ComplianceOne mortgage Feature Guide

Transcription

1 ComplianceOne mortgage Feature Guide

2 ComplianceOne mortgage Vision ComplianceOne mortgage Supported Products ComplianceOne mortgage Supported Features ComplianceOne mortgage Prioritized Feature List ComplianceOne mortgage Future Supported Features ComplianceOne mortgage Unsupported Features P a g e V

3 ComplianceOne mortgage Vision ComplianceOne mortgage assists in the end-to-end management of your retail mortgage business and allows you to originate, document, and service consumer single-family real property dwellings, first or second lien and closed-end loans retained in portfolio or sold to the secondary market. You are able to sign on, initiate mortgage loan applications, manage workflow tasks, interface with Core systems and Business to Business workflow service providers, and fulfill loan document packages. 1. ComplianceOne mortgage Supported Products The following ComplianceOne mortgage In-House and Secondary Market Products are supported or planned for future support. Product & Index Investor Investor Note/Rider Product Description In-House Lending - Supported by Wolters Kluwer Financial Services Proprietary Content Product = Standard Fixed Rate Mortgage Product = Standard Adjustable Rate Mortgage Single Family, 1st or 2 nd Lien, Closed-end Purchase Money Mortgage Single Family, 1st or 2 nd Lien, Closed-end Non-Purchase Money Mortgage Single Family, 1 st Lien, Closedend Refinance* Single Family, 1st Lien, Purchase Money, Construction Only Phase Mortgage Single Family, 1st Lien, Purchase Money, Construction/Perm Mortgage, single closing Single Family, 1st or 2 nd Lien, Closed-end Purchase Money Mortgage Single Family, 1st Lien, Closedend Refinance* Single Family, 1st Lien, Purchase Money, Construction/Perm Mortgage Single Family, 1st Lien, Purchase Money, Construction/Perm Mortgage VMP BSI Reference for 9/16/16 Production Use Target 3 P a g e V Single Fixed Rate Across both Phases Const: Fixed Perm: Variable Phase 1 & Phase 2: Single Variable Product = Texas Home Equity Single Family, 1st Lien, Closedend Purchase Money Mortgage Single Family, 1st Lien, Closedend Refinance* GSE [Fannie Mae/Freddie Mac] Conventional Conforming Lending - Supported by Wolters Kluwer Financial Services Non-Proprietary Content Product = Standard Fixed Rate Mortgage Fannie Mae 3200 Single Family, 1st Lien, Purchase 5N Money Mortgage Fannie Mae 3200 Single Family, 1st Lien, 5N Refinance* Mortgage Freddie Mac 3200 Single Family, 1st Lien, Purchase 5N Money Mortgage Freddie Mac 3200 Single Family, 1st Lien, 5N Refinance* Mortgage

4 Product & Index Investor Investor Note/Rider Product Description VMP BSI Reference for 9/16/16 Production Use Target Product = Standard Fixed/Adjustable Rate Mortgage Treasury Bill (CMT) Wall Street Journal LIBOR Treasury Bill (CMT) Fannie Mae 3522/3182 Single Family, 1st Lien, Non- Convertible, (5/1, 7/1, 10/1 Adjust Type), 2% Cap, Assumable After Initial Period Fannie Mae 3528/3187 Single Family, 1st Lien, Non- Convertible, (5/1, 7/1, 10/1 Adjust Type), 2% Cap, Assumable After Initial Period Product = Standard Adjustable Rate Mortgage Fannie Mae Freddie Mac Wall Street Journal LIBOR 3502/3111 Single Family, 1st Lien, Non- Convertible, (1/1, 3/1 Adjust Type), 2% Cap, Assumable Life of Loan Freddie Mac 5510/5110 Single Family, 1st Lien, Non- Convertible, (5/1, 7/1, 10/1 Adjust Type), Open Cap, Assumable After Initial Period Fannie Mae 3526/3189 Single Family, 1st Lien, Non- Convertible, (1/1, 3/1 Adjust Type), 2% Cap, Assumable Life of Loan Freddie Mac 5531/5131 Single Family, 1st Lien, Non- Convertible, (5/1, 7/1, 10/1 Adjust Type), Open Cap, Assumable After Initial Period Product = Negotiated Texas Home Equity [Fixed, Fixed/Adjustable, ARM] Fannie Mae Fixed Rate Treasury Bill (CMT) Single Family, Texas Home Equity Fixed Rate, 1st Lien, Refinance* Mortgage Fannie Mae Single Family, Texas Home Equity, 1st Lien, Non- Convertible, (5/1, 10/1 Adjust), Rate Caps 843N 843R 168N 168R 822N 822R 834N 834R 166N 166R 856N 856R 8035T 8039T USDA Section 502 Guaranteed Rural Home Loans Product = Standard Fixed Rate Mortgage USDA Single Family, 1st Lien, Purchase Money Mortgage Limited to support of Initial and Annual Fee Calculations not USDA specific documents FHA/HUD Lending - Supported by Wolters Kluwer Financial Services Non-Proprietary Content Product = Section 203(b) Standard Fixed Rate Mortgage FHA/HUD 203(b) Single Family, 1st Lien, Purchase Money Mortgage, fixed rate, monthly payments FHA/HUD 203(b) Single Family, 1st Lien, No Cash-Out Refinance* [Rate & Term or Simple] FHA/HUD 203(b) Single Family, 1 st Lien, Construction/Perm, single transaction Single Fixed or Variable Rate, I/O Construct Period [monthly payments], P&I 1R 4 P a g e V

5 Product & Index Investor Investor Note/Rider Product Description Perm Period [monthly payments] VMP BSI Reference for 9/16/16 Production Use Target Product = Section 203(k) Standard Fixed Rate Rehabilitation (Home Improvement) Mortgage FHA/HUD 203(k) Single Family, 1st Lien, monthly payments Product = Section 251 Standard Adjustable Rate Mortgage Treasury Bill (CMT) FHA/HUD Single Family, 1st Lien, (1/1, 3/1, 5/1, 7/1, 10/1 Adjust Type), Open Cap, Non-Assumable Wall Street Journal LIBOR FHA/HUD Single Family, 1st Lien, (1/1, 3/1, 5/1, 7/1, 10/1 Adjust Type), Open Cap, Non-Assumable 2. ComplianceOne mortgage Supported Features The following ComplianceOne mortgage transaction features are supported or planned for future support L Channel Sources Banks Credit Unions Mortgage Types Supported Flexibilities Within Transactions In-house Loans [Portfolio] In-House Construction Loans [Two-Phase Loan] In-House Construction Only Loans In-House Refinances* In-House Second Mortgages In-House Bridge Loans [12 or less months, closed-end, I/O with Balloon] Fannie Mae Fixed Rate Loans Purchase Monthly payments Freddie Mac Fixed Rate Loans Purchase Money Monthly payments Fannie Mae & Freddie Mac Fixed Rate Loans Refinance* Fannie Mae & Freddie Mac ARMS; Purchase & Refinance* Reference above for scoped programs FHA Section 203(b) Fixed Rate Loans Purchase & Refinance* FHA Section 251 Variable Rate Loans Purchase & Refinance* FHA Section 203(k) Fixed Rate Rehab Loans 9/16/16 Single Fixed Rate or Const: Fixed Rate, Perm Variable Rate Fixed or Variable Rate Target 5 P a g e V

6 Supported Flexibilities Within Transactions 9/16/16 Target USDA Section 502 Rural Housing Loans Support of Initial and Annual Fee Calculations not USDA specific documents Veterans Administration [VA] Guaranteed Loans Parties to the Transaction Borrower, Individual, Owner Occupied Borrower, Individual, Owner Non-Occupied Borrower, Intervivos (Living) Trusts Borrower, Sole Proprietorship Borrower, LLC [Support mortgage lending to foreign nationals] Cosigner Guarantor [Individual or Trust] Illinois Land Trusts Seller Power of Attorney Signatures Payment Information Interest Rate Type: Fixed Rate Adjustable Rate Including index, adjustment periods, conversion options, assumption options, and caps ARM Initial Rate ARM Ceiling Definition ARM Floor Definition ARM Rate Change Information Repayment Method: Installment without Balloon [fully amortized payments] Installment with Amortized Balloon [In-House loans only] Installment with Amortized Balloon [Permanent Phase of Construction/Perm] Equal to the Market Rate Premium Discount Specific Value Specific Value None Single Periodic Cap Installment with Balloon [In-House loans only] Interest Only [In-House Construction Phase only, Fixed Rate] Interest Only [In-House only, Fixed or Variable Rate] Payment Frequency: Biweekly [fka FNMA Biweekly] Reference Section 4 for Unsupported - a floor that is lower than the margin Specific Value Initial Rate lower than Margin Relative to Initial Rate Relative to Market Rate Relative to Initial Rate Relative to Market Rate Multiple Periodic Caps 6 P a g e V

7 Supported Flexibilities Within Transactions Every Other Week [aka Biweekly] Monthly 9/16/16 Target Quarterly Single Payment Annually Accrual Method: 30/360 Actual/365 Actual/360 Actual/Actual Indexes: 1 Year Treasury Bill (CMT) 3 Year Treasury Bill (CMT) [In-House only] 5 Year Treasury Bill (CMT) [In-House only] 10 Year Treasury Bill (CMT) [In-House only] 26 T-Bill Rate [In-House only] 6M Wall Street Journal (WSJ) LIBOR [In-House only] 1 Year Wall Street Journal (WSJ) LIBOR 11th Dist. FHLB Cost of Funds (COF) [In-House only] JP Morgan Chase Bank Prime Rate [In-House only] National Avg. Contract Rate [In-House only] Wall Street Journal Prime [In-House only] Loan Features Applications Fannie Mae 1003/Freddie Mac 65 & WKFS Proprietary Application ARM Disclosure - Simplified, in transaction documents ARM Disclosure - 15 Year Index ARM Disclosure - Combined, within transaction set of documents Assignments Assumable Loans Barcodes in Taglines of Documents Commitment Letters Custom & Modified Standard Documents via Professional Services, including Lender specific Privacy Document Demand Early/Upfront Disclosures TRID Loan Estimate Escrows FHA Mortgage Insurance Premiums (MIP) & UMIP Reference Section 4 for Reference Section 4 for Reference Section 4 for 7 P a g e V

8 Supported Flexibilities Within Transactions 9/16/16 Target High Cost Mortgages [In-House only] High Priced Mortgages [In-House only] Homeownership Counseling List/Document Late Charges Imaging support for downstream imaging workflows Lien Position Second or Junior [In-House only] Loan Amount Greater Than Sales Price/Appraised Value Loan Ratios: LTV, DTI, HTI Loan Renewals MERS - Mortgage Electronic Registration Support MERS language within existing documents MERS Algorithm to support creation of the number Modifications NMLS Numbers - Organizations, Originators Origination Fees Private Mortgage Insurance [Installment loans without balloon payment] Rate Lock Agreement Secure exchange of documents and manage delivery/receipt requirements to Parties via SD solution add-on Templates [Standard Product Features] Within Administration, ability to pre-configure Fees, Fee Policies, and associate to a Template for use at transaction time Templates [Standard Product Features] Ability to pre-configure field level attributes Collateral Categories and Types Real Estate or Residence: 1-4 Family Dwelling Manufactured Home Permanently Attached to Real Estate Condominium [FHA post August 2015] Townhome (PUD) Raw Land 2-4 Family Dwelling Mobile Home (Personal Property/Residence) Note: Documented with Raw Land Consumer Purpose Loans with collateral types of: Multi-Family Dwelling (5+) Consumer Purpose Loans with collateral types of: Non-Residential Real Property REO (Real Estate Owned) LTV Reference Section 4 for DTI, HTI November P a g e V

9 Additional Collateral: Supported Flexibilities Within Transactions UCC Collateral Equipment generally; Fixtures; General Intangibles Financial Assets/Possessory Bond; C.D./Share Certificate; Deposit/Share Accounts; Life Insurance Policy; Mutual Funds, Securities Titled Motor Vehicle 9/16/16 Target * Refinance as represented is the payoff of an existing real property loan and the consummation of a new loan. Refinance as represented is not the modification/renewal of an existing mortgage loan 3. ComplianceOne mortgage Prioritized Feature List Following is a list of the top feature priorities for ComplianceOne mortgage SaaS. When the implementation method is understood and refined for each feature we will be able to communicate a targeted release date. In addition, we will communicate interim processes where available. Feature Uniform Closing Dataset (UCD) GSE [Fannie Mae, Freddie Mac] Mandatory Use Date: No earlier than Q Compliance with HMDA Regulation effective 1/1/2018 Loan Renewals Consumer Purpose Real Property Loan secured with Non-Residential Real Estate Collateral Consumer Purpose Real Property Loan secured by Multi- Family Dwelling (5+) Securing the Real Property Loan with Additional collateral Loans with a Single Payment Construction/Permanent Loan, Single Closing, Amortized Balloon Additional Information Target Release: Customer Test Q Ability to deliver the Closing Disclosure and Addenda via an ML dataset that meets the GSE specifications from ComplianceOne mortgage to the Fannie Mae or Freddie Mac Collection Solution. Note: ML File capability includes the embedded PDF(s). Preliminary Target: Q Ability to collect, report, and disclose HMDA data via ComplianceOne solutions and HMDA Wiz B2B Service. The ability to support Loan Renewals will be added in the future as part of the ComplianceOne mortgage SaaS prioritized roadmap. Interim Process: Until supported we are not aware of an interim process that can be used within ComplianceOne mortgage. Target Release: November 2016 As TRID applies to consumer-purpose loans, customers need the ability to document loans where the collateral is Non-Residential Real Property Interim Process: Until supported, the lender would need to document these loans outside the use of ComplianceOne mortgage. As TRID applies to consumer-purpose loans, customers need the ability to document loans where the collateral is a Multi-family Dwelling (5+). Interim Process: Until supported, the lender would need to document these loans outside the use of ComplianceOne mortgage. Includes (in priority order) Collateral; Financial Assets/Possessory Collateral; UCC Collateral, & Titled Motor Vehicles Interim Process: Until supported, the Lender would need to do consumer loans within ComplianceOne lending against the non-real property collateral and document value of the real property loan within ComplianceOne mortgage. Ability to document a fixed or variable rate loan that has a single payment. Interim Process: Until supported, Lenders can use an Interest Only option with monthly or quarterly payments or available installment options of quarterly, monthly, or every other week. Ability to document an Amortized Balloon in the Permanent Phase of a Construction/Permanent Loan. Interim Process: Until supported, lender can A) Use installment in Permanent Phase or B) Document as two separate transactions: 1) Construction Only loan and 2) Permanent financing ARM with an Amortized Balloon. 9 P a g e V

10 Configure use of Date in Footer of Documents [Moved up in priority] Loan Modifications FNMA Biweekly Payment Frequency Loan Ratios Calculate Additional Ratios Variable Rate Specific Value for Initial Rate Definition Ability to configure display of date in footer of documents based on business policies. Interim Process: Until supported there is not a means of not presenting the date in the document tagline. The ability to support Modifications will be added in the future as part of the ComplianceOne mortgage SaaS prioritized roadmap. Until supported, Lenders that desire to modify an existing loan should do so only at the advice of their legal counsel. Use of FNMA Biweekly repayment method for In-House Fixed/Variable Rate loans or Freddie Mac Fixed Rate loans. Interim Process: Until available, use Every Other Week repayment method. Calculate additional ratios such as Debt-to-Income (DTI) and Home-to-Income (HTI). Currently, ComplianceOne mortgage only calculates the LTV ratio. Interim Process: Manual calculation of ratios or use of publically available online calculators. Ability to define a specific value for the initial rate as well as allow the specific value to be below the margin. Interim Process: Until supported, utilize available options of equal to market rate, premium, or discount. Until available, the specific value cannot be below the margin. 4. ComplianceOne mortgage Future Supported Features Following is a list of additional features ComplianceOne mortgage SaaS will support in the future. They are on the prioritized roadmap. As Section 3 features deliver, these features will move up in priority and additional lower priority features will be added. Additionally, when the implementation method is understood and refined for each feature we will be able to communicate a targeted release date. Interim processes, where available, are noted. Feature Borrower, LLC [Support mortgage lending to foreign nationals] Support Foreign Addresses, Multiple Phone # Types and Identification Numbers Construction/Perm - Subsequent Rate Change Period Split a Fee between Borrower/Seller/Lender or Other Allow Escrow Reserves to be Financed Multiple Advance for Cash- Out In-House Closed-end Refinance Loans Barcodes in Taglines of Documents ARM Rate Information Initial Rate, Ceiling, Floor, Rate Caps Additional Information The transaction characteristics would need to remain as a consumer purpose real property transaction. Interim Process: Until supported we are not aware of an interim process that can be used within ComplianceOne mortgage. Support data collection of global addresses, multiple types of phone numbers, and identification numbers for all parties to the transaction. Interim Process: Until supported we are not aware of an interim process that can be used within ComplianceOne mortgage. Provide ability that allows the Phase 2 subsequent rate change period to be different from the initial Phase 2 rate period. Interim Process: Until supported, subsequent rate change must be same as the initial rate period. Interim Process: Until supported, a single fee must be designated as paid by Borrower, paid by Seller, paid by Lender, or paid by Other. Allow Escrow Reserves to be Added to the Amount Requested for a loan. Interim Process: Until supported, lender can use either Subtract from Proceeds or Paid in Cash. Provide the ability to document an In-House, fixed or variable rate, multiple advance, cash-out, closed end refinance loan. Lender may be the creditor holding the current mortgage or a new creditor. Interim Process: Until supported, lender can document as single advance. The ability to utilize barcodes on documents is being researched relative to broader electronic workflows and is on our prioritized roadmap. Interim Process: Until supported, there is not an automated interim process unless the Lender has workflow capability to apply a barcode to a printed document enabling further workflow processes. Additional ARM rate definitions will be supported in the future as we resolve existing regulation ambiguity or content and calculation limitations. Interim Process: Until supported, Lenders can use existing available options. 10 P a g e V

11 Pre-Configure use of Specific Documents For ceiling limitations: Lenders can obtain the same impact of having the Ceiling relative to the market rate by utilizing the Specific value option and calculating what that value would be manually. In situations where the Initial Rate is lower than the margin (this will occur with some indices that are extremely low and the lender is offering a discount), the lender can utilize a different index or work with the other parameters i.e. margin and/or discount. The ability to pre-configure policies related to use of certain documents to improve user experience and efficiency, including but not limited to: Notice of Intent to Proceed Notice of Negative Information Sharing Notary areas of documents Settlement Agent for Closing Disclosure 5. ComplianceOne mortgage Unsupported Features The following transaction features will not be available within ComplianceOne mortgage and are not currently planned for future support. These items will be considered if there is sufficient market need. Channel Sources Not Supported Correspondents Finance Company Mortgage Companies/ Mortgage Brokers Mortgage Products Not Supported Cooperative Housing Real Property Loans Product, Transactions, and Transaction Flexibilities Not Supported Fannie Mae: - Standard Growing Equity [3255] - Standard Fixed/Adjustable Rate, Index =10 Year Treasury [3263] - Standard Biweekly with or without conversion [3264, 3265] - Standard Adjustable Rate, CMT, Programs = 3501,3503,3508, Standard Adjustable Rate, WSJ LIBOR, Programs = 3525,3527, Standard Adjustable Rate, Index = 3 Year CMT, Programs = 3504, Standard Adjustable Rate, Index = COF, Programs = 3510, Negotiated Texas Home Equity, Convertible, CMT [ ] - Negotiated Texas Home Equity, Non-Convertible, WSJ LIBOR [ ] - Negotiated Texas Home Equity, Convertible, WSJ LIBOR [ ] - Negotiated Texas Home Equity, Non-Convertible, Index = 10 Year CMT [ ] - Negotiated Adjustable Rate, Index = 5 Year CMT [3514] - Negotiated Navajo Nation Mortgages [3270] Freddie Mac: - Affordable Merit Rate Product [3294] - Standard Adjustable Rate, Index = COF [3510] - Standard Adjustable Rate, CMT, Programs = 3501,5511,5512, Standard Adjustable Rate, WSJ LIBOR, Programs = 5530,5532,5533, Standard Adjustable Rate, Index = 3 Year CMT [3504] - Standard Adjustable Rate, Index = 6 Month WSJ LIBOR, Programs = 5522,5524 FHA Title 1 Manufactured Home Loans FHA Second Mortgages/Liens FHA Streamline Refinance Home Affordable Refinance Program (HARP) Leased Properties Making Home Affordable Modification Programs (HAMP) Mortgage loans to unincorporated U.S. Territories - Guam, U.S. Virgin Islands, Puerto Rico Mortgage loans beyond 51 jurisdictions Reverse Mortgages 11 P a g e V

12 State Housing Authority Loans Mortgage Documents Not Supported Documents for Secondary Market Investors other than Fannie Mae, Freddie Mac, or HUD/FHA Electronic Booklets - HUD Settlement Cost Disclosure, Consumer Housing Adjustable Rate Mortgage Disclosure Freddie Mac Master Form/Short Form Security Instruments Servicing Workflow Phase Documents Spanish or Bilingual Documents [except those mandated by regulation] Transaction Features or Additional Capabilities Not Supported Buy Downs Credit Life & Disability Insurance offered and documented with the mortgage loan Collateral: Manufactured Homes Unattached to Real Property; Personal Property Residences (other than Mobile Home); Titled Goods Debt Cancellation & Bundled Debt Cancellation offered and documented with the mortgage loan Configure use of Maturity Date on Security Instruments Due to associated business/compliance risk, we will not be providing this capability in our standard product. Customer can engage Professional Services for custom documents if critical to their business. Configure printing of Interest Rate on Security Instruments Due to associated business/compliance risk, we will not be providing this capability in our standard product. Customer can engage Professional Services for custom documents if critical to their business Use of Electronic Signatures on documents Negative Amortization No Cost Loans Parties to the Transaction - Entities other than Individual, Sole Proprietor, Trust, or LLC Payment Frequencies: 73 Days, Bi-monthly, Semiannually, Semimonthly, Weekly Preferred Rates Prepayment Penalties Private Mortgage Insurance on Installment loans with Balloon payment Repayment Methods: Mixed Principal & Interest, Level Principal Reduction, Irregular Payments Skip Payments Solve for term Calculations For information regarding Business-to-business and Core System interfaces for use within the workflow of ComplianceOne mortgage reference the ComplianceOne mortgage Interface Guide. 12 P a g e V