LOAN ORIGINATION QUICK START GUIDE. Ver. 9/24/13

Transcription

1 LOAN ORIGINATION QUICK START GUIDE Ver. 9/24/13

2 Table of Contents Key Page 1 Starting a New Loan Outside Sales Page 1 Importing from Leads360 Consumer Direct Page 2 Changing the Loan Template Page 3 Completing the Application Page 4 Application Defined Page 4 Assigning the Mortgage Banker Page 5 Enter Borrower Info Page 5 Adding a Co-Mortgagor/Non-Occupying Co-Borrower Page 6 Complete Residence History Page 6 Employment Info & Income Page 7 Prior Employers & Second Jobs Page 8 Pulling Credit Page 9 Importing Credit Page 9 Subject Property Info Purchase Page 10 Subject Property Info Refinance & Purchase of Property Currently Occupied Page 11 Transaction Details Page 12 FHA & VA Loans Page 13 Assign LQA to the File Page 14 Banker Application Disclosure Method Page 14 Banker Request Application Package from LQA Page 14 Monthly Housing Expenses Page 15 Conventional PMI Borrower Paid Monthly Premium Page 16 Conventional PMI Borrower Paid Single Premium Page 17 Conventional PMI Borrower Paid Split Premium Page 18 Conventional PMI Lender Paid Single Premium Page 19 FHA Up Front & Monthly MIP Page 20 VA Funding Fee Page 21 Entering Assets Page 21 Liabilities Page 22 Real Estate Owned Page Details of Transaction Page 23 Borrower Declarations & Government Monitoring Page Itemization Page GFE Page 29 TIL Page 31 Anti-Steering Safe Harbor Disclosure Page 32 Disclosures Required Page 33 Generating Disclosures Preview Page 33 Generating Disclosures Live Application Page 34 Sample Disclosures Floating at Initial Disclosure Page 35 Sample Disclosures Locked at Initial Disclosure Page 37 Disclosure Tracking Page 39 Additional Forms Overview Page 40 Lock Request Form Page 40 Tracking Information Banker Page 41 Loan Notes Page 43 Lock Comparison Page 43 Rush Request Form Page 43 Useful Tips Page 44 Helpdesk, Scenario Desks & Additional Resources Page 44 Ver. 9/24/13

3 LOAN ORIGINATION QUICK START GUIDE Key: Red Arrows & Highlights.: Indicates action required Green Arrows & Highlights: Indicates informational item, no action required Step 1: Initial Application Processing Starting a New Loan Outside Sales Select Pipeline tab On Loan Folder select Prospects Selecting Prospects will enable New Loan icon on the right side of the Encompass screen. Select New Loan icon New Loan window will open Highlight the appropriate template based on the Loan Type, Purpose and State Click Select Template at bottom of screen Page 1 Ver. 9/24/13

4 Importing a Loan From Leads360 Consumer Direct Only Log into Leads360 Right Click on the lead and select Edit/View Lead Under Actions select Application Taken and select Add Action In the Lead Data Section Select Encompass Select Create Encompass Loan Select Save & Close To export a lead a second time Remove date and time Select Save and Close Once the loan is imported into Encompass, select a Loan Template 1. Select Loan in the menu bar 2. Select Apply Loan Template Set 3. Highlight the correct loan template and select Select Template ***You must select a Loan Template before continuing in Encompass, otherwise the loan will not disclose properly Page 2 Ver. 9/24/13

5 Changing the Loan Template To change the loan template after the file has been started follow these steps: 4. Select Loan in the menu bar 5. Select Apply Loan Template Set 6. Highlight the correct loan template and select Select Template ***Changing the loan template will update all fees on the 2010 Itemization based on the template selected. Please review all fees to ensure accuracy. Page 3 Ver. 9/24/13

6 Completing the Application Borrower Summary Origination form (screen) will open after selecting the template Select the appropriate forms at the bottom right of the screen, under the Forms tab To complete and print a compliant application, the banker must complete the information on following forms: 1. Borrower Summary Origination: Enter majority of borrower and loan information Pg. 2: Income, Assets & Liabilities Pg. 3: Borrower Declarations, Government Reporting, Credits & Real Estate Owned Itemization: Breakdown of all fees associated with the loan GFE 6. REGZ TIL In addition to the forms above, you will need to verify the information on the Anti-Steering Safe Harbor Disclosure: Go to the Tools tab and select Anti-Steering Safe Harbor Disclosure Anti-Steering Safe Harbor Disclosure provides borrowers with 3 distinct loan options to choose from Application Defined The Application is defined as a collection of a borrower s certain financial, credit, and personal information in an effort to secure a mortgage loan and credit decision. The requirements needed for this application are: 1. Borrower s name 2. Borrower s date of birth 3. Borrower s monthly income 4. Borrower s Social Security number 5. Borrower s credit report 6. Subject property address 7. Estimated property value 8. Mortgage loan amount 9. Loan type If you are missing one of these items (i.e. Birthdate) you do not have enough information to properly disclosure an application. Once you have the 9 required items, you must disclose per the following: Compliance, Initial Disclosure: Once an application has been taken, as described above, the loan originator is required to issue the new GFE form within 3 business days of the application date. Business days are defined for our purposes as the same definition as business days used in rescissions periods for refinances. The term "loan originator" means a lender or mortgage broker. **Date of application is Day 1 of the above requirement In the event a Mortgage Loan Application and Disclosures have not been delivered to the borrower(s) within the 3 day requirement, the loan application is deemed non-compliant, will be withdrawn per The Federal Savings Bank s Loan Cancelation Procedure and a new loan must be started. RESPA does not recognize an extenuating circumstance for disclosing outside of this timeframe. Page 4 Ver. 9/24/13

7 Assigning the Mortgage Banker Prior to completing the loan application data, you will need to assign yourself as the mortgage banker: 1. Go to the Log tab at the top left of the screen (located above the Forms tab) 2. Select the File Started milestone 3. On the File Started milestone, select the Magnifying Glass icon next to Mortgage Banker 4. In the Select Loan Team Member window that opens, highlight your name and select OK Enter Borrower Info (And Co-Borrower, if applicable) Complete all basic borrower information sections For married borrowers (i.e. husband & wife), enter the primary borrower s information and select Copy from Borrower to copy all shared info (last name, address, etc.) For non-married borrower pairs follow the steps below Page 5 Ver. 9/24/13

8 Adding a Co-Mortgagor/Non-Occupying Co-Borrower Non-married borrowers must have their own individual application and disclosures. Non-married borrowers are defined as either Co- Mortgagors or Non-Occupying Co-Borrowers Co-Mortgagor: a Co-Borrower who is NOT the spouse of the primary borrower. Ex: Brother & Sister, Father & Daughter, Cousins, etc. Non-Occupying Co-Borrower: A Co-Borrower who does NOT intend to occupy the property as their primary residence. Ex: Parent(s) cosigning on their children s loan. To add a Co-Mortgagor or Non-Occupying Co-Borrower, select Manage Borrowers (notepad icon) in the borrower banner. In the Manage Borrowers window select Add Borrower Pair. A separate application will be created within the current loan file. Tip: To toggle between borrower pairs, select the appropriate borrower from the dropdown box in the borrower banner Complete Residence History Enter residence information (VOR) Must provide a 2 year residence history Complete Mailing Address if subject is a second home or investment property Page 6 Ver. 9/24/13

9 Employment Info & Income Enter current employer info: Employer Name Address including City, State & Zip Position/Job Title Business Phone Years on Job Self Employed select if borrower owns > 25% of the business ***You must provide a minimum 2 year work history. See section below on adding prior or second jobs. Enter Borrower/Co-Borrower Income: Select Income (Monthly) Enter Monthly Income broken down by type If entering Other Income o Enter B or C (Borrower/Co-Borrower) o Select Description from dropdown menu or manually enter descript o Enter Monthly Income Select Close Page 7 Ver. 9/24/13

10 Employment Info Prior Employers & Second Jobs To add additional employers in the Show All (VOE) window: 1. Select Show All (VOE) 2. Select New VOE icon 3. Select Borrower/Co-Borrower & Current/Prior 4. Select OK to open new VOE section 5. Enter Employer info (Name, Address, Phone, etc.) 6. On Prior Employers enter both Date Hired and Date Terminated 7. Select Close Page 8 Ver. 9/24/13

11 Pulling Credit After receiving authorization from the borrower select Borrower(s) verbally authorize to pull credit report. Select Order Credit in the Borrower Summary Origination form, next to the Credit Information header. Select Funding Suite and click Submit Complete the Credit Report Request screen as follows: 1. Load Username and Password from New Hire Sheet 2. Select Save Login Information 3. Request Type: Select New Request 4. Report On: Select Individual or Joint if more than one party to the loan application 5. Credit Bureaus: Confirm all 3 Bureaus are selected 6. Borrower/Co-Borrower/Current Addr: Verify data entered matches loan application 7. Select Finish Importing Credit File After report is complete, select Import Liabilities and confirm accuracy of information entered. Page 9 Ver. 9/24/13

12 Subject Property Info - Purchase Complete all subject property info: Enter subject property address as listed on sales contract/listing sheet If Pre-Approval or HELPP loan, leave subject address as PREAPPROVAL or HELPP respectively and only enter the anticipated city, state, zip Complete both Est. Value and Appraised Value Verify the property address with USPS Verify subject property address is correct via USPS: 1. Select USPS 2. On USPS website, enter full address and select Find 3. Update the address in Encompass to reflect the standardized address determined by USPS ***If you do NOT use the correct address in Encompass, the borrower will have to re-sign the entire application with the correct address Page 10 Ver. 9/24/13

13 Subject Property Info Refinance or Purchase of Property Currently Occupied Complete all subject property info: Enter subject property address If the borrowers are refinancing their current primary residence or purchasing the property they currently occupy, select Copy from Present Complete both Est. Value and Appraised Value Verify the property address with USPS Verify subject property address is correct via USPS: 1. Select USPS 2. On USPS website, enter full address and select Find 3. Update the address in Encompass to reflect the standardized address determined by USPS ***If you do NOT use the correct address in Encompass, the borrower will have to re-sign the entire application with the correct address Page 11 Ver. 9/24/13

14 Transaction Details Select Purpose of Loan & Property Type If a purchase of a 2-4 unit primary residence or a purchase investment property, enter Gross Rnt and Occup Rate Complete all Refinance Loan info (if applicable) Select Purpose of Refinance from the dropdown box Tip: If the borrower isn t sure of the year acquired, utilize the credit report to determine the year acquired Loan Type and Lien Position are defaulted based on the loan template selected. To add subordinate financing, select Sub. Financing and enter the loan amount in the window that appears. see section on Proposed Monthly Housing Expenses to add 2 nd Mortgage Payment Select a Special Loan Indicator (if applicable) Home Express Loan Purchase Program (HELPP): Must follow TFSB Home Express Loan Purchase Program process Pre-Approval: Loan has been pre-approved by banker CEMA: New York CEMA loan TFSB Portfolio: TFSB Portfolio loan Green Tree Refi Plus Lead: Consumer Direct Refi Plus lead Schumacher: Loan is for Schumacher Homes Onboard: Loan is for new banker (< 90 days with TFSB) Tip: Review Loan Originator s Guide for full description of requirements and process of the Special Loan Indicators Enter Loan Amount and Closing/Contingency Dates For purchases, enter the price and the down payment as a percentage or dollar amount to calculate the loan amount For refinances, enter the loan amount Enter Contingency Date & Closing Date Enter First Payment Date Tip: Select Calendar Icon to access a full calendar view Enter Note Rate/Qual. Rate & Term/Due In Note Rate should equal Qual. Rate Term should equal Due In Complete ARM info (if applicable): 1. Enter Adj. Caps & Change Periods 2. Select Index Type from dropdown box 3. Select Get Index 4. Enter Margin Page 12 Ver. 9/24/13

15 FHA & VA Loans Enter Case # Assigned Date Use the application date for the Case # Assigned Date The LQA will update once the case # is assigned Select loan purpose Option 1 Purchase Existing Home (previously occupied) Option 2 Finance Improvement (Cash-out for Home Improvement) Option 3 Refinance (FHA No cash-out, FHA Rate/Term, FHA Streamline, VA IRRRL, VA Cash-out) Option 4 Purchase New Condo Unit (New Construction, Certificate of Occupancy issued < 1 year ago) Option 5 Purchase Existing Condo Unit Option 6 Purchase Home Not Previously Occupied (New Construction, Certificate of Occupancy issued < 1 year ago) Option 7 Construct Home (construction loan/proceeds to be paid out during construction 203K) Option 8 Finance Co-op Purchase Option 9 Purchase Manufactured Home Option 10 Purchase Manufactured Home & Lot Option 11 Refi Manufactured Home to Buy Lot Option 12 Refi Manufactured Home/Lot Loan ***Options 1-8 apply to both FHA & VA. Options 9-12 apply to VA only (Please note, TFSB does not currently lend on manufactured homes) Complete all applicable borrower certification questions 18. FHA/VA hasn t owned a primary residence in the past 3 years 19. VA only Manner in which title will be held 22a. FHA only own or sold other real estate (not the subject) in past 60 months on which there was a FHA mortgage. If Yes, complete 22a. 22d. 22e. FHA Only Answer if subject is a 2-4 unit with rental units or subject property is an investment 22f. FHA only Answer Yes if the subject is a single-family dwelling that is one of a group of five or more dwellings held by the same borrower 23. VA only 25(2). VA only 25(3). FHA/VA complete on Purchases only 25(6). FHA Only Answer Yes if property built prior to Answer No if built after 1978 Page 13 Ver. 9/24/13

16 Assign LQA to the File Select appropriate LQA from dropdown box Banker Application Disclosure Method Select who will disclose the application to the borrower If Banker is to disclose, send the full application package to the Borrower once file is complete in Encompass If LQA is to disclose, complete all required information in Encompass and follow steps below to notify LQA to the file GFE Application Date: date all 9 pieces of data are entered into encompass Disclosures Due Date: Date by which disclosures must be provided to the borrower REMINDER: The Application is defined as a collection of a borrower s certain financial, credit, and personal information in an effort to secure a mortgage loan and credit decision. The requirements needed for this application are: 1. Borrower s name 2. Borrower s date of birth 3. Borrower s monthly income 4. Borrower s Social Security number 5. Borrower s credit report 6. Subject property address 7. Estimated property value 8. Mortgage loan amount 9. Loan type If disclosures are not sent to the borrower by 11:59PM on the Disclosures Due Date (Day 3) the loan is deemed non-compliant, must be withdrawn and a new loan file must be created. RESPA does not recognize an extenuating circumstance for disclosing outside of this timeframe. Banker Request Application Package from LQA Notify LQA once the App Kit is ready Select Generate o Your name will appear in the Sent By box A new window will automatically open o Enter any additional notes into body of o Select Send and the LQA will receive the alert to send the application to the borrower ***Complete this step only after a complete file has been entered into Encompass. LQAs will return incomplete files to the banker. Page 14 Ver. 9/24/13

17 Step 2: Complete 1003 Page 2 Monthly Housing Expenses Enter Present Housing Expenses Enter current mortgage payment, taxes & insurance (if not escrowing), HOA dues and other financing Enter current rental payment if borrower is renting Enter $1 if borrower lives with family/has no current housing expense ***If the subject property is an investment/second home, enter the borrower s current primary residence payment info Enter Proposed Housing Expenses Taxes and Insurance are defaulted to $600 & $150 respectively o Only update if the exact amounts are known Enter HOA Dues if applicable If there is subordinate financing or closing with a simultaneous second, enter payment in Other Fin Tip: Verify the current tax bill with the local assessor s office or treasurer s office Page 15 Ver. 9/24/13

18 Calculating and Determining PMI for Conventional Loans Borrower Paid Monthly Premium Run your PMI scenario through one of our approved PMI vendors (see Originators Guide). Click on the Notepad icon next to Mtg. Ins. To enter monthly MI factors: 1. Select Get MI Durations, 2 nd Rate Factor and Cancel At will auto-populate 2. Enter 1 st Rate Factor as determined by the MI quote Page 16 Ver. 9/24/13

19 Calculating and Determining PMI for Conventional Loans Borrower Paid Single Premium Run your PMI scenario through one of our approved PMI vendors (see Originators Guide). Click on the Notepad icon next to Mtg. Ins. To enter MI factor: 1. Enter base rate in MIP / Funding / Guarantee 2. Select Amount Paid in Cash Lock 3. Enter full premium amount in Amount Paid in Cash If Borrower Paid Single Premium is Financed: Enter base rate in MIP / Funding / Guarantee Encompass will determine the amount financed and the amount paid in cash Page 17 Ver. 9/24/13

20 Calculating and Determining PMI for Conventional Loans Borrower Paid Split Premium Run your PMI scenario through one of our approved PMI vendors (see Originators Guide). Click on the Notepad icon next to Mtg. Ins. To enter MI factors: 1. Select Get MI Durations, 2 nd Rate Factor and Cancel At will auto-populate 2. Enter 1 st Rate Factor as determined by the MI quote 3. Enter base rate in MIP / Funding / Guarantee 4. Select Amount Paid in Cash Lock 5. Enter full premium amount in Amount Paid in Cash Page 18 Ver. 9/24/13

21 Calculating and Determining PMI for Conventional Loans Lender Paid Single Premium Run your PMI scenario through one of our approved PMI vendors (see Originators Guide). Make sure LPMI is selected when running scenario Click on the Notepad icon next to Mtg. Ins. Select Lender Paid Mortgage Insurance Encompass will NOT reflect the MIP nor will this amount show up on the 1003 or GFE Underwriting will add the following At Closing Condition: LPMI-Loan has lender-paid mortgage Insurance. LPMI disclosure to be signed at closing The borrower will NOT be charged the MIP on the HUD1 at closing The MIP will be paid with Service Release Premium after closing Page 19 Ver. 9/24/13

22 Calculating FHA Up Front & Monthly MIP To calculate/enter UFMIP & Monthly MIP click on the Notepad icon next to Mtg. Ins. Select Get MI : 1. All appropriate factors, cancel at (if applicable), etc. will populate. Page 20 Ver. 9/24/13

23 Calculating VA Funding Fee To calculate/enter Funding Fee click on the Notepad icon next to Mtg. Ins. To determine the correct Funding Fee, complete the following: 1. Select Type of Veteran 2. Select if this is the first use of the VA Loan program 3. Select Get MI *** If the Borrower is Funding Fee Exempt, you do not need to enter Funding Fee info Tip: View the Originator s Guide to confirm the current VA Funding Fee Table Tip: If unsure about the type of Veteran or Veteran s prior use of VA Benefits, use 3.30% for Purchases & Cash-out Refinances; Use.5% for VA IRRRLs Entering Assets Select Show All (VOD) To add Borrower bank account info: 1. Select New VOD 2. Enter Bank info 3. Select Account Type from dropdown box 4. Enter account number and current balance Use the same VOD if borrower has multiple accounts at one bank. Create a new VOD if the borrower has accounts at multiple banks. Page 21 Ver. 9/24/13

24 Liabilities If paying off a mortgage, credit card, etc. select Paid Off To view all liabilities, select Show All (VOL) If paying off debt or subordinating a mortgage 1. Select Show All (VOL) 2. Select applicable trade line to be excluded 3. Scroll down to bottom of VOL screen 4. Select Will be paid off or Resubordinated indicator respectively To exclude liabilities (duplicate accounts, loans in deferment, etc.): 1. Select Show All (VOL) 2. Select applicable trade line to be excluded 3. Scroll down to bottom of VOL screen 4. Select Exclude from URLA page 2 Liabilities Total 5. Select Close ***You will need to provide documentation verifying the reason the trade line has been excluded If there is a balance but no payment is listed, manually calculate the payment at 5% of the total balance due: 1. Multiply the balance by Enter the payment determined in Payment 3. Enter (99) in Mos Left Include any alimony, child support or other obligations the borrower is required to pay. Page 22 Ver. 9/24/13

25 Step 3: Complete 1003 Page 3 Real Estate Owned Enter all real estate owned by Borrower and rental income/loss Access the REO section by selecting Show All (VOM) To add properties owned: 1. Select New VOM 2. Mark the applicable mortgage(s) tied to the property 3. Select OK Tip: If the property is owned free and clear, simply select OK Enter all applicable property info. Use rental income worksheets to accurately calculate net rental income (available on the Intranet). Tip: If the property is the subject of the loan, select Subject Property and the address will auto-populate 1003 Details of Transaction Review Details of Transaction to ensure accuracy: Purchase price, closing costs, loan amount Cash From/To Borrower Enter any credits associated with the loan o App Fee (POC) o Lender Credit o Seller Credit o Earnest Money/Deposit on Contract o Seller Paid Owner s Title Policy Page 23 Ver. 9/24/13

26 Borrower Declarations and Government Monitoring Section VIII. Declarations Make sure declarations are properly filled out. If no co-borrower, the fields for C (co-borrower) should be left blank Ensure you ask your borrower(s) each question and complete accurately. *** If borrower(s) are neither a US Citizen or Permanent Resident Alien, enter N for both questions Tip: This is a great time to determine if borrower receives any alimony/child support. When asking if a borrower pays child support/alimony, they will often reply No but I receive it Section X. Information for Government Monitoring Complete HMDA information for borrower and coborrower (ethnicity, race, sex) Information Provided By is defaulted to Telephone Verify your originator/contact info is accurate *** 1003 Signature Date is the application date based on the entry of all 9 pieces of borrower information Page 24 Ver. 9/24/13

27 Step 4: Complete 2010 Itemization, GFE, TIL and Anti-Steering Safe Harbor 2010 Itemization Verify the correct Closing Cost Program is selected Ex: If a conventional loan, it should reflect 2010 Conventional Purchase and NOT VA Purchase If the Closing Cost Program is incorrect, follow the steps to change the Loan Template While reviewing the 2010 itemization, periodically select Copy Borrower column to 2010 GFE to ensure the correct fees are listed on the GFE. Line 801: fees defaulted based on Loan Template selected TFSB origination fees charged to the banker are $1338 o $1513 for Texas loans - Includes Atty. Doc Fees To charge an additional origination point or to charge a flat fee, enter the point in Loan Origination Fees Line 802: select appropriate choice for points or credits Option 1: No discount points or credits applied Option 2: Origination credit Do NOT use this option, all lender credits should be listed on 1003 Pg. 3 Option 3: Discount points enter the discount points as either a percentage or dollar amount ***One option must be selected in order to generate a compliant GFE *** If charging a discount point, make sure to select Bona Fide Line 803: Adjusted origination charge Total of Line 801 & Line 802 no action required Example of Lines completed with NO discount points Page 25 Ver. 9/24/13

28 Example of Lines completed with discount point Lines : Standard fees associated with the loan Fees listed include all possible fees related to the loan If there is subordinate financing, enter any fees associated the 2 nd Mortgage Fees Defined: o Appraisal Verify fee is in line with loan type & region o Credit Report - $69 is the standard fee, increase this fee if rescore, multiple reports ordered, etc. o 2 nd Appraisal A 2 nd appraisal may be required based on how long the seller has been on title. o Field Review Include on redisclosed docs if required by underwriting to confirm value o Final Inspection/Disaster Cert required if appraisal comes back Subject To or if property is located in a FEMA declared Disaster Area o W2 Fee for W2 transcripts if borrower is unable to locate their W2s o Condo Questionnaire & Docs Verify fees HOA association will charge to provide/complete condo docs & questionnaire o VOE Many employers now use The Work Number or similar online employment verification Tip: Inform borrowers that all fees listed might not apply to their specific loan Line 901: Daily Interest Charges Enter Interest From date (closing date) Interest To auto-populates based on the 1st Payment Date on 2010 GFE Page 26 Ver. 9/24/13

29 If Interest From date is greyed out, ensure the following have been completed: 1. Do we require escrows on 2010 GFE 2. Owners Title Insurance is > $1 for purchases 3. Line 802 option selected Lines : Escrow Information What is being escrowed defaulted to All Taxes and All Insurance o If escrowing both taxes and insurance, leave as is o If escrowing taxes only, uncheck All Insurance o If waiving escrows, uncheck both All Taxes and All Insurance Number of months escrows are collected defaulted at 2 months of taxes and insurance o Purchases leave at 2 months each o Refinances determine number of months based on closing date and taxes/insurance due dates o If escrowing taxes only, remove number of months from Insurance o If waiving escrows, remove number of months from both Taxes and Insurance Tip: Verify tax due dates with local assessor s office. Certain taxing bodies may collect at different frequencies, i.e. Property Taxes due twice a year and School Taxes due once a year Lines : Title Fees Fees listed are on average higher than actual title costs to be in line with national title vendor fees o National title vendors structure fees in 1 of 2 formats: 1. Higher 1102 & 1104 fees with fewer itemized (1101) fees or 2. Lower 1102 Fees with more itemized (1101) fees Items with asterisks roll up into Line 1101 Line 1103 Owner s Title Insurance is defaulted to $1 on purchases. Make sure to update Line 1103 to reflect an accurate Owner s Title Insurance fee prior to disclosing Tip: For more accurate title fees utilize rate cards/fee calculators available on the Originator s Guide Page 27 Ver. 9/24/13

30 Lines : Recording Fees & Transfer Taxes Be sure to enter Transfer Taxes on all purchases Fees Defined: o Total Recording Fees Sum of all recording fees o Recording Fees Fee required to record new mortgage, deed of trust, etc. o Transfer Taxes Taxes related to transfer of property or applicable mortgage taxes o City/County Stamps Any City/County stamps required for transfer of property o State Tax/Stamps - Any State taxes/stamps required for transfer of property o User defined recording fees, ex: Quit Claim Deed, 2 nd Mortgage recording fees, etc. Tip: Contact the title company to verify the transfer tax rate Lines : Required services Borrower can shop for Review all fees to determine if applicable to the transaction Update $1 fee to est. fee for required services Fees Defined: o Required services you can shop for Sum of all borrower elected fees o Certified Property Inspections Borrower elected home/property inspection o Attorney Closing Fee Borrower elected to use a real estate attorney o Pest Inspection Termite or other pest inspection o Attorney Opinion Letter attorney opinion review of trust documents o Power of Attorney cost associated with closing with POA o User defined fees, ex: well/septic test After updating/verifying all fees, select Copy Borrower column to 2010 GFE to ensure the correct fees are listed on the GFE. Page 28 Ver. 9/24/13

31 2010 GFE Loan Terms and Amounts Review for accuracy GFE Date will auto-populate once all 9 pieces of info are entered If disclosures are not sent to the borrower within 3 days of the GFE Date the loan is deemed non-compliant, must be withdrawn and a new loan file must be created. Verify the accuracy of the Loan Terms and Amounts Information is based on all previous data inputted into encompass Important Dates (Floating Rate at Initial disclosure) 1. Interest Good Through Date Date of the GFE 2. Settlement Charges Good Through Date 15 business days from the Date of the GFE 3. You must got to settlement within - NA when floating rate 4. You must lock your interest rate 15 days before closing Important Dates (Locked Rate at initial Disclosure) 1. Interest Good Through Date Lock Expiration Date 2. Settlement Charges Good Through Date 15 business days from the Date of the GFE 3. You must got to settlement within Number of calendar days the lock is good for 4. You must lock your interest rate NA when locked Verify the accuracy of the Summary of Your Loan Page 29 Ver. 9/24/13

32 Escrow Account Info defaulted Escrows Yes If borrower is escrowing taxes and insurance, leave as Yes If borrower is escrowing taxes only, leave as Yes If borrower is waiving escrows, select No Verify Adjusted Origination Charges are correct Tip: Select Open Itemization to access the 2010 Itemization and modify fees from the 2010 GFE Verify Required services we select are correct Verify the accuracy of the Title Services and Lender s Title Insurance and Owner s Title Insurance Page 30 Ver. 9/24/13

33 Verify Required services you can shop for are correct Verify Government Recording Charges Transfer Taxes & Initial Deposit for Escrow Account are correct For purchases ensure Transfer Taxes are listed on the 2010 GFE Review Daily Interest Charges Daily Interest Charges are based on the Settlement Date and First Payment Date Review Homeowner s Insurance Flood Insurance will be listed in this section if applicable Review Charges for All Other Settlement Services and Total Estimated Settlement Charges TIL Initial Disclosure must always be selected Review Current & Disclosed APR If APR changes by >.125 for Fixed Rate Mortgages or >.25 for ARMs, you must redisclose Ensure the following are always selected: E means an estimate All dates and numerical disclosures except late payment disclosures are estimates Page 31 Ver. 9/24/13

34 Anti-Steering Safe Harbor Disclosure Access Anti-Steering Safe Harbor Disclosure Under Tools Tab Anti-Steering Safe Harbor Disclosure Verify Anti-Steering Safe Harbor Disclosure correct Option 1: Lower Rate, Higher Fees Option 2: Current Loan Data o Form auto-populates based on info entered into 2010 Itemization o If info does not match, select Copy from Loan Data Option 3: Higher Rate, Lower Fees Page 32 Ver. 9/24/13

35 Step 5: Generate Disclosures Disclosures Required An alert will appear once all 9 pieces of info entered stating initial disclosures are required. Disclosures must be sent by due date listed. If disclosures are not sent to the borrower by 11:59PM on the Disclosures Due Date the loan is deemed noncompliant, must be withdrawn and a new loan file must be created. Generating Disclosures Preview Select efolder in borrower banner Select edisclosures in the efolder window Generate Disclosures: 1. Select correct Borrower Pair 2. Select applicable Loan Plan 3. Select Get Disclosures Tip: Do not type in Outlook or MS Word while generating disclosures Previewing Disclosures 1. Ensure all disclosures are selected 2. Select Preview to view electronically 3. Select Print to view in physical form 4. Follow Excluding from Timeline steps below Page 33 Ver. 9/24/13

36 Generating Disclosures Live Application Select efolder in borrower banner Select edisclosures in the efolder window Generate Disclosures: 1. Select correct Borrower Pair 2. Select applicable Loan Plan 3. Select Get Disclosures Tip: Do not type in Outlook or MS Word while generating disclosures Printing Disclosures: 1. Ensure all disclosures are selected 2. Select Print 3. In Print Menu select appropriate printer you wish to print to 4. Select Print Page 34 Ver. 9/24/13

37 Sample Disclosures Floating at Initial Disclosure 2010 GFE Page 1 1. Interest rate good through GFE Date 2. Estimated settlement charges good through 15 business days from GFE Date 3. After you lock your rate you must go to settlement within NA 4. You must lock the interest rate before close 15 Days Anti-Steering Safe Harbor Disclosure Page 2 Option 2: optimum mix of rate and fees reflects current rate & fees Page 35 Ver. 9/24/13

38 Application & Interest Rate Disclosure Page 1 Option II selected No Expiration Date listed TIL Page 1 Preliminary Disclosure selected APR, Finance Charge, etc. reflect E Page 36 Ver. 9/24/13

39 Sample Disclosures Locked at Initial Disclosure 2010 GFE Page 1 1. Interest rate good through Lock Expiration Date 2. Estimated settlement charges good through 15 business days from GFE Date 3. After you lock your rate you must go to settlement within Number of days rate is locked (ex. 23) 4. You must lock the interest rate before close NA Anti-Steering Safe Harbor Disclosure Page 2 Option 2: optimum mix of rate and fees reflects current rate & fees Page 37 Ver. 9/24/13

40 Application & Interest Rate Disclosure Page 1 Option I selected Expiration Date listed TIL Page 1 Preliminary Disclosure selected APR, Finance Charge, etc. reflect E Page 38 Ver. 9/24/13

41 Disclosure Tracking Once disclosures have been printed, an entry will be made in the Disclosure Tracking Screen Access any time under Tools > Disclosure Tracking If errors exist and the disclosures must be reprinted: 1. Go to the Disclosure Tracking Screen 2. Highlight the disclosure set in the log 3. Select Exclude from Timeline 4. Make corrections and create disclosures 5. See Generate Disclosures step by step To access/view disclosures after printing: 1. Double click on disclosure set in log 2. Disclosure Details window will open 3. Select View Document Tip: You can print specific disclosures or individual pages from this screen Page 39 Ver. 9/24/13

42 Additional Forms Additional Forms Overview In addition to above referenced forms required to generate a compliant application, you will utilize the following forms throughout the loan process: Lock Request Form Tracking Information Banker Loan Notes Lock Comparison Rush Request Form Lock Request Form Use the Lock Request Form to complete the following: Run pricing scenarios Register Loans Lock Loans Request loan modifications Extend locks Cancel locks *** For full details on Lock Desk policies and procedures go to TFSB Intranet -> Departments -> Secondary Marketing/Lock Desk Page 40 Ver. 9/24/13

43 Tracking Information Banker The Tracking Information Banker screen allows you to monitor the loan status throughout the process. As the loan progresses, each team member updates their section with pertinent information. Information on this screen is pulled through onto the SQL pipeline reports. LQA Information Key dates and info completed by the LQA as they work on the loan UW Analyst Information: Key dates and info completed by the Underwriting Analyst once the loan is sent to processing Page 41 Ver. 9/24/13

44 UW Information Includes all document expiration dates as noted on the UW Approval Closing Analyst Information Key dates and info completed by the Underwriting Analyst once the loan has been reviewed by an underwriter Many of these dates are pull through dates from previous sections Contact Information Complete all information for key file contacts to ensure the loan is processed accurately and efficiently Be sure to include Homeowners Insurance, HOA, Seller s Agent/Attorney and Buyer s Agent/Attorney (if applicable) Page 42 Ver. 9/24/13

45 Loan Notes Loan Notes Banker Loan Notes Enter important information regarding the loan. Be as specific as possible Items to include: o Income Calculations o Notes regarding trailing documents o Borrower preferred contact method o Nuances to the file o Any information that will help to ensure the loan is processed and closes in timely manner Lock Comparison The Lock Comparison is used to ensure accuracy between Encompass, Underwriting and the Rate Lock All fields must match across the board If any fields do not match, they will reflect Fix and the Comparison Result will show Fix Underwriting will not be able to issue a final Clear to Close until the Comparison Result is match Definitions o Documents Current information in Encompass o Secondary Rate Lock information o UW Information to which the file was underwritten ***Utilize the Lock Request Screen to make any change requests to the Rate Lock Rush Request Form Under certain circumstances, it may be necessary to rush a loan through the process to meet a closing deadline. To request a rush you must complete the following fields on the Rush Request Form Request Date Reason for Rush Provide detailed explanation for the Rush Request Rush is for: o Processing: Initial Review/Submission or Conditions Review/Submission o Underwriting: Initial Review or Conditions o Closing: Enter closing date and closing time Select Banker Acknowledgement Once the Rush Request Form has been completed, reach out to your Sales Manager to coordinate the Rush with the Operations Manager. Page 43 Ver. 9/24/13

46 User Support Useful Tips Keyboard Hot Keys: Function CTRL + S CTRL + C CTRL + X CTRL + V CTRL + D CTRL + U TAB F1 Purpose Save Copy data Cut data Paste data into Encompass Enters today s date in date field Launches calculator while in Encompass Moves cursor to next data field on a form Encompass Help Tip: Right Clicking the mouse does not work in encompass, use the copy & paste functions to quickly add information Searching in Encompass: CTRL + G Launches Go to Field function Enter the Field ID and select Find to go to a specific field CTRL + F Launches Find function Search for fields by keyword or phrase. Ex: Income Tip: To determine a Field ID, hover the cursor over the field and the ID, along with a brief description, will appear; or click in the field and the Field ID will be listed in the bottom left corner of Encompass Helpdesk, Scenario Desks & Additional Resources TFSB Helpdesk and Scenario Desks: Encompass/Paperless Support: paperless@thefederalsavingsbank.com IT Helpdesk: helpdesk@thefederalsavingsbank.com Conventional Scenario Desk: CONVscenariodesk@thefederalsavingsbank.com FHA Scenario Desk: FHAscenariodesk@thefederalsavingsbank.com VA Scenario Desk: VAscenariodesk@thefederalsavingsbank.com Investor Scenario Desks: Chase: correspondent.customer.support@chase.com Franklin American: corrum@franklinamerican.com Green Tree: Underwriting_Hotline@gtoriginations.com PHH: scenario@mortgagefamily.com Wells Fargo: scenario.helpline@wellsfargo.com Additional Resources for QSG Questions/Comments: QuickStartGuide@thefederalsavingsbank.com Page 44 Ver. 9/24/13