Encompass Newsflash #208 (3/16/2017)

Transcription

1 Encompass Newsflash #208 (3/16/2017) Topic: Adding Non-Borrowing Spouse to Title and the Initial CD Attention: Loan Officers, Processors, Doc Drawers, Funders Effective Thursday 3/23/2017 Reference to Bulletin # To comply with CFPB TRID Regulation non-borrowing spouses must be disclosed a Closing Disclosure (CD) prior to consummation if the state requires it or the borrower requests it. Because these non-borrowing spouses have the right to rescind, they are subject to the 3 specific business day waiting period. There are 2 scenarios that will require a CD to be disclosed to the non-borrowing spouse and have the non-borrowing spouse on title: The subject property is in a state that gives the non-borrowing spouse the right to rescind the transaction, commonly referred to as Community Property States or Homestead States. You can find the list of Community Property States or Homestead States here. The subject property is not in a Community Property State or a Homestead State, but the borrower would like to have his or her spouse on title To ensure the scenarios above are identified and executed properly, Processors will be required to enter title only spouse information on the AFN Borrower Summary Origination Screen and the Borrower Information- Vesting Screen. Below are the instructions on how the Processor will input this information. 1. Prior to generating the Closing Disclosure (CD), access the Encompass AFN - Borrower Summary Origination form (screen) and scroll down to the Title Only Spouse section.

2 a. Read the default message that appears regarding the subject property state; it will indicate if the state is a Community Property/Homestead State that requires a spouse to be on title and receive a Closing Disclosure. b. Use the dropdown field to answer whether or not the spouse will be vested on title. NOTE: Adding a title only/non-borrowing spouse after the initial CD has been issued will reset the CD waiting period. 2. a. Click the [Borrower Information Vesting] button. b. On the Borrower Information Vesting form, see the Vesting Information section; names of existing borrower(s) on the 1003 will be listed in the box with Individual as the borrower Type. c. Click the Add icon to add a non-borrowing party; a pop-up Borrower Vesting dialog box will appear. d. Type the party s name in the Name field. e. Click the Borrower Type dropdown field and select the appropriate option: i. Select Title Only for a party to be included on vesting. ii. Select Non Title Spouse for a spouse who is added due to state requirements (and will not be included in vesting). f. Click the [OK] button to accept the entered data and close the dialog box.

3 g. Select the Manner in which Title Will be held option. h. Click the [Build Final Vesting] button. 3. Note changes that will occur to other Encompass screens based on Vesting information entered in Steps 1. and 2. above. a. Vesting information will flow to the Doc Order Screen. b. Changes may also trigger a Compliance Comparison Difference, requiring a Compliance Analyst to re-review the loan (additional conditions may apply).

4 4. Changes to vesting will trigger a Compliance Comparison Difference. a. Reference the State Matrix to determine how many borrowers are required on the CD. b. If a CD is required for the non-borrowing spouse, add a condition for a CD to be issued accordingly. c. Approve the loan for Compliance after CD is properly prepared and issued. 5. If the Compliance Analyst conditions the file for a CD to the title only/non-borrowing spouse, prepare and issue the CD accordingly. The Compliance Analyst must approve before you may proceed with processing the file. If you would like assistance, please branchrelations@afncorp.com or call Jimmy Vuong Branch Relations & Compliance Manager 10 Pointe Drive Ste. 330, Brea, CA T: jvuong@afncorp.com

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