HELOC Table

User Guide: Working with HELOC Loans

Use the HELOC Table tool to create the example historical HELOC table data that is used on the HELOC custom form, "Important Terms of Our Home Equity Line of Credit." The data in the example tables shows how the annual percentage rate and minimum monthly payments for a HELOC loan with an outstanding balance of $10,000 would change based on changes to the index.

After creating tables, apply them to a HELOC loan by clicking the Find icon next to the Historical Table field (field ID 1985) on the HELOC Management input form and then selecting a table from the list.

You can create two types of historical HELOC tables:

  • Dynamic Table - Dynamic tables are based on the exact scenario of the loan file to which they are applied and are used to run complex calculations based on the payment scenario in a loan. When creating a dynamic table, administrators can tables for different days and months of the year and for different indexes. Encompass uses the data in the tables to populate payment options based on the selection made on the HELOC Management input form. Tables can be assigned to loans through loan program, business rules, or Dynamic Data Management triggers. Dynamic tables apply information in the table to the output form based on the parameters of the loan. Administrators can create tables to cover a variety of HELOC scenarios and can configure the tables to begin on selected months and dates

  • Static Table - Static tables display on custom versions of the Important Terms Disclosure output form exactly as the table is entered in the setting. Static tables include one entry for each year. The data on the table does not adjust based on the loan scenario. Static tables are no longer supported on the dynamically generated HELOC output forms that were introduced with the Encompass 19.3 release and are maintained solely to support previously existing output forms for the custom HELOC Important Terms Disclosure.

To Create a Dynamic Historical HELOC Table:

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

  2. On the left panel, click Tables and Fees, and then click HELOC Table.

  3. Click the New icon.

  4. Select Dynamic Table, and then click OK.

  5. In the HELOC Table Name field, type a name, and then select an Index Name from the list.

  6. Select the day and month when the index starts. You can configure multiple index start dates, for example by month or by quarter. If your company uses multiple index start dates depending on when loans are originated, you may configure multiple tables, each with different start day and month.

  7. Use the HELOC Index Precision dropdown list to configure the index rate as a three-decimal or five decimal number. By default, the HELOC Index % is set to display three decimals. When changed to Five Decimals, the Index % can be entered up to five decimals. If only three digits are entered in the Index % field, two trailing zeros (0) are added automatically.

  8. Enter a Default Historic Margin for the table. This margin is used with the historical index data entered to calculate the APR disclosed for each year in the historical example.

  9. Click the Use Alternate Schedule checkbox to use an alternate schedule that adds the padding years at the beginning of the table for HELOCS that are less than 15 years (the default schedule prints the padding years at the end of the table).

  10. Click Add, use the Year and Index fields to create an entry for a specific year, and then click OK.

  11. Repeat step 8 to add additional entries for each year that will be included in the example data. If your index has the same value in multiple years, click the Duplicate button to copy the index value and enter the new year value. This is useful when setting up a Prime rate, which had a 3.25 % value for multiple years.

  12. When finished, click OK on the Edit HELOC Historical Index Table window.

To Create a Static Historical HELOC Table:

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

  2. On the left panel, click Tables and Fees, and then click HELOC Table.

  3. Click the New icon.

  4. In the HELOC Table Name field, type a name.

    Typically the Table Name is the name of a lender.

  5. Click Add and use the Minimum Monthly Payment window to create sample data for each year as follows:

    • Type the Year, for example, 2009.

    • Select a Period Type: Draw or Repayment.

    • Type the Index %, Margin %, and APR % for the year.

    • Click OK.

  6. Repeat step 5 to add additional entries for each year that will be included in the example data.

  7. When finished, click OK on the Edit HELOC Table window.

ClosedEdit a HELOC table

  1. Select an entry in the HELOC Tables list and click the Edit icon.

  2. On the Edit HELOC Table window:

    • Click Add to add additional table entries.

    • Click Edit to modify a selected entry.

    • Click Delete to delete a selected entry.

    • Or, click Duplicate to duplicate a selected entry.

  3. When finished working with table entries, click OK on the Edit HELOC Table window.

ClosedDelete a HELOC table

  1. Select an entry in the HELOC Tables list and click the Delete icon.

  2. Click Yes in response to the confirmation message.