An issue was resolved that resulted in a discrepancy between the General Qualified Mortgage Safe Harbor Eligibility results in Encompass and the results return by the Encompass Compliance Service (ECS) for some ARM transactions. This issue resulted in some loans being flagged as a Higher-Priced Covered Transaction in ECS and in Encompass on the higher-priced covered transaction checkbox (field ID QM.X382) on the Qualification tab on the ATR/QM Management input form as shown below.

However, on the ATR/QM Eligibility tab, the flag for General Qualified Mortgage Safe Harbor Eligibility ATR/QM Management form would show that the loan met the ATR/QM standard for safe harbor eligibility.

The calculation used by Encompass to indicate Safe Harbor Eligibility has been updated and the Safe Harbor Eligibility flag now matches the results returned from the Encompass Compliance Service.

An issue was resolved with mortgage or HELOC Verification of Liability (VOL) records that were added to a loan file and marked as Will be paid off. If the VOL was then attached to the Verification of Mortgage (VOM) for the subject property, the payoff amount was populated in the Existing Liens to be Paid Off (field ID 26) but was not cleared from the Credit Cards and Other Debts Paid Off (field ID URLA.X145). This causes the payoff amount to be included twice in the Total Due from Borrower (fields ID 1073) and Cash to Borrower (field ID 142).

Workaround Description:

The following workaround was provided for this production issue and is no longer required for Encompass 22.1 and later.

1. Open the Verification of Liabilities record

2. Clear the Will be Paid off checkbox, and then select it again.

Calculation updates have been made to ensure that the Present Housing expense fields are now populating correctly for HELOC loans when the Investment checkbox (field ID 1811) is selected in the Property Will Be section on input forms such as the Borrower Summary – Origination, 1003 URLA Part 4, 1003 URLA – Lender, and RegZ-LE.

For a HELOC loan that is not for a primary residence, the following logic is now used to populate values for the First Mtg. P & I (field ID 1724) and Second Mtg. P&I (field ID 1725) on input forms such as the ATR/QM Management, HELOC Management, and Transmittal Summary:

• The First Mtg. P & I (field ID 1724) is now populated with the value from the present housing expenses First Mtg. payment (field ID 120).

• The Second Mtg. P&I (field ID 1725) is now populated with the value from the present housing expenses Other Fin. payment (Field ID 121).

This logic update applies to loans using either the 2020 or 2009 versions of the URLA forms.

A None option has been added to the Flood Zone dropdown list (field ID 541).

When importing a borrower from another loan file using the Manage Borrower icon at the top of the loan, the Date Hired (field ID BE0151) is now importing correctly into the Verification of Employment input form for the borrower.