Product and Pricing Setting

Use the Product and Pricing setting to select your preferred product and pricing service. If your provider's product and pricing process has been integrated with Encompass, you can also configure the integration options between your provider's interface and Encompass to import specific types of rate lock data into Encompass when you use the provider's interface to request or confirm a rate lock. Additional settings are used to configure the maximum time that can elapse between a product and pricing request and a rate lock, permit users to request lock extensions, define lock extension request pricing adjustments, and configure the number of days that users can select for lock extension requests.

You can create and save different option settings for each preferred provider. When you select a provider, any previously configured settings for the provider are applied.

To Access the Setting:

On the menu bar, click Encompass, and then click Settings.
On the left panel, click Secondary Setup, and then click Product and Pricing.
Complete the sections described below, and then click the Save icon.

Product and Pricing Provider Integration

In the Product and Pricing Provider Integration section, select your preferred provider from the list.
- This will be your company's default product and pricing provider. When a user clicks the Get Pricing button on the Lock Request Form or the Get Buy Side Pricing or Get Sell Side Pricing button on the Secondary Lock Tool, the default provider will supply product and pricing information.
Click a provider's Admin link to manage your account settings.
Click the More Info link to view the provider's website.
If your provider has integrated their product and pricing process with Encompass, a list of available integration options will display on the screen. Complete steps 5-7 to configure these options. Not all options will be available for all providers. checkboxes are disabled for options that are not available.

The Get Pricing and Import Data to Lock Request Form options are permanently selected by default and cannot be cleared.
Select the Import Data to Loan File checkbox to import rate lock data into the loan file when a pricing option is selected on the providers website.

Enabling this option causes the rate lock data currently in the loan file to be permanently overwritten when a user selects a pricing option from the provider.
Select the Request Lock checkbox to select and request a lock by accessing the provider's interface via a browser screen in Encompass.
- When you request a lock from the provider, a matching lock request is also submitted in Encompass and displays on the Secondary Registration tool.
- Select Enforce only when no current lock exists to require users to select and request a lock by accessing the provider's interface via a browser screen in Encompass only if the loan does not have a current, non-expired lock. This enables users to request a re-lock on an existing lock without having to visit the provider’s interface, re-price the lock, and then submit the lock request.
  
  Currently, the Enforce only when no current lock exists setting is only available for the Optimal Blue - Enhanced service provider.
Click Save.

Customize Investor Name Import

In the Customize Investor Name Import section, select the Customize investor name import checkbox to configure the investor name import from the Encompass Product and Pricing Service into Encompass.
Select an option to configure how the name is imported:
- Always save the investor name to the Encompass investor name field.
- Always save the investor name to the Encompass lender name field.
- Save the investor name to the Encompass lender name field only for wholesale programs.

You can create and save different name import option settings for each preferred provider. When you select a provider, any previously configured settings for the provider are applied.

Click Save.

Lock Request Submission After Pricing has been Retrieved

This section was renamed in the Encompass 20.2 December Service Pack from Elapsed Time Setting Between Product and Pricing and Lock Requests to Lock Request Submission After Pricing has been Retrieved.

In the Lock Request Submission After Pricing has been Retrieved section, select the Do not allow changes after pricing has been retrieved checkbox to prevent changes to the Lock Request Form before the lock request is submitted.

This setting was added in the Encompass 20.2 December Service Pack.

Select the Allow lock request checkbox to set a limit on the amount of time that can expire from the time pricing was last imported (by clicking the Get Pricing button on the Lock Request Form) until the lock request is submitted.
Type the number of minutes (15 is entered by default).

When a user requests a lock after the limit has expired, a message instructs the user to retrieve updated pricing before requesting the lock.
Select the Apply the pricing timer only when there is no current lock checkbox to enforce the time limit only if the loan does not have a current, non-expired lock. This enables authorized users to request a re-lock on an existing lock without having to request new pricing.
Click Save.

Lock Update and Re-Lock Enablement

This section was renamed in the Encompass 17.3 August Service Pack from Lock Request Type Setting to Re-Lock Enablement and again in Encompass 21.3 from Re-Lock Enablement to Lock Update and Re-Lock Enablement.

In the Lock Update and Re-Lock Enablement section, select the Enable Lock Updates and Re-Locks checkbox to enable users to request re-locks.

Select the Enable Lock Updates and Re-Locks for TPO Clients checkbox to enable system administrators to manage (enable/disable) the re-lock feature in Encompass and Encompass TPO Connect for TPO clients.

In the For Lock Updates (Active Locks) section:

This sub-section was added in the Encompass 17.3 August Service Pack and renamed in Encompass 21.3 from For Active Locks to For Lock Updates (Active Locks).

Select the Only allow Lock Updates (Historical Pricing) when a current lock exists checkbox to set the default lock request type in the Request Type field on the Lock Request Form when a current lock exists.

When the checkbox is selected, the Lock Request Form's Request Type field is set to Lock Update when an existing lock is active and set to Re-Lock when an existing lock is expired. (The New Lock option will not be available in the Request Type dropdown list.).

Select the Allow Get Pricing (Historical) Requests for Lock Updates checkbox to enable the Get Pricing button on the Lock Request Form when a user is requesting a re-lock.

Select the Allow Re-Locks outside of Lock Desk Hours checkbox to enable re-locks to be submitted outside of Lock Desk hours.

Select the Allow New Locks outside of Lock Desk Hours checkbox to enable re-locks on active locks, with a Request Type set to "New Lock", to be requested when the Lock Desk is closed.
This setting is only enabled when the Product and Pricing provider is set to "No Provider Selected".

In the For Inactive Locks (Cancelled or Expired) section:

Select the Get current pricing after [enter number] days of Lock Expiration or Cancellation Date to set the number of days that must pass before users can get current pricing on an expired or cancelled lock.
If this setting is selected, the Get Pricing button on the Lock Request Form is enabled as follows:
Expired Lock - Once the Lock Expiration Date (field ID 762) is greater than the number entered in the setting.
Cancelled Lock - Once the cancellation date from the cancellation log is greater than the number entered in the setting.
If this setting is not selected, the Get Pricing button is always enabled and current pricing is always retrieved.
Select the Apply a Re-Lock fee of [enter amount] for each Re-Lock to apply a fee to re-locks. Both negative and positive amounts up to 3 decimal places are accepted.

If the setting is selected, the specified re-lock fee populates the appropriate Re-Lock Fees field on the Detailed Lock Request Form and Secondary Lock Tool.
If the setting is not selected, no re-lock fee is applied.
Select the Limit Re-Locks to not exceed [enter number] total Re-Locks to set the maximum number of re-locks allowed for a loan. The default value is “2”.

If this setting is selected, the system checks whether the re-lock request has exceeded the setting’s limit.
If the limit is exceeded, an error message, “The Re-Lock Limit for Inactive Locks has been exceeded. The Re-Lock Request cannot be processed.” is displayed.
If the limit has not been exceeded, the re-lock is processed.
If the setting is not selected, the system checks the number of re-lock transactions.
If the system limit of 10 is met, an error message, “The Re-Lock Limit for Inactive Locks has been exceeded. The Re-Lock Request cannot be processed.” is displayed.
If the system limit of 10 has not been met, the re-lock is processed.

Click Save.

Lock Extension Price Adjustment

In the Lock Extension Price Adjustment section, select the Enable lock extension requests checkbox to allow users to request lock extensions.

The remaining options in this section are only enabled when this checkbox is selected.
When the checkbox is selected, the Request Extension button is enabled on the Lock Request Form and the Secondary Lock Tool.
When this option is not selected, the Request Extension button will be disabled on the Encompass Lock Request Form and the Secondary Lock Tool.

Set the number and duration of extensions allowed.

Unlimited extension days - Enables an unlimited number of lock extension days.
Original Lock Period days - Enables the number of lock extension days to equal the number of days in the original lock period.
Limit extensions to not exceed [enter number] days - Enables a user defined number of lock extension days (between 1 and 999).

This option was renamed in the Encompass 17.3 August Service Pack from Allow extensions to be no more than xxx days to Limit extensions to not exceed [enter number] days.

Select Limit extended locks to not exceed [enter number] total lock days to indicate the total number of lock days allowed (includes the original lock term).

This setting works with all the Control options.
The default value for this field is “90”.
This setting works in conjunction with the Limit locks to not exceed [enter number] total extensions setting, and the Limit extensions to not exceed [enter number] days setting, if selected. For example:
Original lock was 45 days
Limit extensions to not exceed 20 days
Limit extended locks to not exceed 90 total lock days
Limit locks to not exceed 3 total extensions

You are allowed up to 3 extensions for a total number of 65 lock days (45 (original lock) + 20 (limit extensions to days) = 65). In this example, the number of lock days does not exceed 90 (limit extensions to total lock days).

Select Limit locks to not exceed [enter number] total extensions to indicate the total number of extensions allowed.

If the Enable lock extension requests setting is not selected, this setting is disabled.
This setting works with all the Control options except “Company controls extension days and price adjustments by extension occurrence”.
The default value for this field is “3”.
This setting works in conjunction with the Limit locks to not exceed [enter number] total extensions setting, and the Limit extensions to not exceed [enter number] days setting, if selected.

Select a Control Option:

No company control - Users can set the number of days and price adjustments for their extension requests. If this option is selected, no further configuration is required for the lock extension setting.
Company controls extension days and price adjustment - The company creates predefined settings that control the number of days users can select for extension requests and the associated pricing adjustments.

You have several options for setting the allowable days and pricing adjustments for an extension.

If you select the checkboxes for both Fixed extension days and adjustment and Allow daily adjustment, the Fixed adjustments will be applied when a user selects or enters a number of days that matches one of the Fixed entries you have created, and the Allow Daily Adjustment pricing will be applied when the user enters a number of days that does not match one of the fixed entries you have created. If you clear both checkboxes, the lock extension request feature will be disabled.

Fixed extension days and adjustment - Create individual entries that include a specified number of days and an associated adjustment price. When users request an extension on the Lock Request form, they can select one of these predefined entries from a list.

Create entries for fixed extension days and adjustments

Select the Fixed extension days and adjustment checkbox.
Click the New icon.
Type a number in the Days to Extend column.
Click the cell in the Price Adjustment column and then enter the adjustment as a negative number.
Repeat steps 1-4 until you have added all the required entries.
To edit an entry, select the entry, click the Edit icon, and adjust the entry.
To delete an entry, select the entry, and click the Delete icon.

Allow daily adjustment - Select this checkbox to enter the price adjustment per day as a negative number. When a user requests an extension for a specified number of days, this number is multiplied by the number of days in the request to calculate the total pricing adjustment for the extension.

Company controls extension days and price adjustment by extension occurrence - When this option is selected, an Adjustment Per Lock Extension table is displayed.
Extension # - Automatically increments up to “10”.
Days to Extend - Value must be greater than “0”.
Price Adjustment - Value should be entered as a negative number.

In addition:

The Limit extensions to not exceed [enter number] days setting is cleared and disabled.
When a lock extension is requested from the Lock Request Form or Secondary Registration, the Days to Extend and Price Adjustment fields are disabled and determined by this setting.
You cannot request an extension past the extension request number configured in this setting.

Click Save.

Lock Cancellation

In the Lock Cancellation section, select the Enable lock cancellation in Secondary Registration Tool checkbox to allow locks to be canceled from the Secondary Registration screen.
- When the checkbox is selected, a Cancel Lock button displays on the Secondary Registration screen when a loan has a current lock that is not expired.
If the Enable lock cancellation in Secondary Registration Tool checkbox has been selected, you can select the Enable lock cancellation requests on Lock Request Form checkbox to allow a persona to request a lock cancellation from the Lock Request Form.
- When the checkbox is selected, a Cancel Lock button displays on the Lock Request Form when a loan has a current lock that is not expired.
Click Save.

Lock Void

In the Lock Void section, select the Enable lock void in Secondary Registration Tool (Retail)checkbox to allow a pricing event (i.e., lock, relock, extension, denial, or cancellation) in the Retail channel to be undone and return the lock to its previous state.
Select the Enable lock void in Secondary Registration Tool (Wholesale) checkbox to enable a pricing event in the Wholesale channel to be undone and return the lock to its previous state.
Select the Enable lock void in Secondary Registration Tool (Correspondent Individual Best-Efforts Only) checkbox to allow a pricing event in the Correspondent channel to be undone and return the lock to its previous state.

This setting applies only to Correspondent Individual Best Effort loans that are not assigned to a Correspondent trade.

Click Save.

When at least one checkbox is selected, a Void Lock button displays on the Secondary Registration screen.

A confirmed snapshot that has not expired must be available for the Void Lock button to be enabled.

Zero Based Par Pricing