Feature Enhancements in Version 21.3.0.2 (Banker Edition)

This section discusses the updates and enhancements to existing forms, features, services, or settings that are provided in this release.

Update to the Encompass Client Machines (21.3.0.2)

The Encompass 21.3 Critical Patch 2 release includes the following items, which are client-side updates that are applied to users' Encompass client machines (21.3.0.2). 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.

On November 30, 2021, the FHA announced the availability of new FHA County Limits for 2022. The URL for the 2022 FHA County Limits table is now provided in the Encompass Settings (and selected by default). Selecting the URL synchronizes this new table to apply the new limits to applicable loans in Encompass.

To Apply the 2022 FHA County Limits:

  1. On the menu bar, click Encompass, and then click Settings.

  2. On the left panel, click Tables and Fees, and then click FHA County Limits.

  3. In the HUD Web Site section, select the radio button for the 2020 FHA County Limits table:

    https://apps.hud.gov/pub/chums/cy2022-forward-limits.txt [Jan 1 - Dec 31 2022]

  4. Click the Synchronize button. The updates are applied immediately for all users.

CBIZ-43072

If you are utilizing the Encompass SDK to calculate the Loan Limit (field ID 3331), upgrading to the new SDK package for 21.3.0.2 is required or the Loan Limit may not be calculated correctly.

The FHFA Maximum Conforming Loan Limits for 2022, announced on November 30, 2021, have been incorporated into the Encompass Conventional County Limit tables. These changes will be effective on January 1, 2022. Encompass 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-43079

The updates described below have been made to the Points and Fees verbiage and the ATR/QM test calculation to reflect the 2022 TILA (Regulation Z) Annual Threshold Adjustments for HOEPA and ATR/QM.

Updated QM Threshold on ATR/QM Qualification Tab

For non-VA IRRRL loans that have a Document Signing Date (field ID 1887), Closing Date (field ID 748), or Estimated Closing Date (field ID 763) of 1/1/2022 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).

When the QM Fee Threshold is a percentage, the threshold amount (field ID QM.X121) is populated based on the threshold percentage and loan amount. When the QM Fee Threshold is an amount, the threshold percentage (field ID QM.X122) is populated based on the threshold amount and loan amount.

Loan Amount QM Fee Threshold Current QM Fee Threshold Field Populated
$114,847 or greater 3% of the RegZ Total Loan Amount (field ID QM.X120) Threshold amount (field ID QM.X121)
$68,908–$114,846.99 $3,445.00 Threshold percentage (field ID QM.X122)
$22,969–$68,907.99 5% of the RegZ Total Loan Amount (field ID QM.X120) Threshold amount (field ID QM.X121)
$14,356–$22,968.99 $1,148.00 Threshold percentage (field ID QM.X122)
$14,355.99 or less 8% of the RegZ Total Loan Amount (field ID QM.X120) Threshold amount (field ID QM.X121)

For VA IRRRL loans, regardless of the loan dates or loan amount:

  • The Current Qualified Mortgage Fee Threshold percentage (field ID QM.X122) is 3%.

  • The Current Qualified Mortgage Fee Threshold amount (field ID QM.X121) is 3% of the RegZ Total Loan Amount (field ID QM.X120).

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 1/1/2022 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 $22,969 or more total points and fees cannot exceed 5% of the total loan amount; For Loan amounts less than $22,969 the total points and fees cannot exceed the lesser of 8% of the total loan amount or $1,148; 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 1/1/2022 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 S32DISC.X101).

Loan Amount Maximum Points and Fees Allowed Percentage Maximum Points and Fees Allowed Amount
$22,969.00 or greater 5% 5% of the Reg Z Total Loan Amount (field ID QM.X120)
$22,968.99 or less 8% Lesser of $1,148.00 or 8% of the Reg Z Total Loan Amount (field ID QM.X120)

CBIZ-43075

When the first change in an ARM loan’s interest rate occurs after 5 years, the QM APR (field ID QM.X381) on the Qualification and ATR/QM Eligibility tabs of the ATR/QM Management input form is now populated with the Annual Percentage Rate for the loan (field ID 799).

For construction-to-permanent loans, the QM APR calculation change applies only to the permanent portion of the loan:

  • The loan APR (field ID 799) will always be populated as the QM APR (field ID QM.X381) for construction-to-permanent ARM loans when:

    • The first interest rate adjustment on the permanent portion of the loan occurs after 5 years.

    • The permanent portion of the loan has a fixed interest rate.

  • Construction-to-permanent ARM loans will continue to use the previous QM APR calculation if the first interest rate adjustment on the permanent portion occurs in 5 years or less.

CBIZ-42316

(Updated on 1/13/2022)

To clearly indicate the purchase credit options that are applicable to Fannie Mae, Freddie Mac, or both, the dropdown lists described below now include additional text in parentheses at the end of each option to indicate when it is for:

  • Fannie Mae - (FNMA)

  • Freddie Mac - (FRE)

  • Both Fannie Mae and Freddie Mac - (FNMA/FRE)

  • Fannie Mae Retired - (FNMA Retired)

  • Freddie Mac Retired - (FRE Retired)

The additional text now displays for options in the dropdown fields listed below:

  • The other credits description (field IDs 202, 1091,1106,1646) and the other credits Source (field IDs 4667, 4668, 4669, 4670) for lines M3–M6 in the Total Credits section on the 1003 URLA - Lender input form and the Freddie Mac Additional Data input form.

  • The Source of Funds (field ID URALARAL0133) in the Account Information section of the Verification of Additional Loans input form.

  • The Source (field IDs URLAGG0119) in the Gifts and Grants Information section of the Verification of Gifts and Grants input form.

  • The refinance program dropdown list (field ID URLA.X166). This field displays as a series of checkboxes on the 1003 URLA - Lender input form, but it can be added to a custom form as a dropdown list.

CBIZ-42496

 

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