ARTA Lending Setup Workbook

Transcription

1 ARTA Lending Setup Workbook

2

3 ARTA Lending Documentation System ARTA Lending Setup Workbook

4 Notices 2010 Wolters Kluwer Financial Services. All rights reserved. Printed in the United States of America. No part of this document may be reproduced or transmitted in any form or by any means, electronic or mechanical, whether now known or later invented, for any purpose without the prior and express written consent of Wolters Kluwer Financial Services. Trademarks and Credits APY Checker, ARTA, and Expere are registered trademarks of Wolters Kluwer Financial Services, Inc. IDFlag is a trademark of Wolters Kluwer Financial Services, Inc. All other trademarks are the property of their respective owners. General This publication is provided for training purposes only and does not represent a commitment on the part of Wolters Kluwer Financial Services. It should not be used as a substitute for professional advice in specific situations. This publication contains examples, screens, and documents for illustrative purposes that may, depending on your institution s state, charter, and/or type, differ from those you encounter in actual use. Information in this publication is subject to change without notice and Wolters Kluwer Financial Services assumes no responsibility for errors. The software described in this publication is furnished under a license agreement and may be used or copied only in accordance with the terms of the license agreement. Legal Counsel In developing this program, printed documentation, and documents, Wolters Kluwer Financial Services has interpreted various laws, regulations, and commentary. Wolters Kluwer Financial Services cannot and does not guarantee that its interpretations are correct except as stated in the accompanying product license agreement. The following notice is required by law: Wolters Kluwer Financial Services Products and Services are not a Substitute for the Advice of an Attorney You are encouraged to seek the advice of your own attorney concerning the use and legality of this program, documentation, and forms. If your or your counsel s interpretations are contrary to those presented here, you should, of course, follow your/your counsel s interpretations in using the software, documentation, and forms. Publication Information ARTA Lending Setup Workbook Revision: June 30, 2010 Material ID: ARTA Lending Setup Workbook ii

5 Table of Contents Welcome... 1 Navigation and Help... 3 Start ARTA Lending... 4 Identify the Navigation Tools... 5 Choose a Section From the Navigator... 6 Use the Tool Bar Buttons... 7 Access Items from the Menu Bar... 8 Navigate within the System... 9 View Element-Specific Help Files...10 Search the Software Support Web Site...10 Contact Wolters Kluwer Financial Services, Inc Institution Setup Set Up a Lender...14 Copy a Lender Profile...17 Add Groups...19 Add Users...21 Lending Setup Set Up a Policy...24 Create Additional Policies...27 Set Up Repayment Methods...29 Create a User-Defined Index History...35 Update a User-Defined Index History...37 Set Up a Variable/Adjustable Rate Plan...38 Set Up a Consumer Open-End Variable Rate...40 Set Up Documents...42 Early Disclosures Create an ARM Early Disclosure...46 Create a Home Equity Early Disclosure...52 Templates Create a Template...60 Utilities Set Autoselection Defaults...70 Change the Font Size for User-Entered Text...73 Delete Templates or Setup Items...74 Delete Transactions...75 Back Up Files...76 Restore Files...79 Reports Create a Standard Loans in Progress Report...82 Define a Customized Report...84 iii

6 Print an Existing Report...86 Create the HMDA Report...88 Automated Underwriting Guidelines Set Up Underwriting Guidelines...95 Apply Underwriting Guideline Filters...99 Insurance Setup Set Up a Credit Life Plan Set Up a Disability Plan Create an Involuntary Unemployment Insurance Plan Create a PMI Rate Table User-Defined Fields Create a User-Defined Field Appendix A: Pull Out Documents Setup Implementation Checklist Maintenance Checklist Field Colors ARTA Lending Setup Workbook iv

7 Welcome Welcome to the introductory training of the ARTA Lending documentation system. For the sake of convenience, this course workbook occasionally will refer to the ARTA Lending documentation system as ARTA Lending. This course workbook will cover: Navigating in ARTA Lending Setting up Lenders, groups, and users Lending information Templates Insurance Reports and user-defined fields Utilities features Backing up and restoring data Deleting data Setting up autoselection defaults This class is a combination of lecture, group activities, and hands-on lab time. Using a building-block approach, you will learn skills in the first lesson and add to those skills as we continue through the course. A journey of a thousand miles must begin with a single step. Lao Tzu Screen captures have been provided which include optional modules and/or components for ARTA Lending. Your program will differ if you have not purchased these modules/components. Note: The information in this workbook is based primarily on the Bank edition of the ARTA Lending software. If your institution uses the Credit Union edition, your ARTA Lending system may display different terminology and onscreen options than those presented here. Such differences have been noted throughout this book. 1

8 ARTA Lending Setup Workbook 2

9 Navigation and Help Objectives In this lesson, you will learn how to: Start ARTA Lending Navigate through ARTA Lending Access Help The winds and waves are always on the side of the ablest navigators. Edward Gibbon 3

10 Start ARTA Lending 1. Double-click the ARTA Lending button on your desktop. The user may change his/her password when logging on by clicking Change Password. 2. Enter Supervisor in the User ID box and password in the Password box. 3. Click OK. TIP A TIP B Logging on will allow you to use areas of ARTA Lending where you have been authorized. Since this information has not been set up when you first enter ARTA Lending, you will need to use the default User ID (Supervisor) and Password (password) to access the program. User ID and Password characteristics: User IDs must be 1 to 35 alpha or numeric characters. User IDs are not case sensitive. Passwords must be 5 to 35 alpha or numeric characters. Passwords are case sensitive. Passwords do not expire. ARTA Lending Setup Workbook 4

11 Identify the Navigation Tools Moving through ARTA Lending is similar to paging through a tabbed notebook filled with documents. You can turn each page individually or click an option (Loans, Early Disclosure, etc.) in the Navigator (the left portion of the window) to navigate to a particular screen. Expand or Collapse Sections of the Navigator The Navigator highlights the screen that is active. If the Navigator displays a plus sign (+) next to an option, click the plus sign (+) or doubleclick the option to display additional options beneath it. If the Navigator displays a minus sign (-) next to an option, click the minus sign (-) or double-click the option to hide the secondary options beneath it. The right portion of the screen is used for data entry. Close button Menu Bar Title Bar Navigator The item highlighted in black shows where you are in the Navigator. Right portion of screen 5

12 Choose a Section From the Navigator The ARTA Lending Navigator includes a section for each application and allows quick access to features in a section. Highlighted text in the Navigator indicates the feature that is currently displayed. Data entry for the feature displays on the right part of the window. Use your mouse to select the different features in a Navigator for each section. Section Credit Bureau Applications Loan Decision Loans Early Disclosure Lending Setup Insurance General Setup Data Exchange Description Create a new quick application and electronically pull a credit bureau report via the Internet. This option will appear in the Navigator only if the optional Credit Bureau Access Module has been installed. Create new applications with or without using templates, and recall saved applications. This option will appear in the Navigator only if the optional Application Module has been installed. Electronically complete the loan decision and transfer information to process a loan or notice of action taken. This option will appear in the Navigator only if the optional Application and/or Credit Bureau Access module(s) have been installed. Create new loans with or without using templates, and recall saved loans. Approved or denied applications can be recalled in this section if the optional Application and/or Credit Bureau Access module(s) have been installed. Create and print ARM Early Disclosures and Home Equity Early Disclosures if the Home Equity module is installed. Configure information to be used by ARTA Lending including policies, repayment methods, rates, index history, documents, templates, reports, and underwriting guidelines. The underwriting guidelines option will only be available if the optional Automated Underwriting Module is installed. Create credit life, disability, involuntary unemployment, and private mortgage insurance rate tables. Identify lender, group, and user information. Define export target details, import source information, user-defined fields, and data specification parameters. ARTA Lending Setup Workbook 6

13 Use the Tool Bar Buttons Button Description Saves the current transaction. Navigates to the Print page. Removes selected information for deletion or insertion in another location. Duplicates selected information for insertion in another location. Inserts recently acquired content. Eliminates the effect of the most recent entry or modification. Navigates to the previous screen. Navigates to the next screen. Navigates to the Validation page. Adds documents to the current transaction. Imports customer data into a new transaction. Exports transaction data out of ARTA Lending. Recalcuates the transaction, displaying the Calculation Results box. Displays all parties to the transaction. Provides a link to access the PATRIOT Act Connection if it has been purchased. Provides a link to access Flood Wiz Flood Certification if it has been purchased. Provides a link to access Wiz Basic HMDA if it has been purchased. Provides a link to access Wiz Basic HOEPA. 7

14 Access Items from the Menu Bar 1. Click the appropriate Menu Bar selection. 2. Select the appropriate option from the drop-down menu. TIP A TIP B Use the keyboard by pressing Alt + the underlined letter on your Menu Bar choice. Then press the underlined letter of the menu item of your choice. The Utilities option on the Menu Bar contains additional functions not found in the Navigator Backup and Restore, File Operations, Autoselection Defaults, Font Settings, HMDA reporting, Client Directories, and Customer Number. ARTA Lending Setup Workbook 8

15 Navigate within the System Some commonly used navigation functions in ARTA Lending include: Click a field to select (highlight) it for entry. Press Tab or Enter to move selection forward from one screen element to the next. Press Shift + Tab or Shift + Enter to move selection backward from one screen element to the previous. Click a button to activate it. Press Spacebar or Enter to activate a selected button. Click a check box to activate or deactivate (check or uncheck) it. Press Spacebar to activate or deactivate a selected check box. Click a radio button to activate it (and to deactivate others in its group). Press Spacebar to activate a selected radio button (and to deactivate others in its group). TIP In a section containing round (radio) buttons, only one of the buttons may be activated. In a section containing square check boxes, any number of check boxes may be activated. Round (Radio) buttons Check boxes 9

16 View Element-Specific Help Files Complete any of the following procedures to view explanatory information related to a specific screen element (field, button, etc.). Select the desired screen element (field, button, etc.) with the Tab key, Enter key, or mouse. Press F1 to view information related to the selected element. Click anywhere else to close the text box. Select Help> What s This? from the Menu Bar. Click the desired screen element. Click anywhere else to close the text box. Click the What s This button on the Tool Bar or the Help button on the right side of a Setup window Title Bar. Click the desired screen element. Click anywhere else to close the text box. Search the Software Support Web Site Our web site, includes support, product news, and training events. After registering, you can access frequently asked questions, documentation, and downloads. This site also provides access to product-specific Discussion Boards that offer an opportunity for software users to share information, tips, shortcuts, and ideas with one another. This site includes features such as: Product Support and Contact Numbers Schedules of Training Events Product Downloands Product Documentation (e.g., Installation Instructions, User Guides, and Release Notes) Product Enhancement Request Forms ARTA Lending Setup Workbook 10

17 Contact Wolters Kluwer Financial Services, Inc. Select Help> About ARTA from the Menu Bar for contact information about SupportLine help. If you call SupportLine, you will be asked for your software Customer Number. You can contact Wolters Kluwer Financial Services at the following: Phone: (800) ext Fax: (800)

18 ARTA Lending Setup Workbook 12

19 Institution Setup Objectives In this lesson, you will learn how to: Create lender profiles Create security group profiles Create user profile Whatever is not forbidden is permitted. John Christopher Friedrich von Schiller 13

20 Set Up a Lender 1. Expand General Setup in the Navigator. 2. Click Lender in the Navigator. 3. Click ***Add New***. You must format the tax identification number if it is other than a Social Security Number. TIP Most setup item names should be unique and contain no more than 60 letters or numbers, but not the following characters: \ / *? < > ~ : ; ARTA Lending Setup Workbook 14

21 Lender Setup screen, continued This field is available only if your institution uses Bank edition software. Information in this section will print on the Notice of Action Taken document when completing a transaction. 15

22 Lender Setup screen, continued Information in this section will print on the Notice of Action Taken document. 4. Complete the Lender Setup information. 5. Click OK. TIP The following sections will only appear if you have purchased the corresponding module/component: HMDA Reporting Credit Bureau Automated Underwriting ARTA Lending Setup Workbook 16

23 Copy a Lender Profile 1. If you have branch locations and want to create a lender profile similar to the original, close the Lender Setup window and reopen the saved profile. 2. Click Save As before making changes. 3. Enter the name of the new lender profile in the File name field. 4. Click Save. TIP When multiple locations need to be set up, click the Use other address when printing check box to enter the institution s name and address that is to print on documents. Enter a unique name in the Lender name field that describes the location (example: Main Location or Branch A). The user will see the Lender name appear in a drop-down list while creating a transaction. 17

24 5. Make necessary changes and click OK. ARTA Lending Setup Workbook 18

25 Add Groups 1. Expand General Setup in the Navigator. 2. Click Group in the Navigator. 3. Click ***Add New***. 19

26 Group Setup screen, continued The Print Group Setup button allows you to preview and/or print a report showing the users and permissions assigned to the group. 4. Complete the Group Setup information. 5. Click OK. 6. To add additional Groups, repeat steps 3-5. ARTA Lending Setup Workbook 20

27 Add Users 1. Expand General Setup in the Navigator. 2. Click User in the Navigator. 3. Click ***Add New***. The option you choose in the Group drop-down list determines the areas/tasks available to the user. 4. Complete the User Setup information. 5. Click OK. 6. To add additional users, repeat steps

28 TIP A The information entered in the User ID option will be the user ID used for logging on to ARTA Lending. Rules for creating a User ID: The User ID must be 1 to 35 alpha or numeric characters. Spaces are allowed. No special characters are allowed, for example, \, /, *,?,, <, >, ~, :, ; or. TIP B The information entered in the Password option will be the password used for logging on to ARTA Lending. Rules for creating a Password: The Password must be 5 to 35 alpha or numeric characters. No special characters are allowed, for example, \, /, *,?,, <, >, ~, :, ; or. Passwords do not expire. Passwords are case sensitive. Passwords can be changed by the individual user at the Logon screen. TIP C A loan officer name and/or title will print on appropriate loan documents. Enter these exactly as they should appear on documents. The telephone number will also print on appropriate application documents. ARTA Lending Setup Workbook 22

29 Lending Setup Objectives In this lesson, you will learn how to: Create policy profiles Set up repayment methods Create a user-defined index history Create a rate plan Set up documents He that lends, gives. George Herbert 23

30 Set Up a Policy 1. Expand Lending Setup in the Navigator. 2. Click Policy in the Navigator. 3. Click ***Add New***. Enter a descriptive name in the Policy profile option. 4. Select the appropriate state from the Applicable law/state document set drop-down menu. 5. Click the Accrual Methods button to display a list of options based on applicable state law. 6. Select/deselect methods as appropriate. 7. Click OK. ARTA Lending Setup Workbook 24

31 Policy Setup screen, continued Selections on this screen will vary depending on the applicable law/state document set selected. Some fields in Policy Setup can be changed during loan processing and some cannot be changed. An arrow indicates the field can be changed during a lending transaction. 25

32 Policy Setup screen, continued Click the Print button to print a copy of your lending policy selections. 8. Complete the Policy Setup information. 9. After Policy Setup is complete, click OK to save and close the window. TIP If the Use custom field(s) on documents option is selected, the designated Headings and associated values can be included on closing documents. Sample Document with Custom Fields ARTA Lending Setup Workbook 26

33 Create Additional Policies 1. After closing the Policy Setup window, if you want to create policies similar to the original, re-open the saved profile. 2. Click Save As before making any policy changes. 3. Enter the name of the new policy in the File name field. 4. Click Save. 5. Define policy differences and click OK. 27

34 Discussion At least one method from the Draw period repayment methods must be chosen in the setup area to process a consumer open-end transaction. Draw Period Repayments Being Made Year 5 Year 10 Year 15 Loan Matures 20 Year Plan If the ability to make draws on a line of credit will expire prior to the maturity date of the transaction, you must also choose at least one method from the Repay period repayment methods tab. Draw Period Repayments Being Made Year 5 Year 10 Year 15 Loan Matures 20 Year Plan ARTA Lending Setup Workbook 28

35 Set Up Repayment Methods 1. Expand Lending Setup in the Navigator. 2. Click Repayment Methods in the Navigator. The fields are meant to be completed at transaction time, not within this area of the program. 3. Activate one or more repayment methods from the Draw period repayment methods tab. 4. If applicable, activate one or more repayment methods from the Repay period repayment methods tab. 5. Click on any other item in the Navigator to save these selections. 29

36 Options for the Draw period repayment methods tab. ARTA Lending Setup Workbook 30

37 TIP If you choose more than one option during a loan transaction, ARTA Lending will prompt you to indicate if the greater or lesser value will apply. 31

38 Options for the Repay period repayment methods tab. TIP Notice the last four options on the Repay period repayment methods tab differ from the last three options on the Draw period repayment methods tab. ARTA Lending Setup Workbook 32

39 Discussion The Wolters Kluwer Financial Services-supplied index histories will be updated on a regular basis with full product updates and may be updated via our support web site: The table below represents the indexes included in ARTA Lending. This language will appear on early disclosures and promissory notes. You cannot change the wording and other properties of these pre-defined indexes. Index 1 Year LIBOR Index - WSJ Document Language the average of interbank offered rates for one-year U.S. dollardenominated deposits in the London market ("LIBOR") 1 year Treasury Index 10 year Treasury Index the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year the weekly average yield on United States Treasury securities adjusted to a constant maturity of ten years 11th District FHLB Cost of Funds the Cost of Funds Ratio to 11th Federal Home Loan Bank District Institutions 26 week T-Bill Rate 3 year Treasury Index 5 year Treasury Index the auction average of short term U.S. government bills with a 26 week maturity the weekly average yield on United States Treasury securities adjusted to a constant maturity of three years the weekly average yield on United States Treasury securities adjusted to a constant maturity of five years 6 Month LIBOR Index - WSJ the average of interbank offered rates for six month U.S. dollardenominated deposits in the London market ("LIBOR") JP Morgan Chase Bank Prime National Average Contract Rate National Monthly Median COF the prime lending rate announced by JP Morgan Chase Bank the National Average Contract Interest rate for Major Lenders on the Purchase of Previously Occupied Homes the National Monthly Median Cost of Funds Ratio for Institutions Insured by the Savings Association Insurance Fund (SAIF), formerly FSLIC 33

40 Quarterly National COF Ratio Semiannual National COF Ratio Wall Street Journal Prime the quarterly avg. value for the Nat l Average Cost of Funds Ratio for Insts. insured by the Savings Ass n the semiannual avg. value for the Nat l Average Cost of Funds Ratio for Insts. insured by the Savings Ass n the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks known as the Wall Street Journal U.S. Prime Rate ARTA Lending Setup Workbook 34

41 Create a User-Defined Index History 1. Expand Lending Setup in the Navigator. 2. Click Index History in the Navigator. 3. Click ***Add New***. 35

42 Sample Data Click the Print button to print the ARTA Lending Index Detail Report. To create a custom index similar to an existing one, use the Save As button to copy the information and then make the necessary changes. 4. Complete the Index Setup information. 5. Click OK to save and close the Index Setup window. TIP An active index requires you to complete the Description, As of, and Source fields and the applicable rate of the listed month for the past 15 years. You must choose the Active Index option to create ARM or variable rate home equity early disclosures. An inactive index only requires you to complete the Description and a rate for any of the listed years. The Description option should display the document language. ARTA Lending Setup Workbook 36

43 User-defined indexes are displayed alphabetically with NO in the Wolters Kluwer Financial Servicessupplied column. 6. To add additional user-defined index histories, repeat steps 3-5. Update a User-Defined Index History 1. Click a user-defined index to view the Index Setup window. 2. Make appropriate edits. 3. Click OK to save and close the Index Setup window. 37

44 Set Up a Variable/Adjustable Rate Plan 1. Expand Lending Setup in the Navigator. 2. Click Rates in the Navigator. 3. Click ***Add New***. The Index drop-down list will show items that were defined in Index History setup. ARTA Lending Setup Workbook 38

45 Rate Setup window, continued 4. Complete the Rate Setup information. 5. Click OK to save and close the Rate Setup window. 6. To add additional rates, repeat steps 3-5. TIP A TIP B Choose the option in the Rate change affects drop-down list according to your most commonly used repayment method. Available options are: Payment, Final Payment, Payment and final payments, and Number of payments. If you do not have a floor and/or ceiling, choose Specific Value and leave the floor and/or ceiling rate fields blank. 39

46 Set Up a Consumer Open-End Variable Rate 1. Expand Lending Setup in the Navigator. 2. Click Rates in the Navigator. 3. Click ***Add New***. The Index drop-down list will show items that were defined in Index History setup. If the market rate and/or the introductory rate are based on the outstanding balance, ARTA Lending allows you to define the balance ranges plus the applicable periodic rate and APR for each range. ARTA Lending Setup Workbook 40

47 Rate Setup screen, continued 4. Complete the applicable information and click OK. 41

48 Set Up Documents 1. Expand Lending Setup in the Navigator. 2. Click Documents in the Navigator. Select the Watermark option to add the word Copy to all subsequently printed documents. Click the Print Blank button to print one blank copy of a document using the selected binding. Click the Print button to produce a report that shows the selections for each document for the selected state. 3. Select a state. 4. For each document, choose the binding type, number of copies, and copy watermark (if preferred). 5. Select the appropriate check box options at the bottom of the Document Setup screen. TIP A TIP B You may set the binding type by entering the first letter of your selection and pressing the down arrow key. Repeat this to quickly and easily set the binding for each document in the list. The default option (Default) will print in the manner the pre-printed counterpart of the document is designed. If you enter 2 for the number of copies, you will print 1 original and 1 copy. The number of copies may be changed during a transaction. ARTA Lending Setup Workbook 42

49 TIP C TIP D TIP E Documents that normally print in multi-copy sets (HUD I/II) will be printed on a per set basis. To convert all data input to uppercase letters when printing documents, select the Print all data in uppercase check box. This does not impact data appearing on reports. During loan creation, ARTA Lending will display a brief document description or the document name depending on your selection in the second check box. Refer to the examples below. Example of Print page with the Wolters Kluwer Financial Services acronym option NOT selected. Example of Print page with the Wolters Kluwer Financial Services acronym option selected. 43

50 ARTA Lending Setup Workbook 44

51 Early Disclosures Objectives In this lesson, you will learn how to: Create an Adjustable Rate Mortgage (ARM) early disclosure Create a Home Equity early disclosure In our description of nature the purpose is not to disclose the real essence of the phenomena but only to track down, so far as it is possible, relations between the manifold aspects of our experience. Niels Bohr 45

52 Create an ARM Early Disclosure 1. Expand Early Disclosure in the Navigator. 2. Click ARM Programs in the Navigator. 3. Click ***Add New***. ARTA Lending Setup Workbook 46

53 The name entered in the Program name option will print at the top of the disclosure. 4. Complete the fields on the Product page. 5. Click Next (or Payment in the Navigator). TIP A TIP B TIP C If you select the FNMA/FHLMC option, choose the promissory note for the ARM program. Available choices in the Non-FNMA/FHLMC drop-down list include: ADJ- NOTE, CCLD, and Other. Use F1 help for further definition of the Non FNMA/FHLMC selections. Some fields on the pages following the Product page are protected to ensure that information on the early disclosure is appropriate for the note chosen on the Product page. We recommend that you save regularly. You can save the disclosure at any time. 47

54 6. Complete the fields on the Payment page. 7. Click Next (or Rate in the Navigator). ARTA Lending Setup Workbook 48

55 Click Index Details to view index details and rates for the previous 15 years. 8. Complete the fields on the Rate page. 9. Click Next (or Validation in the Navigator). 10. Correct validation warnings, or click Override Validation as appropriate. 11. Click Next (or Print in the Navigator). 49

56 12. If you want the applicant(s) to sign the disclosure, indicate the number of signature lines for the document. 13. Enter the name(s) and address for the applicant(s) if you want to personalize the disclosure. 14. Choose the disclosure type. 15. Save the ARM disclosure setup. 16. Preview and/or print the document, and exit the file. ARTA Lending Setup Workbook 50

57 TIP A You can produce three disclosure types in ARTA Lending: Simplified Disclosure: Worst-case example from a 15-year index history. Simplified 15-Year History Disclosure: 15-year index history. Combined Disclosure: 15-year index history combined with a worst-case example. TIP B Click Print to File to save the disclosure as a Rich Text File (RTF) file. The RTF file can be viewed or printed from any workstation with a Windows based word processor even if ARTA Lending is not installed. 1. Click Print to File to save the disclosure as a Rich Text File (RTF) file. 2. Enter a name for the disclosure. 3. Click the arrow on the right side of the Save disclosure as box and browse for a location to save the file. 4. Enter a file name. 5. Click Save. 51

58 Create a Home Equity Early Disclosure 1. Expand Early Disclosure in the Navigator. 2. Click HE Plans in the Navigator. 3. Click ***Add New***. TIP You must set up Repayments Methods in Lending Setup before you can create a Home Equity Early Disclosure. Refer to the Lending Setup lesson for more information on Repayment Methods. ARTA Lending Setup Workbook 52

59 The name entered in the Plan name option will print at the top of the disclosure. 4. Complete the fields on the Product page. 5. Click Next (or Payment in the Navigator). TIP We recommend that you save regularly. You can save the disclosure at any time. 53

60 6. Complete the fields on the Payment page. 7. Click Next (or Rate in the Navigator). TIP The option you select as the Repayment period will change the data entry fields on the Payment page. Choose the applicable option describing your plan. Draw Period Only plans allow consumers to take advances throughout the life of the plan. In other words, there is not a separate repayment period; a consumer may take advances up to the maturity date of the plan. Draw Period Followed By A Repayment Period plans allow consumers to get advances for a certain period (Draw Period). The draw period is followed by an additional period where consumers no longer get advances, but continue to make payments on the plan (Repayment Period). ARTA Lending Setup Workbook 54

61 Click Index Details to view index details and rates for the previous 15 years. 8. Complete the fields on the Rate page. 9. Click Next (or Fees in the Navigator). 55

62 10. Complete the fields on the Fees page. 11. Click Next (or Validation in the Navigator). 12. Correct validation warnings, or click Override Validation as appropriate. 13. Click Next (or Print in the Navigator). ARTA Lending Setup Workbook 56

63 14. Choose a lender from the drop-down list. 15. If you want the applicant(s) to sign the disclosure, indicate the number of signature lines for the document. 16. Enter the name(s) and address for the applicant(s) if you want to personalize the disclosure. 17. Save the Home Equity Early Disclosure setup. 18. Preview and/or print the document, and exit the file. 57

64 TIP You can create a RTF file that can be viewed or printed from any workstation with a Windows based word processor even if ARTA Lending is not installed on the workstation. 1. Click Print to File to save the disclosure as a Rich Text File (RTF) file. 2. Enter a name for the disclosure. 3. Click the arrow on the right side of the Save disclosure as box and browse for a location to save the file. 4. Enter a file name. 5. Click Save. ARTA Lending Setup Workbook 58

65 Templates Objectives In this lesson, you will learn how to: Create Templates Form ever follows function. Louis Henri Sullivan 59

66 Create a Template 1. Expand Lending Setup and expand Templates in the Navigator. 2. Click Loans in the Navigator. 3. Click ***Add New***. ARTA Lending Setup Workbook 60

67 Use a T in a date field and ARTA Lending will automatically insert the system date when the template is used to create a loan. 4. On the Criteria page, enter a name for the template and preset information as appropriate. 61

68 5. Click Next (or Borrower in the Navigator). TIP A TIP B In the Name option, enter a descriptive name for the template that will display in a selection list when beginning a transaction. Templates will appear in alphabetical order by name. Use naming conventions that will group similar types together. Right-click in a field to display a window with options for setting field properties. (NOTE: You can right-click in a field or in a box without first leftclicking in that field or in that box). The window below appears when you right-click. Normal field entry. Required and will be validated. Set and displayed, no change allowed. Set and displayed, change allowed. Set and not displayed in processing. TIP C When you set properties for option buttons, your selection will apply to all fields in the entire group. This window appears when you right-click in a group that includes option buttons. Normal field entry. Set and displayed, no change allowed. Set and displayed, change allowed. Set and not displayed in processing ARTA Lending Setup Workbook 62

69 You may preset field information or field properties in the borrower Details screen if appropriate. 6. Preset items and set field properties as appropriate. 7. Click Next (or Fees in the Navigator). TIP A TIP B You may choose to preset the City and/or State fields if they are commonly the same without setting a field property. Because you may be setting field information and/or field properties on each page, it is recommended you save frequently while creating your template. 63

70 After you enter a name on the Criteria page, the name of the template appears in the title bar. 8. Complete the Fees page. 9. Click Next (or Calculations in the Navigator). ARTA Lending Setup Workbook 64

71 TIP A TIP B You cannot set field properties to the pre-defined fee names and amount fields. On the Fees page, right-click in the first cell of any column to allow additional property options for the entire column in that section. This window appears when you right-click the first cell of a column. Normal field entry. Required and will be validated. Column is required and will be validated. Set and displayed, no change allowed. Column is set and displayed, no change allowed. Set and displayed, change allowed. Column is set and displayed but can be changed. Set and not displayed in processing. Column is set and not displayed in processing. 65

72 10. Complete the Calculations page. 11. Click Documents in the Navigator. TIP It is unnecessary to visit the Disbursements page because it is uncommon to preset disbursement information. ARTA Lending Setup Workbook 66

73 12. Add and/or remove documents as appropriate. 13. Preset document prompts and assign properties to document prompt fields as appropriate. If you have removed or replaced any autoselected documents, continue with step 14. If you have not removed or replaced any autoselected documents, proceed to step 16 to save and close the template. 14. If you modify the document list by removing or replacing an autoselected document, return to the Criteria page on the Navigator. TIP Three pages typically are not visited when creating a template Disbursements, Validation, and Print. 67

74 Criteria page Bypass autoselection is not available when creating Application templates. 15. On the Criteria page, you may choose to select the Bypass autoselection option in addition to the Closing documents option. This directs ARTA Lending not to run autoselection when the template is used, and use your revised document selection instead. Use extreme caution when deciding if you should select the Bypass Autoselection option. 16. Save and close the template. 17. To add more templates, repeat steps If the new template will be similar, close the window, re-open it, and click Save as. TIP A TIP B If the template you have created allows changes to the major components, and you have selected the Bypass Autoselection option, ARTA will not select additional documents, nor will it warn you if needed documents are missing. In addition, any documents you add will display a status of Manually. To print a report of all fields in your template with preset data and properties assigned, click the Print Template Setup button at the top of the Criteria page. ARTA Lending Setup Workbook 68

75 Utilities Objectives In this lesson, you will learn how to: Set Autoselection Defaults Change Font Settings Delete Templates/Setup Items Delete Transactions Back Up Files Restore Files Nothing can have value without being an object of utility. Karl Marx 69

76 Set Autoselection Defaults 1. Select Utilities> Autoselection Defaults from the Menu Bar. 2. Activate documents to be autoselected when creating application-related documents. 3. Click the Residential RE tab. TIP Autoselection Defaults consists of three tabs: The Application tab lists documents to be selected when completing application-related documents only. The Residential RE tab lists documents to be selected when completing either RESPA-related or real estate closing documents. The Other tab lists documents to be selected when completing loans for other than residential real estate. ARTA Lending Setup Workbook 70

77 4. Activate documents to be autoselected when creating residential real estate early disclosures and/or closing documents. 5. Select the Other tab. TIP The Privacy Disclosure will appear in the document list only as a reminder unless you obtain a customized Privacy Disclosure to be printed by ARTA Lending. For information on how to obtain a customized privacy policy disclosure for ARTA Lending, contact your Wolters Kluwer Financial Services sales representative. Call or visit 71

78 6. Activate documents to be autoselected when creating non-residential real estate consumer and/or commercial closing documents. 7. Click OK to save and close Autoselection Defaults. ARTA Lending Setup Workbook 72

79 Change the Font Size for User-Entered Text 1. Select Utilities> Font Settings from the Menu Bar. 2. Choose the font size for user-entered text from the drop-down list. 3. Always leave the Condensed option activated (checked) regardless of the font size chosen. 4. After changing the font settings, click OK to save the information. 5. Print some test loan documents to verify the font size has changed, and you are not experiencing text overflow. TIP A TIP B In ARTA Lending, you can change the font size for the text a user enters on a static document. Changing the font size will only affect user-entered text on all static documents. The font size can be set to 8, 9, 10, 11, or 12-point font. The font type cannot be changed only the size. The change will only affect user-entered text. The larger the font, the greater the chance that text may overflow into other fields, so it is important to review sample documents after the font size is changed. 73

80 Delete Templates or Setup Items 1. Right-click the template or setup item to be deleted. 2. Click the Delete button. 3. Click Yes to confirm the deletion. TIP When opening a saved transaction that was using a setup item that was deleted (e.g., Lending Policy), you will need to select another option from the remaining items. ARTA Lending Setup Workbook 74

81 Delete Transactions 1. Select Utilities> File Operations> Loans (or Applications, Credit Bureau, or HMDA) from the Menu Bar. You can sort the list of saved transactions by completing the appropriate Search criteria and clicking the Update List button. 2. Select the transaction(s) to be deleted from the list of saved transactions. 3. Click the Delete button. 4. Click Yes on the confirmation window to complete the deletion. TIP To delete a group of transactions, complete either of the following procedures: Select all transactions in a sequence by holding down the Shift key and clicking the first and last transactions. Then press the Delete key. Select individual transactions by holding down the Ctrl key and clicking each transaction to be delted. Then press the Delete key. 75

82 Back Up Files 1. Select Utilities> Backup and Restore from the Menu Bar. 2. Review the notice that all users should be out of ARTA Lending and all data files should be closed. 3. Click OK to close ARTA Lending and leave the backup/restore utility running. ARTA Lending Setup Workbook 76

83 The Archive path is the directory to which the data will be backed up. The Global paths section includes the default source directories. The Client paths section includes custom source directories. 4. Enter a drive letter in the Archive path to identify where you want to back up the information (or click the Browse button to select a drive). 5. Deselect any Global paths you do not want to back up. 6. Select appropriate client paths. 7. Click the BACKUP selected paths button to back up data from the selected Global and/or Client paths. 77

84 8. When the backup is finished, review the DataBackup confirmation screen. 9. Click OK. ARTA Lending Setup Workbook 78

85 Restore Files 1. Select Utilities> Backup and Restore from the Menu Bar. 2. Review the notice that all users should be out of ARTA Lending and all data files should be closed. 3. Click OK to close ARTA Lending and leave the backup/restore utility running. The Archive path is the directory to which the data will be backed up. The Client paths section includes custom source directories. 4. Enter the location of your backed up files in the Archive path option (or click the Browse button to locate the path). 5. Click the Restore selected paths button to start the restoration process. TIP Data must be restored to the same version of ARTA Lending that was backed up. A full backup should be performed after the initial installation and setup, and immediately before and after installing each update you receive. 79

86 6. After the restore is finished, review the DataBackup confirmation screen. 7. Click OK. 8. To view restored data, re-open ARTA Lending and select View> Refresh from the Menu Bar. ARTA Lending Setup Workbook 80

87 Reports Objectives In this lesson, you will learn how to: Create a Loans in Progress Report Create an Application Tracking Report Print an existing report Create a HMDA Report Let s look at the record. Alfred Emanuel Smith u 81

88 Create a Standard Loans in Progress Report 1. Expand Lending Setup in the Navigator. 2. Click Reports in the Navigator. 3. Click ***Add New***. Depending on your configuration, you may have additional options available to use. The Print Setup button allows you to print a record of the selected report options. 4. Specify options for your report and click Print Report. 5. Click OK to save and exit the report. ARTA Lending Setup Workbook 82

89 Sample Loans in Progress Report 83

90 Define a Customized Report 1. Expand Lending Setup in the Navigator. 2. Click Reports in the Navigator. 3. Click ***Add New***. 4. Select fields for the report as appropriate and scroll down. 5. Select (check) Use custom fields. 6. In the right window, select the field you want to appear as the first column on your report, and click < Add. 7. Repeat step 6 to add more fields to your report. 8. Choose a sort option and click Print Report. 9. Click OK to save and exit the report. ARTA Lending Setup Workbook 84

91 Sample Customized Report 85

92 Print an Existing Report 1. Expand Lending Setup and click Reports in the Navigator. 2. Select the name of the report to print from the list. 3. Review the sort criteria and modify if necessary. 4. Click Print Report. 5. Click OK to save and close the report. ARTA Lending Setup Workbook 86

93 Other Reports Report Location This report contains: Group Setup General Setup Group Access/permissions and assigned users for the selected group. Policy Lending Setup Policy Selected state document set, accrual methods, default values for late charges and vesting language, and calculation information. Rate Lending Setup Rates Defines the fixed/variable rate, rate and payment change information, index, and rate caps. Index Detail Lending Setup Index History Information on the selected index and 15 year history. Index Lending Setup Index History Print Index Report Button A list of all the index histories that have been set up. Document Setup Lending Setup Documents The documents and the assigned properties for the selected state. Template Setup Lending Setup Templates Loans/Applications Lists the preset defaults and field properties of the selected template. Report Setup Lending Setup Reports A copy of the information that has been entered for the selected report. Insurance Setup ARM Program Insurance Credit Life/Disability/IUI/PMI Early Disclosure ARM Programs A copy of the information that has been entered for the selected insurance plan. A copy of the information entered for the selected program. Home Equity Plan Early Disclosure HE Plans A copy of the information entered for the selected plan. 87

94 Create the HMDA Report 1. Select Utilities> HMDA Reporting from the Menu Bar. 2. Select the Lender s HMDA Respondent ID from the drop-down menu. 3. Enter the appropriate dates in the Date range fields. 4. Click Update List. ARTA Lending Setup Workbook 88

95 The Geocoding option requests a geocode service for each transaction in the filtered list. The Rate spread option requests a calculation service for each transaction in the filtered list. The LAR Edit check option requests that each transaction in the filtered list be reviewed for HMDA data completeness and integrity. 5. If applicable, activate Geo-coding and click Wiz Basic. 6. If applicable, activate Rate spread and click Wiz Basic. 7. Activate LAR Edit check and click Wiz Basic. TIP For the LAR Edit Check button: Those with an S code have syntax errors. You cannot submit a transaction with these errors. Those with a V code have validity errors. You cannot submit a transaction with these errors. Those with a Q code have quality errors. You can submit with these. They are flags presented by the LAR Edit Check function to alert you that there is abnormal data in the transaction so you can check the record. 89

96 8. Activate HMDA Reports. 9. Activate the appropriate Report Services options. 10. Complete the necessary information. 11. Click Wiz Basic to review and print the selected reports. 12. Click Done. ARTA Lending Setup Workbook 90

97 TIP A Report Services options: HMDA.Dat file This is the file you will encrypt and send to your government reporting agency. Transmittal Summary report If you are submitting less than 25 transactions, you can submit in non-electronic form, and would need to include a paper copy Transmittal sheet with your HMDA LAR report. LAR report This is a printable copy of information that would be included in the HMDA.dat file. Public LAR report This is the public copy of information that would be included in the HMDA.dat file. Institution Register Summary report This is courtesy summary report of transactions in the batch request. TIP B If you receive a message stating that the request could not be completed, a Retrieve Reports button will become available. This button will allow you pull up the reports at a later time. 91

98 ARTA Lending Setup Workbook 92

99 Automated Underwriting Guidelines Objectives In this lesson, you will learn how to: Create Underwriting Guidelines Apply Underwriting Guideline Filters Great deeds are usually wrought at great risk. Herodotus 93

100 Discussion The Automated Underwriting module is designed to evaluate risks associated with loan applications and to underwrite loans using established policies and guidelines. In order to use the Automated Underwriting Module, you will need to establish your institution s guidelines. The guidelines include several rules. Each rule quantifies something in a credit application or credit report that an underwriter would review when evaluating a credit request. For example, a guideline could contain rules for evaluating the credit bureau score. Prior to creating guidelines, you will need to complete the Automated Underwriting section of the Lender Setup screen. Refer to the General Setup lesson for more information. After your institution s guidelines are defined, they must be assigned to a transaction type to use the guideline during the Loan Decision process. The Automated Underwriting Module supports evaluation of consumer secured and unsecured loan requests. Also, because it relies on information from consumer credit report(s), commercial/agricultural loan requests are supported for transactions where the applicant type is either an individual or DBA. The underwriting guidelines are stored on the web server by the account identifier. If branches share the same underwriting guidelines, they will have the same account identifier. If branches maintain their own guidelines separate from the other branch locations, separate account identifiers should be set up for each lender profile. ARTA Lending Setup Workbook 94

101 Set Up Underwriting Guidelines 1. Expand Lending Setup in the Navigator. 2. Click Underwriting Guidelines in the Navigator. 3. Choose a guideline. 4. Click Edit. 95

102 5. Highlight the BSI Sample Guideline and click Save As. TIP The BSI Sample Guideline contains a predefined set of rules. The BSI Sample Guideline should not be modified and it cannot be deleted. It is meant to be a starting point for your institution s Master Guideline. ARTA Lending Setup Workbook 96

103 6. Enter the name of the new guideline in the New name field. 7. Click Save. Once saved, the new guideline can be modified. Select a guideline and click Delete to remove a guideline from the list. 8. Select the new guideline and click Modify. 97

104 9. Click the check box for the Rules and/or Rulesets you wish to ignore. Scroll to the top and click Save. 10. Select the guideline and click Modify. 11. Click the rule name if you want to modify any of the preset values. Scroll to the top and click Save when done modifying the guidelines. 12. Click Cancel. 13. Click Print. 14. Repeat steps 3-13 to create additional guidelines. TIP A TIP B When modifying a guideline, rulesets cannot be ignored; however, rules can. Text appears in different colors when modifying a guideline. The table indicates the meanings of the colors. Blue Green Red Dark Red Parameter. This cannot be changed. Value. This can only be changed for a rule. Derived Parameter. This cannot be changed. Findings Message. This can be changed for a rule. In order for the guideline to function properly, do not ignore the first decision parameter (bankruptcy). ARTA Lending Setup Workbook 98

105 Apply Underwriting Guideline Filters 1. Expand Lending Setup in the Navigator. 2. Click Underwriting Guidelines in the Navigator. 3. Select a guideline and click Filters to assign transaction types to it. 99

106 4. Check the box next to each transaction type where this guideline applies. Click OK. 5. Repeat steps 3-4 to assign transaction types for more guidelines. ARTA Lending Setup Workbook 100

107 Insurance Setup Objectives In this lesson, you will learn how to: Create Credit Life and Disability Insurance plans Create an Involuntary Unemployment Insurance plan Create Private Mortgage Insurance (PMI) rate tables There is no such thing as absolute certainty, but there is assurance sufficient for the purposes of human life. John Stuart Mill 101

108 Set Up a Credit Life Plan 1. Expand Insurance in the Navigator. 2. Click Credit Life in the Navigator. 3. Click ***Add New*** 4. Click OK on the warning screen. ARTA Lending Setup Workbook 102

109 In the Life insurance plan option, enter a plan name that represents the type of coverage (example: Gross Coverage). Click the Additional Coverages button to select more options applicable to your plan (example: Accidental death). 103

110 Life Insurance Setup screen, continued 5. Complete the Credit Life setup information. 6. Click OK to save and close the plan. ARTA Lending Setup Workbook 104

111 Set Up a Disability Plan 1. Expand Insurance in the Navigator. 2. Click Disability in the Navigator. 3. Click ***Add New***. 4. Click OK on the Credit Insurance Warning. 105

112 In the Disability insurance plan option, enter a plan name that represents the type of coverage, for example, 14 Retro Single. Selecting either Single Premium or Outstanding Balance option as the Premium type will impact the data entry fields that will be displayed. 5. Complete the Disability Insurance Setup information. 6. Click the Disability Rate Table button on the Disability Insurance Setup screen. ARTA Lending Setup Workbook 106

113 7. Select a Disability Rate Table Type, and enter the applicable details. 8. Click OK. 9. Click OK to save and close the plan. TIP Disability Rate Table Types: Monthly entry The rates are entered in the table individually for each month of the table. Interpolated The rates are entered in the table for certain months and the rate(s) in between are determined by the interpolation formula. For example, if you enter a rate value for month 1 and month 12, the rates for months 2 through 11 are calculated so that each month s rate increases by the same amount over the previous month s rate. Bracketed The rates are entered in the table for certain months and the rate(s) in between are supplied with the same value. For example, if you enter a matching rate value for month 1 and month 12, the rates for months 2 through 11 are supplied with the same matching rate. 107

114 Create an Involuntary Unemployment Insurance Plan 1. Expand Insurance in the Navigator. 2. Click Involuntary Unemployment Insurance in the Navigator. 3. Click ***Add New***. ARTA Lending Setup Workbook 108

115 4. Complete the applicable information. 109

116 5. Click OK to save and close this plan. Create a PMI Rate Table 1. Expand Insurance in the Navigator. 2. Click PMI in the Navigator. 3. Click ***Add New***. 4. Complete the PMI Setup information. 5. Click OK to save and close this plan. 6. Repeat steps 3-5 to create more plans or close the window, re-open it and click Save As. ARTA Lending Setup Workbook 110

117 TIP A The Coverage type drop-down list offers three options: Level balance: A balance that insures the loan amount over the coverage term and the amount of coverage do not decline. Declining balance: The balance that is used to calculate the premium declines on an annual basis. Single premium: A premium that is calculated and paid at the beginning of the loan. TIP B Do not check the Include escrow PMI payments option if you prefer the payments in escrow be applied to the final scheduled PMI payments. Check this box on each PMI Setup screen if the payments in escrow will not be applied to the final PMI payments and will be refunded. TIP C In order to change PMI rates at transaction time, you must have: At least one PMI plan set up. Transaction PMI selected in Group setup. 111

118 ARTA Lending Setup Workbook 112

119 User-Defined Fields Objectives In this lesson, you will learn how to: Create user-defined fields If you keep a thing for seven years you are sure to find a use for it. Sir Walter Scott 113

120 Create a User-Defined Field 1. Expand Data Exchange in the Navigator. 2. Click User-Defined Fields in the Navigator. 3. Click ***Add New***. ARTA Lending Setup Workbook 114

121 4. Enter the field name you want to appear in the User-Defined Field setup list. 5. If appropriate, select a group from the Group drop-down list. 6. Define the field prompt the way it should appear in loan creation and on reports. 7. Select from the type of formatting for the field from the Type drop-down list. 8. Define how many data entry characters the field should allow in the Width option. 9. Identify a default to the field if applicable in the Default option. (A default is not required.) 10. Click OK to save the user-defined field. 11. Repeat steps 3-10 for additional fields. TIP A TIP B TIP C If no group is defined, click the Define Groups button and define the field groups for the fields you will be creating. By grouping user-defined fields, information can be more easily tracked and found. The Type drop-down list contains the following options: Checkbox, Date, Past date, Future date, Dollar, Rate, and Text. If the field is defined as a date field, we recommend you set the field width at ten characters. 115