Updates and Enhancements in Version 22.3.0.3 Server Patch 1 (Broker Edition)

Updates have been made to the older versions of the GFE, Itemization, and HUD-1 forms to match the 2020 URLA forms. These forms are accessible by clicking Forms on the Encompass menu bar, pointing to RESPA-TILA Form Version, and then clicking Old GFE and HUD-1 or RESPA 2010 GFE and HUD-1.

This update removes the old Total Estimated Funds Needed to Close (Details of Transaction) sections and replaces them with the content from section L4. Qualifying the Borrower on the 1003 URLA -Lender input form.

The following forms are affected by this update:

• Old GFE and HUD-1 input forms:

  • GFE - Itemization

  • HUD-1 Page 2

• RESPA 2010 GFE and HUD-1 input forms:

  • 2010 Itemization

  • 2010 HUD-1 Page2

The example below shows the L4. Qualifying the Borrower section on the Old GFE and HUD-1 version of the GFE-Itemization input form. This section replaces the old Total Estimated Funds Needed to Close (Details of Transaction) section.

For loans using the URLA 2009 input forms, the Itemize Credits check box is hidden in the Total Credits section on the itemization and HUD forms listed above.

The label for the Cash From/To the Borrower field (field ID 142) at the bottom of the Qualifying the Borrower section is not dynamically adjusted based on whether cash is due to or from the borrower. The label always reads “Cash From/To the Borrower” regardless of whether cash is due to or from the borrower.

(Updated on 11/7/2022)

The label for the Freddie Mac MH CHOICEHome single-family manufactured home product has been updated on the Property Type drop-down list (field ID 1041). Previously the field was listed as MH HomeChoice. It has now been corrected to MH CHOICEHome.

The Property Type list displays on the following input forms:

• 1003 URLA - Lender

• Property Information

• Borrower Summary - Origination

• Borrower Summary - Processing

• Construction Management

• Loan Submission

• ECS Data Viewer

The MH CHOICEHome has also been updated on the Property Type drop-down list on Data Templates.

When MH HomeCHOICE was selected in the Encompass 22.3 Major Release or when MH CHOICEHome is selected beginning with Encompass 22.3 November Service Pack, the underlying data model uses MH HomeCHOICE for the property type. However, the mapping has been adjusted to ensure that LPA receives the correct MH CHOICEHome property type for either of these selections.

A new Property Data Report option has been added to the Property Form Type drop-down list (field ID TSUM.PROPERTYFORMTYPE) on the Transmittal Summary input form. The options in the list are also now arranged alphabetically.

(Updated on 11/9/2022)

The ARM Disclosure and Amortization Schedule output forms no longer include the monthly mortgage insurance amount in the initial and maximum payment amount shown in the Interest Rate and Payment Change Example sections under the scenario described below:

1. An ARM loan is initially originated with mortgage insurance.

2. A percentage amount has been entered in the Cancel at field (field ID 1205) on the Loan Submission input form, and the Cancel at percentage is higher than the percentage of the purchase price covered by the loan. For example, 80 percent is entered in the Cancel at field, and the loan is for 78% of the purchase price.

3. The Cancel at amount is then cleared.

Previously, the interest rate and payment change example on the output forms included mortgage insurance in the payment amounts. Now the interest rate and payment change example no longer includes mortgage insurance in the payment amounts.

The calculated values in the following fields are affected by this update:

• The calculated initial monthly payment for a $10,000 loan (field ID LE1.X92)

• The calculated maximum monthly payment for a $10,000 loan (field ID LE1.X93)

• The calculated month in which the maximum monthly payment will go into effect (field ID LE1.X94)

• The calculated initial monthly payment for a $60,000 loan (field ID LE1.X95)

• Prequal Minimum Payment (field ID 1895) - Available only on custom output forms.

• Prequal Maximum Payment fields (filed ID 1896) - Available only on custom output forms.

Four new drop-down lists have been added to the Loan Terms and Amounts section on the Freddie Mac tab on the ULDD/PDD input form to enable users exporting the ULDD to Freddie Mac to select up to five loan programs.

(Updated on 11/4/2022)

The classic and non-classic versions of the Request for Transcript of Tax input forms are being updated to capture additional data required for an update the IRS is making to the IRS 4506-C output form. The mandatory use date for the new form is March 1, 2023.

With the Encompass 22.3 Major Release in October, initial updates were made to the user interface on the classic and non-classic versions of the Request for Transcript of Tax input forms to enable data input for the new version of the output form. The Encompass 22.3 November Service Pack release delivers additional updates to the user interface as well as updates to the logic and field mapping associated with the user interface.

New Drop-Down List for Selecting 4506-C Version

A new drop-down list (field ID IRS4506.X92) has been added to the classic and non-classic versions of the Request for Transcript of Tax input forms in Encompass to enable users to generate the old or new version of the 4506-C output form. The drop-down list is located next to the Use IRS 4506-C check box (field ID IRS4506.X67).

The drop-down list is enabled when the Use IRS 4506-C check box is selected. It is cleared and disabled when the Use IRS 4506-C check box is cleared. The drop-down list includes the following options:

• Oct 2022 - This is the default option populated for the drop-down list. When this option is selected, the new version of the 4506-C output form is generated. This is the version of the form currently available in draft form with a mandatory use date of December 1, 2022.

• Sep 2020 - When this option is selected, the old version of the 4506-C output form is selected. This is the version of the form available with the Encompass 22.3 Major Release and earlier.

If a user tries to clear the new drop-down field when the check box is checked, the drop-down list will default to the Oct 2022 option.

Logic for Displaying Fields on the Input Form and for Printing the Output Form

Based on the selections made for the Use IRS 4506-C check box and the drop-down list, the following logic has been implemented for displaying the Sep 2020 and Oct 2022 versions of the input form, submitting forms electronically to IVES, and generating output forms. Refer to the Versions of the Request for Transcript of Tax Input Forms section below for a side-by-side comparison of the Sep 2020 and Oct 2022 input forms.

When the Use IRS 4506-C check box is cleared:

• The drop-down list is cleared and disabled.

• The input form displays the Sep 2020 version of the input form.

• The 4506-T version of the form is used for electronic submissions to IVES and when printing or generating an output file.

When the Use IRS 4506-C check box is selected:

• Oct 2022 is selected by default from the drop-down list:

• The input form displays the Oct 2022 version of the input form.

• The Oct 2022 version of the form is used for electronic submissions to IVES and when printing or generating an output file.

When the Use IRS 4506-C check box is selected, and Sep 2020 is selected from the drop-down list:

• The input form displays the Sep 2020 version of the input form.

• The Sep 2020 version of the 4506-C form is used for electronic submissions to IVES and when printing or generating an output file.

Versions of the Request for Transcript of Tax Input Forms

The following screen shots provide side-by-side comparisons of the different sections of the Sep 2020 and Oct 2022 versions of the input forms.

Sections 1-2

Sections 3-4

Section 5

Section 6

Sections 7-9

Logic for Copying Field Data to the Non-Classic Request for Transcript of Tax Input Form

The following logic is used for borrower names when clicking the Copy from Borrower Summary button:

• When the Use IRS 4506-C check box is selected, and Oct 2022 is selected from the drop-down list, the borrower’s first name is populated to the First Name field and the first letter in the borrower’s middle name is populated to the Middle Initial field. For example, for a borrower named Jane Morris Smith, the First Name field is populated with Jane, the Middle Initial field is populated with M.

• When the Use IRS 4506-C check box is selected, and Sep 2020 is selected from the drop-down list, the borrower’s first name is populated to the First Name field. For example, for a borrower named Jane Morris Smith, the First Name field is populated with Jane.

• When the Use IRS 4506-C check box is cleared the borrower’s first and middle names are combined and populated in the First Name field. For example, for a borrower named Jane Morris Smith, the First Name field would be populated with Jane Morris.

• Be aware that the existing behavior for the Copy from Borrower Summary button is to copy data only for the party or parties selected from the Tax Form is for drop-down list:

• When Borrower is selected, only borrower data is copied, and the spouse fields are empty.

• When Co-Borrower is selected, only co-borrower data is copied, and the spouse fields are empty.

• When Both is selected, both borrower and co-borrower data is copied with the co-borrower data populate to the spouse fields.

Data Templates

The changes made to the Request for Transcript of Tax input forms has also been made to Data Templates for the Request for Transcript of Tax - Classic input form when the Use IRS 4506-C check box is selected in the template.

Migration

For loans created prior to updating to the Encompass 22.3 November Service Pack Release, if the Use IRS 4506-C check box was selected prior to updating, the check box remains selected after the migration and the drop-down value is set to Sep 2020. After updating to the Encompass 22.3 release, if the Use IRS 4506-C check box is selected for a new or existing loan, the Oct 2022 option is selected by default.

On August 30, 2022, the USDA announced updates to the following forms:

• RD 3555-18 Conditional Commitment for Single Family Housing Loan Guarantee

• RD 3555-21 Request for Single Family Housing Loan Guarantee

• RD 3555-17 Loan Note Guarantee

• RD 3555-11 Lender Record Change

To support the updated USDA forms, the following updates have been made to the USDA Management input form in Encompass:

• Two new borrower-level fields have been added to the Applicant Information section on page 1 of the Rural Assistance URLA tab to capture the RHS Borrower ID (field ID USDA.X220) and RHS Co-Borrower ID (field ID USDA.X221) for a loan.

  

• The existing Borrower ID field (field ID USDA.X122) on the Tracking tab and the Loan Closing Report tab on the USDA Management input form will now be a read-only field that cannot be edited.

• When a user enters or changes content in the new RHS Borrower ID field (field ID USDA.X220), the entry will be copied to the existing Borrower ID field (field ID USDA.X122). This behavior enables existing Business Rules that utilize the Borrower ID field to continues functioning as expected.

Migration

For loan files created prior to updating to the Encompass 22.3 Major Release, there will be a one-time copy from the existing Borrower ID field (field ID USDA.X122) into the new RHS Borrower ID field (field ID USDA.X220).

(Updated on 11/10/2022)

The following five new fields have been added to the Freddie Mac Additional Data input form to enable users to identify updated program and product offerings from Freddie Mac.

You can use business rules to control the selections that display in these fields based on the products offered by your company.

• Offering Identifier drop-down list (field ID CASASRN.X209) - This field replaces the Offering Identifier drop-down list (field ID CASASRN.X163) that previously displayed on the Freddie Mac Additional Data input form.

• Income Based Deed Restrictions drop-down list (field ID CASASRN.X210)

• Community Land Trust Indicator drop-down list (field ID CASASRN.X211)

• HomeOne check box (field ID CASASRN.X213) - This is a read-only check box that is completed by Freddie Mac, if applicable, after the LPA AUS has been run.

• CHOICE Offering Type (field ID CASASRN.X212) - This field consists of seven check boxes that are used to select the CHOICE offering type.

  

The old Offering Identifier field (field ID CASASRN.X163) is no longer visible in the Encompass user interface for loans created after the Encompass 22.3 November Service Pack release, but the field is still available in Encompass and can be added to custom forms or business rules as needed.