selected and the new P&I checkbox is not selected, an interest only payment is calculated based on the selected rate and offset values:
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The HELOC initial interest rate is calculated based on the rate selected in the dropdown (field ID 4476) plus or minus any additional amount entered in the percentage dropdown (field ID 4477).
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The HELOC initial interest per day is calculated based on the Number of Days dropdown (field ID 1962).
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When the Number of Days option is 365/365, the HELOC interest rate is divided by 100, then divided by 365, and then multiplied by the Balance Used (field ID 4484) amount.
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When the Number of Days option is not 365/365, the HELOC interest rate is divided by 100, then divided by 360, and then multiplied by the Balance Used (field ID 4484) amount.
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The HELOC interest only payment is then calculated based on the Number of Days:
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When the Number of Days is 365/365 or 365/360, the HELOC initial monthly payment is the HELOC initial interest per day multiplied by the number of days in the span of days from the Closing Date (field ID 748) to the 1st Payment Date (field ID 682). If one of these fields is blank, but the other field is populated, 30 days are used.
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When the Number of Days option is 360/360, the HELOC interest per day is multiplied by 30.
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When the Rate checkbox and the P&I checkbox are both selected:
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An amortizing payment is calculated using the rate selected in the dropdown (field ID 4476) plus or minus any offset indicated in fields 4466 and 4467, the Balance Used (field ID 4484), and the Initial Term (field ID 4485).
The rate value increases or decreases by the amount entered in the percentage field (field ID 4467), but only if the + or – option (field ID 4466) is selected.
When the Fraction of Balance checkbox is selected:
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The fraction amount is multiplied by the Balance Used. (Example: a program which uses a payment of 1/120 of principal balance would be coded as Fraction of Balance 1/120 with a Balance Used of Initial Draw
When the Percentage of Balance checkbox is selected:
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The percent amount is multiplied by the Balance Used. (Example: a program which uses 2% of the full HELOC line is coded as Percent of Balance with 2% (no offset) and a Selected Balance of Maximum Balance.
When the Force Minimum checkbox is selected:
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If the Minimum Payment (field ID 1483) is less than the calculated initial payment, the calculated qualifying payment is populated to the HELOC Initial Payment (field ID 5).
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If the Minimum Payment (field ID 1483) is larger than the calculated qualifying payment, the minimum payment amount is populated to the HELOC Initial Payment (field ID 5).
When upgrading to Encompass 18.4, when the Loan Type (field ID 1172) is HELOC, the Monthly Pmt (field ID 5) amount is retained. Click the Lock icon to recalculate the value. Because Encompass has existing logic to copy the Monthly Pmt to the Proposed First Mtg. (field ID 228) or Proposed Other Fin. (field ID 229) based on the lien position, these fields also retained their values (based on the lien position).
CBIZ-17610, CBIZ-17646, CBIZ-17986
The Piggyback Loan tool has new and updated fields, a New HELOC button, and new calculation triggers that are tied to the creation of a piggyback HELOC loan. These updates enable the accurate calculation of LTV and CLTV related to the HELOC amount and the HELOC draw amount, and provide additional flexibility in the synchronization of the HELOC loan amount to the down payment amount on the original loan in the event that only a portion of the loan proceeds are used for this purpose.
A New HELOC button has been added to the top of the tool. Users can click the button and select Yes or No on the confirmation window to confirm whether or not data is synchronized across the two loans. In order to accurately set up your new loan file, the user should elect to synchronize date across the two loans. A new piggyback HELOC loan is created with the following characteristics:
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The Down Payment amount is populated with the Loan Amount from the first lien.
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Users can increase or reduce the Down Payment amount to reflect the loan scenario (for example, an 80/15 scenario where the First loan is 80% LTV, would have a down payment amount of 85% on the second loan, representing net 5% down from the borrower).
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The Down Payment % is based on the defaulted down payment amount.
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The Loan Amount is calculated as the Purchase Price minus the Down Payment amount.
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Initial Draw Amount is blank. It can be modified by the user.
New and updated fields:
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Amount to Apply to Downpayment (field ID 4493). Data entered in this field on a piggyback HELOC copies to the Subordinate Financing (Field 140) on the primary loan file.
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Lien Position (field ID 4494) – Up to four lien positions are supported.
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Lien Position Type (field ID 420) – This field was formerly labeled Lien Position in earlier versions of Encompass, and the First and Second options on the dropdown list have been changed to First and Subordinate.
CBIZ-11230
A new HELOC Teaser Rate Period field (field ID 4492) has been added to the REGZ-LE, RegZ-CD, and RegZ-TIL input forms (and is also available in the HELOC sections on Loan Program Templates), and updates have been made to the calculations for the Intro Rate Period calculation (field ID HMDA.X84) for HELOC loans to comply with HMDA Final Rule Section 1003.4(a)(26), which requires a financial institution to report the number of months from closing or account opening until the first date the interest rate may change. A Financial Institution reports the number of months based on when the first interest rate adjustment may occur, even if an interest rate adjustment is not required to occur at that time and even if the rates or rate periods are not known at loan closing or account opening. Previously, the Intro Rate Period was populated with the value from the 1st Change (field ID 696), which is the number of months from the 1st Payment Date to the 1st Adjustment Date.
Beginning with Encompass 18.4, the HELOC Teaser Rate Period is used as the Introductory Rate Period for HELOC loans that have a teaser rate. For HELOC loans that don’t have a teaser rate, but have an ARM adjustment, the 1st Change (field ID 696) value is used to calculate the Introductory Rate Period.
After upgrading to Encompass 18.4, the new calculations will be applied on access to all existing loans that meet the criteria described above.
CBIZ-15969, CBIZ-17646
The new Initial Advance field (field ID 1888) has been added to the Borrower Summary – Origination and Borrower Summary – Processing input forms to record the initial advance for HELOC loans. The field display beneath the Loan Amount field on the Transaction Details section of both input form. The field is edit able only when the Loan Type (field ID 1172) is HELOC.
CBIZ-18864
Subordinate Financing
To streamline data entry requirements for loans with new and existing financing, Encompass now identifies verification of liability (VOL) records associated with the subject property prior to creating the associated REO Asset record (VOM). Any Mortgage or HELOC liabilities are automatically factored into the related primary and subordinate mortgage totals (field IDs 427, 428, CASASRN.X167, and CASASRN.X168) without requiring additional data entry to synchronize the amounts. Also included in the calculations are any loans linked through the Piggyback Loans tool as well as new fields identifying net new financing (primary, subordinate, or HELOC) from another lender. New, more specific fields are replacing the Additional financing field (field ID 1732) in LTV/CLTV calculations. All this information is now available on the revised Subordinate Mortgage Loan Amounts pop-up window , which serves as a dashboard that provides a comprehensive view of all financing associated with the subject property.
The Subordinate Mortgage Loan Amounts pop-up window, which is accessible by clicking the Sub. Financing button on input forms such as the Borrower summary-Origination, Borrower summary-Processing, 1003 Page 1, RegZ-LE, and RegZ-TIL, has been updated to provide a centralized dashboard that provides easy access to the component subordinate financing fields for loans with subordinate financing.
To originate loans that have subordinate financing (including HELOCs), lenders must consider the entire financing picture of the loan, including liabilities that remain attached to the subject property after the origination of the current loan, as well as any concurrent financing either through another lender or as a linked piggyback loan being closed with the current transaction. The Subordinate Mortgage Loan Amounts window provides a consolidated and functional view for loan officers and underwriters to access and update the related items from a central location.
Prior to the Encompass 18.4 release, the Subordinate Mortgage Loan Amounts window contained three fields: a first mortgage field that was populated with the Loan Amount (field ID 2), and two manual entry fields for tracking the amounts of a second mortgage and any additional subordinate financing.
Beginning with Encompass 18.4, the expanded Subordinate Mortgage Loan Amounts window contains the following sections, which enable loan officers, underwriters and other loan team members to track subordinate financing data related to the current loan:
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Mortgage and HELOC Liabilities
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Loan linked to current transaction
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New Financing not Linked to Current Transaction
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Total Financing for Subject Property
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Total Ratios for Subject Property
Mortgage and HELOC Liabilities
Loan Linked to Current Transaction
New Financing Not Linked to Current Transaction
Total Financing for Subject Property
Total Ratios for Subject Property
CBIZ-10179
(Updated on 1/17/2019)
The following calculations are now being used for CLTV (field IDs 976, MORNET.X76, and ULDD.FNM.MORNET.X76) and HCLTV (field IDs 1540, MORNET.X77, and ULDD.FNM.MORNET.X77) ratios with subordinate financing to enable accurate underwriting for these loan scenarios.
The MORNET fields for CLTV (field ID MORNET.X76) and HCLTV (field ID MORNET.X77) use the same calculation as CLTV (field ID 976) and HCLTV (field ID 1540), but are rounded per Fannie Mae policy, with the ratios first truncated to two decimal points and then rounded up to a whole number.
Conventional Loans
For loans where the Loan Type (field ID 1172) is Conventional, HELOC, or Other:
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CLTV – The sum of the Closed End Primary Mortgage Total (field ID 427), the Closed End Subordinate Mortgage Total (field ID 428), and the Total Open End (HELOC) Draw Amounts (field ID CASASRN.X167) and the Financed MIP (1045) divided by the valuation used.
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HCLTV – The sum of the Closed End Primary Mortgage Total (field ID 427), the Closed End Subordinate Mortgage Total (field ID 428), and the Total Open End (HELOC) Credit Limit (field ID CASASRN.X168) and the Financed MIP (1045) divided by the valuation used.
Government (FHA, VA, or USDA)
For loans where the Loan Type (field ID 1172) is FHA, VA, or USDA, the following calculations are being used per the FHA Single Family Housing Policy Handbook and VA guidelines:
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CLTV – The sum of the Closed End Primary Mortgage Total (field ID 427), the Closed End Subordinate Mortgage Total (field ID 428), and the Total Open End (HELOC) Credit Limit (field ID CASASRN.X168) divided by the valuation used.
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HCLTV – The sum of the Closed End Primary Mortgage Total (field ID 427), the Closed End Subordinate Mortgage Total (field ID 428), and the Total Open End (HELOC) Credit Limit (field ID CASASRN.X168) divided by the valuation used.
The CLTV and HCLTV calculations are the same for government loans. This is in contrast to conventional loans, which provide a distinction between the credit accessed vs the credit limit between these two calculations.
To protect the integrity of the LTV ratios in loan files created prior to upgrading to Encompass 18.4, a Lock icon has been added to the HCLTV ratio (field ID 1540) and the ratios for CLTV (field IDs 976, MORNET.X76) and HCLTV (field IDs 1540, MORNET.X77) are grayed out and are not recalculated after the upgrade. To adjust a ratio after the upgrade, click the Lock icon for the ratio.
CBIZ-16966
The following calculation is now being used to populate the Closed End Primary Mortgage Total (field ID 427) with the first lien loan amount. This field was formerly named 1st Mortgage on the pre-18.4 version of the Subordinate Mortgage Loan Amounts pop-up window. The amount is determined by adding the three sums listed below.
Although the calculation involves adding a series of sums, it is actually used to identify a single first-lien loan and populate the loan amount as the Closed End Primary Mortgage Total.
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The sum of the Borrower Requested Loan Amount (1109) for all linked loans (including the current loan, but excluding any construction loans linked via the Construction Management Tool) with a Lien Position Type (field ID 420) of First and a Loan Type (1172) that is not HELOC.
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The sum of the Balance (field ID FL0113) of VOL entries with a Proposed Lien Position (field ID FL0129) of 1, an Account Type of Mortgage, a To Be Paid Off value of N, and the Subject Property checkbox (field ID FL0127) selected.
An alert notifies the Encompass user when multiple loans are assigned to any given lien position.
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The New Closed End Primary Mortgage (field ID 4487) loan amount.
Example: A first lien can be an existing liability which is being retained (captured in the VOL), the current loan file, a linked loan file (if the loan is part of a piggyback transaction and the current loan file is a subordinate lien) or a piggyback loan file being originated with another lender where the other lender is the first lien holder.
To preserve the integrity of data in existing loans, a Lock icon has been added to the Closed End Primary Mortgage Total field. For loans created prior to updating to Encompass 18.4, the existing value is maintain and is not recalculated. To edit the amount, click the Lock icon.
CBIZ-11113
(Updated on 1/17/2019)
The following calculation is used to populate the Closed End Subordinate Mortgage Total field (field ID 428) with the sum of all lender-originated subordinate liens. This field was formerly named 2nd Mortgage on the pre-18.4 version of the Subordinate Mortgage Loan Amounts pop-up window.
Loans Types of Conventional, FHA, VA or Other are all considered to be closed end transactions in order to correctly calculate CLTV and DTI values associated with the transaction. Additionally, the calculation takes into account any second mortgage amounts against the subject property that are being retained with the transaction.
The amount is determined by adding the sums listed below:
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The sum of the Borrower Requested Loan Amount (1109) for all linked loans (including the current loan, but excluding any construction loans linked via the Construction Management Tool) with a Lien Position Type (field ID 420) of Subordinate and a Loan Type (1172) that is not HELOC.
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The sum of the Balance (field ID FLxx13) of VOL entries with a Proposed Lien Position (field ID FLxx29) greater than 1, an Account Type of Mortgage, a To Be Paid Off value of N, and the Subject Property checkbox (field ID FLxx27) selected.
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The New Closed End Subordinate Mortgage (field ID 4487) loan amount.
Examples: A subordinate closed end lien can be an existing liability against the subject property that is being retained and resubordinated (captured in the VOL), the current loan file where the lien is identified as subordinate and the loan type is not a HELOC, a linked loan file (if the loan is part of a piggyback transaction and the current loan file is a first lien), or a piggyback subordinate loan file being originated with another lender where the other lender is the subordinate lien holder or a provider of a down payment assistance loan. Because a borrower can have multiple subordinate liens against the subject property, this is supported as a sum.
To protect the integrity of data in existing loan files, a Lock icon has been added to the Closed End Subordinate Mortgage Total field (field ID 428) and the field value is retained for existing loans. Click the Lock icon to recalculate the amount.
CBIZ-10463
The following calculation is used to determine the Total Open End (HELOC) Drawn Amounts (field ID CASASRN.X167). This field was formerly named Additional (field ID 1732) on the pre-18.4 version of the Subordinate Mortgage Loan Amounts pop-up window.
With the Encompass 18.4 release, the Additional field (field ID 1732) is being excluded from all LTV, CLTV, and HCLTV calculations and is no longer accessible on input forms in Encompass. To include the value from field 1732 in CLTV ratios, copy the value to one of the new fields in the financing that best represents the value contained in field 1732. Options are located on the Subordinate Mortgage Loan Amounts pop-up window in the New Financing Not Linked to the Current Transaction section and include New Closed End Primary, New Closed End Subordinate, or New HELOC Draw and New HELOC Credit Limit). To view the value in field 1732 after upgrading to Encompass 18.4, add the field to a custom report or create a custom input form and then add the field to the form.
To facilitate synchronization of piggyback loans, including open end (HELOC) mortgages, Encompass considers the type of loan prior to synchronizing the loan amount or line amount to the second mortgage value on the loan in order to correctly calculate the combined loan to value amounts (CLTV and TLTV). Previously, Encompass only considered the total loan amount. Beginning with Encompass 18.4, the current balances for HELOC loans that are paid off and resubordinated are not included in the drawn total. Additionally, if there are HELOC lines against the subject property that are being resubordinated with the transaction, this calculation takes those amounts into account.
The amount is determined by adding the sums listed below:
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The sum of the Initial Advance (field ID 1888) of all linked loans (including the current loan) where the Loan Type (field ID 1172) is HELOC.
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The sum of the Balance (FL0113) of any VOL where the Resubordinated Indicator checkbox (field ID FL0126) is selected, the Will be paid off checkbox (field ID FL0118) is not selected, the Account Type (field ID FL0108) is HELOC, the Subject Property checkbox (FL0127) is selected, and the loan is not a construction loan linked via the Construction Management input form.
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The New HELOC Draw amount (field ID 4489) from the new Subordinate Mortgage Loan Amounts window.
Examples: The amount of HELOC credit line(s) that have been accessed can be found in an existing liability against the subject property that is being retained and resubordinated (captured in the VOL), the current loan file where the loan type is a HELOC (regardless of lien type or position), a linked HELOC loan file, or a piggyback HELOC being originated with another lender. Because a borrower can have multiple HELOC lines against the subject property, this is supported as a sum.
CBIZ-10479
(Updated on 1/17/2019)
The following calculation is used to determine the Total Open End (HELOC ) Credit Limit (field ID CASASRN.X168). To facilitate synchronization of piggyback loans that include HELOC mortgages, Encompass now considers the type of loan prior to synchronizing the loan amount or line amount to the second mortgage value on the loan. This enable the correct calculation of combined loan-to-value ratios. Previously, the synchronization process considered only the total loan amount. Additionally, the calculations also considers any existing HELOC lines against the subject property that are being resubordinated with the transaction.
The amount is determined by adding the sums listed below:
- The sum of the Borrower Requested Loan Amount (1109) of all linked piggyback loans where the Loan Type (field ID 1172) is HELOC.
- The sum of Credit Limit (field ID FLxx31) of VOLs where the Will be paid off checkbox (field ID FLxx18) is not selected and the Account Type is HELOC and the Subject Property checkbox field ID (FLxx27) is selected.
- The New HELOC Credit Limit (field ID 4490) from the Subordinate Mortgage Loan Amounts window.
Examples: The amount of HELOC credit line(s) that have been obtained can be found in an existing liability against the subject property that is being retained and resubordinated (captured in the VOL), the current loan file where the loan type is a HELOC (regardless of lien type or position), a linked HELOC loan file, or a piggyback HELOC being originated with another lender. Because a borrower can have multiple HELOC lines against the subject property, this is supported as a sum.
When upgrading to Encompass 18.4, Lock icons are being added to the Total Open End (HELOC) Draw Amounts (field ID CASASRN.X167) and the Total Open End (HELOC) Credit Limit (field ID CASASRN.X168), and the values used in existing loans are being preserved. Click the Lock icons to adjust these amounts. Starting with the Encompass 18.4 release, the Additional financing field (field ID 1732) has been removed from input forms and calculations and replaced with the Total Open End (HELOC) Drawn Amounts (field ID CASASRN.X167), but the value for the Additional field is preserved if it was populated prior to the upgrade.
When upgrading to Encompass 18.4, Lock icons are being added to the Additional (field ID 1732), Total Open End (HELOC) Draw Amounts (field ID CASASRN.X167), and the Total Open End (HELOC) Credit Limit (field ID CASASRN.X168), and the values used in existing loans are preserved. Click the Lock icons to adjust these amounts.
CBIZ-10484
To facilitate calculations for loans with subordinate financing, Encompass now calculates the amount of existing liens to be paid off as the total of all payoffs for mortgage and HELOC liabilities associated with the subject property. The following updates have been made to the calculation, triggers, and user interface for the Existing Liens field (field ID 26) to support these changes:
Calculation
The field is populated with the sum of the Payoff Amount (FLxx16) from VOLs that have all of the following criteria:
-
The Will be Paid off checkbox (field ID FLxx18) is selected.
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The Include checkbox (FLxx63) is selected in the Payoffs and Payments pop-up window.
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The Subject Property checkbox (FLxx27) is selected.
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The Account Type (FLxx08) is Mortgage or HELOC.
Calculation Trigger Updates
The calculation for Existing Liens is triggered when the following fields are modified on a VOL:
-
Payoff Amount (field ID FLxx16)
-
Will be Paid off (field ID FLxx18)
-
Subject Property checkbox (field ID FLxx27)
-
Account Type (field ID FLxx08) – Only when the selection changes to Mortgage or HELOC or is changed from Mortgage or HELOC to another account type.
-
Include checkbox (field ID FLxx63) – This field is located on the pop-up window that opens when you click the Payoffs & Payments button on the Loan Estimate Page 2.
User Interface
A Lock icon has been added to the field on the 1003 Page 1, Streamline 1003, Rural Assistance URLA, and VA 26-8923 input forms. When upgrading to Encompass 18.4, the existing value for the field is not recalculated when the Purpose of Loan (field ID 19) is Construction, Construction – Perm, Cashout Refi, or No Cashout Refi. Click the Lock icon to update the value using the new calculation.
For loan files created prior to updating to Encompass 18.4, existing loans with a VOM that has the Subject Property checkbox already selected will not have linked VOL amounts included in the calculation unless an Encompass user accesses the VOM and relinks the VOLs.
CBIZ-10458
To accurately calculate the financing totals and total bank exposure for a loan with subordinate financing, the following fields have been added to the Verification of Liability window to identify the credit limit, lien position, and mortgage type of linked liabilities. These fields support HELOC calculations for linked liabilities attached to the subject property.
-
Credit Limit (field ID FLxx31)
-
Subject Property (field ID FLxx27) – When a liability is linked to a VOM identified as Subject Property, this checkbox is selected by default. The checkbox can also be selected prior to linking the liability to a VOM, for example, when establishing the subject property during an interview with the borrower before a VOW has been created.
-
Current Lien Position (field ID FLxx28) – Up to four lien positions are allowed.
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Proposed Lien Position (field ID FLxx29) – Up to four lien positions are allowed. A pop-up window notifies users when another VOL already occupies the selected lien position.
-
Bank Liability (field ID FLxx30)
-
Mortgage Type (field ID FLxx32) – Options include Conventional, FHA, VA, and Other.
Calculation Triggers
HELOC-related calculations are triggered when the following changes are made on a VOL that is associated to the subject property when the Will be paid off checkbox is not selected, the Include checkbox (on the Payoff and Payments pop-up window) is not selected, or if the Resubordinated Indicator checkbox is selected.
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An update to the Credit Limit recalculates the Total Open End Credit Limit if the liability is a HELOC.
-
Update to the Balance amount:
-
Recalculates the Total Open End (HELOC) Draw Amount (field ID CASASRN.X167) if the liability is a HELOC.
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Recalculates the Closed End Mortgage Total (field ID 427) if the liability is a Mortgage and the Proposed Lien Position (field ID FLxx28) is 1.
-
Recalculates the Closed End Subordinate Mortgage Total (field ID 428) if the liability is Mortgage and Proposed Lien Position (field ID FLxx28) is greater than 1.
-
Recalculates the Existing Liens Paid Off (field ID 26) if the liability type is HELOC or Mortgage and the Will be paid off checkbox (field ID FLxx18) is selected.
-
CBIZ-17843
To limit redundant data entry, improve consistency in processing, and support the revised Subordinate Mortgage Loan Amounts pop-up window, Encompass is now automating the links between liabilities and linked loans with fields used to calculation LTV.
The following new fields have been added to VOL records to support these calculation:
-
Current Lien Position (field ID FLxx28) - Up to 4 lien positions are supported.
-
Proposed Lien Position (field ID FLxx29) - Up to 4 lien positions are supported, with only one loan permitted in each position.
Both the Current Lien Position and Proposed Lien Position fields are required fields if the Resubordinated Indicator checkbox (field ID FLxx26) is selected. Both fields are required fields if the Subject Property checkbox (field ID FLxx26) is selected and the Will be paid off checkbox (field ID FLxx18) is not selected (independent of the Resubordinated Indicator selection).
- Credit Limit (field ID FLxx31)
-
This is a required field if the Will be paid off checkbox is not selected and the Account Type (field ID FLxx08) is HELOC. The amount is included in HCLTV calculations as an outstanding lien against the property. Based on lien position, the loan may or may not be subject to resubordination, so this field is not tied to the Resubordinated Indicator checkbox.
-
Subject Property (field ID FLxx27) – This field is selected if the Subject Property Indicator is selected on a linked VOM. The field is not editable if there is a linked VOM.
-
Bank Liability Considered in Exposure
-
Mortgage Type - Options Null, Conventional, FHA, VA, USDA-RHS, Other
The following new alerts have been added to the Alerts setting in Encompass to support subordinate financing:
-
Credit Limit Required – This alert is triggered when the Credit Limit (field ID FLxx31) is blank, the Account Type (field ID FLxx08) is HELOC and the Will be Paid Off checkbox is not selected.
-
Current and Proposed Lien position required if Resubordinated – This alert is triggered when the Current Lien Position or Proposed Lien Position are blank, but the Resubordinated Indicator checkbox is selected.
-
Current and Proposed Lien position required if Subject Property – This alert is triggered when the Current Lien Position or Proposed Lien Position are blank, the Subject Property checkbox is selected, and the Will be Paid Off checkbox is not selected (regardless of resubordinated).
CBIZ-16880
Non-Occupant Co-Borrower Housing Expenses
Updates have been made to the way housing expenses are treated for non-occupant co-borrowers (co-mortgagors added as an additional borrower pair who are not using the property as a primary residence). Prior to Encompass 18.4, Encompass users had to complete additional workarounds for the non-occupant co-borrowers to ensure that their present housing expenses were included in the loan ratios used for underwriting. The property would be recorded as an investment property for the non-occupant co-borrowers, which would cause discrepancies in the ATR/QM total debt ratio calculations.
Beginning with Encompass 18.4, the present housing expenses for a non-occupant co-borrower are now included in the calculation for the co-mortgagor's present housing expenses (field ID 1379) when the following options are selected for a non-occupant co-borrower:
-
The Primary option is selected for Property will be field (field ID 1811).
-
AND one of the following options is also selected:
-
No is selected for the borrower Do you intend to occupy the property as your primary residence? declaration (field ID 418) on the 1003 Page 3.
-
No is selected for the co-borrower Do you intend to occupy the property as your primary residence? declaration (field ID 1343) on the 1003 Page 3.
-
Additionally, the co-mortgagor's present housing expense is now being properly included in the following ATR/QM Total Debt Ratio calculations for the primary residence:
-
Initial Rate Total Debt Ratio (field ID QM.X376)
-
Fully Indexed Rate Total Debt Ratio (field ID QM.X116)
-
Max Rate During First 5 Years Total Debt Ratio (field ID QM.X119)
A Lock icon has been added to the Co-Mortgagors combined housing expenses (field ID 1379). When upgrading to Encompass 18.4, when an existing loan has multiple borrower pairs and the Property Will Be option (field ID 1811) does not match for all pairs, the existing value in field 1379 is retained and the field is locked.
Workaround Information:
The following three workarounds were provided for this issue and are no longer required for Encompass version 18.4 and later.
The Investment option would be selected for the Property Will Be field (field ID 1811) for the co-mortgagor and:
-
If the non-occupying co-borrower owned a home and was paying off a mortgage on the home, the lender created an REO with a VOM to document the mortgage plus VOLs to document monthly housing expenses plus taxes and insurance.
-
If the non-occupying co-borrower was renting, the lender created a VOL for the rent.
-
If the non-occupying co-borrower owned their home free and clear, the lender included the co-mortgagor housing expenses as a liability (VOM with taxes and insurance).
CBIZ-16828
HMDA Updates
Updates have been made to the logic used to populate the HMDA Reporting Year (field ID HMDA.X27) and to determine which version of the HMDA Information form displays in a loan file.
Previously, the HMDA Information input form used the following logic:
-
For loans dispositioned in 2017 or earlier, 2017 displayed for the HMDA Reporting Year.
-
For loans dispositioned in 2018 and later, 2018 displayed for the HMDA Reporting Year.
This logic is being updated to enable the actual reporting year to display for loans dispositioned after 2018.
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When Active Loan is selected on the Action Taken dropdown list (field ID 1393), the HMDA Reporting Year is set to the current year.
-
When Active Loan is not selected on the Action Taken dropdown list (field ID 1393), the HMDA Reporting Year is set to the year in the Action Taken Date (field ID 749).
Additionally, the following logic is being used to display the appropriate version of the HMDA Information input form:
-
When the HMDA Reporting Year (HMDA.X27) is earlier than 2017, the pre-2017 HMDA Information input form displays.
-
When the HMDA Reporting Year (HMDA.X27) is 2017, the 2017 HMDA Information input form displays.
-
When the HMDA Reporting Year (HMDA.X27) is 2018 or later the HMDA Information input form displays the new 2018 HMDA Originated / Adverse Action Loans or 2018 HMDA Purchased Loans tab, based on your company's configuration.
CBIZ-11388
Two new fields have been added to the Property Information section on the Originated/Adverse Action and Repurchased tabs on the HMDA Information input form to display the HMDA Census Tract (field ID HMDA.X112) and HMDA County Code (field ID HMDA.X111) in HMDA format. For purposes of the LAR, the CFPB has mandated that HMDA Census Tract be formatted as a combination of the six-digit Census Tract (field ID 700), three-digit County Code (field ID 1396), and two-digit State Code (field ID 1395). The resulting 11-digit code is reported in the LAR. Additionally, the HMDA County Code reported on the LAR is a combination of the State Code and County Code. The two new fields are read-only. Because the County Code, State Code, and Census Tract fields are used by multiple services, those fields are being retained in their existing formats.
CBIZ-17296
Additional Calculation Updates
When there are two borrower pairs for a loan with a Loan Type (field ID 1172) of USDA-RHS and one of the borrower pairs is selected from the Borrowers dropdown list at the top of the loan file, the income amounts for the selected borrower pair are now used to calculate the following amounts on the Rural Assistance URLA Income Worksheet in the USDA Management input form:
-
Lines 1 and 6 in the Annual Income Calculation section (field IDs USDA.X164, USDA.X165, USDA.X167, USDA.X168, USDA.X170, and USDA.X16)
-
Line 13 in the Adjusted Income Calculation section (field ID SDA.X17)
Previously, the income amounts for the first borrower pair were used to calculate these fields, regardless of the borrower pair selected.
CBIZ-6891
Updates were made to the Intro Rate Period calculation (field ID HMDA.X84) to comply with HMDA Final Rule Section 1003.4(a)(26), which requires a financial institution to report the number of months from closing or account opening until the first date the interest rate may change. A Financial Institution reports the number of months based on when the first interest rate adjustment may occur, even if an interest rate adjustment is not required to occur at that time and even if the rates or rate periods are not known at loan closing or account opening. Previously, the Intro Rate Period was populated with the value from the 1st Change (field ID 696), which is the number of months from the 1st Payment Date to the 1st Adjustment Date.
New Calculation for Standard ARM Loans and Construction-to-Permanent Loans
For standard ARM loans (not construction-to-permanent), the Disbursement Date (field ID 2553) is subtracted from the 1st Payment Date (field ID 682) and the resulting number is divided by 30. For construction-to-permanent loans, the Disbursement Date (field ID 2553) is subtracted from the 1st Amortizing Payment Date (field ID 1963) and the resulting number is divided by 30. The result of this calculation is added to the 1st Change field (field ID 696).
-
If the result is less than 1, the Intro Rate Period is populated with 1.
-
If the result is greater than 1, the Intro Rate Period is populated with the resulting number of whole months, discarding any partial months.
New Calculation for Purchased or Fixed-Rate Loans (Including Construction-to-Permanent Fixed Loans)
-
If the Loan Status (field ID 1393) is Loan purchased by your institution or the Amortization Type (field ID 608) is Fixed, then the Intro Rate Period is set to NA.
After upgrading to Encompass 18.4, the new calculations are applied to all existing loans that meet the criteria described above.
CBIZ-15717
Encompass Forms and Tools
The Loan Amount field used when requesting Overnight Rate Protection (ONRP) has been updated from the Loan Amount (field ID 2) field on the 1003 Page 3 to the Total Loan Amount (field ID 2965) field on the Lock Request Form. This change has been made because the Total Loan Amount may be different from the Loan Amount, which can cause ONRP to calculate an incorrect loan amount for the lock transaction.
In the Fannie Mae Additional Data section on the FNMA Streamlined 1003 input form, new checkboxes have been added and the introductory paragraph for the section has been updated to enable Encompass user to identify erroneous bankruptcy, foreclosure, and mortgage delinquency information from the borrower’s credit report to be disregarded by DU.
New introductory paragraph:
Bankruptcy, Foreclosure and Mortgage Delinquency Messages for DU
If there is prior bankruptcy, foreclosure or mortgage delinquency information on the credit report and you would like to instruct DU to disregard the same, please enter the appropriate DU explanation code. DU seeks this in the context of questions ‘b’, ‘c’ and ‘f’ respectively in the Declarations section. For additional information, refer to DU guidelines.
The following checkboxes have been added to the Fannie Mae Additional Data section on the FNMA Streamlined 1003 form for the borrower and co-borrower.
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Inaccurate Bankruptcy Information ("Confirmed CR BK Incorrect") (field ID MORNET.X151 and MORNET.X155)
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Bankruptcy Due to Extenuating Circumstances ("Confirmed CR BK EC") (field ID MORNET.X152 and MORNET.X156)
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Confirmed Mortgage Delinquency Incorrect ("Confirmed Mtg Del Incorrect") (field ID MORNET.X154 and MORNET.X153)
CBIZ-17799
Electronic Document Management
A new option is being added to the eDisclosure Packages setting in Encompass (Encompass > Settings > Docs Setup > eDisclosure Packages) to enable administrators to configure the signing order for initial disclosures. If the option is enabled, email notifications are sent to borrowers only after the Loan Officer completes eSigning (if required) for the eDisclosure package. Administrators can select the states in which this workflow applies. By default, no states are selected.
To Configure the eSigning Order:
-
On the menu bar, click Encompass, and then click Settings.
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On the left panel, click Docs Setup, and then click eDisclosure Packages.
-
In the Borrower Signing section, select the Configure signing order with initial disclosures checkbox.
- Click the Select States button, select the states where you want the loan officer to eSign before initial disclosure are sent to other parties, and then click OK.
- When finished, click the Save icon for the eDisclosure Packages setting.
EDM-18254
Title and Closing Service Updates
The ability for lenders to send multiple, independent documents from the Encompass eFolder to title agents has been added to the Title and Closing Service. Previously, lenders could only send multiple Encompass eFolder documents as a single merged document, instead of as independent documents. Along with this new ability, the documents will also retain their original name in Encompass when sent and received.
To Send Multiple, Individual eFolder Documents:
-
From an open loan, click the Services tab, and then click Order Title & Closing.
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On the Order Title & Closing service window, select the Order Status tab.
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In the Attachments section, select the Add Attachments icon (paperclip with + symbol).
-
Select Browse from Encompass eFolder, and then select Continue.
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Select the documents to attach from the list of documents in the Encompass eFolder. Only documents with attachments can be selected.
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Click Continue to add the selected documents. The original Encompass names are retained.
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Choose a message type, enter any comments, and then click Send Message to send the message and attachments to the title agent.
To enable lenders to quickly connect with title agents using the Encompass Title & Closing Center portal, the ability to add existing Business Contacts to the My Title Companies tab, a white list of preferred vendors, has been added to the Title & Closing Service. Lenders using this ability can automatically populate the Add Title Company window's contact information fields with the contact details of title companies who are existing Business Contacts.
In order to use this ability, the title or escrow company's contact information must already exist in the Business Contacts tool and be assigned to its appropriate category. The appropriate category assignments are: "Title Company" for title contacts, "Escrow Company" for escrow contacts, and any (or no) category for settlement contacts. If the title or escrow Business Contact has not been assigned to its appropriate category, it will not appear for selection.
To Add Business Contacts to the My Title Companies Tab:
-
From an open loan, click the Services tab, and then click Order Title & Closing.
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On the Order Title & Closing service window, select the My Title Companies tab.
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On the top toolbar, select the Add Title Company icon (paper with + symbol).
-
On the Add Title Company window, next to the Title, Escrow, or Settlement buttons, select the Select a Business Contact icon (address book).
-
From the list of Business Contacts, select the company, and then click Select. The Business Contact's information will automatically populate in the contact information fields on the Add Title Company tab.
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Click Save to add the Business Contact to the My Title Companies list of preferred vendors.
To enable lenders to make quicker informed decisions about where to send an order or fee quote request, the city and state location of title companies has been added as a new column on the title companies search results. This new column, called "City, State", displays the city and state (abbreviation) where a title company is located. Users will no longer need to launch a title company's Order window to view its address for location information.
In the Encompass 18.2 release, the ability to collaborate with title agents on fees in the 2015 Itemization form — section 1100. Title Charges and section 1200. Government Recording and Transfer Charges — was introduced. This gave lenders the ability to import and modify fees sent by the title agent, and then send the modified fees back to the title agent.
This release expands the ability to collaborate on fees to section 1300 of the 2015 Itemization Form. In addition to sections 1100 and 1200, you can now collaborate with title agents on fees in section 1300. Additional Settlement Charges.
This feature enhancement will be completed in a future release.
To help instill confidence in the actual existence of a title company and identity of its agents, the ALTA ID column has been added to the My Title Companies and Search / Search and Manage tabs. For this release, the column will remain empty. In a future release, the column will contain the ALTA IDs of companies that have one, and will link to the company's ALTA web page.
To enhance the usability and functionality of importing items sent by title agents, several updates have been made to the Order Status tab:
-
Disabled ability to re-import: After importing title and recording fees or data from the summary of transactions from the title agent, the option to re-import will be made unavailable until the title agent sends new fees. This includes the scenario in which only one fee is imported. Importing one fee will make the all fees in the associated fee set - which comprises of all data from the summary of transactions, and all fee data from sections 1100, 1200, and 1300 of the 2015 Itemization Form - unavailable for re-import until the title agent sends new fees.
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New message alert for new items to import - When new fees and documents are available for import, a message will appear to alert the user that new data is available for import. The message will reflect if the new items to import are documents, fees, or both. Users will no longer need to review all pending items to check for new items to import.
-
New Import Documents columns - Two new columns have been added to the Import Documents window (viewed by clicking the Import link): Date Received and Date Imported. The Name and Type columns also remain.
To View the Order Status Tab and Import Documents Window:
-
From an open loan, click the Services tab, and then click Order Title & Closing.
-
On the Order Title & Closing service window, select the Order Status tab.
-
To view the Import Documents window, select the Import link on the Order Update column in the Orders section.
To return more accurate title company search results and reduce the number of orders rejected by title companies, the list of valid zip codes and counties has been updated to match the list of zip codes and counties used by Encompass. Going forward, the Encompass Title & Closing Service and Encompass will continue to use the same list.
Encompass Settings
To control which users have access to the new TPO Global Lender Contacts setting (under External Company Setup) and the new Lender Contacts tab (under Company Details), new Persona settings have been added to the External Settings tab.
-
For the TPO Global Lender Contacts setting, a new TPO Global Lender Contacts setting has been added.
-
For the Lender Contacts tab, a new Lender Contacts setting and a new Edit Lender Contacts setting have been added.
In addition, the following changes have been made:
- The Key Contacts settings have been renamed to TPO Contacts and Edit TPO Contacts.
- The Sales Reps/AE settings have been moved to between the TPO Contacts and Lender Contacts settings.
To indicate which channel/channels a Sales Rep/AE is assigned to, channel indicators (Wholesale, Non-Delegated, and Delegated) have been added to the Sales Reps/AE tab.
The channel indicators are only available for the Current Org TPO Sales Reps View.
In addition, the tab has been moved from the far right to between the TPO Contacts and Lender Contacts tabs.
The Key Contacts tab under Company Details has been renamed to TPO Contacts. In addition, all references to “Key Contacts” (tab header and the on-screen instructions above the grid) have been changed to “TPO Contacts”.
Administrators can use the Persona Access to Loan Actions business rules setting to define persona-based access level for Encompass TPO Connect site loan actions. For example, rules can be set up to enable the Submit Loan loan action only after the Order/Reissue Credit loan action is complete. Or they can set up a rule that allows the persona to access the button to submit a new rate lock after the rate has already been locked.
The following loan action items have been added to the TPO Actions list that is provided when setting up conditions for the rule. These items have also been added to the Add Loan Actions pop-up list that is provided when setting up a persona’s access for the condition.
- Withdrawal
- Cancel
- Float Lock
- Cancel Lock
- RePrice Lock
- ReLock Lock
- Change Request - OB
In addition, the Withdrawal and Cancel options have also been added to the following business rules:
- Loan Action Completion
- Field Data Entry
- Field Triggers
- Persona Access to Fields
- Persona Access to Loans
When setting up Advanced Conditions for a business rule, the LoanActions.IsComplete(“TPO_WithdrawalLoan”) and LoanActions.IsComplete(“TPO_CancelLoan”) syntax is supported for Persona Access to Loan Actions business rules only.
Select these options in the business rule settings accordingly to set up rules that enable administrators to better control the flow of data and loan actions that users can access and perform in Encompass TPO Connect. If your company has established business practices and procedures based on your business model and preferences you can activate these rules to support them.
The Import Geocode and Rate Spread Data configuration option in the Compliance Review Setup has been split into two separate configuration options: one for geocode and one for rate spread. Prior to this update, the option to import geocode and rate spread data was tied together. This update recognizes that rate spread and geocode are separate from each other and allows for separate configurations of each.
The option to import geocode data will remain in the same area while the option to import rate spread data has been moved to a new location.
To Access Compliance Review Setup:
-
On the menu bar, click Encompass, and then click Settings.
-
On the left panel, click Additional Services, and then click Compliance Review Setup.
-
If this is the first time you are accessing Compliance Review Setup, click the Get Setup button in the upper-right corner.
-
If you have already completed the setup but want to change the settings, click the Change Setup button in the upper-right corner.
To Import Geocode Data:
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On the Compliance Review Setup's Report tab, in the Configuration Options, select Import Geocode Data.
Data from the report will be added to the appropriate fields on the HMDA Information form — MSA Number (field ID 699), County Code (field ID 1396), State Code (field ID 1395), and Census Tract (field ID 700) — only if the field is blank. -
Select Overwrite Existing Field Data to automatically import data from the report into the loan fields, even if the field contains data. The existing data will be overwritten.
To Import Rate Spread Data:
-
On the Compliance Review Setup's Report tab, in the Reviews to Include, select Rate Spread Review.
Data from the report will be added to the Rate Spread field (field ID HMDA.X15) on the HMDA Information form (only if the field is blank). -
Click the Edit (pencil and paper) icon next to Rate Spread Review to launch the Rate Spread Run Conditions window.
-
Select Import Rate Spread Data to automatically populate the Rate Spread field (field ID HMDA.X15) on the HMDA Information form during a loan check, only if the field is blank.
-
Select Overwrite Existing Field Data to automatically import data from the report into the Rate Spread loan field, even if the field contains data. The existing data will be overwritten.
-
Select an option for the Rate Spread value:
-
Round Rate Spread - The rate spread is rounded to two decimal places, based on the value in the third decimal place. If the third decimal place is 0 to 4, the value is round down. If the third decimal place is 5 to 9, the value is round up.
-
Truncate Rate Spread - The rate spread is truncated to two decimal places.
-
Encompass Admin Tools
(Revised on 11/9/2018)
Using the Allow access from certain IPs option in the Encompass Admin Tools, administrators can indicate specific IP addresses from which users are allowed to access Encompass. Starting in Encompass 18.4, this option has been enhanced to enable administrators to apply this setting to Encompass Loan Officer Connect and Encompass Developer Connect as well. Please review these steps below for more information about this enhancement.
Please note, this enhancement to enable this setting to be applied to Encompass Loan Officer Connect and Encompass Developer Connect, while available in Encompass 18.4, will not be applied to Encompass Loan Officer Connect nor Encompass Developer Connect until a future release of these respective products. The updates in these two products that are required in order for this setting to be applied to them will be provided in those releases.
To Configure Access Based on IP Addresses:
- On your Windows task bar, click the Start menu or Start icon, navigate to the Ellie Mae Encompass program folder, and then click Admin Tools.
- Double-click Settings Manager.
- Select Policies from the Category list.
- For the Allow access from certain IPs option, double-click the current Value that is displayed, and then select Enabled from the dropdown list.
- Click Apply.
- Click the Set Allowed IPs button.
- In the Remote Access IP Restriction pop-up window, click the Add icon, and then select a user from the User list
Select Everyone to apply the same IP settings for all users.
- Select the options for IP Address Range or IP Address.
- Enter the address or range of addresses, and then click Save.
- If applicable, enter the public IP address for the Encompass Loan Officer Connect or Encompass Developer Connect user, even if the user is using a VPN connection.
- Repeat steps 6-9 until all your users are added.
- Select the Apply to Encompass Connect products… checkbox at the top of the window to enable users to access Encompass Loan Officer Connect and Encompass Developer Connect if their systems use any of the IP ranges or IP addresses you have specified. Note that you only need to select this checkbox if you want to provide access to these Connect products. This setting will still be applied to Encompass even if this checkbox is not selected. Users on systems using the specified IP ranges or IP addresses will still be able to access Encompass accordingly, just as they were prior to this enhancement.
- It is important to note that after configuring and enabling this setting in Encompass for use by Encompass Loan Officer Connect or Encompass Developer Connect users, it will take at least 30 minutes for this setting to be applied for the users in those Connect products.
Again, while this setting is provided in Encompass 18.4, it will not be applied to Encompass LO Connect nor Encompass Developer Connect until future releases of these respective products.
Encompass System Requirements and Performance Enhancements
Encompass now supports the Microsoft Windows 10 April 2018 (version 1803) operating system. Organizations can now upgrade to Windows 10 April 2018 on their client systems (workstations) where Encompass is installed and use Encompass successfully.
Review the Encompass Compatibility Matrix and System Requirements for additional information.
The following updates have been applied to Encompass to help ensure improved system performance on users’ client workstations:
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Repetitive API and SQL calls related to business custom fields, borrower contacts, loan snapshots, milestones, that were being performed by the Encompass system were identified and addressed to reduce the number of these API and SQL calls. In addition, the order of the calls that the system makes when a user opens a loan file have been updated to help reduce the time it takes for the loan file to open.
- The Encompass installation package and the Encompass SmartClient Application Manager have been updated so that the system automatically delete the contents of the Temp folder that is stored in each user’s Windows profile when the user exists Encompass or when there is no active instance of an Encompass session running. This update is also in effect for the Encompass SDK. The SDK application now deletes the contents of the Temp file upon termination of the Encompass SDK session. Both of these updates are being implemented to mitigate cases where Encompass (or the SDK) may crash, but leave the contents of the Temp folder intact.
NICE-12067, NICE-12498