Feature Enhancements in Version 19.4
View the Encompass Administrator Checklist for 19.4 Major Release
Encompass System Performance Enhancements
During internal Encompass testing, it was discovered that updates could be made to the Reporting Database to help make the ‘loan save’ process more efficient. These updates have been made so that the Reporting Database is still updated correctly when changes are made to a loan, but the time it takes for the ‘loan save’ process to complete has been reduced.
Similarly, portions of the process that is used for reviewing and/or updating the calendar, fraud service, disclosure fulfillment, and other areas of Encompass during the ‘loan save’ process were also updated to help improve efficiency and reduce the time it takes for the ‘loan save’ process to complete.
NICE-25474, NICE-25525, NICE-25575
(Added on 9/16/2019)
Starting in Encompass 19.4, the following warning message will display the first time a user selects two or more loan folders from the Loan Folder dropdown list at the top of the Pipeline. This alert notifies users that loan alert details are not provided in the Pipeline with multiple loan folders selected to help ensure optimum Pipeline performance. This same warning message will also display the first time a user selects <Select All Active Folders> or the <Trash> folder is selected from the Loan Folder dropdown list.
This is a similar warning message that displayed in earlier versions of Encompass the first time a user selected <All Folders> or an Archive folder. Starting in 19.4, the warning message above will also display the first time a user selects <All Folders> or one or more Archive folders.
Note that this warning message displays only one time per Encompass session (i.e., the first time one of the above scenario occurs). After the warning message is displayed once, it will not be displayed again for any of these scenarios until a new Encompass session is started (i.e., the user logs out, and then logs back into Encompass).
New URLA
To ensure that data is printed correctly on the new URLA output forms, changes have been made in the behavior of the Does Not Apply checkboxes on the 1003 URLA Part 2, 1003 URLA Part 3, and 1003 URLA Part 4 input forms (Income, Assets, Liabilities, Real Estate, and Gifts or Grants).
The Does Not Apply checkbox for each section is now cleared and disabled for the appropriate parties when data for the borrower, co-borrower, or both has been entered in the section or in a verification form that is associated with the section. After the checkbox is disabled, it remains disabled until all data is deleted from the record.
When neither Borrower, Co-Borrower, or Both has been selected to indicate the owner of a record that has been created in a section or in a verification form associated with the section, the Do Not Apply checkbox is not cleared or disabled.
Migration
Because the new URLA input forms are not currently used in production environments, no migration issues are associated with these updates.
CBIZ-24029
A new field and a new Other Credit dropdown option have been added to the new URLA forms to support future new URLA integration with Freddie Mac ’s Loan Product Advisor (LPA) automated underwriting system.
A new Number of Units field (field ID FMXX54) has been added to the Verification of Mortgage (VOM) input form. This field displays on each Verification of Mortgage record for the new URLA forms.
The two center digits in the field ID (FMXX54) are variables that increase by a value of 1 with each new record. For example, the field ID for the first verification record is FM0154 and the field ID for the second verification record is FM0254.
When the Subject Property checkbox is selected on the Verification of Mortgage record, Encompass automatically populates the Number of Units (field ID FMXX54) on the VOM by copying the value from the Number of Units (field ID 16) on forms such as the 1003 URLA Part 4, 1003 URLA – Lender, FNMA Streamlined 1003, HMDA Information, and Transmittal Summary.
In section L4 of the 1003 URLA - Lender input form, a new MI Premium Refund option has been added to the dropdown lists for Other Credit on lines M3-M6 (field IDs 202, 1091, 1106, and 1646) in the Total Credits section.
CBIZ-24543
For loans using the new URLA forms, the following updates have been made to the pop-up window for Other Income (field ID 1168) on the Borrower Summary – Origination, Borrower Summary – Processing, Underwriter Summary, and 92900LT FHA Loan Transmittal input forms. When the new URLA input forms are being used, the dropdown list for the Description field in the pop-up window has been renamed Income Source and the list of options in the dropdown list has been updated to match the Income Source options in section 1e. Income from Other Sources on the 1003 URLA Part 2 input form and in the Verification of Other Income input form.
CBIZ-24368
For loans using the new URLA forms, the Construction Method Type dropdown list (field ID ULDD.X187) now displays on the 1003 URLA Part 4 input form below the Loan Purpose section and above the Mixed-Use Property section. Adding the field to this form makes it easier for lenders to enter or change the construction method type directly from this form without having to navigate to the ULDD/PDD form to select an option for the field.
Selecting Manufactured from the dropdown list automatically selects the Manufactured Housing checkbox (field ID 603) on the 1003 URLA Part 4, HUD-928005b Conditional Commitment, and VA 26-1805 Reasonable Value input forms.
CBIZ-24417
(Added 9/16/2019)
To address differences in the way loan data is handled on the new and old URLA input forms, updates have been made to support the underwriting of loans using the new URLA forms.
CBIZ-17481
Updated Project Type dropdown List
ATR/QM Appendix Q Income Import Update to Military Entitlements Mapping for New URLA
(Added 9/16/2019)
For loans using the new URLA forms, the following Changes have been made to sections 1b and 1c on the 1003 URLA Part 2 input form to provide a more intuitive workflow for evaluating the borrower’s income for qualification purposes.
The two “Check if” sections have been moved above the Gross Monthly income sections for the borrower and co-borrower in sections 1b and 1c on the 1003 URLA Part 2 input form. The “Check if” sections provide checkboxes for indicating whether the borrower is an employee of any party to the transaction and for indicating whether a borrower is a business owner or is self-employed. These sections apply to either current (section 1b) or additional (section 1c) employment records.
In the self-employed section, the Monthly Income (or Loss) amount (field ID FEXX56) is now editable only when the Check if you are the business Owner or Self-Employed checkbox (field ID FEXX15) has been selected. When the Monthly Income (or Loss) amount is entered, the Base Income amount in the gross monthly income section is now populated with the amount and the field is disabled. When the checkbox is cleared, the Monthly Income (or Loss) field is cleared and disabled.
CBIZ-25945
(Added 9/16/2019)
To help underwriter to qualify construction-to-permanent loans and to submit them properly to Desktop Underwriter (DU) and automated underwriting systems (AUS), the following changes have been made for Construction-to-Permanent loans using the new URLA (2020) forms.
When the Construction-Perm option is selected for the Purpose of Loan (field ID 19):
-
The Construction-Conversion/Construction-to-Permanent checkbox (field ID URLA.X133) on the 1003 URLA - Lender input form is now selected by default and disabled for editing.
-
The Single-Closing and Two-Closing checkboxes (field ID URLA.X134) are enabled for editing.
If an encompass user then changes the Purpose of Loan (Field 19) to an option other than Construction-Perm, the Construction-Conversion/Construction-to-Permanent checkbox is cleared, and the Single-Closing and Two-Closing checkboxes are disabled for editing.
CBIZ-25598
HELOC Loans
With the introduction of the HELOC Management form with the Encompass 19.3 release, the following four HELOC loan sections are now redundant and have been removed from the on the RegZ-LE and RegZ-CD input forms:
-
HELOC
-
HELOC Qualifying Basis Payments
-
HELOC Qualifying Payments
-
HELOC Initial Payments
The data for these sections is now entered exclusively in the HELOC Management input form.
CBIZ-23391
(Added 9/16/2019)
For HELOC loans, the language used on the Maximum Rate and Payment Example section on the Important Terms Disclosure output form has been adjusted to include both the maximum rate and payment starting from the draw period and starting from the repayment period for a sample $10,000 HELOC, as show in the example below.
CBIZ-26034
Encompass Forms and Tools
The Freddie Mac Additional Data input form has been updated to reflect the 'Rate and 'Term' fields that are applicable for a non-borrower contributed buydown. These fields for non-borrower contributors were first introduced on the RegZ-LE and RegZ-CD in Encompass 19.2 so that different field values are exported to Loan Product Advisor (LPA) when the buydown contributor is the borrower versus when the buydown contributor is anyone besides the borrower. With this update, the new fields and values are now reflected on the Freddie Mac Additional Data input form.
As part of this update, all the fields in the buydown section on the Freddie Mac Additional Data input form are read-only.
Encompass has been enhanced to associate the Buydown checkbox (field ID 425) provided on various input forms with the buydown data fields in the loan to help ensure accurate audit data for buydowns. In previous versions of Encompass, loan team members could enter buydown data in the loan without ever selecting the Buydown checkbox (field ID 425) that indicates the loan includes a buydown feature. Starting in Encompass 19.4, the Buydown checkbox will be automatically selected or cleared based on the values in the Buydown Mortgage Rate 1 field on the RegZ-LE and RegZ-CD form:
-
The Buydown checkbox (field ID 425) can be selected or cleared manually by a loan team member.
- When a value is entered in the buydown rate 1 field (field ID 1269 or 4535) on the RegZ-LE (or other forms), the Buydown checkbox (field ID 425) is automatically selected.
-
When a value is cleared from the buydown rate 1 field (field ID 1269 or field ID 4535), the Buydown checkbox (field ID 425) is automatically cleared.
-
The Temporary Buydown checkbox (field ID ULDD.X181) on the ULDD/PDD input form is now automatically selected or cleared when the Buydown checkbox (field ID 425) is selected or cleared.
For current loans (data migration):
For loans originated in version of Encompass prior to Encompass 19.4:
- If there is at least one disclosure record existing in the loan file, the Buydown checkbox (field ID 425) is not automatically updated.
-
If the loan file does not have at least one disclosure record available, then the Buydown checkbox will be automatically selected or cleared based on fields 1269 or 4535 as described above.
Authorized Signor dropdown fields have been added to the standard and classic versions of the Request for Copy of Tax Return (IRS 4506) and Request for Transcript of Tax (IRS 4506-T) input forms for the individual for who the forms were requested and for that individual’s spouse. The fields are enabled only when Other is selected in the Tax Form is for dropdown box and enable Encompass users to select a signor for eSigning purposes by selecting Borrower, Co-Borrower, or Both from the list.
CBIZ-18913
(Added 9/16/2019)
An Other option has been added to the Adjustment Type dropdown list in the Add Other Adjustment pop-up window that displays when you use the Add icon to create a new entry on the Payoffs and Payments window for a loan using the standard Loan Estimate and Closing Disclosure forms. When you select Other, you can also enter an Adjustment Description, enter an Adjustment amount, and select or clear the Credit checkbox. Other adjustments are reflected in line K-04 on the Summaries of Transaction on the Closing Disclosure Page 3.
The Add Other Adjustment window also displays when you double-click an existing entry that was created using the Add icon. The Payoffs and payments window is accessible on loans using standard disclosures by clicking the Payoffs & Payments button on the Loan Estimate Page 2 or the Closing Disclosure Page 3 input forms.
This update enables lenders to add a Payoff and Payments entry with an Adjustment Type other than Principal Reduction for a loan using standard disclosures. Previously Principal Reduction was the only selection available for a loan using the standard disclosure forms. The Other option was available only for loans using non-standard disclosures.
For construction loans, Encompass users can utilize the new Other entry in the Payoffs and Payments window to document the cost to build using the data entry method recommended by the GSEs for loan using the standard disclosure. With the new URLA and GSE workflow, Ellie Mae does not recommend continuing to use a Verification of Liability record to document the payoff for the cost to build.
CBIZ-25243
(Added 9/16/2019)
For loans using the 2015 RESPA-TILA input forms, the options on the Repayment Type Code dropdown list (field ID 424) for the Negative Amortization checkbox (field ID URLA.X239) are now mapped to the checkboxes in the Negative Amortization section on the Closing Disclosure Page 4 input form.
The Repayment Code Type dropdown list displays on the FNMA Streamlined 1003 and, for loans using the URLA 2020 forms, on the 1003 URLA – Lender input form.
The following table describes the logic used to select the negative amortization checkboxes on the Closing Disclosure Page 4 input form.
Repayment Type | Negative Amortization checkbox |
---|---|
No Negative Amortization - The Negative Amortization checkbox (field ID URLA.X239) is cleared. | do not have negative amortization feature… |
Possible Negative Amortization |
may have monthly payments that do not pay... |
Scheduled Negative Amortization |
are scheduled to make monthly payments that do not pay… |
CBIZ-23356
Electronic Document Management (EDM)
Watch a Video About This Enhancement!
The Print menu that displays from Encompass users who have enabled the GdPicture.NET document viewer has been expanded to include additional options. The updated Print window includes the following options:
-
Select a printer
-
Enter or select the number of copies to print (1 is the default selection)
-
Specify the pages to print:
-
All
-
Current Page
-
A range of pages, for example 1-5 or 2,3,5)
-
-
Select options for the page size when printing:
-
Fit the document size to fit on the paper
-
Print the document at its actual size
-
Shrink oversize pages to fit on the paper
-
Choose a paper size based on the document size
-
-
Select the page orientation
-
Portrait
-
Landscape
-
Automatic, based on the document orientation
-
-
View the currently selected page with information about the document dimensions
The Print window update also resolves an issue that caused legal-sized documents to print on letter-sized paper, cutting off the text at the bottom of the legal-size document. Users can now configure the options on the new print window to print legal-sized documents properly.
DOCP-5600, DOCP-5601
(Added on 9/16/2019)
When adding a new post-closing condition to the eFolder’s Post-Closing Conditions tab, the Freddie Mac and Fannie Mae options that were previously included in the Source dropdown field list have now been removed. This update is being applied to prevent errors that can be triggered when importing post-closing conditions from a service provider (i.e., DU and LPA) with Freddie Mac or Fannie Mae indicated as the condition’s source.
If a user has already created a manual post-closing condition using either Freddie Mac or Fannie Mae as the source, the Source dropdown will not display any values in Encompass 19.4. If a user imports a post-closing condition with the Source field being Freddie Mac or Fannie Mae, these values will not be displayed in the Source dropdown field once imported in Encompass 19.4.
Encompass Settings
Watch a Video About This Enhancement!
With the release of Encompass 19.4, administrators can now use a new policy in the Encompass Admin Tools to determine if the Microsoft .NET Framework 4.7.2 will be installed on users’ machines. When this policy is enabled:
-
The Encompass Smart Client install kit will automatically install the Microsoft .NET Framework 4.7.2 on users’ machines when installing Encompass for the first time
- For existing Encompass users, the Microsoft .NET Framework 4.7.2 will be installed on their machine the next time they log into Encompass.
By default, this new Apply .NET Framework 4.7.2 policy is set to False, so the Framework will not be applied automatically.
To update this setting so that the Framework is applied automatically as described above:
- 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 Apply .NET Framework 4.7.2 option, double-click False in the Value list, and then click True.
- At the prompt, click Yes to proceed, and then click the Apply button.
Note that, once installed, the only way to remove it from your system is to uninstall it using the Windows system settings (for example, Add/Remove Programs or Settings > Apps & Features). If you set the Admin Tools policy to True and the Framework is installed on users’ machines, and then set the policy to False at a later time, the Framework will not be removed from the machines where it’s already been installed.
As first discussed in the Encompass 19.2 release notes, 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 19.4 release. Note that Encompass will remain compatible with .NET Framework 4.5 and 4.5.2 until the Encompass 20.1 release. The release of Encompass 20.1 will require that users’ machines have .NET Framework 4.7.2 installed.
Please review any plugins, Software Development Kit (SDK) applications, or third-party integrations for compatibility with .NET Framework 4.7.2. The Encompass 19.4 SDK does not include the .NET Framework 4.7.2 option. It will be included with the Encompass SDK in a future release.
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 19.4 will operate successfully with .NET Framework 4.5 and 4.5.2. But starting with Encompass 20.1, the .NET Framework 4.7.2 must be installed on users' machines in order for Encompass to operate successfully.
NICE-25286
Federal and State Credit Unions Added to Licensing Lender Types Options
Federal Credit Union (FCU) and State Credit Union (STCU) are now listed as options in the Lender Type dropdown list in the following settings used by administrators to indicate the type of license associated with an organization:
-
Encompass Settings > Company/User Setup > Company Information > License Tab
- Encompass Settings > Company/User Setup > Organization/Users > Organization Details
-
Encompass Settings > External Company Setup > Company Details > Third Party Originators > Company Details > License Tab
NICE-24459
Lender Licensing Update: Maryland Statutory Election Expansion
To ensure that Encompass administrators can indicate the correct governing authority for their organizations originating loans in Maryland, the Statutory Election in Maryland options provided for administrators on the following settings screens has been updated with new options:
- Encompass Settings > Company/User Setup > Company Information > License Tab
-
Encompass Settings > Company/User Setup > Organization/Users > Organization Details
-
Encompass Settings > External Company Setup > Company Details > Third Party Originators > Company Details > License Tab
-
Encompass Settings > Additional Services > Compliance Review Setup > License Tab
The options provided in the Statutory Election in Maryland section are now:
- No Statutory Election
- Credit Grantor Law Election (for ALL loans)
- Credit Grantor Law Election (for 1-4 unit, Jr. Lien only)
- Credit Grantor Law Election (for 1-4 unit only)
The option selected by the administrator will be reflected accordingly in Encompass Compliance Service reviews and reports. (The selected option will be reflected on applicable loan documents with the Encompass 19.4 November Service Pack release.)
Previously, only “No Statutory Election” and “Credit Grantor Law Election (Junior Liens Only)” options were provided here. In this new section, only one option can be selected in this section. (This is the same functionality provided in previous versions of Encompass.)
NICE-25539
(Added on 9/16/2019)
Encompass administrators at companies that act as a depository institution can now indicate that no exportation of interest rate-related rules should be applied. This enables these companies to always apply the rules for the loan’s subject property state rather than relying on Ellie Mae to create a custom lender profile for this purpose.
On the Company Information settings screen’s License tab, the new My Company wishes to not apply interest rate exportation checkbox is provided. This checkbox is also provided in the License section of the Organization Details screen and the External Company Setup > Company Details > License tab.
By default, this checkbox is not selected. Note that this checkbox will be inactive (i.e., grayed out) when the Lender Type is set to National Bank (FNB) or State Licensed Lender – Non Depository Institution (STLIC) so that administrators are prevented from opting out of this interest rate exportation for these types of lenders.
(Updated on 10/4/2019)
When using the Current Logins tool to view and manage users who are currently logged into Encompass, the user's Encompass client machine's IP Address is now provided in the Client Machine column, along with the machine name.
When viewing the User Login category in the System Audit Trail to search for where and when a specific user (i.e., as indicated by their user ID) has logged into their Encompass client machine, the search results now include the user's client machine's IP address and their machine name in two dedicated columns.
(Added on 9/16/2019)
The following new columns have been added to the Persona Settings reports to enable administrators to identify how persona access rights have been configured for the Import Conditions persona option:
eFolder Access >
- 'Import Preliminary Conditions' in column BV
- 'Import UW Conditions' in column CJ
- 'Import PC Conditions' in column CQ
- 'Import Sell Conditions' in column CT
These new persona options were introduced in the Encompass 19.2 June Service Pack (19.2.0.4 Server Patch 4) to enable administrators to control user access to the Sell Conditions tab on the eFolder and the Import Conditions feature.
Encompass Software Development Kit (SDK)
Validation is now performed for the following input fields on the User Details screen when creating or editing an Encompass user and on the Company Details screen when creating or editing an external company (TPO) user with the Encompass SDK. If the character limit is exceeded, a new message is now displayed to inform the SDK user that they need to address the issue. In earlier versions of the SDK, a SQL Server exception error was triggered when the character limits were exceeded. This new user-friendly messaging alerts the SDK user when they have exceeded the character limit in a field, rather than a SQL Server error being generated when they attempt to save changes to the User Details screen.
• User ID - max length 16 | City - max length 50 |
• First Name - max length 64 | State - max length 20 |
• Middle Name - max length 64 | Zip - max length 20 |
• Last Name - max length 64 | SSN - max length 11 |
Suffix - max length 64 | Email For Rate Sheet - max length 64 |
• Email - max length 64 | Fax For Rate Sheet - max length 25 |
• Phone Number - max length 25 | Email for Lock Info - max length 64 |
• Fax Number - max length 25 | Email for Login - max length 64 |
Cell Phone - max length 25 | Welcome Email User Name - max length 100 |
NMLS LO ID - max length 12 | Sales Rep ID - max length 16 |
Job Title - max length 64 | Notes - [no limit] |
Address - max length 255 | Updated By - max length 16 |
NICE-25074
Additional Updates
For certain clients, when upgrading to a major release, a TPO Admins user group was automatically created in Encompass during the version migration, regardless of whether that client used Encompass TPO Connect. In addition, users were automatically added to the new user group with elevated access rights. With this release, the version migration has been updated to prevent the TPO Admins user group from being created in Encompass, in the future, for clients who do not need it.
The TPO Admins user group will be automatically created during the Encompass 19.4 version migration because the fix can only be implemented once the version migration is run. This change will not be seen until upgrading to the Encompass 20.1 release.
Feature Enhancements for Version 19.4.0.1 Server Patch 1
(Added on 10/4/2019)
This update contains updates to users' Encompass client machines (19.4.0.1) and a Server Patch (server patch 1) that is applied to the Encompass Server. The feature enhancements listed below are included in this update and are scheduled for release on October 19, 2019.
This client-side update (19.4.0.1) 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.
Please note that the Server Patch (server patch 1) included with this release will be applied to the Encompass Server automatically and cannot be controlled manually via the Encompass Version Manager tool.
In Encompass, go to Help > About Encompass in the menu bar to view your Encompass version. When you apply the client-side update, your new version number will be 19.4.0.1 Server Patch 1.
The Encompass SDK (Encompass Software Development Kit) has been repackaged with this 19.4.0.1 Server Patch 1 release. Although it is not required, it is recommended that you upgrade to this latest SDK delivered with this update to ensure the same functionality that is in this latest version of Encompass is also available in your SDK. If your SDK application utilizes the Encompass SmartClient, you can automate this process so the SDK is upgraded automatically every time you apply an Encompass release. If your SDK application is installed on a computer at your location, you must manually upgrade the SDK for every release. For instructions for automating the upgrade process or manually upgrading the SDK, refer to the Upgrading the Encompass SDK page or view the SDK Programmer’s Guide.
Visit the Encompass SDK Install Files page to access the SDK install files for this release.
Again, upgrading to this latest SDK package is recommended, but not required, for this 19.4.0.1 Server Patch 1 update.
Updates to the Encompass Server (i.e., Server Patch 1) and Client Machines (19.4.0.1)
The Encompass 19.4.0.1 Server Patch 1 update includes the following two feature enhancements. A portion of the relevant code to implement these enhancements is provided in the Server Patch included with this release, which will be applied to the Encompass Server automatically and cannot be controlled manually via the Encompass Version Manager tool. Another portion of the code is provided in the client-side updates that are applied to users' Encompass client machines and can be controlled manually via the Encompass Version Manager tool. If the tool has been configured to always apply client-side updates to users’ computers automatically, users will receive the client-side updates upon their initial log in of Encompass following the release.
The feature enhancements listed below will not be fully implemented until both the Server Patch and the client-side updates are applied to your Encompass system.
Updates to the VA Management Form for VA IRRRL Loans
Updates have been made to the Qualification tab on the VA Management input form to support VA IRRRL (interest rate reduction refinance loans) changes announced in VA Circular 26-19-22 on August 8, 2019 and effective on the same date. These changes involve adding new fields, a new Statutory Closing Cost Recoupment section, and new calculations for the recoupment costs of VA IRRRL loans originated on or after August 8, 2019.
A portion of the relevant code to implement the following two feature enhancements is provided in the Server Patch, which will be applied to the Encompass Server automatically and cannot be controlled manually via the Encompass Version Manager tool. However another portion of the code for these feature enhancements is provided in the client-side updates that are applied to users' Encompass client machines. These client updates can be controlled manually via the Encompass Version Manager tool. The feature enhancements will not be fully implemented until both the Server Patch and the client-side updates are applied to your Encompass system.
Updates have been made to the EEM section on the Qualification tab on the VA Management input form to capture the amount of Energy Efficient Mortgage (EEM) Improvements financed into the loan amount for VA IRRRL loans originated on or after August 08, 2019. Encompass now removes these costs from the loan amount when calculating the statutory recoupment costs.
Field ID Changed for Energy Efficient Improvements Amount
The field ID used for the Energy Efficient Improvements amount has changed from field ID 1721 to field ID 961. This is the same field ID used for the Amount Spent on Energy Improvements on the VA 26-0286 Loan Summary input form.
New Fields Added
On the line below the Energy Efficient Improvements amount, a new read-only Energy Efficient Improvement Financed Amount field (field ID VASUMM.X132) with a Lock icon has been added, followed by a new EEM Included in Base Loan Amount checkbox (field ID VASUMM.X133).
Both the Energy Efficient Improvement Financed Amount and the EEM Included in Base Loan Amount checkbox are blank by default. They are disabled by default unless the loan is a VA IRRRL loan that meets one of the following conditions:
-
A date of 08/08/2019 or later is enter for the Doc Signing Date, Mortgage Origination Date, Closing Date, or Est. Closing Date.
-
No date is entered for the Doc Signing Date, Mortgage Origination Date, Closing Date, or Est. Closing Date.
This behavior is not applied to VA IRRRL loans closed prior to 08/08/2019.
When a user selects the EEM Included in Base Loan Amount checkbox, Encompass copies the value from the Energy Efficient Improvements amount (field ID 961) to the Energy Efficient Improvement Financed Amount. This is a one-way copy. Subsequent changes to the Energy Efficient Improvements amount are also copied to the Energy Efficient Improvement Financed Amount, but changes to the Energy Efficient Improvement Financed Amount are not copied back to the Energy Efficient Improvements amount. When the checkbox is cleared, the Energy Efficient Improvement Financed Amount is also cleared.
Click the Lock icon to edit the Energy Efficient Improvement Financed Amount. This enables adjustments to the amount when not all the energy efficient improvement costs are allowable as financed amounts.
Edit Icon Removed
Additionally, the Edit icon that previously opened the Quick Entry - Energy Efficient Mortgage Calculation window has been removed from the EEM section.
Updates have been made to the user interface in the Recoupment section on the Qualification tab on the VA Management input form to support changes in the calculations for VA IRRRL recoupment costs announced in VA Circular 26-19-22.
Previous Loan Information
In the Previous Loan Information section, a new Existing Loan First Payment Date (field ID VASUMM.X123) has been added to the bottom of the section.
Clients should review VA guidelines on how to document the existing loan data, including documentation of the rate to use for ARM loans.
Proposed Loan Information
In the Proposed Loan Information section, the existing First Payment Date (field ID 682) and a new Rate Reduced Solely by Discount Points checkbox (field ID VASUMM.X131) have been added to the bottom of the section. Selecting the checkbox indicates that the lender has certified that a reduced rate on a refinance transaction is solely based on the payment of discount points.
Statutory Closing Cost Recoupment
At the bottom of the Qualification tab, a new Statutory Closing Cost Recoupment section has been added. This section is populated only for VA IRRRL loans.
The fields in this section are enabled only for loans with a Loan Type (field ID 1172) of VA and a VA Loan Code (field ID 958) of VA IRRRL when the loan meets one of the following conditions:
-
A date of 08/08/2019 or later is enter for the Doc Signing Date, Mortgage Origination Date, Closing Date, or Est. Closing Date.
-
No date is entered for the Doc Signing Date, Mortgage Origination Date, Closing Date, or Est. Closing Date.
This behavior is not applied to VA IRRRL loans closed prior to 08/08/2019.
This section includes the following new fields for VA statutory data for the applicable VA IRRRL loans:
-
Closing Costs (field ID VASUMM.X127) – This is a calculated field that establishes the Total Borrower Paid closing costs (at and outside of closing) minus lender credits. This amount excludes the VA Funding Fee, Prepaid items, and Escrows documented in Sections F and G on the Loan Estimate and Closing Disclosure.
-
Financed Closing Costs to Exclude (field ID VASUMM.X134) – This is a free entry field used to enter any closing costs included in the base loan amount that are to be excluded from the base loan amount for purposes of evaluating the statutory P&I payment.
If your company policies do not allow financed closing costs to be excluded from the statutory closing cost recoupment calculation for VA IRRRLs, your Encompass administrator can use a Persona Access to Fields business rule to restrict access to this field.
-
P&I Payment (field ID VASUMM.X128) – This is a calculated field that establishes the P&I payment using the base loan amount, note rate, and loan term minus any financed EEM amount. This amount excludes the VA Funding fee.
-
P&I Reduction (field ID VASUMM.X129) – This is a calculated field that establishes the calculated reduction in payment from the current P&I payment excluding the VA funding fee and the financed EEM amount included in the borrower's full P&I payment.
-
Recoupment Months (field ID VASUMM.X130) – This is a calculated field that establishes the calculated number of months to recoup closing costs based on the statutory closing cost and statutory P&I reduction.
The calculations for the fields listed above are applied only to VA IRRRL loans when a date of 08/08/2019 or later is enter for the Doc Signing Date, Mortgage Origination Date, Closing Date, or Est. Closing Date, or when all these date fields are blank.
Please review VA guidelines on what financed fees are appropriate to exclude from the statutory P&I calculation. These calculations are not applied to VA IRRRL loans closed prior to 08/08/2019.
CBIZ-26524