Feature Enhancements in Version 19.2

On the Loan Estimate (LE) Page 1 and Closing Disclosure (CD) Page 1, users can utilize the Disclosure Information section to indicate that documents have been redisclosed since they were originally sent to the borrower. The reason for the redisclosure, if the redisclosure is related to changed fees or another change to the document, a description of the changed circumstance, and the date of the redisclosure can all be indicated here as well. When indicating the changed circumstance, users click the Changed Circumstance checkbox (field ID 3168 or CD1.X61), and then click the Find icon (magnifying glass) located to the right of the Changed Circumstance field (field ID 3169 or CD1.X64) to select a description of the changed circumstance from the provided list.

Starting in Encompass 19.2, when redisclosing documents at the fee level (i.e., field ID 4461 is selected), the Changed Circumstances list that displays when the user clicks the Find icon is filtered based on if the user is updating the LE Page 1 or CD Page 1 or the Good Faith Fee Variance Violated alert.

When using the Changed Circumstance field on the LE Page 1, the following descriptions are listed when the user clicks the Find icon:

• Any Changed Circumstance that does not have a specific reason assigned to it. (Using the Changed Circumstances Setup tool in Encompass Settings, the administrator can assign a specific reason to a Changed Circumstance option. The Changed Circumstances Setup tool determines all of the eligible Changed Circumstances that are listed for the user when they click the Find icon on the LE Page 1.)

• Other (LE and CD) reason

Note that these same changed circumstances will be listed when the user clicks the Find icon for the Changed Circumstance field located on the Disclosure Details’ Reasons tab when viewing a disclosure tracking record for the LE.

When using the Changed Circumstance field on the CD Page 1, the following descriptions are listed when the user clicks the Find icon:

• Any Changed Circumstance that does not have a specific reason assigned to it. (Using the Changed Circumstances Setup tool in Encompass Settings, the administrator can assign a specific reason to a Changed Circumstance option. The Changed Circumstances Setup tool determines all of the eligible Changed Circumstances that are listed for the user when they click the Find icon on the CD Page 1.)

• Change in APR

• Change in Loan Product

• Prepayment Penalty Added

• 24-hour Advanced Preview

• Tolerance Cure

• Clerical Error Correction

• Other (with a field for free text entry)

• Note that these same changed circumstances will be listed when the user clicks the Find icon for the Changed Circumstance field located on the Disclosure Details’ Reasons tab when viewing a disclosure tracking record for the CD.

When a loan is utilizing fee level redisclosures, users can also indicate these Changed Circumstance details from the Good Faith Fee Variance Violated alerts that are generated when there is a variance between the Loan Estimate and 2015 Itemization in the Total Good Faith Amount section (field ID FV.X345) of the Fee Variance Worksheet or when there is a variance between the CD and 2015 Itemization in the Total Good Faith Amount section (field ID FV.X347) on the worksheet. The Changed Circumstances listed here when the user clicks the Find icon in the alert are now also filtered based on if the alert applies to the Loan Estimate or the Closing Disclosure.

When the alert applies to the Loan Estimate, the following descriptions are listed when the user clicks the Find icon in the alert:

• Any Changed Circumstance that does not have a specific reason assigned to it. (Using the Changed Circumstances Setup tool in Encompass Settings, the administrator can assign a specific reason to a Changed Circumstance option. The Changed Circumstances Setup tool determines all of the eligible Changed Circumstances that are listed for the user when they click the Find icon in the Good Faith Fee Variance Violated alert.)

• Other (LE and CD) reason

• Changed Circumstance – Settlement Charges

• Changed Circumstance - Eligibility

• Revisions requested by the Consumer

• Interest Rate dependent charges (Rate Lock)

• Expiration (Intent to Proceed received after 10 business days)

• Delayed Settlement on Construction Loans

When the alert applies to the Closing Disclosure, the following descriptions are listed when the user clicks the Find icon:

• Any Changed Circumstance that does not have a specific reason assigned to it. (Using the Changed Circumstances Setup tool in Encompass Settings, the administrator can assign a specific reason to a Changed Circumstance option. The Changed Circumstances Setup tool determines all of the eligible Changed Circumstances that are listed for the user when they click the Find icon Good Faith Fee Variance Violated alert.)

• Other (LE and CD) reason

• Changed Circumstance – Settlement Charges

• Changed Circumstance - Eligibility

• Revisions requested by the Consumer

• Interest Rate dependent charges (Rate Lock)

To provide more flexibility for users indicating a changed circumstance, a new Show All COC Reasons checkbox is provided at the bottom of the list of changed circumstances provided when you click the Find icon on the LE Page 1, CD Page 1, the Disclosure Details screen’s Reasons tab, and the Good Faith Fee Variance Violated alert. Select this checkbox to display all available changed circumstances (includes both LE and CD changed circumstances).

When a user is doing a fee-level disclosure and enters data through the Good Faith Fee Variance Violated alert and then navigates to LE or CD page 1 and makes further changes, there is a possibility of data being cleared on the LE the CD page 1 if they go back again to the Good Faith Fee Variance Violated alert and make more changes. the data from the latest Good Faith Fee Variance Violated alert update will be populated into the LE or CD page 1 and any changes previously made on the LE or CD page1 will need to be re-entered.

Starting in Encompass 19.2, a disclosure tracking record can be created to indicate when a Settlement Service Provider List (SSPL) with no fees is disclosed. When you print, preview or send this type of SSPL using the eFolder, Encompass will prompt you to create a disclosure tracking record. (Note that the administrator controls if these prompts are provided (and for which actions they are provided) by configuring the Loan Setup > Disclosure Tracking Settings in Encompass Settings).

In addition, in the Disclosure History section of the Disclosure Tracking tool, you can now manually create a record to indicate when the Settlement Service Provider List (SSPL) (with no fees included) has been disclosed. In previous versions of Encompass, you could manually create a record for when then the Settlement Service Provider List was disclosed, but you could not indicate if fees were included in the SSPL or not. In the Disclosure History section of the Disclosure Tracking tool, click the New icon, and then select this new checkbox to create a tracking record for this type of Settlement Service Provider List.

Note that the same Settlement Service Providers List (SSPL) user interface is used for both types of SSPL (fees or no fees). You can refer to the same SSPL input form as in previous versions of Encompass to update dates, documents, etc. both types of SSPL disclosures.

(Added on 5/22/2019)

A new Payment includes Taxes and Insurance checkbox (field ID FL0166) has been added to the Debt Information section of the Verification of Liabilities (VOL) input form. This field, which is intended for use with the newly redesigned URLA forms that will be made available in Encompass 19.3, is for use with mortgage liabilities that are linked to an REO asset and is used to document whether the payment coming from the credit report includes taxes and insurance. This field, along with the Mortgage Type dropdown list (field ID FL0132), is required for AUS submission of real estate assets (Verification of Mortgage records) with linked liabilities. Again, this field is intended for use with the new URLA forms in Encompass 19.3 and should not be used in Encompass 19.2.0.3 (and earlier versions).

(Added on 5/20/2019)

On the Home Counseling Providers input form, the following field updates were made:

• Agency Name field ID has been changed to field ID URLA.X232 (from HOC.X2).
• Home Counseling Completion Date field ID has been changed to field ID URLA.X233 (from HOC.X17).
• A new Agency ID field (field ID URLA.X155) has been added to the form. This field captures the approved agency ID from HUD when a loan team member selects a provider in the Home Counseling Provider List, and then selects the Agency Used Indicator checkbox in the Home Counseling Provider section of the form so they do not need to manually enter the ID each time they select a provider.

These updates were made in preparation for the new URLA requirements going into effect in 2020. This field information will be used when loan team members originate loans with the new URLA form to help ensure the most recent home ownership counseling information for the borrower (and co-borrower, when applicable) is reflected on the new 1003 URLA - Lender form that will be made available in Encompass 19.3. (The two new field IDs are being used to track different borrower pairs when necessary.) In Encompass 19.2, the Agency Name and Home Counseling Completion Date fields will continue to operate just as they did in previous versions of Encompass.

Lenders can now configure qualifying HELOC payments to disclose simple interest payments that include finance charges. To enable this behavior, a new field ID has been assigned to the Fraction of Balance and Percentage of Balance checkboxes (field ID 4531) in the HELOC Qualifying Basis Payment section on the RegZ-LE and RegZ-CD input forms. Previously these checkboxes shared the same field ID as the Rate checkbox (field ID 4464). This new field configuration enables the Rate checkbox to be selected at the same time as one of the balance checkboxes is selected, based on the following logic:

• Users can select only one of the following three checkboxes: Rate (field ID 4464), Fraction of Balance (field ID 4531), or Percentage of Balance (field ID 4531).

• When the Rate and Interest Only (field ID 4468) checkboxes are both selected, users can also select either the Fraction of Balance or Percentage of Balance checkbox.

The following calculation is now used for the HELOC qualifying payment calculation when the Rate and Interest Only checkboxes are selected along with either the Fraction of Balance or Percentage of Balance checkbox:

1. The Qualifying Balance (field ID 4473) is multiplied by the following amounts:

   • When the Rate, Interest Only, and Fraction of Balance checkboxes are selected, the balance used is multiplied by the Fraction of Balance (field ID 4469/field ID 4470).

   • When the Rate, Interest Only, and Percentage of Balance checkboxes are selected, the Qualifying Balance (field ID 4473) is multiplied by the Percentage of Balance (field ID 4471).

2. The interest-only (simple interest) payment is calculated for the rate based on the Qualifying Balance (field ID 4473).

3. The sum of the total from Step 1 and the total from Step 2 is populated to one of the following fields:

   • The First Qualifying Payment (field ID 1724) if the Lien Position (field ID 420) is First.

   • The Subordinate Qualifying Payment (field ID 1725) if the Lien Position (field ID 420) is Subordinate.

4. The First Qualifying Payment (field ID 1725) or Subordinate Qualifying Payment (field ID 1725) is then populated based on the following logic:

   • If the Force Minimum Payment checkbox (field ID 4472) is not selected, the amount from Step 3 is populated to the First Qualifying Payment (field ID 1725) for a first lien or to the Subordinate Qualifying Payment (field ID 1724) for a subordinate lien.

   • If the Force Minimum Payment checkbox (field ID 4472) is selected, the larger of the Minimum Payment (field ID 1483) or the total from Step 3 is populated to the First Mortgage P & I (field ID 1725) for a first lien or to the Second P & I (field ID 1725) for a subordinate lien.

Migration

When updating to Encompass 19.2 the following logic is used for existing HELOC loans:

• When the Fraction of Balance checkbox (field ID 4464) was selected in loan files created prior to the Encompass 19.2 update, the new Fraction of Balance checkbox (field ID 4531) is selected after updating to Encompass 19.2.

• When the Percentage of Balance checkbox (field ID 4464) was selected in loan files created prior to the Encompass 19.2 update, the new Percentage of Balance checkbox (field ID 4531) is selected after updating to Encompass 19.2.

When upgrading to Encompass 19.2, review any Loan Template Sets that use the Percentage of Balance or Faction of Balance option for HELOC loans, and adjust the template configuration as needed.

Lenders can now configure initial HELOC payments to disclose simple interest payments that include finance charges. To enable this behavior, a new field ID has been assigned to the Fraction of Balance and Percentage of Balance checkboxes (field ID 4530) in the HELOC Initial Payment section on the RegZ-LE and RegZ-CD input forms. Previously these checkboxes shared the same field ID as the Rate checkbox (field ID 4475). This new field configuration enables the Rate checkbox to be selected at the same time as one of the balance checkboxes is selected, based on the following logic:

• When the Rate checkbox is selected, users can also select one of the other two balance checkboxes (Fraction of Balance or Percentage of Balance).

• When the Rate and P & I (field 4479) checkboxes are both selected, users are not able to also select the Fraction of Balance or Percentage of Balance checkbox at the same time.

The following calculation is now used for the HELOC Initial Payment calculation when the Rate checkbox is selected along with the Fraction of Balance or Percentage of Balance checkbox:

1. The Balance Used (field ID 4484) is multiplied by the following amounts:

   • When the Rate and Fraction of Balance checkboxes are selected, the balance used is multiplied by the Fraction of Balance (field ID 4480/field ID 4481).

   • When the Rate and Percentage of Balance checkboxes are selected, the Balance Used is multiplied by the Percentage of Balance (field ID 4482).

2. The interest-only (simple interest) payment is calculated for the rate based on the Balance Used (field ID 4484).

3. The sum of the total from Step 1 and the total from Step 2 is calculated.

4. The Monthly Principal and Interest Payment (field ID 5) is then populated based on the following logic:

• If the Force Minimum Payment checkbox (field ID 4472) is not selected, the Monthly Principal and Interest Payment (field ID 5) is populated with the amount from Step 3.

• If the Force Minimum Payment checkbox (field ID 4472) is selected, the Monthly Principal and Interest Payment (field ID 5) is populated with the larger of the Minimum Payment (field ID 1483) or the total from Step 3.

Migration

When updating to Encompass 19.2 the following logic is used for existing HELOC loans:

• When the Fraction of Balance checkbox (field ID 4475) was selected in loan files created prior to the Encompass 19.2 update, the new Fraction of Balance checkbox (field ID 4530) is selected after updating to Encompass 19.2.

• When the Percentage of Balance checkbox (field ID 4475) was selected in loan files created prior to the Encompass 19.2 update, the new Percentage of Balance checkbox (field ID 4530) is selected after updating to Encompass 19.2.

When upgrading to Encompass 19.2, review any Loan Template Sets that use the Percentage of Balance or Faction of Balance option for HELOC loans, and adjust the template configuration as needed.

(Added on 4/2/2019)

Updates have been made to the Subordinate Mortgage Loan Amounts pop-up window (accessed by clicking the Sub. Financing button on forms such as the Borrower Summary – Origination and 1003 Page 1) to prevent the entry of a HELOC draw amount that exceeds the HELOC credit limit. When the value entered for the New HELOC Draw Limit (field ID 4489) exceed the amount entered for the New HELOC Credit Limit (field ID 4490), the New HELOC Draw amount is now automatically reset to 0.00.

In previous versions of Encompass, loan team members working in HELOC loan files received the GFE Expires and the Loan Estimate Expires compliance alerts when saving changes to the loan and when ordering disclosures. Since HELOC loans do not require that the Loan Estimate, Closing Disclosure, or Good Faith Estimate is disclosed when loan data is changed or when disclosures are ordered to remain compliant, these alerts are not relevant. Starting in Encompass 19.2, these alerts will no longer trigger for HELOC loans.

Updates have been made to the relevant code and system processes to help improve the time it takes for loan files to open within Encompass, and to improve the time it takes for changes to be saved to loan files.

(Updated on 4/16/2019)

Encompass 19.2 now supports the following items:

• Microsoft .NET 4.7.2 - With the release of Encompass 19.2, the Encompass SmartClient install kit will automatically install Microsoft .NET Framework 4.7.2 on users’ machines when performing an Encompass upgrade or installation. Due to its size, we encourage our customers to proactively install the .NET Framework 4.7.2 on users’ machines in advance of the Encompass 19.2 release. Note that Encompass will remain compatible with .NET Framework 4.5 and 4.5.2 until the Encompass 19.4 release. The release of Encompass 19.4 will require that users’ machines have .NET Framework 4.7.2 installed.

  • The Encompass 19.2 SDK install kit will install the .NET Framework 4.7.2 as well. However, the .NET Framework 4.7.2 will not be automatically installed on machines running existing SmartClient-enabled SDK applications. To avoid issues with these SDK applications, we encourage our customers to proactively install the .NET Framework 4.7.2 on these machines in advance of the Encompass 19.2 release. Alternatively, launching the Encompass SmartClient version 19.2 on a machine accessing the SDK application will update to .NET 4.7.2 as well.

  In terms of backwards compatibility, Encompass versions 18.3 (and later) will continue to operate as expected with the .NET Framework 4.7.2 installed. In addition, Encompass 19.2 (and later) will operate successfully with .NET Framework 4.5 and 4.5.2.

Please note that this installation of Microsoft .NET 4.7.2 has been postponed until further notice. The update described above will not be available when you upgrade to Encompass 19.2 at this time. More information will be provided about this update soon.

• Microsoft Windows 10, version 1809 - Encompass 19.2 now supports client workstations running Microsoft Windows 10, version 1809.

• Microsoft Office 2019 – Encompass 19.2 now supports the Microsoft Office 2019 application. Note that Office 2019 is compatible only with Encompass client workstations with the Windows 10 operating system installed (specifically Windows 10, and Windows 10 versions 1703, 1709, 1803, and 1809).