Feature Enhancements in Version 19.4.0.5 Server Patch 4
Updates to the Encompass Client Machines
The Encompass 19.4 December Service Pack includes the following enhancements, which are client-side updates that are applied to users' Encompass client machines. This client update can be controlled manually via the Encompass Version Manager tool. If the tool has been configured to always apply new releases to users’ computers automatically, users will receive this update upon their initial log in of Encompass following the release.
Encompass Forms & Tools
2020 Threshold Adjustments for QM and HOEPA
The updates describe below have been made to the Points and Fees Verbiage and the ATR/QM test calculation to reflect the 2020 TILA (Regulation Z) Annual Threshold Adjustments for HOEPA and ATR/QM.
Updated QM Threshold on ATR/QM Qualification Tab
For loans with a Document Signing Date (field ID 1887), Closing Date (field ID 748), or Estimated Closing Date (field ID 763) of 1/1/2020 or later, the calculations shown in the table below are used to populate the Current Qualified Mortgage Fee Threshold amount (field ID QM.X121) or Current Qualified Mortgage Fee Threshold percentage (field ID QM.X122).
| Loan Amount | QM Fee Threshold | Current QM Fee Field Populated |
|---|---|---|
| $109,898 or greater | 3% of the Total Loan Amount (field ID QM.X120) | Threshold amount (field ID QM.X121) |
| $65,939–$109,897.99 | $3,297.00 |
Threshold percentage (field ID QM.X122) |
| $21,980–$65,938.99 | 5% of the Total Loan Amount (field ID QM.X120) | Threshold amount (field ID QM.X121) |
| $13,737–$21,979.99 | $1,099.00 |
Threshold percentage (field ID QM.X122) |
| $13,736.99 or less | 8% of the Total Loan Amount (field ID QM.X120) |
Threshold amount (field ID QM.X121) |
Updated Verbiage on Section 32 HOEPA
For loans with a Document Signing Date (field ID 1887), Closing Date (field ID 748), or Estimated Closing Date (field ID 763) of 1/1/2020 or later, the following verbiage displays in the Points and Fees Test section on the Section 32 HOEPA Input Form:
For a loan amount of $21,980 or more total points and fees cannot exceed 5% of the total loan amount; For Loan amounts less than $21,980 the total points and fees cannot exceed the lesser of 8% of the total loan amount or $1,099; The dollar amounts used in this test may be adjusted each year, effective January 1.
Updated Section 32 Points and Fees Test
For loans with a Document Signing Date (field ID 1887), Closing Date (field ID 748), or Estimated Closing Date (field ID 763) of 1/1/2020 or later, the percentages shown in the second column below are now populated for the Maximum points and fees allowed percentage (field ID S32DISC.X100) and the calculations shown in the third column are now used to populate the Maximum points and fees allowed amount (field ID 32DISC.X101).
| Loan Amount |
Maximum Points and Fees Allowed Percentage |
Maximum Points and Fees Allowed Amount |
|---|---|---|
| $21, 980 or greater | 5% | 5% of the Reg Z Total Loan Amount (field ID QM.X120) |
| $21, 979.99 or less | 8% | Lesser of $1,099.00 or 8% of the Reg Z Total Loan Amount (field ID QM.X120) |
CBIZ-26366
Conventional County Limits Updated for 2020
The FHFA Maximum Conforming Loan Limits for 2020, announced on November 26, 2019, have been incorporated into the Encompass Conventional County Limit tables. These changes will be effective on January 1, 2020. Beginning with the Encompass 19.4.0.5 Server Patch 4 release, Encompass now uses the Application Date (field ID 745) to determine the year to use when applying data from the Conventional County Limits table. If the Application Date is blank, Encompass uses the current date.
CBIZ-28911
Purple Heart Recipient checkbox Added to VA Cert of Eligibility Input Form
A new Purple Heart Recipient checkbox has been added to the Military Service Date section on the VA Cert of Eligibility input form to indicate that a borrower is a recipient of the Purple Heart Medal and may be may be eligible for a waiver of the VA funding fee for the loan.
Selecting the checkbox does not automatically select the Exempt option in the funding fee dropdown list (field ID 990) on the VA 26-0286 Loan Summary or the VA Management input form. Lenders are responsible for evaluating the borrower’s eligibility for the waiver and making the appropriate selection in the funding fee field.
CBIZ-28958
