Feature Enhancements in Version 20.1

(Updated on 4/29/2020)

The following updates are being delivered in Encompass 20.1 to improve Encompass system performance and ensure users can operate more efficiently and create and update more loans in less time.

• Disclosure Tracking Tool: When saving changes to a Disclosure Tracking record, the save process is now quicker and more efficient.

• eDisclosures: Faster performance times when ordering eDisclosure packages.

• Projected Payments table: Reduced times when calculating the table values

• Other calculation updates:

  • Improved times when running calculation diagnostics in the background

  • Obsolete fields were removed from frequently used calculations to improve the calculation speeds.

(Added on 3/21/2020)

In Encompass 20.1, a new Global Search option is now provided for the Encompass Pipeline. This new option, which you can turn on or off by selecting the applicable radio button, is available for use only when one the following columns is in the current Pipeline: Loan Number, Borrower First Name, Borrower Last Name, Subject Property Address, and Loan Name. The Global Search On radio button will be inactive (i.e., grayed out) until one or more of these columns is in the current Pipeline.

When the Global Search is turned on, columns where you cannot search for data become inactive (i.e., grayed out). Only the columns that are available to be searched are active, and you can search for data by entering your search criteria in the column heading. In addition, the Loan Folder dropdown field also becomes inactive, but all of the loan folders will be searched.

When the Global Search is turned off, then the inactive fields and columns become active again. The default Pipeline view will be restored, and the default Loan Folder will be used again.

(Updated on 4/9/2020)

Improved Performance When Ordering Documents

Updates have been made to the Encompass Docs Solution (EDS) in the Encompass 20.1 Major Release to improve system performance and reduce the time it takes to generate documents. When ordering disclosures that included Encompass standard forms or Microsoft Word custom forms in previous versions of Encompass, various pop-up notifications and updates would display (and close automatically) during processing, providing you with quick status updates as the documents were generated prior to the final display of the list of documents. Starting in Encompass 20.1, these multiple processes have been reduced and consolidated, resulting in a reduction of the time to process and render the documents. In addition, the processing of custom Microsoft Word custom forms will now be performed by the Encompass Docs Solution (instead of the Encompass system).

These enhancements are part of an ongoing initiative to improve the efficiency of the document ordering process in Encompass. Additional performance and system enhancements will be provided in upcoming Encompass releases.

Depending upon how the Word custom form is created and/or formatted, some rendering and display differences may occur with the returned final PDF form. The following examples illustrate some of the more common differences that may occur, and the steps required to resolve them.

Using Microsoft Word to Create Custom Forms

When using Word to create a custom form, please consider the following:

• Macros within custom Word documents that are meant to be triggered when the form is created are not supported in Encompass 20.1. Any forms that contain such Word macros will generate a FormFailure error that will be provided back to the user.

• Any custom Word documents that exceed 2 MB in size will trigger a FormFailure error that will be provided back to the user.

• Conditional expressions that contain data fields may not work correctly if there is no data entered in the field or table.

  • When a field data expression contains field delimiters (i.e., commas), and the fields involved in the expression do not contain any data, only the commas will display on the final PDF document.

• Tables render differently than expected when no data is present.

  • The size of the table on the form is based upon the content entered within the cells of the table as well as the overall width. If there are data fields in the table that do not contain any data, the size of the tables and columns therein may fluctuate.

Font Spacing and Positioning Differences

Encompass documents support all standard Microsoft Windows fonts. If the custom Word form is utilizing a font type that is not supported by the Encompass documents, alpha and numeric characters may display in a slightly different position on the form, or the spacing between the characters may be slightly different, in Encompass 19.4.0.4 Server Patch 3 compared to how they displayed on the form in earlier versions of Encompass. However, this difference in spacing and positioning is not significant and does not prevent borrowers from reading the form. Below is an example form that shows the positioning on the form in pre-20.1 versions of Encompass and in 20.1 version of Encompass:

Pre-20.1 form

20.1 form

For a list of fonts that are supported by Encompass documents, click here.

checkboxes

When one or more checkbox fillable form fields have been added to a Microsoft Word document, the checkboxes may display with a light blue background in the PDF version of the form when printed in Encompass 20.1.

If a custom form contains one or more checkboxes that is a non-standard Microsoft Word bullet item style, the checkboxes may display as radio buttons instead. For example, if the font being used in the custom form is Wingdings 2 (a non-standard font) and a checkbox within that font is added to the form, it displays as a radio button in the final PDF version printed from Encompass 20.1:

Microsoft Word document:

Printed PDF Document:

To avoid this issue, the original Microsoft Word document should use standard bullet styles for checkboxes or use more standard, Word-supported font styles such as Wingdings.

Signature Lines

When multiple signature lines are included in Microsoft Word documents, there is the possibility that the lines below the first row of signature lines may move to the next page as content is added above the signature lines. To avoid this issue, and if having the signatures displayed together is desired, standard Microsoft Word Paragraph tools can be used to ensure that all signature lines remain grouped together as intended. To accomplish this, you can select all the signature lines, open the Paragraph Properties, and then select the Keep with next option.

New Admin Tools Policy to Control

A new EDS Custom Form Processing policy is available in the Encompass Admin Tools that enables administrators to control when the processing of Microsoft Word custom forms will be performed by the Encompass Docs Solution instead of the Encompass system. Use this option to enable the policy when you are ready to test your custom forms and ensure they are rendering as expected. You can then disable the policy until you are ready to test your custom forms again.

By default, this policy is set to False, which ensures that the Encompass system will process custom forms (just as in previous versions of Encompass). Set this policy to True to enable the policy and test your custom forms using the Encompass Docs Solution. Once you have completed testing your custom forms using the Encompass Docs Solution and you are ready to use it for your custom forms going forward, you can also set this policy to True.

When this policy is set to True, custom Word forms generated from the Print menu in Encompass will no longer be returned in Word (.docx) format. They will be returned in PDF format. This is by design to maintain consistency and with the understanding that PDF forms are editable.

Two new fields have been added to the Property Information section of the Verification of Mortgage (VOM) input form. A new Property will be used as dropdown list (field ID FM0155) has been added below the existing Property is used as dropdown list. This field is used to indicate the intended use of a Real Estate Owned (REO) property. The dropdown list includes the following options:

• Primary Residence

• Investment

• Second Home

• Other

These options should be selected for transactions submitted to LPA where a Purchase Credit is present.

A new Other Description text field (field ID FM0156) has also been added below the Property will be used as dropdown list. This field is disabled by default. When the Other option is selected on the Property will be used as dropdown list, the Other Description field is enabled for manual entry.

A new Land Value Type dropdown list has been added to the Lot/Land Status section in section L1 of the 1003 URLA – Lender input form (available with the new URLA input forms). Three options display on the dropdown list:

• Original

• Appraised

• Not Applicable

A new Lot Equity option has been added to the four credit description dropdown lists that display in section I on forms such as the 2015 Itemization, FNMA Streamline, USDA Management (Rural Assistance URLA Page 4), Piggyback Loans, and Cash-to-Close. These fields also display in lines M3 – M6 (field IDs 202, 1091, 1106, and 1646) in the Total Credits section of the 1003 URLA – Lender input form (available with the new URLA input forms).

This new option is available both the new and old URLA input forms.

(Updated on 3/21/2020)

The import process for FNMA loan files has been updated in Encompass to support the import of newly added fields and options described in the following release notes entries:

• New Fields on the Verification of Mortgage Input Form

• New Land Value Type dropdown List Added to the 1003 URLA - Lender Input Form

• New Options Added to Credit dropdown List

• New dropdown List Option on the Verification of Other Assets Input Form

• Updated Option on the Freddie Mac Offering Identifier dropdown List

• New Purchase Credit Source Section Added to the Freddie Mac Additional Data Input Form

The changes in this are all to support the updated URLA and AUS specifications published by the GSEs at: https://singlefamily.fanniemae.com/media/16606/display.

(Added on 2/28/2020)

The name of the Print Additional Borrower URLA checkbox (field ID URLA.X122) has been changed to Use Additional Borrower (Joint) Format whenever it appears on Encompass input forms to provide a more intuitive label. This checkbox determines the type of URLA forms the co-borrower will receive:

• When the checkbox is cleared, the co-borrower receives sections 1-8 of the URLA output form containing details of the co-borrower’s personal income, assets, and liabilities as well as details about joint assets and liabilities shared by both the borrower and co-borrower.

• When the checkbox is selected, the co-borrower receives sections 1-8 of the URLA output form containing details of the co-borrower’s personal income, assets, and liabilities, but the co-borrower does not receive detailed information about joint assets and liabilities. Instead, sections 2, 3 and 4 direct the co-borrower to the borrower’s copy of the output form for detailed information about joint assets and liabilities in the applicable sections.

(Added on 2/28/2020)

For loans using the new URLA forms scheduled for mandatory use on all new loans in November 2020, explanatory text has been added at the top of Section 7. Demographic Information on the 1003 URLA Part 4 to explain the purpose of collecting the information. This is the same text that displays on the old URLA 1003 Page 3 input form at the top of the Information for Government Monitoring section.

(Added on 2/28/2020)

For loans using the new URLA forms scheduled for mandatory use on all new loans as of November 2020, a No Co-applicant checkbox (field ID 3840) has been added to the 1003 URLA Part 1 to indicate that there is no co-applicant on the loan.

A new Relocation Funds option has been added to the Description dropdown list (field ID URLAROA0122) on the Verification of Other Assets input form.

The Prepayment Penalty / Prepayment Penalty Term checkbox (field ID URLA.X240) on the 1003 URLA – Lender input form has now been assigned the same field ID as the dropdown box for Prepayment Penalty (field ID 675) that displays on the Loan Estimate Page 1, Closing Disclosure Page 1, RegZ-CD, RegZ-LE, and ULDD/PPD input forms to ensure that the selections for these fields stays synchronized. Field ID URLA.X240 has also been retired from the Encompass Reporting Database.

Migration

After upgrading to Encompass 20.1, field 675 will have the Payment Penalty option selected for any loan that had the Prepayment Penalty / Prepayment Penalty Term checkbox (field ID URLA.X240) selected prior to the Encompass 20.1 release.

When importing a MISMO 3.4 file that contains a BuydownInitialEffectiveInterestRatePercent value into a loan using the new URLA forms, the following logic is used to populate the buydown initial effective rate in the appropriate Loan Info Buydown Rate 1 field in Encompass:

• When the BuydownTemporarySubsidyFundingIndicator = "true" AND BUYDOWN_FUND_DETAIL/FundsSourceType = 'Borrower' in the MISMO file, the rate is populated to field ID 1269 in Encompass.

• Otherwise, the rate is populated to field ID 4535 in Encompass.

(Added on 3/21/2020)

For loans using the new URLA forms, two new Country of Citizenship fields (field IDs URLA.X263 and URLA.X264) have been added to Section 1a on the 1003 URLA Part 1 to enable lenders to enter the country of citizenship for a non-permanent resident alien. The field is enabled for editing for a borrower or co-borrower who has the Non-Permanent Resident Alien checkbox selected (field ID URLA.X1 and URLA.X2). The field is cleared and disabled for editing when the Non-Permanent Resident Alien checkbox is not selected.

(Added on 3/21/2020)

Updates have been made to the calculations for qualifying payments and proposed housing P&I for loans with multiple liens using the new URLA forms to enable lenders to capture the monthly principal and interest payment associated with each loan.

Previously, if there were multiple liens associated with a given transaction (either existing liens not being paid off and being retained, or net new liens being originated concurrently with the existing transaction) the additional payment from those liens was not automatically reflected in the proposed housing expense or the qualifying payment.

The value of the principal and interest payment is now being added to the appropriate fields for the qualifying payment (field IDs 1724 and 1725) and the proposed housing expense (field ID 228 and 229) based on the lien position of each lien. Additionally, for qualifying loans where the loan purpose is for a second home or investment property, the additional payments are now factored only into the negative cash flow for the subject property.

The Edit icons, which allowed accessed to the payment calculator pop-up window, have been removed from the Proposed Housing Expense fields (field IDs 228 and 229), which are now calculated and read-only. Users can click the Lock icons next to the fields to edit the fields on the FNMA Streamlined 1003, USDA Management, and 1003 URLA – Lender, for example, when the value imported from a MISMO 3.4 loan file does not match the value calculated by Encompass.

The Proposed Housing Expense fields (field IDs 228 and 229) on the Loan Submission input form are read-only and do not have Lock icons.

Migration

The payment calculations for these fields may update on any loans using the new URLA 2020 forms that are mandatory as on November 1, 2020. With the Encompass 20.1 release, these should be test loans only, but a lender who upgrades to Encompass 20.1 after the URLA mandatory date might see new calculations on loans with VOAL records attached.

Updates have been made to the HELOC Initial Payment section of the HELOC Management input form to enable lenders to accurately calculate any prepaid interest due on a HELOC loan when there is a gap between the Closing Date and the day one month prior to the First Payment Date. HELOC loans can now use the draw amount or maximum balance as the basis for calculating interim interest based on the selection in the Balance Used dropdown (field ID 4484) in the HELOC Initial Payment section.

The HELOC Initial Payment amount (field ID 5) has been moved to the bottom of the HELOC Initial Payment section and the following fields have been added on the two lines above the HELOC Initial Payment:

• Interest from (field ID L244) – The date the loan funds are transferred.

• To (field ID L245) – The loan’s first payment date minus one month.

• Daily Int. Charges - days (field ID 332) – The number of days of interest to be paid in advance. The value is calculated for you using the dates in the Interest From and To fields. You can also type a number in the field.

  A Lock icon has been added to this field on all forms where it displays to enable user to manually adjust the amount.

• Daily Int. Charges - percentage (field ID 333) – The daily interest for the loan.

• Collect Interim Interest (field ID 4665) – This is a new checkbox that indicates whether the interim interest is being collected for a HELOC loan. The checkbox is only enabled for selection when the HELOC checkbox is selected for the Loan Type (field ID 1172) and it is cleared by default. The checkbox can also be added to the Encompass Reporting Database and is available when configuring the HELOC Management Form in the Loan Program Template.

When the HELOC checkbox is selected for the Loan Type (field ID 1172) and the Calculate Interim Interest checkbox is selected the calculation for the Daily Interest (field ID 333) uses the following fields:

• When Initial Draw is selected on the Balance Used dropdown list, the Initial Draw (field ID 1888) is used to calculate the daily interest.

• When Maximum Balance is selected on the Balance Used dropdown list, the Loan Amount (field ID 1109) is used to calculate the daily interest.

The calculation for the daily interest charges for a HELOC loan (field ID 333) has been adjusted so that HELOC loans can now include or exclude prepaid interest as part of the daily interest charges.

When the Rate checkbox (field ID 4475) is selected in the HELOC Initial Payment section on the HELOC Program tab on the HELOC Management input form, the daily interest charges for the loan (field ID 333) are calculated according to the following logic:

1. Start with the interest rate charged base on the Rate Basis selection (field ID 4476).

2. Any percentage adjustment to the interest rate (field ID 4478) is divided by 36500 and then added or subtracted (base on the selection in field ID 4477) to the amount determined in step 1.

3. Multiply the amount from Step 2 by the amount indicated in the Balance Used field (field ID 4484).

When the Rate checkbox (field ID 4475) is not selected in the HELOC Initial Payment section on the HELOC Program tab on the HELOC Management input form, the daily interest charges for the loan (field ID 333) are calculated according to the following logic:

1. Divide the Loan Rate (field ID 3) by 36500 (when 365/365 is selected for the Number of Days) or by 36000 (when 365/360 or 360/360 is selected for the Number of Days).

2. Multiply the amount from Step 1 by the Initial Draw (field ID 1888) or Max Balance (field ID 2) based on the selection in the Balance Used field (field ID 4484).

Bi-weekly payments are not accepted for HELOC loans. When the Biweekly checkbox (field ID 423) is selected for a HELOC Loan Type (field ID 1172), the daily interest rate is calculated on a monthly basis.

The following adjustment has been made to the HELOC initial monthly payment calculation for HELOC loans that include calculated interim interest in the initial payment. When the HELOC checkbox is selected for the Loan Type (field ID 1172) and the new Calculate Interim Interest checkbox (field ID 4665) is selected (in the HELOC Initial Payment section on the HELOC Program tab on the HELOC Management input form), the calculation for the HELOC Initial Payment (field ID 5) uses the following logic:

• When 365/365 or 365/360 is selected for the HELOC Initial Payment Number of Days (field ID 1962), the HELOC Initial Payment monthly payment is the HELOC Initial Payment interest per day (field ID 333) multiplied by the span of days from the Disbursement Date (field ID 2553) to the First Payment Date (field ID 682).

• Otherwise the HELOC Initial Payment monthly payment is the HELOC Initial Payment interest per day (field ID 333) multiplied by 30.

Lenders can now create a HELOC dynamic historical table that has a negative value in the Default Historical Margin field. This enables lenders to create a table for the Important Terms of Our Home Equity Line of Credit that provides customers with example data for a HELOC loan with a default historical margin lower the selected index rate. The tables are created in the HELOC Tables setting (Encompass > Settings > Tables and Fees > HELOC Table).

In the Amortization Type section on forms as such as the Borrower Summary – Origination and 1003 Page 1, the free entry description field (field ID 995) and the Find icon (magnifying glass) next to the ARM checkbox are now accessible when the HELOC checkbox is selected for the Loan Type (field ID 1172), regardless of the option selected for the Amortization Type (field ID 608). This enables lenders to enter a description and select an index for HELOC loans when applicable. Previously, the field and icon were accessible only when the ARM checkbox was selected.

HELOC loans funded in the state of Florida require special language in their documentation that includes an example of the balance due when there is a balloon payment at the end of the repayment period. To comply with this requirement, Encompass now calculates an estimated balance due amount for Florida HELOCs by calculating a worst-case Payment Schedule at the fully indexed rate for the full loan amount.

(Added on 2/28/2020)

The following adjustment has been made to correctly calculate the APR for fixed-rate HELOCs:

• When the Teaser Rate (field ID 1482) is 0 (zero), the Annual Percentage Rate (field ID 799) is populated with 0 (zero).

• When the Teaser Rate (field ID 1482) is blank the Annual Percentage Rate (field ID 799) is populated with the Note Rate (field ID 3).

• When the Teaser Rate (field ID 1482) is not blank or 0 (zero), the Annual Percentage Rate (field ID 799) is populated with the HELOC Draw Period Minimum Payment (field ID 1483).

Additionally, since the APR calculation is now available on fixed-rate HELOC loans, the Daily Periodic Rate (field ID 4549) and the Monthly Periodic Rate (field ID 4550) are now being calculated for those loans. Previously the periodic rate fields were disabled for fixed-rate HELOC loans.

(Added on 2/28/2020)

The following message now displays when the disbursement date for a loan is on or after May 29, 2019, and an Encompass user selects the National Average Contract Mortgage Rate option for one of the three ARM Index Type dropdown lists (field IDs 1959, 4512, or LE2.X96):

The FHFA determined that due to dwindling participation, the Monthly Interest Rate Survey would be discontinued as of May 29, 2019.

Updates have been made to the text that displays on the LO Compensation Violation pop-up windows that displays in Encompass forms and in the pop-up window that displays in the LO Compensation Rule setting (Encompass > Settings > Business Rules > LO Compensation Rule).

The pop-up window displays in the setting when an administrator configures the setting in a manner that may violate loan officer compensation guidelines in Regulation Z. The citation number in the text has been changed from 12 CFR 226.36(d)(2) to 12 CFR 1026.36(d)(2).

The pop-up window displays in Encompass forms when an administrator enables the warning and an Encompass user indicates that fees will be paid to the broker in a manner that may violate the loan officer compensation guidelines in Regulation Z. The citation number in the text has been changed from 12 CFR 226.36(d)(2) to 12 CFR 1026.36(d)(2) and the phrase the Lender or has been inserted as shown below.

(Updated on 3/21/2020)

The logic for populating the HOEPA Status (field ID HMDA.X13) has been updated. Previously, the HOEPA Status was populated with Not applicable for any loans that were ATR/QM exempt. However, because some HOEPA loans that are ATR/QM except are still HMDA reportable as high cost loans, the following updated logic is now being used to populate the HOEPA Status (field ID HMDA.X13):

• Not applicable is populated when:

  • Any option other that Active Loan, Loan Originated, or Purchase Loan is selected for the Action Taken (field ID 1393).

  • Active Loan, Loan Originated, or Purchase Loan is selected for Action Taken (field ID 1393) and:

    • The Reverse Mortgage option is selected for the Reverse Mortgage field (field ID HMDA.X56)

    • Or the Loan Purpose (field ID 19) is Construction.

• High cost mortgage is populated when the Section 32 Qualification section on the Section 32 HOEPA input form indicates that the loan does qualify as a high cost mortgage.

• Not a high cost mortgage is populated when the Section 32 Qualification section on the Section 32 HOEPA input form indicates that the loan does not qualify as a high cost mortgage.

The 310:Relief Refinance - Open Access option on the Offering Identifier dropdown list (field ID CASASRN.X163) in the Freddie Mac Data section on the Freddie Mac Additional Information input form. has been updated to 310:Relief Refinance - Open Access (Retired 12/31/2018). This has been made to address Freddie Mac’s retirement of the option for all loans that do not have an Application Received Date on or before December 31, 2018 and a Settlement Date on or before September 30, 2019.

This change applies to both the old and new URLA input forms.

A new Purchase Credit Source section with 12 read-only fields has been added to the Freddie Mac Additional Data input form.

The description and amount fields are populated when entries are made in the credit fields (field IDs 202, 1091, 1106, and 1646) 2015 Itemization, FNMA Streamline, USDA Management (Rural Assistance URLA Page 4), Piggyback Loans, or Cash-to-Close input forms, or on the on the 1003 URLA – Lender input form in the new URLA forms.

Four new Source fields (field IDs 4667, 4668, 4669, and 4670) have been added to the Purchase Credit Source section to enable Encompass users to identify the source of the credit. These fields are enabled only when a description has been populated for a credit. The following Source options are available on the dropdown lists:

• Borrower Paid Outside Closing

• Builder Developer

• Employer

• Federal Agency

• Lender

• Local Agency

• Non-Parent Relative

• Parent

• Property Seller

• Real Estate Agent

• State Agency

• Unrelated Friend

When the Address Book icon is used to populate a Title Insurance Service (field ID NEWHUD.X202) for a loan from the Business Contacts, the contact information is copied to the Title Insurance Company entry in the File Contacts tools.

If an Encompass user later overwrites the contact name in the Title Insurance Service field (field ID NEWHUD.X202), the information previously copied to the File Contacts tool is not overwritten.

A new Borrower Pair ID field (field ID BORPAIRID) has been added to the EncompassFields.xml (dat) file for use when running batch loans through Freddie Mac’s Loan Product Advisor. The new field is a 256-character string field that is mapped to the Borrower ID in Encompass for the primary borrower in a borrower pair. The Borrower Pair ID can be added to the Encompass Reporting Database and can be used to run reports. When the borrower and co-borrower are swapped within a pair, the Borrower Pair ID is updated to the Borrower ID associated with the new primary borrower for the pair.

The following fields have been added to the Encompass Reporting Database to enable Encompass Total Quality Loan (TQL) users to reconcile monthly flood invoices:

• TQL - Flood billing - Flood Transaction Type (field ID TQL.X102)

• TQL - Flood billing -Flood Product Type (field ID TQL.X103)

• TQL - Flood billing -Flood Status (field ID TQL.X104)

• TQL - Flood billing -Flood Order Date (field ID TQL.X105)

• TQL - Flood billing -Flood Received Date (field ID TQL.X106)

These fields are being added to support new functionality in the Ellie Mae TQL Services 20.1 release and they apply to TQL users only. TQL users can order a flood report from CoreLogic or ServiceLink and run flood transaction reconciliation reports based on the data returned to the Encompass Reporting Database.

The following seven new fields have been added to the Encompass Reporting Database to provide access to Fannie Mae EarlyCheck data:

• EarlyCheck UCDP Last Submission Date/Time (field ID FANNIESERVICE.X7)

• EarlyCheck Document File ID (field ID FANNIESERVICE.X8)

• EarlyCheck Appraisal Value (field ID FANNIESERVICE.X9)

• EarlyCheck DU Underwriting Recommendation Code (field ID FANNIESERVICE.X10)

• EarlyCheck DU Latest Submission Date Time (field ID FANNIESERVICE.X11)

• EarlyCheck DU Latest Submission Number (field ID FANNIESERVICE.X12)

• EarlyCheck DU Casefile ID (field ID FANNIESERVICE.X13)

(Added on 3/27/2020)

A new 30-Day Average SOFR option has been added to the ARM Index Type dropdown lists in Encompass. After September 30, 2020, the SOFR indices will be used for ARM loans in place of the LIBOR indices, which will no longer be accepted by GSEs. The option has been added to the following locations:

• The ARM Index Type dropdown list (field ID 1959) on forms such as the REGZ-LE, REGZ-TIL, and HELOC Management.

• The ARM Index Type dropdown list (field ID 4512) on the Lock Request Form tool.

• The ARM Index Type dropdown list on the Loan Program Template.

• The ARM Index Type dropdown list in the Details section of the pop-up window that opens after clicking the Find icon next to the Loan Program field (field ID 1401).

• The index dropdown list (field ID LE2.X96) on the Adjustable Interest Rate (AIR) Table on forms such as the Loan Estimate Page 2 and the Closing Disclosure Page 4.

Please visit the LIBOR Transition Support page for more information and resources.

(Added on 3/21/2020)

The following 15 new automated valuation method (AVM) fields have been added to Encompass to support the import of data from AVM partners. The fields are repeatable fields that can be used to capture the same type of data for multiple AVM records. The fields do not display on existing Encompass input forms, but they can be added to custom forms and business rules, and they are available in the Encompass Reporting Database.

• AVM Property Value (field ID PVAL0001)

• AVM Property ID (field ID PVAL0002)

• AVM Product (field ID PVAL0003)

• AVM Confidence Score (field ID PVAL0004)

• AVM Confidence Score Alt (field ID PVAL0005)

• AVM Range Low (field ID PVAL0006)

• AVM Range High (field ID PVAL0007)

• AVM Retro Date (field ID PVAL0008)

• AVM Complexity Score (field ID PVAL0009)

• AVM FSD (field ID PVAL0010)

• AVM Report ID (field ID PVAL0011)

• AVM Report Completed Date/Time (field ID PVAL0012)

• AVM Report Ordered Date/Time (field ID PVAL0013)

• AVM Provider (field ID PVAL0014)

• Property Valuation Type (field ID PVAL0015)

(Added on 2/28/2020)

A new Maryland First Time Homebuyer section with a new First Time Homebuyer checkbox (field ID DISCLOSURE.X1213) has been added to the bottom of the State Specific Disclosure Information input form for loans on subject properties located in Maryland. The checkbox has been added to address a provision in the Maryland property tax law, which states that:

• The loan has only one borrower who has never owned real estate in the state of Maryland that was used as the borrower’s principal residence.

• If the loan has two or more guarantees, the checkbox cannot be selected unless:

  • Each guarantee is a first-time Maryland homebuyer.

  • Or a co-maker or guarantor of a purchase money mortgage or purchase money deed of trust for the property will not occupy the subject property as a principal residence.

A new checkbox (field ID DISCLOSURE.X432) and a new text entry field (field ID DISCLOSURE.X433) have been added to the Commitment Letter section of the State Specific Disclosure input form for Vermont to indicate that the Commitment Letter was delivered to the borrower less than 24 hours before closing and to provide a text entry field describing why the letter was delivered after the required delivery time.

(Added on 2/28/2020)

A new Closing Deadline date field (field ID DISCLOSURE.X1212) and a Calendar icon field have been added to the bottom of the Commitment Letter section on the State-Specific Disclosure Information input form for loans with a subject property located in the state of Vermont. This field is used to enter a date when a loan commitment requires closing to occur more than 24 hours prior to the commitment expiration date.

(Updated on 4/9/2020)

An update has been made to the Non-Standard to Standard Refi tab on the ATR/QM Management input form to replace the two Refinance with Original Creditor checkboxes (field ID QM.X2) with new Creditor is current holder or servicer checkboxes (field ID QM.X379). This update was made to indicate that the loan is being refinanced by the creditor who holds or services the current loan in accordance with the definition of "original creditor" for purposes of 12 CFR 1026.23, which differs from the definition under 12 CFR 1026.43(d).

The Refinance with Original Creditor checkbox (field ID QM.X2) is still available on other Encompass forms, for example the 1003 Page 1, 1003 URLA – Lender, FNMA Streamline 1003, RegZ-CD, RegZ-LE, and Rural Assistance URLA.

(Added on 5/7/2020)

To comply with new state requirements effective May 1, 2020, the State-Specific Disclosure Information input form for Texas has been updated with the following changes.

Conditional Qualification Letter Section

The three lines previously located below the Loan type and Description line, have been replaced with a single line.

Previous text

Current text

In the section describing information provided by the applicant:

• The checkboxes used to indicate whether the applicant provided information verbally or in writing have been removed.

• The label for the second set of checkboxes has been change from Available cash for down payment and payment of closing costs to Available cash to close.

At the bottom of the section, a Conditional Pre-Qualification Expiration Date field (field ID DISCLOSURE.X1211) and a Calendar icon have been added to record the expiration date of the conditional prequalification.

Conditional Approval Letter Section

The line for Secondary financing terms has been removed and the label for the Verified cash for down payment and payment of closing costs checkboxes has been changed to Verified Applicant available cash to close.

Previous version

Current version

To enable renovation loan data to be captured even when a loan is coded as a purchase or refinance loan, the following fields are enabled and editable by default on loans using the URLA 2009 forms, regardless of the option selected for the Purpose of Loan (field ID 19):

• Year Aqd (field ID 20)

• Original Cost (field ID 21)

• Existing Lien (field ID 10)

• Present Value of Lot (a) (field ID 22)

• Cost of Improvements (b) (field ID 23)

These fields display on the 1003 Page 1, FNMA Streamlined 1003, USDA Management, and Construction Management input forms. Previously the fields listed above were only enabled when the Construction or Construction - Perm option was selected for the Purpose of Loan. The behavior described above has already been implemented in loans using the new URLA input forms.

To enable lenders to correctly disclose the interest changes for a construction-to-permanent loan with blended disclosures and a fixed rate for both phases of the loan, adjustments have been in the Can this amount increase after closing? section in the Loan Terms section on the Loan Estimate Page 1 and Closing Disclosure Page 1.

When the interest rate for the construction phase of the loan (field ID 1677) is greater than the interest rate for the permanent phase (field ID 3), No displays in the dropdown list (field ID NEWHUD.X5) in the Interest Rate section.

When the interest rate for the construction phase of the loan (field ID 1677) is less than the interest rate for the permanent phase (field ID 3), Yes displays in the dropdown list (field ID NEWHUD.X5) in the Interest Rate section, the first bulleted point now reads Adjusts once in, and the fields that formerly displayed the adjustment date year or month (field IDs LE1.X21 and LE1.X22) have been replaced with field IDs LE1.X15 and LE1.X16.

When importing a MISMO 3.4 file into a loan using the new URLA forms, the following logic is used to populate the Initial Acquisition (field ID 1964) and Refinance (field ID Constr.Refi) checkboxes when the Purpose of Loan (field ID 19) is Construction-Perm. These checkboxes display on the Construction Management, RegZ – CD, RegZ – LE, and 1003 URLA Lender input forms.

When the imported URLA Loan Purpose in the MISMO 3.4 file is Purchase (<LoanPurposeType>Purchase</LoanPurposeType>):

• The Initial Acquisition checkbox (field ID 1964) is selected.

• The Refinance checkbox (Constr.Refi) is cleared.

When the imported URLA Loan Purpose in the MISMO 3.4 file is Refinance (<LoanPurposeType> Refinance </LoanPurposeType>):

• The Initial Acquisition checkbox (field ID 1964) is cleared.

• The Refinance checkbox (Constr.Refi) is selected.

These fields are used to calculate a value of Purchase or Refinance in the Display Loan Purpose Type for Property field (field ID URLA.X71). This field does not display on any Encompass input forms or tools, but it can be used to display the URLA Loan Purpose on custom forms or to include the value in reports.

(Added on 3/21/2020)

Updates have been made to the Encompass calculation used for initial escrow setup to enable due dates to be populated via APIs. Previously the Encompass calculation would clear any due dates entered by APIs because no setup values were entered.

As discussed in the Encompass 19.4 release notes, the release of Encompass 20.1 will require that Encompass users’ machines have Microsoft .NET Framework 4.7.2 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 20.1 release.

With the release of Encompass 19.4, administrators could use a new policy in the Encompass Admin Tools to determine if the Microsoft .NET Framework 4.7.2 would be installed on existing users’ machines the next time they logged into Encompass 19.4. By default, this Apply .NET Framework 4.7.2 policy is set to False, so the Framework would not be applied automatically.

In Encompass 20.1, this Apply .NET Framework 4.7.2 policy has been removed from the Policies in Admin Tools. Administrators will no longer have this option to control when the .NET Framework 4.7.2 is installed on users’ machines. When Encompass 20.1 applied to your system, the Encompass Smart Client install kit will automatically install the .NET Framework 4.7.2 on users’ machines the next time they log into Encompass 20.1.

In addition, .NET Framework 4.7.2 is now included in the Encompass 20.1 SDK package.

(Added on 3/21/2020)

Using the Loan Duplication setting, administrators can create templates that control the field data that is copied from an existing loan when a duplicate loan is created. The following URLA fields have been added to the Loan Duplications setting in the Borrower Present Address and Co-Borrower Present Address sections:

• Country
• Unit Type
• Unit #

When one or both of these sections are selected, these fields will be copied to the duplicate loan. These fields are only used for loans using the new URLA 2020 forms.

The Document Identification setting has been updated to give administrators the option to enable or disable document barcodes on informational documents. In earlier versions of Encompass, informational documents are not barcoded and there were no options for administrators to add barcodes to these types of documents.

In Encompass 20.1, administrators can now use these new Informational Documents options to indicate the type of informational documents where barcodes will be added.

This enhancement is especially beneficial to users of Encompass Investor Connect since they can use these new options to enable or disable barcoding for informational documents based on their investors’ guidance.