Wolters Kluwer Financial Services. ARTA Lending. User's Guide - Bank

Transcription

1 Wolters Kluwer Financial Services ARTA Lending User's Guide - Bank

2 This publication was written for ARTA Lending. Publication Information / Version ARTA Lending User's Guide - Bank Last Edited: August 2016 Distributed Subject to Terms of a License or other Agreement The contents of this publication, including its appendices, exhibits, and other attachments, as updated or revised, are highly confidential and proprietary to Wolters Kluwer Financial Services, Inc. or its subsidiaries or affiliates ( Wolters Kluwer Financial Services ). This publication is distributed pursuant to a Non-Disclosure Agreement, Evaluation Agreement, License Agreement and/or other similar agreement(s) with Wolters Kluwer Financial Services, Inc. or its subsidiary or affiliate. Unless otherwise specifically provided in such agreement(s), the reproduction of this publication is strictly prohibited. Use and distribution of this publication are also subject to the responsibilities and obligations of such agreement(s), which require confidential treatment of this publication and its contents. Information in this guide is subject to change without notice and does not represent a commitment on the part of Wolters Kluwer Financial Services. Do Not Reproduce or Transmit Unless otherwise specifically authorized in the agreement or license under which this publication has been provided, no part of this publication may be posted, played, transmitted, distributed, copied or reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, or retaining on any information storage and retrieval system, without prior written permission from Wolters Kluwer Financial Services. Requests for permission to reproduce content should be directed to Wolters Kluwer Financial Services, Inc., Corporate Legal Department, by telephone at Not a Substitute for Legal Advice This publication is intended to provide accurate and authoritative information about the subject matter covered based upon information available at the time of publication. Examples given in this publication are for illustrative purposes only. Development of this publication and the software (including forms, disclosures, reports, and other documents generated by the software) or other products that it describes was based on Wolters Kluwer Financial Services' understanding of various laws, regulations and commentaries. Wolters Kluwer Financial Services cannot and does not guarantee that its understanding is correct. This publication is not intended, and should not be used, as a substitute for legal, accounting, or other professional advice. Wolters Kluwer Financial Services is not engaged in providing legal, accounting or other professional services. If legal or other professional assistance is required, you should seek the services of a competent professional. We encourage you to seek the advice of your own attorney concerning all legal issues involving the use of this publication and any products described in this publication. If your interpretations or your counsel s interpretations are contrary to those expressed in this publication, you should of course, follow your/your counsel s interpretations. The following notice is required by law: WOLTERS KLUWER FINANCIAL SERVICES PRODUCTS AND SERVICES ARE NOT A SUBSTITUTE FOR THE ADVICE OF AN ATTORNEY. Warranty Disclaimer Except only for the warranties (if any) expressly set forth in the agreement(s) under which this publication is provided (i.e., your agreement or license for the described product), this publication is provided as is, and Wolters Kluwer Financial Services makes no warranty, express, implied, by description, by sample or otherwise, and in particular and without limitation, makes no implied warranties of merchantability or fitness for purpose. No modifications to this Warranty Disclaimer are authorized unless in writing and signed by the President or a Vice President of the Wolters Kluwer Financial Services entity licensing the product described in this publication. Trademarks and Credits ARTA is a registered trademark of Wolters Kluwer Financial Services, Incorporated. All other trademarks are the property of their respective owners. Copyright Information 2016 Wolters Kluwer Financial Services, St. Cloud, Minnesota This publication is the confidential information of Wolters Kluwer Financial Services. Distribution of this publication is subject to restrictions in the license or agreement under which this publication is provided to authorized Wolters Kluwer Financial Institution customers. All rights reserved. ii ii User's Guide - Bank

3 Table of Contents Introducing ARTA Lending... 1 What is ARTA Lending?... 1 ARTA Lending Product Family... 1 What s in the modules?... 2 What s in the Components?... 3 ARTA Lending Documentation Roadmap... 3 About This User s Guide... 4 Purpose... 4 Using This Guide... 4 Understanding Conventions... 5 Help! How to Get It... 7 What s This? Help... 7 Getting Started... 9 Introduction... 9 Getting Acquainted with ARTA Lending... 9 To Start ARTA Lending... 9 Logging into ARTA Lending... 9 Navigating Using the Main Menu Using the Transaction Menu Using the Transaction Toolbar Entering Data Understanding Field Colors What about the Colors on the Navigator? Special Characters Date Formats Using Save As in ARTA Lending Quitting the ARTA Lending Program Before Quitting To Close and Quit Starting Setup Introduction Tips for Setup General Setup Security Overview Group Setup User Setup User's Guide - Bank iii

4 Lender Setup Lending Setup Introduction Policy Setup Tips for Creating a Policy Profile Setting Up a New Policy Accrual Methods Repayment Methods Setup Initial Setup Rates Setup Initial Setup Consumer Open-End Daily Periodic Rate and APR Calculations Index History Setup Creating a Custom Index Deleting Indexes Documents Setup Tips for Setting Up Your Documents Printing Blank Documents Template and Report Setup Templates Considerations in Designing Templates Creating a New Template Template Navigation Printing Template Setup Completing the Criteria Information Completing the Borrower Information Completing the Fees Completing Documents Template Setup Completion Template Maintenance Reports Setting Up a New Report Report Setup Criteria Designing Reports Insurance Setup Introduction Credit Life Insurance Setup Credit Insurance Forms Credit Insurance Setup Worksheets Adding New Credit Life Insurance iv iv User's Guide - Bank

5 Disability Insurance Setup Disability Insurance Forms Adding a New Disability Insurance Plan Involuntary Unemployment Insurance Setup IUI Forms Adding a New Involuntary Unemployment Insurance Plan Private Mortgage Insurance Setup Setting Up a PMI Plan Transaction PMI Data Exchange User-Defined Fields Adding a New User-Defined Field Data Specifications Creating a Data Specification Export Targets Setting Up the Export Target Exporting Data from a Transaction Import Sources Setting Up a New Import Source Import/Export Development Kit Consumer Loans Introduction Preparing for Consumer Open-End Loans Creating a New Consumer Loan Creating a New Loan Transaction Navigator for Loans Criteria Borrower Fees Consumer Open-End Fees Calculations Payment Frequencies Basic Calculations Preferred Rate Options Credit Insurance Option State-Specific Fee Processing Loan Calculations Disbursements Payments Rates User's Guide - Bank v

6 Documents Documents List Completing the Document Prompts Validation Print Printing Your Loan Documents Commercial/Ag Loans Introduction Templates Creating a New Loan Criteria Borrower Fees Calculations Repayment Methods Calculation Options Button State-Specific Fee Processing Calculations Results Disbursements Documents Validation Print Residential Real Estate Loans Introduction Flood Hazard Determination Templates Criteria Borrower Fees Calculations Disbursements Documents Validation Print Processing Loans Introduction Recalling Loans Recalling a Loan Searching for a Loan Validation vi vi User's Guide - Bank

7 Overriding Validation Print Using the Print Preview Printing Denying a Loan Request ARM Early Disclosure Introduction Key Features ARM Programs Supported Creating an ARM Program Product FNMA/FHLMC Documents Non-FNMA/FHLMC Forms and Wolters Kluwer Financial Services Documents Non-FNMA/FHLMC Forms and Non- Wolters Kluwer Financial Services Documents Negative Amortization Payment Rate Validation Print ARTA Lending Plus HE Introduction Key Features Before Processing Your HE Plans Creating a Home Equity Plan Product Payment Rate Fees Validation Print Using the Utilities Introduction Backup and Restore Backup Guidelines Backing Up Your Data Files Restoring Your Data Files File Operations Searching for and Deleting Transaction Files Exporting Loans to XML Autoselection Defaults User's Guide - Bank vii

8 Font Settings Client Directories Changing Client Directories Customer Number TRID Effective Date Appendix A: Glossary How to Contact Wolters Kluwer Financial Services Support Technical Support Toll-Free SupportLine: , ext viii viii User's Guide - Bank

9 Introducing ARTA Lending What is ARTA Lending? Congratulations on your purchase of the ARTA Lending Documentation System from Wolters Kluwer Financial Services. ARTA Lending specializes in generating loan documents for routine and high-volume lending. It provides the practical features in a framework that s sized to fit the business needs of financial institutions like yours. The following topics are discussed in this chapter: ARTA Lending Product Family Documentation Roadmap About This User s Guide Understanding Conventions Help! How to Get It End-to-End Solution The ARTA Lending product family is a collection of modules and components that work together and share common data and general services. This allows access to information in one central location. ARTA Lending offers various modules and components to provide an automated solution for the complete lending process from start to finish. Your lending processes move easily from application and credit checking to loan origination and loan closing. ARTA Lending Product Family The product family consists of the modules listed below. When installed, the modules become part of ARTA Lending not as a separate program on your desktop. ARTA Lending ARTA Lending plus Home Equity ARTA Lending for Credit Unions ARTA ARM Early Disclosure ARTA Home Equity Early Disclosure ARTA ARM/HE Early Disclosure ARTA Lending Configurations User's Guide - Bank 1

10 Introducing ARTA Lending Application Module Configurations ARTA Lending and Application Module ARTA Lending plus Home Equity and Application Module ARTA Lending for Credit Unions and Application Module Credit Bureau Access Module Configurations ARTA Lending and Credit Bureau Access Module ARTA Lending plus Home Equity and Credit Bureau Access Module ARTA Lending for Credit Unions and Credit Bureau Access Module ARTA Lending and Application/Credit Bureau Access Modules ARTA Lending plus Home Equity and Application/Credit Bureau Access Modules ARTA Lending for Credit Unions and Application /Credit Bureau Access Modules Module Configurations Application Module Application/Credit Bureau Modules ARM/HE plus Application Module ARM/HE plus Application/Credit Bureau Modules (For Credit Unions) Application Module (For Credit Unions) Application/Credit Bureau Modules (For Credit Unions) ARM/HE plus Application Module (For Credit Unions) ARM/HE plus Application/Credit Bureau Modules What s in the modules? The ARTA Lending modules are programs that work well together and have a similar interface. Take a quick look at the ARTA Lending modules: 2 2 User's Guide - Bank

11 Introducing ARTA Lending Application Module prints a credit application and related documents. You collect and incorporate this information only once up front. Once a loan decision is made, information can be passed along for appropriate loan documentation. Credit Bureau Access Module allows quick access to credit report and credit score information. Wolters Kluwer Financial Services has teamed up with Kroll Factual Data Corporation as our credit report provider. Credit report information is imported directly into ARTA Lending, making your loan origination process more efficient. ARTA Lending Plus HE supports open-end home equity lending. When installed, early disclosures, agreements, and other closing documents for consumer open-end home equity lending become part of ARTA Lending not as a separate program on your desktop. What s in the Components? ARTA Lending functionality is enhanced by the following components: OneSumX Customer Due Diligence is a suite of integrated and component-based services including a risk assessment module and an identity verification component with offerings to include OFAC and FINCen lists, international data source, data retention, fraud databases, and more. All these combine to provide a risk-based approach to meeting the ID verification and record retention requirements of Section 326 of the USA PATRIOT Act. Flood Determination Services allows you to order a flood determination for a real estate or mobile home transaction with a simple click of the Flood Determination Services icon in ARTA Lending. Via the Internet, Flood Determination Services collects the data needed to populate the Standard Flood Hazard Determination (SFHD) and Flood Insurance Notice (FIN). Wiz Basic Home Mortgage Disclosure Act integration enables you to collect Home Mortgage Disclosure Act (HMDA) reporting data for a single application or loan transaction, obtain geo-code and rate spread information for a transaction, and edit check the Loan Application Register (LAR) data for a single transaction. In addition, batch functions on groups of transactions are also supported to collect or update the HMDA data. Wiz Sentinel Home Ownership and Equity Protection Act provides a means for you to collect the appropriate information then determine the federal HOEPA status of a transaction and the Higher Priced Mortgage status when applicable. You may also, then, select appropriate federal disclosure documents for the transaction. Where state or local high-cost lending laws apply, ARTA Lending also provides a means to collect state/local data for a single application or loan transaction and obtain state/local determination for a transaction. NOTE: State-specific high-cost lending documents are not supported by ARTA Lending. Only the determination is provided. You should consult with your legal counsel to determine the appropriate documents to provide based on the determination. ARTA Lending Documentation Roadmap Documentation for the ARTA Lending Documentation System includes: User's Guide - Bank 3

12 Introducing ARTA Lending The User s Guide Provides supporting information for using the ARTA Lending Documentation System. The Release Notes Contain: Late-breaking information about a new release Brief descriptions of the new features in the program Information on revisions to the program Technical notes The Release Notes are included with every software release. You can find them on the product CD in the Readme folder or on the Software Support web site at: The Installation Instructions Contain step-by-step instructions for installing ARTA Lending. To ensure a successful installation, follow the instructions carefully. The Installation Instructions are included with every software release in the Readme folder on the product CD and on the Software Support web site at: Credit Insurance Setup Worksheets These tools, included in your initial package, for credit life insurance and disability insurance allow you to get information from your insurance company. The requested information is needed to properly enter information in the Credit Life and Disability setup sections, which are used in calculating and disclosing credit insurance premiums. ARTA Lending Sample Forms Book and ARTA Training Course Workbook These are available through our training classes. Module Guides These can be found on the product CD or on our web site, one guide per module: Guide to ARTA Lending Application Module Guide to Credit Bureau Access Module Guide to Flood Certification Component Guide to HMDA Component About This User s Guide Purpose The purpose of the User s Guide is to familiarize you with the power and flexibility of ARTA Lending. The User s Guide is mostly a reference tool, though instructions on core tasks are provided. NOTE: Wolters Kluwer Financial Services believes the information described in this guide is accurate and reliable. Much care has been taken in its preparation. However, Wolters Kluwer Financial Services accepts no responsibility, financial or otherwise, for any consequences arising out of the use of this guide. The information contained in this guide is subject to changes and revisions may be issued from time to time. Using This Guide This guide is intended for anyone involved in processing loans using ARTA Lending. 4 4 User's Guide - Bank

13 Introducing ARTA Lending To use ARTA Lending and this guide effectively, you should be familiar with the Windows operating environment. You should know or learn Windows fundamentals before you begin working with ARTA Lending. Due to the nature of the ARTA product family and the ability to purchase only those modules that you require, some buttons, views, or options may not be available to you that are presented in this guide. Generally, the options to which you should have access will be obvious in your program. Organization of the User s Guide The User s Guide is organized to flow in a manner similar to how you might use ARTA Lending with loans. Chapters 1 and 2 include conventions for using ARTA Lending, how to navigate, and use Help. Chapters 3, 4, 5, and 6 discuss setup, including loan templates, security, policy, insurance, and other information required for lending. Chapter 7 deals with importing and exporting of data, including the creation of user-defined fields. Chapters 8, 9, and 10 deal with creating standard loans, including consumer, commercial, and real estate. Chapter 11 deals with loan processing. Chapters 12 and 13 deal with ARM and HE loans. Chapter 14 discusses maintenance routines such as data backup. Understanding Conventions Certain conventions are used throughout the user guides. Familiarize yourself with these conventions before you begin working with ARTA Lending and using the guides. Screen and Data Illustrations Certain data used in the documentation is fictitious, expressly and solely prepared for the purpose of concept or visual illustration associated with the appearance, maintenance, use, and operation of ARTA Lending. Any and all similarities to an actual financial institution or credit union data, or any other circumstances are purely coincidental. Documentation Conventions Action Description Bold Italics Bold typeface is used sporadically for emphasis throughout the text and consistently on words, specific file names, commands, and certain buttons that you must select. Italics are used for specialized terms and titles of other documentation and for emphasis in certain examples. Note that Flood Determination Services is always User's Guide - Bank 5

14 Introducing ARTA Lending partially italicized. ALL CAPS Directory names, file names, and acronyms. However, when you type directory names and file names, you can use lowercase letters. Mouse Conventions Use a single mouse click with ARTA Lending. The left mouse button is the primary mouse button, unless you have configured it otherwise. Mouse Action Point Click Double-click Right-click Description Position the pointer so it rests on the desired item on the screen. Point to an item, press the left mouse button, and then immediately release the button without moving the mouse. Point to an item, then quickly press and release the left mouse button two times. Point to an item, press the right mouse button, and then immediately release the button without moving the mouse. Keyboard Conventions The keys on your keyboard may be labeled differently than those described in this guide. Keys Shortcut keys TAB, SHIFT+TAB,UP ARROW, DOWN ARROW, RIGHT ARROW, LEFT ARROW, HOME, END, PAGE UP, PAGE DOWN Numeric keypad keys Comments Use shortcut keys in combination or in sequence. For example, SHIFT+F3 means hold the SHIFT key while pressing the F3 key. Use these keys to navigate in the program. If your keyboard has a numeric keypad, press the Num Lock key to type numbers using the keypad. 6 6 User's Guide - Bank

15 Introducing ARTA Lending File Extensions ARTA Lending uses some specialized file extensions for data and other uses. File Extension Definition!lk.ap.bak.cb.dat.db.dbm.ini.ln locked file application file backup file credit bureau file data file setup file template file initialization file that stores system-specific information about ARTA Lending loan file Help! How to Get It Regardless of your technical ability or experience with industry-related references, you may need help from time to time. With that in mind, we have developed several ways to make things easier for you. Online Help or more specifically, What s This? Help User s Guide, Module Guides, and the current Release Notes Phone Wolters Kluwer Financial Services Technical Support: ARTA Lending Support, ext Web NOTE: See the Technical Support page for detailed contact information What s This? Help Context-sensitive Help, also known as What s This? Help, contains a brief description of a specific field or item in a screen. What s This? Help button User's Guide - Bank 7

16 Introducing ARTA Lending To view What s This? Help, click the? button on a toolbar or the [?] button in the upper-right corner of some windows. Then, click the item you want information about. Another method is to click the mouse pointer on the item and press F1 on the keyboard. Shift+F1 also brings up the Help cursor. TIP: To exit from What s This? Help without making a selection, click the mouse button again or press Esc. 8 8 User's Guide - Bank

17 Getting Started Getting Started Introduction The purpose of this chapter is to acquaint you with navigation in ARTA Lending and use of the toolbar and dialog boxes. The following topics are discussed in this chapter: Getting Acquainted with ARTA Lending Navigating Entering Data Using Save As in ARTA Lending Quitting the ARTA Lending Program Getting Acquainted with ARTA Lending To Start ARTA Lending Double-click the ARTA Lending icon on your desktop, or select the program through the Windows Start menu. Logging into ARTA Lending The first thing you will see is a request to logon to ARTA Lending. You must have a valid user ID and password to gain entry to ARTA Lending. User's Guide - Bank 9

18 Getting Started NOTE: When you open ARTA Lending for the very first time, the default User ID is Supervisor and the Password is password. NOTE: If you cannot logon or do not see the Navigator items you need to complete tasks, contact your security administrator. Security setup for Groups and Users is discussed in detail in Starting Setup User's Guide - Bank

19 Getting Started Navigating After a successful logon, the main ARTA Lending program screen is split into two parts: the navy-blue Navigator displays the primary program functions on the left side. The information related to each Navigator choice displays on the right side. Click the plus sign to expand a selection on the Navigator. Click the minus sign to collapse or hide the selections. The black indicator shows your current location in the Navigator. Select List View For many Navigator choices you have the option to open a new, blank item from the top of the list or select from the alphabetically organized list of completed items. The Navigator To change the size of either side of the screen, drag the bar that separates the two sides. You may choose to use the mouse or keyboard to navigate through ARTA Lending. Using the Main Menu The Main Menu contains the following commands, each of which has a subsequent drop-down menu of commands. NOTE: The choices on the Main Menu will vary depending on the ARTA Lending modules installed. The Main Menu drop-down menus are as follows. User's Guide - Bank 11

20 Getting Started Main Menu Name File View Application Lending Early Disclosure General Setup Utilities Drop-Down Menu Commands Client Printer Setup Exit Status Bar Refresh New Recall Application Worklist Loan Decision Worklist New Recall Loans Worklist Setup Insurance ARM Programs HE Plans Lender Group User Data Exchange Backup and Restore File Operations Autoselection Defaults Font Settings HMDA Reporting Client Directories Customer Number Help What s This? Shift+F1 About ARTA TIP: To open a menu from the keyboard, press Alt and type the underlined character of the menu. For example, press Alt, then G to display the General Setup menu, then press L for Lender. Using the Transaction Menu Whenever you are working in a loan or other transaction, the Transaction menu contains the following commands, each of which has a subsequent drop-down menu of commands User's Guide - Bank

21 Getting Started The Transaction menu drop-down menus are described below. Menu Name Drop-Down Menu Commands File Save Ctrl+S Save As Preview and Print Ctrl+P Import Export Close Exit Edit View Options Help Undo Ctrl+Z Cut Ctrl+X Copy Ctrl+C Paste Ctrl+V Toolbar Status bar Parties Calculations Summary Amortization Add Documents Validation What s This? Shift+F1 About ARTA Using the Transaction Toolbar Whenever you are working in a loan or other transaction, the Transaction Toolbar is displayed below the Transaction menu. The Transaction Toolbar displays button icons that correspond to menu commands. User's Guide - Bank 13

22 Getting Started Toolbar Button Descriptions Save Preview and Print Cut Copy Paste Undo Previous (Ctrl+PgUp) Next (Ctrl+PgDwn) Validation Import data Add Documents Export data Calculate Payments HMDA Red Flag/ OneSumX Customer Due Diligence Parties Flood Determination Services HOEPA What s This? Help Toolbar Tips The Parties button gives you quick access to all the parties to the loan information. Click the Save button to quickly save your loans. Clicking the Print and Preview button displays the Print option on the Navigator; you must select the Print All Selected Documents to print to the printer. Clicking the Undo button will reverse changes made within a field before you leave that field. TIP: If you forget what a toolbar icon represents, place the mouse pointer on the button for a few seconds but do not click. This displays a pop-up screen with the name of the toolbar button s command on it. The pop-up screen is called a tool tip. Entering Data Understanding Field Colors As you enter information into data fields, you may notice that different colors display from field to field. ARTA Lending continually monitors data entry to ensure that the right type and value of data is entered into a field. Field colors are used by ARTA Lending to help ensure proper data entry and to help troubleshoot and correct data entry errors User's Guide - Bank

23 Getting Started Field Color Reference Blue Field Colors Description Designates your current field location. Green Yellow Purple Gray Red Dark Red White on Black Indicates a required field; therefore, you must enter data into the field. If left blank, it will result in a validation warning. Indicates the normal data entry field. You can enter data, or leave the field blank if not applicable for your institution or for the given transaction. Indicates a field is protected, but the value can be changed while processing a loan. If changed, it will result in a validation notice. Indicates a protected field. The field is visible during loan processing, but you cannot enter, change, or erase data appearing in the field. Signals potential data entry errors. If left unchanged, it will result in a validation notice. Indicates a change has been made to a protected (purple) field. It will result in a validation warning if not changed back to the preset value. During template creation, this indicates a field has been set to invisible. You will not see these fields when processing a loan using the template. NOTE: Some of the field colors listed above will only show when field attributes are set in a template. See Template and Report Setup for information on setting field attributes in a template. What about the Colors on the Navigator? Text in the left-hand transaction Navigator will sometimes change from white to a different color when displaying documents selected during a loan operation. User's Guide - Bank 15

24 Getting Started Navigator Color Red Description Signals potential data entry errors. If left unchanged, it will result in a validation notice. Yellow Indicates an autoselected document is no longer needed when changes were made after the autoselection took place. Special Characters Do not use special characters when typing into text boxes. Some of the special characters have special meaning to the program and cause errors when printing documents. Special characters to avoid using include the # $ % ^ & * ( ) / + = < > Date Formats ARTA Lending provides flexible date entry, allowing you to type a full date using four-year digits such as, 7/1/2005 for July 1, 2005, as well as a number of shortcut techniques for entering dates. A common shortcut technique is abbreviating the year to only two digits such as 7/1/05 or 7/05. Date fields in the program attempt to interpret information entered so dashes or date separators are not needed since the program automatically formats the date. When deciding whether a date should be forward-dated or backdated, the program assumes that a loan is entered on the same day that it is closed. NOTE: Double-check the final date displayed if you used a shortcut to enter it. Date Shortcuts Entering 3m will calculate a date 3 months into the future. Entering the letter t will default to today s date. Entering the word first will default to the first of the next month. If you type one, two, or three digits in a date field, the program interprets this as the number of days from today s date. The program calculates the date you want as the system date (today s date) plus the number of days (typed) into the future. For example, entering 30 will display the date 30 days into the future User's Guide - Bank

25 Getting Started When placing four to seven digits in a date field, the program will attempt to interpret the date. It is important to note that what the program interpreted may not match what you meant. To be sure that the correct date is entered, type a full 8-digit date (for example, 11/01/2005). IMPORTANT: One exception to the above shortcuts is the first payment date ' field found on the Calculations screen. The above rules still apply, but instead of calculating from today s date, the field calculates from the date entered in the funding date field on the same screen. You are responsible for verifying that a date you enter is correct if you use a date shortcut and enter fewer than 8 digits. Date Interpretations ARTA Lending further tries to assist you by determining a date, in some cases, from rules about various date fields. An example of this is the Related Documents section on the Line of Credit document. Document prompts request the date of the security agreement, mortgage, and guaranty. Because these documents would typically have been executed on the same day or before the current transaction, the program assumes that these dates will equal or precede the note date of the current transaction. Another factor in date interpretation is the system date. The system date has a year beginning with the 20xx century indicator. If you type fewer than 8 digits to describe a related document date, the program assumes, since it is a prior date that a 19xx century is required. So, if today's date is 11/1/05 and you type as the date for a related document, the system interprets the shortcut date as 01/01/1905. In these situations, you must type full 8-digit date to get the date to print with the 20xx century indicator. Using Save As in ARTA Lending When creating or editing information in many parts of ARTA Lending, a Save As button appears at the bottom of the screen. This functionality allows you to reuse information. For example, in Lender Setup, you can use the Save As button to save lender information under the name of a different branch. When you open the branch information, you only need to change information specific to the branch rather than re-enter everything. To use Save As: 1. Open any previously saved information. 2. Edit as necessary to create a different profile. 3. Click Save As. User's Guide - Bank 17

26 Getting Started Type the name for the new item, in this case a lender, and click Save. 4. Enter a new name and click Save. 5. Click OK on the screen to finish. Quitting the ARTA Lending Program Before Quitting Before you quit ARTA Lending, make sure all loans, templates, and setup files are saved and closed. Save Your Files You can save loans at any time. To save files, click the Save button on the toolbar. Another way to save your files is to press the Ctrl+S shortcut. IMPORTANT: Remember to save your work often! To Close and Quit Always exit ARTA Lending by clicking the close button [X] in the upper-right corner or by choosing the Exit option from the File menu. IMPORTANT: Do not turn off or restart your computer while the program is running. Exiting the program in an irregular way can cause data corruption User's Guide - Bank

27 Starting Setup Starting Setup Introduction Before processing transactions, you need to set up ARTA Lending for use at your institution. This chapter will step you through the following: Tips for Setup Lender Setup Security Overview Group Setup User Setup Adding information into the various setup sections will allow you to customize ARTA Lending to your daily uses, allowing your loan officers and customers to only work with information needed to complete transactions at your institution. Note that basic setup information applies to all modules and components in ARTA Lending. Tips for Setup Setup and Customization The setup areas are designed for setting, customizing, and maintaining your lending information for processing transactions with the appropriate loan documentation. This is where you define the default settings for your financial institution. In the setup areas, you enter data once and reuse it during application and loan transactions. Some important notes before you begin setup: ARTA Lending performs best if you enter as much information as you can in the setup areas. This will help increase the productivity of your ARTA Lending users. Your ability to achieve your goals is based on your own needs and how well you can define them and then transfer them into the design of ARTA Lending. It is your responsibility to verify that the setup information is accurate and correctly entered into the program and to review the setup after program updates. Setup can be approached as a repeated process. If you make errors during setup, you can always go back and make changes. Setup allows you to define default settings for your institution, which will eliminate repetitive data entry. As you move through the setup screens, press the Tab key to move to the next field or Shift+Tab to move back a field. You may find this easier. User's Guide - Bank 19

28 Starting Setup NOTE: The purpose of the following setup information is to instruct you on the use of ARTA Lending and not to advise you on the guidelines, policies, procedures, or requirements of your institution. Do not alter your policies based on this information. General Setup In General Setup you can set up lender information and establish the security for your institution in ARTA Lending by setting up users and groups and assigning users to groups. IMPORTANT: The setup items can be entered in any order you choose. However, at least one lender and one policy must be defined for ARTA Lending to select and print documents. Entry into the setup sections of ARTA Lending is based on the user permissions established in Groups and Users. A user must have the proper permissions to access setup and change or enter information. Without proper permissions, setup choices do not appear on the Navigator menu. NOTE: Carefully read the following sections in this chapter for more information on establishing permissions and security in ARTA Lending: Security Overview, Group Setup, and User Setup. Security Overview Each user who will do work on ARTA Lending must be assigned a user ID and password. This is specified in each user s profile, accessed from the General Setup, User section of the Main Navigator. In addition to a user ID and password, users need permission to work in various areas of the program. Permissions to use various modules, nodes, and menus in ARTA Lending are controlled by Groups. Even with a user ID and password for logon rights, a user will not be able to do work on ARTA Lending until they have been assigned to a group. TIPS: A security administrator must create at least one group before a user can log on. These groups define the access rights of individual users that are assigned to the groups. The security administrator can create as many groups as needed to meet the security needs of their institution. After groups are created, the security administrator updates each user profile to assign the user to a group, thus establishing the user s permissions to the program, and to add a unique user ID and initial password for the user. Once groups and users are set up, users will be able to log on and access those functions and areas to which they are authorized. ARTA Lending will dynamically display only those functional areas to which a user has permissions. This means a loan processor might only see the Loans tasks if that is the only permission to the program User's Guide - Bank

29 Starting Setup Someone who only uses the Application module would not see other Navigator commands. This can help make staff training easier. Use of a Super-user ID A super-user ID is provided so that when ARTA Lending is installed, the security administrator can log on to the program to create one or more Security Groups, and to assign a User ID and initial password to each user. IMPORTANT: Immediately after installing ARTA Lending, the security administrator can log on to ARTA Lending using the super-user ID, to setup security: The super-user ID is supervisor and the password is password. We recommend using the super-user ID for initial security administration purposes only. The super-user ID does not have a profile; therefore it cannot be assigned to a group and will not have permission to some ARTA Lending functions. After logging on with the super-user ID, we recommended that the security administrator, create a security administration group. This allows you to: Specify a security administration group with all program permissions. Administer security and user access without providing the initial super-user ID and password to other users. After this group is created, and the security administrator or other users are assigned to this group, you should change the initial password for the super-user ID. This will help limit access to the program using the super-user ID. Group Setup Before any users can log on to ARTA Lending, security groups must be created by the security administrator. To create security groups: 1. On the Main Navigator, select General Setup, Group. Group Setup from the Main Navigator User's Guide - Bank 21

30 Starting Setup You can also access Group Setup by selecting Group from the General Setup menu, as shown below. The Select Group to Edit screen appears User's Guide - Bank

31 Starting Setup 2. Click Add New to create a new group. The Group Setup screen appears. NOTE: Permissions on the Group Setup screen may vary slightly depending on which ARTA Lending modules or components are installed. 3. Type a unique name for your security group in the Group name text box. The group name must be at least one character. Letters, numbers, spaces and other keyboard characters can be used. 4. Select the appropriate check boxes and corresponding options to give this group access to the program functions you want. Clear the check box to remove a permission. 5. When you have finished setting permissions, click OK to save your changes and return to the Select Group to Edit screen. User's Guide - Bank 23

32 Starting Setup Deleting a Security Group You cannot delete a group that has users assigned to it. To successfully delete a group, first reassign or remove all assigned users. Also, in order to delete a group, you must have permission to User Setup and Group Setup. To delete a security group: 1. From the Select Group to Edit screen, right-click the group you want to delete. 2. Click the Delete command from the shortcut menu that appears. 3. In the confirmation message that appears, click Yes to verify you want to delete the selected group. Group Setup Report The Group Setup Report shows the permissions given to the group, and lists the names and user IDs of users assigned to the group. You can view and print out a report of the group you are currently working with by clicking the Print Group Setup button at the bottom of the Group Setup screen. The Report Preview screen is displayed. User Setup After one or more Groups are defined, the security administrator can add users to each group as appropriate. If you created your user profiles before creating groups, you will need to assign each user to a group before a user can access any features in ARTA Lending. TIP: When creating the user IDs and passwords, we recommend that the security administrator set all user passwords to an initial generic password. Each user should be instructed to change their password upon their first logon User's Guide - Bank

33 Starting Setup To create or edit Users: 1. On the Main Navigator, select General Setup, User. User Setup from the Main Navigator User's Guide - Bank 25

34 Starting Setup 2. Click Add New to create a new user, or click a user name to edit an existing user s information. The User Setup screen appears. 3. Enter the appropriate information in the fields and click OK to save your changes. NOTE: You must at least fill in the Full Name, User ID, Group and Password for each user. Observe the following rules for User ID: The ID must be between 1 and 35 alpha or numeric characters. Spaces are allowed. No special characters are allowed. Observe the following rules for passwords: The password must be between 8 and 35 alpha or numeric characters. No special characters are allowed. Spaces are allowed. Asterisks appear for each keyed character User's Guide - Bank

35 Starting Setup Passwords are case-sensitive. NOTE: If a user forgets the password, the administrator will need to reset it in User Setup. Lender Setup Lender information is needed to print in the lender section of the documents and must be set up to autoselect and print your loan documentation. It also gives you more options for printing your reports. NOTE: You will need to belong to a group with permissions to Lenders to add or edit the contents. To setup a lender: 1. Expand General Setup, select Lender. 2. Click ***Add New*** to start a new Lender or, if other Lender profiles exist, select one of them to edit. 3. Complete the Lender Setup information and click OK. Remember that the green field color indicates required information and the field must have an entry. Enter the hyphen for the tax identification number (TIN), which differs from the social security number. Example: User's Guide - Bank 27

36 Starting Setup If you check this box to use an alternate address, more text fields appear for alternate address entry. Credit high and low ranges that you enter here are passed to party Details in transactions. However, the setup ranges will be overwritten if you pull a credit report using Credit Bureau User's Guide - Bank

37 Lending Setup Lending Setup Introduction Setting common defaults for use during transactions is beneficial. The use of standard default material speeds and reduces the number of decisions required during the loan application process. This chapter addresses the addition of default information to the following setup areas: Policy Setup Repayment Methods Setup Rates Setup Index History Setup Documents Setup Policy Setup The policy profile designates which state s document set to use for the transaction along with other optional policy issues, such as default values for late charges and available accrual methods. This information must be completed for proper document autoselection and printing. NOTE: You must have permission for Lending Setup, Policy to add or edit policies. Tips for Creating a Policy Profile Some items to note before creating policies: You must have one policy profile set up to effectively use ARTA Lending. Try to name your policy profile with a meaningful name; for example, Consumer Non-Real Estate. This will help you easily recognize the different policies created. You can set up as many different policies as you need for the different kinds of loans you process. Once created, you can select a policy profile whenever you create a loan or template. Information from a selected policy profile will only default into the loan documents once. Edits made to the policy after beginning a loan will not refresh the prompts. Setting Up a New Policy 1. Expand Lending Setup from the Navigator and select Policy. 2. Click ***Add New***. 3. Complete the Policy Setup information and click OK. User's Guide - Bank 29

38 Lending Setup After you make your state selection, the Accrual Methods button is displayed. These items may not apply in every state. Enter standard vesting language. Check this box to select the Fed box option. Check this box to define custom fields User's Guide - Bank

39 Lending Setup Custom Fields on Documents ARTA Lending provides two custom fields that you can define for use on documents. The heading text you type displays as a prompt on the screen. Each field allows you to enter loan-specific data. Both the heading and the text entered will appear on the upper right-hand corner of some documents such as the UN and NDas notes. Accrual Methods After you make your state selection for your Policy profile, the Accrual Methods button displays. Click this button to select the accrual methods for this Policy profile. Accrual Method Setup All accrual methods listed on this screen may not be applicable in your state. All methods are selected by default. Clear the check mark from those accrual methods that you do not want to have available at loan transaction time. User's Guide - Bank 31

40 Lending Setup You may clear the options not used by your institution. Click a check box to clear the check mark. Accrual Method Descriptions Actual/365 The actual/365 accrual method is used to calculate simple interest loans. The word actual refers to the actual days in each period that are counted in charging interest. With this method, daily interest is calculated based on 365 days per year. The resulting daily factor is multiplied by the actual number of days in the period over which interest is being calculated. Actual/360 The actual/360 accrual method is used to calculate simple interest loans. The word actual refers to the actual days in each period that are counted in charging interest. With this method, daily interest is calculated based on 360 days per year. The resulting daily factor is multiplied by the actual number of days in the period over which interest is being calculated User's Guide - Bank

41 Lending Setup Actual/Actual The actual/actual accrual method is used to calculate simple interest loans. The word actual refers to the actual days in each period that are counted in charging interest. With this method, daily interest is calculated based on the actual number of days in the year (365 days for nonleap years and 366 days for leap years). The resulting daily factor is multiplied by the actual number of days in the period over which interest is being calculated. Periodic The periodic accrual method is used to calculate simple interest loans. The daily interest factor is calculated based on equal-length periods. Precomputed Add-On The interest of the loan is calculated at the beginning of the transaction and added to the principal. When add-on interest is used to calculate a loan, an add-on rate is used instead of a simple interest rate. The APR is higher than the rate stated in the loan agreement because the add-on accrual method does not take into consideration the reduction of principal as installment payments are made. Precomputed Discount The interest of the loan is calculated at the beginning of the transaction and deducted in advance from the face value of the loan. The borrower receives the face value less the interest. Precomputed Simple The simple rate is considered an equivalent rate of interest (ERI). The payment is calculated such that the ERI is not exceeded. Split Rate Add-On This method of accruing split rate interest assigns an add-on interest rate to two or three different tiers. If the tiers are based on the loan amount, the interest rate for each tier is applied to that portion of the loan balance, which falls within that tier. If the tiers are based on a number of months, the interest rate is determined by a formula which weights the interest rate for each tier according to the number of months in the loan term which are contained in that tier. The tiers can be based either on the loan amount or on a number of months. Split Rate Simple This method of accruing split rate interest assigns a simple interest rate to two or three different loan amount tiers. The interest rate for each tier is applied to that portion of the loan balance that falls within that tier. Split Rate Setup The Split Rate Setup button appears in Policy setup under the Calculation Options area. NOTE: Split Rate Setup is not available in every state. User's Guide - Bank 33

42 Lending Setup The Split Rate Setup button is available with the Split Rate Add On and/or the Split Rate Simple accrual method. Define your split rate tiers by the dollar amount of the loan. Type the dollar amount that defines the upper end of the first split rate tier. Type the interest rate for the first split rate tier. Repeat for the second split rate tier. Type the interest rate for the third split rate tier. Define Split Rates by Dollar Amount If split rate simple is the only available split rate accrual method for the Applicable law state/document set selected, the Split Rate Setup screen allows you to define tiers by dollar amount. Define Split Rates by Dollar Amount or by Months If split rate add-on is the only available split rate accrual method for the Applicable law state/document set selected, the Split Rate Setup screen allows you to define tiers by dollar amount or by months. If split rate add-on and split rate simple are both available accrual methods for the Applicable law state/document set selected, the Split Rate Setup screen allows you to define tiers by dollar amount or by months. If you define the tiers by months and calculate a loan using the split rate simple accrual method, you will receive the following error message: Split rate definition based on monthly tiers is not currently supported User's Guide - Bank

43 Lending Setup Choose this option if your split rate tiers are defined by the term of the loan. Type the number of months in the first and second split rate tier. Repayment Methods Setup This section allows you to define the repayment method options available for consumer open-end loans during the draw period and repayment period. Setting up repayment methods allows you to choose which of all defined methods will be used in the transaction. The methods specified in the transaction will print on the loan documents. NOTE: You must have permissions to Lending Setup, Repayment Methods to edit the contents. For more information see Consumer Loans: Payment Frequencies. Initial Setup 1. Expand Lending Setup from the Navigator and select Repayment Methods. Note the two repayment period tabs. 2. Select one or more repayment methods from the Draw period repayment methods tab. Draw period repayment methods describe the payments during the draw period and are required for all consumer open-end loans. User's Guide - Bank 35

44 Lending Setup Check all of the Draw Period repayments applicable to your plans. Selections are saved as you select each option. You may select as many repayment methods as you want in this setup section. When you process an open-end loan, you will be able to select up to three repayment methods for the given transaction. At least one method for the draw and repayment periods must be chosen in order to process a loan. Select one or more repayment methods from the Repay period repayment methods tab. Repay period repayment methods are only used when the draw period expires before the maturity date User's Guide - Bank

45 Lending Setup Check all Repay Period repayments that are applicable to your plans. As you check your selections, the program saves your data. You may select as many repayment methods as you want in this setup section. When you process an open-end loan, you will be able to select up to three repayment methods for the given transaction. At least one method for the draw and repayment periods must be chosen in order to process a loan. 3. When you are finished, you may return to the Main Navigator. The program saves your selections. User's Guide - Bank 37

46 Lending Setup Rates Setup The Rates setup area allows you to define your fixed or variable interest rate index. This helps ensure proper calculations at transaction time. NOTE: You must have permission to Rates to add or edit the contents. Initial Setup 1. Expand Lending Setup from the Navigator and select Rates. 2. Click ***Add New***. Type a descriptive name for this new interest rate plan. The rate plan name is used to identify the plan. 3. Complete the Rate Setup information and click OK. Choose this option if this rate plan is to be used for your consumer open-end loans. The four options available for Rate change affects are discussed below. If you have no floor and/or no ceiling, you may choose Specific value and leave the rate field blank User's Guide - Bank

47 Lending Setup Rate Change Affects The four options for Rate change affects are: Payment Final payment Payment amount and final payment Term of loan NOTE: These four options also link to the repayment method selected for a transaction (that is, installment, balloon, and so on). You will always see all four options for Rate change affects for all loan types. If an unsupported option is selected, however, it will be flagged at the validation step. The following table lists the applicable Rate change affects options for the repayment method selected: Rate change affects Repayment Method Payment amount Final Payment Payment amount & final payment Term of loan Installment X X X Balloon X X Amortized Balloon Single Payment Interest Only Principal Reduction Demand Interest Only X X X X X X X Two-Phase loans for ARTA The first phase of a two-phase loan is always going to be interest only. The second phase of a twophase loan is going to be one of the following three types: Installment Balloon Amortized balloon You may define your interest rate for a two-phase loan in one of two ways: One fixed rate definition throughout both phases. User's Guide - Bank 39

48 Lending Setup One variable rate definition throughout both phases (If the initial rate change occurs at the end of the first phase, this would be similar to doing a fixed/variable.) If you have specified #2 above (one variable rate definition through both phases), then the only option is to have changes affect the payment amount. Consumer Open-End Daily Periodic Rate and APR Calculations ARTA Lending allows you to calculate the APR and daily periodic rate for consumer open-end loans. The Lending Setup Rates screen and the Rates screen in a transaction (variable and fixed) collect data required for the calculations. The Finance charge computation method, Billing frequency, and Accrual method are collected for the calculations. Index value plus margin must equal a value greater than zero for the periodic rate and APR to be calculated. To calculate, you must select a finance charge computation method, billing frequency, and accrual method. If you enter an Index value or Interest rate along with the Accrual Method (for Daily Rate computation method) or Billing Frequency (for Cycle Rate computation method), APR and Periodic Calculations can be performed. To facilitate the calculation process, a Calculate Rates button is included in the Lending Setup Rates screen and Rates screen in a transaction. Clicking the button calculates the periodic rate and APR, and displays the values in their respective prompts on the Rates Setup screen and Rates screen in a transaction. NOTE: The periodic rate and APR fields can be left blank until the entire screen is completed. Click the Calculate Rates button then to update these fields. If you change any of the required calculation data items and click on the Calculate Rates button, a new set of calculated values will populate and replace the last calculated/entered value(s). When creating a template and choosing a Rate definition, all fields on the Rates view will be protected (gray) and the Calculate Rates button will not be available. If a rate definition is not chosen when User's Guide - Bank

49 Lending Setup defining a template, then all the fields on the Rates view will be available for entry and the Calculate Rates button will be active. If a Rate plan is updated, all templates that use the rate plan will get the updated rates/values. Index History Setup Index History is used for all indexes. It is used for ARM early disclosures, variable rate home equity disclosures, and closing documents. Index History Setup allows you to create your own internal index, change the index rates, view the current index history values and effective dates, and print index information. The regulation implementing the Truth-in-Lending Act requires that some ARM disclosures provide a 15- year rate history. If you create a customized index, you may also have to enter and maintain a 15-year history. Home equity index rates are based on an interest rate index, such as the 1-Year Treasury Index, 26- Week Treasury Bill Rate, the Federal Home Loan Bank of San Francisco Cost of Funds, or a lender s internal cost of funds. Wolters Kluwer Financial Services Supplied Indexes ARTA Lending is delivered with 12 predefined indexes available for loan processing, including ARM and Home Equity loans. ARTA Lending is delivered with the following 12 predefined indexes that are referred to as Wolters Kluwer Financial Services Supplied indexes. Click this button to print a report of all indexes. User's Guide - Bank 41

50 Lending Setup Index 1 year LIBOR Index - WSJ Description The average of interbank offered rates for one-year U.S. dollar-denominated deposits in the London market ("LIBOR") 1 year Treasury Index The weekly average yield on United States Treasury securities adjusted to a constant maturity of one year. 10 year Treasury Index The weekly average yield on United States Treasury securities adjusted to a constant maturity of ten years. 11 th District FHLB Cost of Funds The Cost of Funds Ratio to 11 th District Federal Home Loan Bank Institutions. 26 week T-Bill Rate The auction average of short term U.S. government bills with a 26 week maturity. 3 year Treasury Index The weekly average yield on United States Treasury securities adjusted to a constant maturity of three years. 5 year Treasury Index The weekly average yield on United States Treasury securities adjusted to a constant maturity of five years. 6 month LIBOR Index - WSJ 6-month Weekly Average CD Index JP Morgan Chase Bank Prime National Average Contract Rate Wall Street Journal Prime U.S. Prime Rate The average of interbank offered rates for six month U.S. dollar-denominated deposits in the London market ("LIBOR") This index is the weekly average of secondary market interest rates on 6-month negotiable Certificates of Deposit. The prime commercial lending rate announced by Chase Manhattan Bank. The National Average Contract Interest Rate for Major Lenders on the Purchase of Previously Occupied Homes. 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 Wolters Kluwer Financial Services-supplied indexes can be used to create custom indexes by choosing the Save As option on the index. Edits can include the index name, rates, description, and so on. NOTE: Any Wolters Kluwer Financial Services-supplied index that you edit is no longer considered Wolters Kluwer Financial Services-supplied nor will it be updated when rates are updated. Index Updating Wolters Kluwer Financial Services updates the rate histories for indexes regularly. The rates are updated as they become available to Wolters Kluwer Financial Services; some rates are only published on a quarterly or semiannual basis User's Guide - Bank

51 Lending Setup The monthly index update is available on our web site only; it will not be available in CD-ROM format. The Internet-based updates are located in the ARTA Lending downloads area of our software support Web site at If the indexes, automatically updated with the latest full release, meet your needs then you do not need to download or install the monthly index update from our Web site. For disclosures, you only need to use a rate up to one-year-old. At a minimum, you must update your custom rates once per year. Without doing so, you may not be able to produce a report with past rates. This index history update information applies to the entire ARTA Lending family of products. Creating a Custom Index You can create your own custom index, or you can copy a Wolters Kluwer Financial Services-supplied index and modify the copy to create your custom index. NOTE: Users must be included in a security group with permissions to Index History to add or edit the contents. Users will not be permitted create custom indexes that display 5 places to the right of the decimal place. 1. Expand Lending Setup in the Navigator and select Index History. 2. Click ***Add New*** to start with a blank screen or click on the existing index you want to modify. 3. Complete the Index Setup information and click OK. User's Guide - Bank 43

52 Lending Setup Check this box to activate this index, so it can be used for creating loans. An edited Wolters Kluwer Financial Services-supplied index will not have this check mark. This description prints on your notes and Truth-in-Lending. These fields are ticker tape fields. Ticker tape fields can hold more characters than are shown on the window. As you enter characters, the text appears to move to the left accommodating the additional characters. Deleting Indexes Wolters Kluwer Financial Services-supplied indexes cannot be deleted; however, any information on Wolters Kluwer Financial Services-supplied indexes can be changed. Once it is changed, it is no longer considered a Wolters Kluwer Financial Services-supplied index. To select a user-defined index to delete, right-click on the index name, and then choose Delete. A confirmation dialog box appears to confirm the deletion. To delete the index, click Yes. Documents Setup This setup area allows you to specify your document preferences by applicable jurisdiction, which includes setting the binding type, number of copies, and watermark. NOTE: You must have permissions to Documents to add or edit the contents. 1. Expand Lending Setup from the Navigator and select Documents. 2. Choose a state from the drop-down list. 3. For each document, select Binding type, number of Copies, and Watermark if preferred User's Guide - Bank

53 Lending Setup Checking the Watermark box adds the word copy to all subsequent printed documents. Binding Types: Default = Document Default Simplex = Single Sided Left Duplex = Book Like Top Duplex = Short Edge Check this box to convert all data input into upper-case letters when printing. Check this box if you want the Transaction Navigator to display Wolters Kluwer Financial Services s acronym for the document description; for example, instead of displaying Note it will display NDaS-SI-AL. Tips for Setting Up Your Documents Indicating two copies will produce one original document and one copy. When you are finished and click another item on the Navigator, your Document Setup information is saved. Printing Blank Documents ARTA Lending allows you to select and print a document with out requiring fields to be completed. This gives you flexible access to your documents. To print a blank document: 1. Expand Lending Setup and select Documents. 2. Choose the desired state to its view documents. 3. Click the Print blank button for each document you want to be printed as a blank document. Printing a blank document uses your Binding selection. It will print a single blank copy regardless of your number of copies setting. User's Guide - Bank 45

54 Template and Report Setup Template and Report Setup Templates Templates in ARTA Lending allow you to improve the consistency and accuracy of the loan processing from application to documents. The purpose of a template is to save the processor time by storing standard information in a reusable form. For each template field, you can determine if there is information that will not usually change from one use to another that can be set as a default. Additionally, you can determine how much flexibility end-users should have to change data or force behavior. Considerations in Designing Templates For optimal use, design templates for the type of loans and applications that you most frequently process. For example, you could create templates for consumer secured non real estate loans and consumer unsecured. Before you begin creating your templates, you need to understand the concept and think about the purpose of the template. The usability of your template depends on how you design the templates. Be sure to make good use of your ability to protect fields or make fields invisible. You should consider how many fields it is beneficial to preset with information. Your goal is to set information that will not change from one use to another. The final result should be a template, which needs additional information in the blank fields but not a great deal of changes or deletions in the preset fields. When creating a template, some fields that contain preset data (defaults) from other areas in setup such as Policy, Rates, and PMI will appear grayed and cannot be changed. For example, if attaching a policy to a template, users will not be able to change the minimum interest (fee in lieu) value nor change the late charge information. The default values are set in Policy, Rates, and PMI in the Loan Setup and Insurance Setup sections. Tips for Creating Templates Planning is an important aspect of creating a template. Consider the information you want set in the fields for a specific template. You cannot set date fields as invisible fields. Every field is set to Normal. You do not need to right-click on every field. Right-click on the fields you want to change from Normal to set as Required, Protected, or Invisible. To unprotect data fields in template setup, right-click the field and select Normal. When naming your templates, we recommend descriptive titles to easily recognize which template to select for your loan transactions. See Getting Started for the table of special characters to avoid when naming your templates. Troubleshooting: If you need to call SupportLine for assistance, keep in mind that you must have access to the template setup area to review settings, such as invisible fields User's Guide - Bank

55 Template and Report Setup Creating a New Template To begin working with templates, open a blank template. NOTE: You must have permission to Lending Setup, Templates to create or edit a template. 1. Expand Lending Setup, select Templates. 2. Choose Applications or Loans. 3. Click ***Add New***. 4. Complete the information for the template. Template Navigation The Navigator for Template setup is identical to the Navigator used when creating a new loan or application. ARTA Lending guides you through these items when creating a template. Loan Navigator Items Criteria Borrower Fees Calculations Payments Rates Defines the loan purpose, type of collateral securing the loan, the lending policy, and lender profile. Collects the borrower information and some preliminary loan details. Collects the appropriate fees. ARTA Lending is a state-specific program. Fees vary from state to state. Collects the information necessary to calculate payments. Collects the payment information for consumer open-end loans. Collects the rate information for consumer openend loans. User's Guide - Bank 47

56 Template and Report Setup Loan Navigator Items Disbursements Documents User-Defined Fields Validation Print Typically not completed when creating templates. Contains information for all applicable loan documents. Add custom fields to your template Typically not completed when creating templates. Typically not completed when creating templates. NOTE: The Loan Navigator items, Payments and Rates, are only present for templates involving open-end loans. User-Defined Fields will only be present if they have been setup prior to creating the template. Application Navigator Items Criteria Fees Calculations Payments Rates Applicant Assets/ Liabilities Income/ Expenses Application Documents Defines the loan purpose, type of collateral securing the loan, the lending policy, and lender profile. Collects the appropriate fees. ARTA Lending is a state-specific program. Fees vary from state to state. Collects the information necessary to calculate payments. Collects the payment information for consumer open-end loans. Collects the rate information for consumer openend loans. Collects the applicant information and some preliminary loan details. Specify application-related assets and relevant liabilities. Describe applicant income and expenses. Select documents to print with each application User's Guide - Bank

57 Template and Report Setup Application Navigator Items Print Tracking Print and preview documents. Setup application tracking. NOTE: For open-end loans the Navigator displays Payments and Rates and removes Calculations and Disbursements. ARTA Lending does not perform calculations for open-end credit loans, and the required rate information is different from other types of loans. User-Defined Fields will only be present if they have been setup prior to creating the template. User Defined field are discussed more in Data Exchange. Setting Field Properties You can protect fields in templates from changes by setting field properties. To set field properties in your templates, right-click the field and select the appropriate designation from the pop-up menu. When setting properties for a field, your selection can apply to an entire grouping of information; for example, fields, columns, or numerous options. When creating templates, you do not have to right-click on every field. Every field has a setting of Normal. Right click on the fields you want to change from Normal; choose another field property as described below. NOTE: Fields that appear gray, when creating templates, were set in other areas such as Policy Setup. These fields cannot be changed while you are creating a template. However, these fields can be changed during loan transaction if the default is not suitable. Field Property Descriptions Field property types include: Normal - A yellow color indicates a normal data entry field. Enter data or leave the field blank. Both options are acceptable and will not be validated Required - A green color indicates a required data entry field. If data is not entered, a message appears during validation. The word INCOMPLETE will appear on the loan or application documents if you do not override validation or return to enter data in this field. Protected and cannot be changed A gray color indicates the data entered during template creation will only display during loan or application creation and cannot be altered. User's Guide - Bank 49

58 Template and Report Setup Protected but can be changed A purple color indicates the value in this type of field can be changed during loan or application creation. Once the field is changed, the field will change color to a dark red and ARTA Lending will produce a validation notice. Invisible This field type is indicated by inverse coloring, that is, black background with white text. The contents of this field will not appear during loan transactions but will be saved with the loan or application. Note: To see the actual field colors used for each field type, go to Entering Data. Filling out the Template ARTA Lending presents the fields required for a template on a section-by-section basis as displayed in the Navigator, beginning with Criteria. You can move between sections by clicking Next at the bottom of each screen after completing entry. Printing Template Setup To print a report of all fields in your template and the properties assigned, click the Print Template Setup button. Completing the Criteria Information Choices in Criteria will determine the loan type, what documents are selected, and which prompts are displayed during the loan transaction User's Guide - Bank

59 Template and Report Setup NOTE: Checking the Bypass autoselection check box prevents ARTA Lending from running autoselection when the template is used. It tells ARTA Lending to use the documents selected during template creation for the individual loan transactions. Completing the Borrower Information Customize the field properties to meet your needs during loan transactions. User's Guide - Bank 51

60 Template and Report Setup Choosing Business changes the prompts to collect information appropriate for a business entity. Enter a T in the Note Date field. ARTA Lending will insert the system date when the template is used to create a loan. Tips You may choose to preset the City and/or State fields if they are commonly the same. Only fill out Borrower information names for the number of borrowers for the loan. Do not fill out more names, especially last names, than borrowers. Do not add cosignor information to a loan template unless a cosigner is always required. You may also preset field information or field properties within the additional borrower details screen, if appropriate. Because you may be setting field information and/or field properties when creating your template, we recommend that you frequently save your work. Completing the Fees ARTA Lending is a state-specific program. Fees vary from state to state. Specific fees for your state will appear in your program. Some state fees are processed during calculations. Fees also vary according to the type of transaction set in Criteria: consumer, open-end, or real estate User's Guide - Bank

61 Template and Report Setup Consumer/Family/Household Fees Screen Define the fee as a fixed dollar amount ($) or as a percent of the loan amount Some items do not apply in every state or may use different terminology. A pro rata charge is allowed on transactions not secured by residential real estate and in applicable jurisdictions. User's Guide - Bank 53

62 Template and Report Setup Consumer Open-End Fees Screen Check this box if third-party fees apply. Check this box if this thirdparty fee is considered a finance charge (FC). Third-Party Fees You have the option of entering your own user-defined fee names and other information. Some common third-party fees are provided. If you have any of these fees, just complete the information for that fee. Choose how third-party fees will be calculated: as a flat dollar amount or on a cost/unit (for example, $5 per $1,000 of credit) basis. Cost/Unit What you enter in this field will appear exactly as entered in your itemized estimate of third-party fees for how you calculate this fee; for example, you could enter the following: $5 per $1,000 of credit; $5/$1,000 of the credit limit; $15 per recorded document; or $.25 per acre User's Guide - Bank

63 Template and Report Setup Real Estate Fees, Commissions Real Estate Fees, Items Payable User's Guide - Bank 55

64 Template and Report Setup Real Estate Fees, Items Required by Lender in Advance Real Estate Fees, Reserves Deposited User's Guide - Bank

65 Template and Report Setup Real Estate Fees, Title Charges User's Guide - Bank 57

66 Template and Report Setup Real Estate Fees, Government Recording User's Guide - Bank

67 Template and Report Setup Real Estate Fees, Settlement To set field properties for an entire column, right-click the first cell in the column and select a different field property. User's Guide - Bank 59

68 Template and Report Setup Field Property Description Normal Required Required (column) Protected and cannot be changed Protected and cannot be changed (column) Protected but can be changed Protected but can be changed (column) Invisible Invisible (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 & displayed; no changes Set and displayed but change is allowed Column is set/displayed; changes are allowed. Set and not displayed in processing. Column is set & not displayed in processing Completing Calculation Information This example uses the Installment repayment method. Repayment Methods Installment Calculates fully amortized loans with a regular schedule of principal and interest payments. The Skip Payment option can be used as part of an installment loan. To access Skip Payment, click the User's Guide - Bank

69 Template and Report Setup Calculation Options button. Skip Payment calculates a series of monthly payments, then a period where one or more payments are skipped, then continues the series of payments again. ARTA Lending does not require skipped payments to run consecutively. The same period is skipped each year for the term of the loan. Interest is not capitalized (added back into the loan balance) for the skipped month(s). Balloon/Amortized Balloon Regular payment defined calculates a final payment on the basis of the number of regular payments and the defined regular payment amount. This is similar to the Amortized Balloon option; however, the Balloon repayment method calculates the amount of the balloon payment or calculates the amount of the regular payments allowing you to define the other. Final payment defined calculates a regular payment on the basis of the number of regular payments and the defined balloon amount. This is similar to the Amortized Balloon option; however, the Balloon repayment method calculates the amount of the regular payments or the amount of the balloon payment allowing you to define the other. Amortized Balloon calculates a regular payment based on a long-term amortization with a balloon payment due on a shorter term (call date). ARTA Lending calculates the regular payment and the balloon payment. Single payment Calculates a single payment of principal and interest due at maturity. The payment date is also the maturity date of the loan. If the loan purpose is consumer and Multiple Advance is selected, ARTA Lending uses Reg Z, Appendix D calculations and the interest will be estimated. By checking the Multiple Advance box, this loan type can be used for single repayment construction loans. Interest only Calculates interest payments due on a regular basis with a final payment comprised of the principal and any remaining interest. If the loan purpose is consumer and Multiple Advance is selected, ARTA Lending uses Reg Z, Appendix D calculations and the interest will be estimated. By checking the Multiple Advance box, this loan type can be used for interest only construction loans. Principal reduction Calculates interest payments at regular intervals and principal payments at the same or different intervals. You can specify the principal payment amount or ARTA Lending can calculate it. Irregular Payment Irregular Payment repayment method is available for one- and two-phase loans. ARTA Lending allows you to create irregular payment streams and, where appropriate, calculate an APR for loans with irregular payments. The irregular payment repayment method supports the following types of loans: fixed rate, single-advance consumer, fixed- or variable-rate commercial, single or multiple advance commercial, open-end or closed-end commercial. The irregular payment feature is not supported on loans secured by residential real estate. NOTE: There must be one empty payment amount field in the irregular payment details for ARTA Lending to calculate this repayment type. Demand Calculates interest payments due on a regular basis. The principal and remaining interest is payable when the lending institution demands payment. The calculations assume a one-year maturity for Reg Z purposes. User's Guide - Bank 61

70 Template and Report Setup Two phase Calculates a two-part loan repayment with Phase I being interest only and Phase II allowing a choice of installment, balloon, amortized balloon, or irregular payment. If the loan purpose is consumer, and Multiple Advance is selected, ARTA Lending calculates the loan based on Reg Z, Appendix D with the following assumptions: Phase I (Construction Phase) Truth-in-Lending information is estimated. ARTA Lending assumes this phase is interest only. Phase II (Permanent) ARTA Lending allows your choice of installment, balloon, amortized balloon, or irregular payment. By checking the Multiple Advance box, this loan type can be used for construction/permanent financing. Custom Repayment This repayment method, restricted to commercial/agricultural loans only, allows you to customize your payment language for loans where other repayment types do not meet your needs. Type your custom payment language here. Because you can enter your own payment language, you will need to override validation. The custom repayment language you create will not be covered by BSI s warranty. Keep in mind the space available on the documents. Calculation Options Button The options below appear when you click the Calculation Options button at the top of Calculation. Check the options that apply to this template and click OK User's Guide - Bank

71 Template and Report Setup Minimum interest may not be available in your state. Check this box to skip the payments scheduled for certain calendar months. Any month designated as a skipped month is skipped for every year of the term. This option only applies to loans with installment repayment methods. Disbursements When creating a template, because disbursement information is specific to each loan transaction, it is uncommon to set disbursement information. It is recommended that disbursement information not be entered during template creation. NOTE: Remember Disbursements, Validation, and Print typically are not completed when creating templates. You can add or remove the documents that you want available with this template when creating your loans. Completing Documents The Document List shows a table of documents selected for this loan and displays them on the Navigator as well. Any documents appearing yellow or red in the Navigator indicate the document is either not needed or is invalid. Right-click the document name on the Navigator to delete or check the document status. NOTE: Document status may change when the template is actually used in loan creation. It is best to test your template using a sample loan to verify document status. User's Guide - Bank 63

72 Template and Report Setup Add Documents If you choose to add or change any of the documents that were automatically selected for the loan, click Add documents. This brings you to the following screen. This allows you to select documents from a different state. Select the document you want to add to the loan. To select multiple documents, hold down the Ctrl key as you select each document. Remove Documents Place a check mark in the box to the left of each document name you want to remove, then click the Remove selected documents button User's Guide - Bank

73 Template and Report Setup If the revised list of documents is your preference each time the template is to be used and you do not want the system to rerun autoselection, return to the Criteria screen on the Navigator and check Bypass autoselection. Checking the Bypass autoselection box prevents ARTA Lending from running autoselection when the template is used. It tells ARTA Lending to use the documents selected during template creation. However, please be aware our warranty may not cover omissions due to the removal of documents that would have been autoselected or the appropriateness of manually added documents. Template Setup Completion Since you are creating a template rather than a loan, it is not necessary to select Validation and Print from the Navigator. Save and close the template by clicking the Save icon on the toolbar. NOTE: Do not use the Save As button when changing Collateral types, Secured by fields, when changing between open-end and closed-end loan types, and between fixed rate and variable rate. In these situations, it is recommended to create a new template. Test your template using a sample loan to uncover any validation warnings, compliance issues, or corrections you want to make. NOTE: Verify if you are in loan creation and using the template for testing, that you are no longer in template setup, as the screens look very similar. Template Maintenance Due to program and document changes in each new release of ARTA Lending, template maintenance may be required for the transactions and documents to function properly, especially when old documents are removed from the program and replaced with new documents or new features and functions are added to the program. Reports Report Setup provides a quick way to create reports. You can design your reports by entering the desired information to print. Reports can be as inclusive or as narrowly targeted as desired. For example, reporting can be done by: Loan officer Branch Office Loan processor Loan purpose Collateral type Funding date Note date Maturity date User's Guide - Bank 65

74 Template and Report Setup Loan Amount In addition, reports can be customized with custom fields. Setting Up a New Report To begin working with reports, open a new report. NOTE: You must have permission to Lending Setup, Report to add or edit the contents. 1. Expand Lending Setup from the Navigator and select Reports. 2. Click ***Add New***. 3. Complete the Report Setup information and click OK. Check this box to use custom fields in your report. Click Print Setup to print the report setup information. Click Print Report to send the report to the printer. Click Save As to save a copy of the report criteria and make changes. Report Setup Criteria For best results, enter as much Report Setup Criteria information as you can to get detailed reports. The Report Setup Criteria is described as follows: User's Guide - Bank

75 Template and Report Setup Report Type allows you to choose Loans in Progress Report, If the Application Module is installed you can also access the Application Tracking Report. Refer to the Guide to ARTA Lending Application Module for more information on the Application Tracking report. Report name allows you to enter the report name. Refer to Getting Started for the table of special characters to avoid when naming reports. Title allows you to enter a title. Optional report heading allows you to add a report headline. Path designates the location of the saved loans or applications and produces a report for only the items saved to the designated path. This makes it possible to produce reports from different sets of saved loans. Lender identification identifies the lender and various branches. Select from the list of lenders that were created in the Lender Setup section. Loan officer identifies the selected loan officer. Select from the list of loan officers that were created in the User Setup section. Processor identifies the selected loan processor. Select from the list of loan processors that were created in the User Setup section. NOTE: This field will not be available when you choose the Application Tracking Report Type. Loan purpose produces loan reports specific to the selected purpose; for example, personal or business. Collateral type produces loan reports specific to the selected collateral type: residential real estate, other collateral, or unsecured. Tracking item status (Application module only) produces application tracking reports based on the selected overdue, pending, or requested status. Name includes produces a report when entering first or last name or both, which shows the loans or applications that have a borrower name that matches the text entered. Application date from (Application module only) allows you to enter a range of dates (from and to) to produce a report that contains all applications with an application date that falls within the given range, inclusive. Entering the shortcut T (for today) defaults in today s system date. Funding dates from specifies a range of funding dates for reporting. Note date from allows you to enter a range of dates (from and to) to produce a report that contains all loans that have a note date that falls within the given range, inclusive. Entering the shortcut T (for today) defaults in today s system date. Assumed date of closing from (Application module only) allows you to enter a range of dates (from and to) to produce a report that contains all applications, in a pending or ready status, with an assumed date of closing that falls within the given range, inclusive. The assumed date of closing is entered on the tracking screen for the application. User's Guide - Bank 67

76 Template and Report Setup Maturity date from allows you to enter a range of dates (from and to) to produce a report that contains all loans that have a maturity date that falls within the given range, inclusive. Entering the shortcut T (for today) defaults in today s system date. Interest rate from allows you to enter a range of interest rate percentages to produce a report that contains all loans that have an interest rate, which falls within the given range, inclusive. Loan amount from allows you to enter a range of amounts to produce a report that contains all loans that have a loan amount that falls within the given range, inclusive. Credit insurance from allows you to enter a range of amounts to produce a report that contains all loans that have a credit insurance premium that falls within the given range, inclusive. Sort by allows you to sort the loan applications on the report by: Borrower Collateral type Credit Insurance Funding date Lender Loan amount Loan number Loan officer Loan purpose Maturity date Note date Processor Rate Click the drop-down arrow to select one of these from the list. Order allows you to select the sort order: ascending or descending. Click the drop-down arrow to select from a list User's Guide - Bank

77 Template and Report Setup Designing Reports Once you design a report, you can save the setup information. This allows you to use the same setup again as well as create other similar report setups with a head start. NOTE: The more report setup criteria items you enter, the more concise your report will be. This will produce more targeted loan reports. Using Custom Fields Check the Use custom fields check box and select the fields and field order for your report. The custom fields will be printed on the report in the order specified here. This listing contains available fields to select for reports. To select custom fields for your report, select a field from the listing on the right and click <Add. If you select a field, and then change your mind, select that field and click Remove>. To remove all fields, click Remove All>>. Click OK when finished. User's Guide - Bank 69

78 Insurance Setup Insurance Setup Introduction This chapter includes information about setting up insurance often required as part of the loan application process. Specifically: Credit Life Insurance Setup Disability Insurance Setup Involuntary Unemployment Insurance Setup Private Mortgage Insurance Setup Credit Life Insurance Setup Credit life information must be completed to calculate single or joint credit life insurance. Credit Insurance Forms Insurance companies provide forms for use with the credit insurance plans you set up in ARTA Lending. Contact your credit insurance company for information about ordering forms and inform them you have purchased ARTA Lending. The credit insurance company will contact Wolters Kluwer Financial Services and place an order for programming the insurance forms. Once the forms are available, you will receive a Custom Documents compact disc with accompanying installation instructions and access codes. NOTE: ARTA Lending is not shipped with preset credit insurance rates. You must enter your own insurance rates into the Insurance setup section. Credit Insurance Setup Worksheets You must contact your insurance company for the needed credit insurance information. Send your insurance company a blank copy of the Credit Insurance Setup Worksheet and use the completed copy to enter and maintain your credit life, disability insurance, and Involuntary Unemployment Insurance information. Once you have entered the setup information from the completed worksheets, you should maintain a copy of the worksheet for your records. IMPORTANT: Your state law may not allow some of the options specified in the worksheets. As always, check with your legal counsel to verify that your information is acceptable under your state law User's Guide - Bank

79 Insurance Setup Adding New Credit Life Insurance NOTE: You must have permissions to Insurance to add or edit the contents. 1. From the Navigator, expand Insurance and select Credit Life. 2. Click ***Add New***. 3. Read the Credit Insurance Warning information and click OK. 4. Complete the Credit Life Setup information using the completed worksheet and click OK. User's Guide - Bank 71

80 Insurance Setup Type a life insurance plan name that represents the type of coverage characteristic to differentiate between plans; for example, Gross coverage. Select the rate type from the drop-down list; enter the months and rates for decreasing coverage. Click the Monthly Entry Rates button to manually enter rates for each month. Click the Additional Coverages button to select the additional coverages options to be applied to the insurance plan. Click Print to print a copy of your plan. Click Save as to save a copy of the plan; save as a new plan, and define the differences User's Guide - Bank

81 Insurance Setup Monthly Entry Rates Monthly Entry Rates allows rates to be entered manually for each individual month. This feature can be used if the credit life rates do not follow the standard per $100 per year or per $1,000 per month formulas. If monthly entry rates are needed the Decreasing Rates grid must be cleared. Click this button to clear entries in the table. Substitute Level Life Rates In a limited number of states, it is acceptable to substitute level rates where decreasing life rates would normally be used. Check with your legal counsel to determine if this is an acceptable option in your state. Truncated Coverage Available Truncated coverage allows for a term less than the term of the loan to be covered with insurance. If the Truncated coverage available check box is checked, the truncated option will then be available for each loan using this credit life plan. User's Guide - Bank 73

82 Insurance Setup Additional Coverages In a number of states, additional coverage options are available with credit life insurance such as dismemberment, accidental death, terminal illness or accelerated death, and paraplegia/quadriplegia. To add additional coverages, click the Additional Coverages button User's Guide - Bank

83 Insurance Setup Disability Insurance Setup Disability information must be entered to calculate single or joint disability insurance. ARTA Lending is flexible and allows you to set up as many disability rate plans as you need. Setting up the rates is generally a one-time event. Disability Insurance Forms Insurance companies provide forms for use with the disability insurance plans that you set up in ARTA Lending. Contact your credit insurance company for information about ordering forms and inform them that you have purchased ARTA Lending. The credit insurance company will contact Wolters Kluwer Financial Services and place an order for programming the insurance forms. Once the forms are available, you will receive a Custom Documents compact disc with accompanying installation instructions and access codes. NOTE: ARTA Lending is not shipped with preset disability insurance rates. You must enter your own insurance rates into the Insurance setup section. Disability Insurance Setup Worksheets You must contact your insurance company for the needed disability insurance information. Use the Disability Credit Insurance Setup Worksheet to enter and maintain your disability and credit life insurance information. Important: Your state law may not allow some of the options specified in the worksheets. As always, check with your legal counsel to verify that your information is acceptable under your state law. Adding a New Disability Insurance Plan NOTE: Users must be included in a security group with permissions to Insurance to add or edit the contents. 1. From the Navigator, expand Insurance and select Disability. 2. Click ***Add New***. 3. Read the Credit Insurance Warning information and click OK. User's Guide - Bank 75

84 Insurance Setup 4. Complete the Disability Insurance Setup information via the completed worksheet and click OK. Type a name that re-presents the type of coverage characteristic to differentiate between the plans, such as retroactive, elimination, single, Click this button to enter the rates. Use the options listed on the worksheet to complete the fields in this screen User's Guide - Bank

85 Insurance Setup Truncated Coverage Available Truncated coverage allows for a term less than the term of the loan to be covered with insurance. If the Truncated coverage available check box is checked, the truncated option will then be available for each loan using this disability plan. Disability Rate Setup Table Click this button to clear the figures from the table. Disability Rate Table Types The type of entry table to use should be based on the one selected by your credit insurance company. Monthly entry Allows you to enter rates in the table for each individual month. Interpolated Allows you to enter beginning and ending values for a range of months, and the program will calculate each rate within that range using an 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. Bracketed Allows you to enter beginning and ending values for a range of months, and the program will insert the same rate into each month within that range. For example, if you enter a rate value for month 1 and month 12, the rates for months 2 through 11 are populated with the rate you entered for month 12. Involuntary Unemployment Insurance Setup Your Involuntary Unemployment Insurance (IUI) plans must be entered into the setup section before processing your loans requiring IUI insurance. User's Guide - Bank 77

86 Insurance Setup IUI Forms Insurance companies provide forms for use with the unemployment insurance plans that you set up in ARTA Lending. Contact your credit insurance company for information about ordering forms and inform them that you have purchased ARTA Lending. The credit insurance company will contact Wolters Kluwer Financial Services and place an order for programming the insurance forms. Once the forms are available, you will receive a Credit Insurance Forms compact disc with accompanying installation instructions. NOTE: IUI information is included in the Credit Insurance Setup Worksheets that are completed by your insurance company. IMPORTANT: Your state law may not allow some of the options specified in the worksheets. As always, check with your legal counsel to verify that your information is acceptable under your state law. Adding a New Involuntary Unemployment Insurance Plan NOTE: You must have permission to Insurance to add or edit the contents. 1. From the Navigator, expand Insurance and select IUI. 2. Click ***Add New***. 3. Read the Credit Insurance Warning information and click OK. 4. Complete the IUI Setup information and click OK User's Guide - Bank

87 Insurance Setup Type a descriptive name that represents the type of coverage characteristic that will differentiate one plan from another. Choosing a Rate type of Monthly Entry allows access to the IUI Rate Table. IUI Rate Setup Table If the monthly entry IUI Rate type is selected, the IUI Rate Table also becomes available. NOTE: Rates can be entered on the opening Insurance screen when $100/year or $100/TOP are chosen in the Level Rates section. User's Guide - Bank 79

88 Insurance Setup Private Mortgage Insurance Setup Your Private Mortgage Insurance (PMI) plans must be entered into the setup section before processing your loans requiring PMI insurance. This information is needed to calculate Private Mortgage Insurance. Setting Up a PMI Plan NOTE: You must have permission to Insurance to add or edit the contents. 1. From the Navigator, expand Insurance and select PMI. 2. Click ***Add New***. 3. Complete the PMI Setup information and click OK User's Guide - Bank

89 Insurance Setup Choose Level balance, Declining balance, or Single premium from the list. Escrow Premium Do not check this box if you prefer the payments in escrow be applied to the final scheduled PMI payments. Check this box if the payments in escrow will not be applied to the final PMI payments, and will be refunded. Tips In the PMI Rate Table enter the number of months that each rate could apply. enter the rate to be used to calculate PMI for the given number of months. For best results, enter all rates that could possibly apply to any loan under this plan. ARTA Lending will calculate the termination date at loan transaction time. NOTE: Any information displayed in a screenshot is for demonstration purposes only. When filling out information for any setup screen, consult your institution policies or personnel for the correct entries to use. Transaction PMI ARTA Lending provides the ability to modify the PMI rate(s) for level and declining balance plans at the time of the transaction. Any modifications made will only affect the associated transaction. This allows you maximum flexibility in customizing the rate table on-the-fly to meet the needs of any situation or customer. User's Guide - Bank 81

90 Insurance Setup NOTE: Only months and rates can be changed at the transaction level no other information defined for the plan may be modified. The PMI rates entered in the transaction apply only to the transaction, and do not affect the actual plan itself. Setting Up Transaction PMI In order to use Transaction PMI, users must have permission. Choose General Setup, Group from the Navigator and check Transaction PMI to activate the feature and save your changes. Select this checkbox to activate Transaction PMI. A PMI Insurance plan must be set up under Insurance, PMI on the Main Navigator. The plan details can be blank, but the coverage type must be selected. TIP: You can create and save a PMI plan with no rates, then select that plan and enter PMI rates at transaction time. Using Transaction PMI For a transaction that has private mortgage insurance, the rate setup can be entered on the Calculations screen. If you select a PMI plan with a level or declining balance as the PMI method, the PMI Rate Details button appears. NOTE: This button is hidden for PMI plans with a single premium coverage type, or if the user does not have permission to enter PMI rates in the transaction. Clicking the PMI Rate Details button displays the Rate Table popup User's Guide - Bank

91 Insurance Setup This table will contain any default information set from Insurance, PMI setup. Type the months and rates you want for this transaction s PMI rate table. Click OK to save your changes with the transaction or Cancel to return to the Calculations screen without saving a new rate table for the transaction. User's Guide - Bank 83

92 Data Exchange Data Exchange At times, there is a need to update data from one machine to another, or to move data to a single company-wide database. This can be accomplished through the export/import function. Data is sent to a single file and the file is read into another database completing the data exchange. This chapter covers the following topics: User-Defined Fields Data Specifications Exporting Importing Import/Export Development Kit Before Using Data Exchange Functions Before any data can be imported or exported, at least one export target and one import source must be set up. We recommend that you set up any User-Defined Fields and Data Specifications, if required, before setting up your Export and Import information. User-Defined Fields ARTA Lending lets you create custom fields. The additional fields appear during loan creation and for applications, when the Application Module is installed. These user-defined fields do not appear on documents, but they can be exported to other software programs, or they can be included in a customized ARTA Lending report. Adding a New User-Defined Field NOTE: You must have permission to Data Exchange to add or edit the contents. 1. From the Navigator expand Data Exchange and select User-Defined Fields. 2. Click ***Add New***. 3. Complete the User-Defined Field information and click OK User's Guide - Bank

93 Data Exchange Type a unique name that describes the data this field will be used to collect. The name entered is the name that appears in the header record in the data file that ARTA Lending creates for exporting. You can define the number of characters for your field. User-Defined Field Descriptions Group field Use the drop-down arrow to select the group in which you would like the user-defined field to be included. By grouping user-defined fields, data can be more easily tracked and found. To create a group click the Define Groups button. Type as many group names you need into the table. Each group should have its own row in the table. Once all the groups are created, click OK. Then, select the desired group from the drop-down list. Prompt Text field Type a unique name that describes the data this field will collect. The name of the Prompt Text field and the name of the Name field should be the same to simplify searches of the output data file created by ARTA Lending. The name entered in this field will be the way it appears in ARTA Lending. NOTE: To keep all user-defined fields together for reporting or data exporting purposes, develop a naming convention. For example, you could place an underscore, _, or a number before each user-defined field to group them together at the top of the field list. This becomes more apparent when creating a custom data specification where you need to search for fields you want to include in the specification. If you want your user-defined fields in a specific order in a loan, use numerical or alphabetical combinations on the name of the user-defined fields instead of the prompt text. Type field Select the field type for this user-defined field from the list. There are five field types available: Checkbox makes the user-defined field a checkbox. Date makes the user-defined field a date-formatted field. Past Date makes the user-defined field a date of execution of a document or transaction. User's Guide - Bank 85

94 Data Exchange Future Date makes the user-defined field date in the future, often used as a Do not exceed time. Dollar makes the user-defined field a dollar or currency formatted field. Rate makes the user-defined field s percentage formatted field. Text makes the user-defined field into text field. Width field Enter the length of the field, that is, the number of characters allowed. Default field If you want a default value for a user-defined field, type the value into the Default field. Working with User-Defined Fields in a Loan After you have created you user-defined fields, you can begin creating new loans. During loan creation, choose the User-Defined Fields section on the Navigator to see the user-defined fields displayed in their respective groups. This example shows two groups that were created: Credit Check and Host Accounting. After you create user-defined fields, the User- Defined Fields item will appear on the Navigator. Data Specifications Before you can export any ARTA Lending data or import data to a transaction, you must create a data specification that identifies the specific data items. Each export target and import source refers to a named data specification that identifies the specific data items. NOTE: You must have permission to Data Exchange to add or edit the contents User's Guide - Bank

95 Data Exchange Creating a Data Specification 1. From the Navigator expand Data Exchange and select Data Specifications. 2. Click ***Add New***. User-defined fields Type the name of the export/import data specification you are creating. Here are the fields that were selected. You can easily add or remove fields to change the order of the fields. This listing contains all available fields for exporting or importing. Check the standard field groups to be imported and/or exported. 3. To select fields for the data specification, select a field from the listing on the right and click the <Add button. 4. To include all fields listed, click the <<Add All button. 5. If you select a field, and then change your mind, select that field and click the Remove > button. 6. If you want to rearrange the fields or select new ones, click the Remove All >> button. 7. Click the Save As button or OK to save your export target. The standard field groups check boxes are described in the following table. User's Guide - Bank 87

96 Data Exchange Standard Field Groups Check Box Options Checkbox Parties Payment Streams NonReal Estate Fees Real Estate Fees Description All fields describing all parties involved will be included in the customized data specification. All fields describing the payment streams will be included in the customized data specification. All fields describing the nonreal estate fees will be included in the customized data specification. All fields describing the real estate fees will be included in the customized data specification. Using Your Custom Data Specification in a Target After you have completed your custom data specifications, you must update the export and/or import target specification to include the new data specification. Export Targets The compatible Windows design allows you to export data from ARTA Lending to comma delimited ASCII text files when can be imported by other applications. Setting Up the Export Target NOTE: You must have permission to Data Exchange to add or edit the contents. 1. Expand Data Exchange, select Export. 2. Click ***Add New***. 3. Complete the Export Target Setup information and click OK User's Guide - Bank

97 Data Exchange Click the arrow to browse for the file. Type the file name and extension of the interface program. Random filenames are selected for exports or filenames are based on the transaction contents. Click the dropdown arrow to select an import data file specification from the list. The Data file specification list varies with the interfaces and modules installed. Some possible choices are: All data fields and RE fees All data fields Custom reporting fields Party data fields XML all data If you choose XML all data, you also need to choose a stylesheet. Exporting Data from a Transaction Exporting data to your host system is accomplished through the Export button on the transaction toolbar, when working in a loan, or application when the Application Module is installed. Export Button User's Guide - Bank 89

98 Data Exchange Import Sources ARTA Lending s design allows you to import data from other applications. You avoid the traditional gaps in accuracy and consistency that come from rekeying data. The import process into ARTA Lending is facilitated by the use of an interface program. You must have at least one interface program installed to import information into ARTA Lending. Setting Up a New Import Source NOTE: You must have permission to Data Exchange to add or edit the contents. 4. Expand Data Exchange, select Import. 1. Click ***Add New***. 2. Complete the Import Source Setup information and click OK. Click this button to browse for the file. Type the file name and extension of the interface program. Click the dropdown arrow to select an import data file specification from the list. The Data file specification list varies with the interfaces and modules installed. Some possible choices are: All data fields and RE fees All data fields User's Guide - Bank

99 Data Exchange Custom reporting fields Party data fields XML all data Importing Customer Data into a Transaction Importing data from your host system is accomplished through the Import button on the transaction toolbar, when working in a loan, or application when the Application Module is installed. Import/Export Development Kit The Interface Developers Kit (IDK) is designed to assist in the development of customized import and export applications used to transfer data between ARTA Lending and other external applications or systems. The kit is intended for use by alliance partners and other third-party developers who are interested in developing an interface to ARTA Lending. Advanced ARTA Lending users will also benefit from this documentation if they want to use Data Exchange to export ARTA Lending information for custom reports. The IDK can be found on the Wolters Kluwer Financial Services Software Support web site at User's Guide - Bank 91

100 Consumer Loans Consumer Loans Introduction ARTA Lending guides you through each step of creating a loan and, based on the information entered, selects the documents for you. After the Lending Setup information has been entered and your templates have been created, you can create new loans and applications with or without templates. This chapter steps you through the process of creating consumer loans including: Creating Loans Using Templates Criteria Borrower Fees Calculations Disbursements Open End Payments Open End Rates Documents Validation Printing Consumer Open-End Credit ARTA Lending supports open-end credit using agreements for consumer open-end lending: personal lines of credit and overdraft protection. Open-end credit is a consumer credit concept that is defined as a plan in which: The creditor reasonably contemplates repeated transactions The creditor may impose a finance charge from time to time on an outstanding balance, and The amount of credit that may be extended to the consumer during the term of the plan (up to any limit set by the creditor) is generally made available to the extent that any outstanding balance is repaid. Regulation Z, (20). Preparing for Consumer Open-End Loans Setting Up Repayment Methods From the Navigator, choose Lending Setup, Repayment Methods and check the repayment methods that apply to your consumer open-end products. You may select as many methods as necessary. When you process an open-end loan, you will be able to select up to three for the given transaction. At least one method for the draw and repayment periods must be selected in the setup area in order to process a loan. Please refer to Lending Setup for details on setting up repayment methods User's Guide - Bank

101 Consumer Loans NOTE: The HUD-1/1A is not a required document and will not populate correctly on open-end transaction. (RR) Setting Up Templates To prepare for processing open-end credit loans, create your templates for consumer open-end transactions. They can contain predefined product characteristics. In addition, you can protect data items from updates at transaction time. Creating a New Consumer Loan You can create loans by choosing the templates that were created for your loans, and then fill in the required information. This frees you from worrying about many of the details, improving the consistency of your work, and saving you time. When using templates, remember that someone may have preset information in the templates. Some information can be changed during processing a loan depending on what field properties were set during template creation. Creating a New Loan 1. From the Navigator, expand Loans and select New. 2. To create a loan based on an existing template, select a template from the displayed list. NOTE: Refer to the Template and Report Setup for details on creating templates. 3. To create a loan without a template, select ***New loan without template***. The Navigator will change, displaying Criteria at the top. Transaction Navigator for Loans The transaction Navigator displays various choices as you prepare a loan or application. Clicking Next at the bottom of each section will step you into the next section until you ve completed all sections. NOTE: Nine choices are available from the Navigator if you have setup User-Defined fields. User's Guide - Bank 93

102 Consumer Loans The table below briefly describes each Navigator choice. Navigator Choice Criteria Borrower Fees Calculations Disbursements Documents User-Defined Fields Validation Print Description Define the loan purpose, type of collateral securing the loan, the lending policy, and lender profile. Enter borrower information and some preliminary loan details. Add appropriate fees. Enter information necessary to calculate payments. Disclose how the amount financed is disbursed. Complete prompts for all applicable loan documents. Fill in custom fields, if previously defined. View validation results for potential compliance concerns. Preview and print the loan documentation. Criteria The Criteria section of the transaction Navigator sets the basic transaction characteristics such as the loan purpose, security, collateral, and documents required to complete the transaction. Tips for Filling Out Criteria Choosing Consumer/Family/Household causes the program to autoselect Truth-in-Lending disclosures as required by Reg Z. Complete all applicable fields. Information that was preset in the setup sections of the program will appear when creating your loans. Click Next at the bottom or select the Borrower item on the Navigator to continue User's Guide - Bank

103 Consumer Loans The Profiles area displays preset information from Lender Setup and Policy Setup. One-Time Document Defaulting ARTA Lending defaults in forms prompting information collected during the loan origination process only once. Changes made to the collateral description will not be defaulted into the documents again since users may have made changes to the form prompts themselves and we do not want to overwrite them. For example, an automobile description on the criteria screen defaults to the security section of the note. If the criteria description is changed, the changes will not take effect on the note unless the note is removed and re-autoselected again on the documents screen. Open End Credit By checking the open-end credit check box, you can specify an Overdraft line, a Personal line of credit, or Home Equity if you have purchased the Home Equity module. Make sure that the Repayment Methods were set up in the Lending Setup section. The repayment methods collect the repayment information that prints on consumer open-end notes. NOTE: Refer to Lending Setup for details on setting up repayment methods. Remember, when using templates, someone may have preset information in the templates. Some information can be changed during processing a loan, unless field properties were set during template creation. User's Guide - Bank 95

104 Consumer Loans Open-end credit options. REMINDER: Save your work often. Borrower The Borrower section of the transaction Navigator provides borrower details such as name, location, and type of borrower. Tips for Completing Borrower Information ARTA Lending allows up to six individual borrowers. ZIP and postal codes are automatically formatted with hyphens if needed: Five-digit ZIP code = Nine-digit ZIP code = Canadian postal code: T2T 2T2 Type T in the Note date field to insert today s date. Click the Details button to enter more borrower information, such as social security and tax ID numbers. Click the Cosigners button to enter cosigner information User's Guide - Bank

105 Consumer Loans Select the loan officer from the dropdown list. Loan officers should have been set up in the General Setup, User section. Tips for Completing Borrower Details Click this button to go to the next window or select Fees on the Navigator. The Birth date is required to document credit life and disability details on the promissory note. Date of birth is also a requirement of Section 326 of the PATRIOT Act. Use the scroll bar to move information up or down. Telephone numbers are formatted accordingly: Ten-digit telephone number = (320) Seven-digit telephone number = Information from these details will appear on the application documents. The Details section contains a checkbox to indicate when the credit score affected a loan decision. Selecting this checkbox auto-selects the appropriate notification. Click OK when you are finished. User's Guide - Bank 97

106 Consumer Loans Complete as much information as possible. SSN is formatted as nine-digits: If you enter an EIN with a single dash, it formats as If you enter an EIN with zero or two dashes, it formats as Selecting this box autoselects the notification document for the party, either risk-based pricing or notice of adverse action, based on the loan criteria. Credit data from a credit report ordered in the Credit Bureau module will display here. The fields also can be edited. Key factors from a credit report will be saved if the field is blank when the credit report is ordered User's Guide - Bank

107 Consumer Loans Completing the Cosigner Information Type the cosigners names and click the Details button to add detailed information about cosigner(s). Cosigner Details The information collected for a cosigner is similar to the information collected for the borrower. Fees The Fees section of the transaction Navigator lists the various fees required as part of loan transactions. The list of fees may differ from state-to-state. Tips for Completing Fees The Value field is intended for a number. User's Guide - Bank 99

108 Consumer Loans The $/% field is for a symbol only. Paid to: You can type the name of the fee recipient in the Paid to field, or choose from the available options by clicking the drop-down arrow: Public officials, Lender ARTA Lending is a state-specific program. Fees vary from state to state. Specific fees for your state will appear in your program. Some state fees are processed during calculations. Complete each field and continue to Calculations by clicking Next. Completing Fees This option allows you to define the fee as a fixed dollar amount ($) or as a percent of the loan amount (%). Miscellaneous fees that do not affect the APR. These fees are finance charges that affect the APR. Add other fees. You can type the name of the fee recipient in the Paid to field, or choose from the available options by clicking the drop-down arrow User's Guide - Bank

109 Consumer Loans Consumer Open-End Fees Check this box if thirdparty fees apply. Tips for Completing Consumer Open-End Fees Type column: The drop-down list offers a choice of the following: Dollar amount Percent Less of percentage and dollar amount Greater of percentage and dollar amount Third-Party Fee Type column: The drop-down list offers a choice of the following: Dollar amount Cost/unit % of column: The drop-down list is available if the fee is calculated as a percent. The choices are as follows: Credit limit Outstanding Balance Advance amount Complete each field and continue to the Calculations information by clicking Next. Calculations The Calculations section of the transaction Navigator lets you choose the repayment method, accrual method, and list the basic financial information for the loan transaction such as amount and rate. Payment Frequencies The following payment frequencies are available: Weekly FNMA Biweekly User's Guide - Bank 101

110 Consumer Loans Every other week Semimonthly Monthly Quarterly Semiannually Annually NOTE: When selecting Escrow Applies, a converted Monthly payment and Monthly amount appear for lines when the payment frequency selected is other than Monthly. Basic Calculations Funding Date If using the system date as the funding date, you may use a shortcut and type in a 0 or a T, which results in the system date. You may also type in a number and get that many days from the system date, or type a number and M to get that many months from the system date. NOTE: Remember these shortcuts: 0 = system date t or today = system date First Payment Date You can take advantage of entering a number of days in the first payment date field. For example: enter 30 in the first payment date field; the program sets the first payment date to 30 days after the funding date. The date is set based on the funding date not the system date. Here are some shortcuts for the first payment date: first = first date of next month following the funding date 1m = one month from the funding date 3m = three months from the funding date 31 = 31 days from the funding date User's Guide - Bank

111 Consumer Loans Completing Calculations Information Click to view the calculation options. The options will vary depending on the type of repayment method you choose. Click this button to see the calculation results, which will show you the payment schedule. NOTE: Descriptions of the standard loan repayment methods can be found in the Glossary. Definitions include amortized balloon, balloon/amortized balloon, custom, demand, installment, interest only, irregular payment, principal reduction, single payment, and two phase. Calculation Options Button These items can be preset as part of a Policy profile. If you check Skip payment months apply, check the months in which no payments are required available only with installment loans. User's Guide - Bank 103

112 Consumer Loans Multiple Advance Option Here s the multiple advance check box. Multiple Advance Check Box The Multiple Advance check box is available for the following consumer loan types: single payment, interest only, and two phase. NOTE: The consumer loan type uses Reg Z, Appendix D language. Preferred Rate Options Preferred Rate Lending is the ability of a financial institution to give a borrower a better interest rate (discount) on a loan because the borrower has a relationship with your institution. The Preferred rate check box is only available if the loan has a fixed rate or fixed rate definition. Preferred Rate Lending is supported for the following repayment methods: Installment Amortized Balloon Balloon Single Payment Interest Only Principal Reductions Preferred Rate Lending is not supported for the following repayment methods, when split-rate or precomputed interest accrual is specified, or when minimum interest and equivalent rate of interest calculations are specified for the loan: Irregular User's Guide - Bank

113 Consumer Loans Demand Custom Two-Phase NOTE: Only one preferred rate option may apply to a loan, and the loan must have an underlying fixed rate. The Preferred rate section begins here. About Preferred Rate Relationships ARTA Lending supports three types of relationships for Preferred Rate Lending: being an employee of the institution having a qualifying account (CD or other account) with the institution (which may or may not specify a minimum deposit amount) having the loan payment automatically deducted from an account with the institution. Credit Insurance Option Disability insurance is allowed on weekly, every other week, semimonthly, and monthly payment frequencies. The types of insurance offerings available at transaction time can be limited in Lending Setup. Or it may be more desirable to choose insurance on a case-by-case basis. User's Guide - Bank 105

114 Consumer Loans Check this box to truncate the credit life insurance. Type the length of the term, in months, covered by decreasing life insurance if less than the full term of the loan. Type the length of the term, in months, covered by level life insurance if less than the full term of the loan. Check this box to truncate disability insurance. Type the length of the term, in months, covered by disability insurance if less than the full term of the loan. Credit Insurance Applies Check Box The credit insurance applies check box is available for the following loan types: Life installment balloon amortized balloon single pay interest only principal reduction Disability installment balloon amortized balloon State-Specific Fee Processing Florida A special Florida Fees check box appears in the Calculations screen when the loan policy s applicable state law is Florida. This check box is used to add the Florida Doc Stamp, Intangible Tax, and Processing Fee to the transaction. Check the special Florida Fees check box in the Calculations screen when any of these fees apply to the transaction. You can choose which fees apply to the transaction, specify how they are to be collected, and indicate an exemption amount, if applicable, for the fee. The selected fees are then calculated when the loan is calculated. Tennessee The Tennessee Loan Fee calculation is available on installment and single payment transactions when the applicable state law is Tennessee. The Tennessee Loan Fee can be selected in the Calculations screens by checking the TN Loan fee applies check box. You can choose how the fee is to be collected, as well as an exclusion amount, if applicable. The Tennessee Loan Fee is then calculated when the loan is calculated User's Guide - Bank

115 Consumer Loans Georgia The Georgia Industrial Loan Act (GILA); ARTA Lending calculates the GILA fee and maintenance charge based on the fee percentages and maintenance charge amounts specified in Policy Setup. When creating a GILA loan, two additional payment methods are available: GILA Installment and GILA Single payment. GILA Installment and GILA Single payment are available in the Repayment method drop-down list. Additional GILA details are requested in the Calculations window. Loan Calculations ARTA Lending lets you review the loan calculation results by clicking the Calculate Payments button. User's Guide - Bank 107

116 Consumer Loans The payment schedule presented on the Calculations Results window is in accordance with Regulation Z. Click this button to preview and print the Amortization Schedule. Click this button to preview and print the Calculation Summary. Click Print or Cancel to return to the Calculation Results User's Guide - Bank

117 Consumer Loans Disbursements The Disbursements section of the transaction Navigator lets you view disbursement information based on the loan information previously entered. Completing the Disbursements Information Type all payees to receive the disbursements and the amount of each disbursement. Other fees that are added to the amount requested or subtracted from proceeds on the Fees screen will be supplied in this section. Complete the information and click Next to continue. NOTE: In most cases, when you enter more than three parties to disburse to, ARTA Lending will add an embedded document titled Additional Financed Itemization. An embedded document will not appear in the Navigator, but will be printed automatically by ARTA Lending when it recognizes the need. User's Guide - Bank 109

118 Consumer Loans Payments Open-End Credit When you check the Open-end credit box when entering Criteria information, the Navigator replaces Calculations and Disbursements with Payments and Rates. This is necessary because ARTA Lending does not perform calculations for open-end credit loans, and the required rate information is different from other types of loans. NOTE: Make sure you ve set up repayment methods before beginning an open end transaction. Refer to the Lending Setup for details on setting up repayment methods. Available plan types: Draw period only Draw period followed by repayment period Evergreen----for overdraft line or personal credit line Evergreen plans allow customers to take advances for an unlimited time period. In other words, this plan type has no maturity date User's Guide - Bank

119 Consumer Loans Repayment methods with multiple items will insert plus language to the text. You can choose multiple repayment methods with a single value, ARTA Lending will prompt you to use the greater or lesser value. Select the appropriate text from the drop-down list. Check all applicable boxes. Click Next when you are done. User's Guide - Bank 111

120 Consumer Loans Rates When you check Open-end credit in the Criteria information, the Navigator replaces Calculations and Disbursements with Payments and Rates. The ability to calculate the APR and daily periodic rate for consumer open-end loans has been added to the program. This change affects all consumer open-end (HE, OL, and PL) Agreements. The Rates screen in a transaction (variable and fixed) will collect the data required for the calculations. Use the Rate definition field to choose a rate for consumer open end entered during Lending Setup or complete the fields manually User's Guide - Bank

121 Consumer Loans Documents The Documents section of the transaction Navigator lets you view the documents autoselected by ARTA Lending. You can also add or remove documents. Tips for Completing Documents Any document that appears in yellow or red on the Navigator indicates the document is either Not Needed or is Invalid. Check the document status by right-clicking on the document name in the Navigator and choosing the Properties option. Status shows if the document is suitable for this loan = (OK), whether it was autoselected = (OK Auto), whether it was manually selected = ( OK Manu). It may also indicate a document is either Not Needed or Invalid. Select every form in the document list to complete the documents appropriately. If users do not select every document, the following may occur: incorrect information may appear missing data may result Documents List Click this button to add documents to this loan. Click this button to remove selected documents from the list. The Document List shows all of the documents selected for this loan and also displays them on the Navigator. Place a check mark in the box next to the documents you want to remove. Here s where you can make changes to the number of copies. NOTE: If you are using a template where bypass autoselection has been chosen and then add a document, the status will show manually for all documents even if they are invalid. User's Guide - Bank 113

122 Consumer Loans Adding Documents If you choose to add any documents to the loan, click the Add documents button. This brings up the following screen. Displays the installed directory path containing the documents. Allows you to change to other state document sets by clicking the Browse button. Select the document you want to add to the loan. To select multiple documents, press the Ctrl key as you select each document. Removing Documents Place a check mark in the box next to the documents you want to remove, then click the Remove selected documents button. NOTE: The autoselected documents you remove will be added back if you return to a page listed above Disbursements in the Navigator. To complete all applicable document prompts, click Next. When you have completed all document prompts, click Validation User's Guide - Bank

123 Consumer Loans Completing the Document Prompts Many documents require additional information be filled out. If a document does not have any fields to fill out, a brief description of the document is displayed followed by Next. Click on a document name in the Navigator. Prompts specific to the document and loan criteria are displayed. Complete all applicable document prompts. Validation The validation process signals possible data entry errors. It checks the system for accuracy, consistency, and regulatory issues. It signals data entry errors for visual verification and lets you fix them before they become problems. User's Guide - Bank 115

124 Consumer Loans Click this button to print a list of the documents along with their applicable status. The Document Checklist includes an explanation if the status is either Invalid or Not Needed. Click this button to print a copy of the validation report showing all validation warnings and notices. Handling Validation Warnings and Notices ARTA Lending checks for missing or invalid data and displays Warnings and/or Notices as appropriate. Warnings require correction or you may override warnings. Notices are informational and do not require action. To correct errors, click on the Navigator item where the error is occurring. Make the correction and return to Validation to verify that no additional warnings exist. Failing to correct a validation warning or to override the warning will result in having INCOMPLETE watermarked on all of the documents for that transaction. NOTE: Information on overriding validation warnings can be found in Processing Loans. Print From the Print section of the transaction Navigator you can preview and print all of the documents related to the transaction User's Guide - Bank

125 Consumer Loans Printing Your Loan Documents Clicking Preview All Selected Documents lets you preview completed loan documentation. Deselect all documents button clicking this button clears all check marks. Check the applicable boxes for the documents you want to print or preview. Print All Selected Documents button clicking this button prints all of the documents that are checked. Preview All Selected Documents button clicking this button previews all of the selected documents online before printing the documents. Print Document Checklist button clicking this button prints a checklist of your documents. Print Validation Report button clicking this button prints the validation results. Points to Remember You can change your Document Setup information: default number of copies, binding preference, and copy watermark in the Lending setup section of the program. Reviewing the setup information will assure your documents print the way you want. NOTE: Refer to Template and Report Setup for more in-depth information on document setup. Save and close the loan. NOTE: Refer to Processing Loans for more in-depth information on printing your loans. User's Guide - Bank 117

126 Commercial/Ag Loans Commercial/Ag Loans Introduction With ARTA Lending you can create a commercial or agricultural loan. The documents generated for commercial and agricultural loans are typically quite different from those created for consumer loans. ARTA Lending expands the document sets and includes unique repayment methods that can better accommodate the more complex needs of the business borrower. Templates You can create loans and applications by choosing the template that was created for your loans and applications and fill in the required information. This frees you from worrying about many of the details, improves the consistency of your work, and saves time. When using templates, remember that someone may have preset information in the templates. Information can be changed when processing a loan or application, unless field properties were set that do not allow a change to the field. NOTE: Refer to the Setting Up ARTA Lending for details on creating templates. Creating a New Loan 1. From the Navigator, expand Loans and select New. 2. Select the desired template to begin a new loan or select ***New loan without template*** to start a loan without a template. 3. The Navigator changes, the first item being Criteria User's Guide - Bank

127 Commercial/Ag Loans Criteria The Profiles area displays preset information from Lender Setup and Policy Setup. Check this box for UCC perfected collateral. Your selection here will determine the document set for autoselecting commercial documents. Type a description of the collateral. Completing the Criteria Information Complete all applicable fields. Authorization type options are: Corporation, Entity, Limited liability company, Organization, Partnership, Sole proprietorship, and Trust. Click Next or select the Borrower item on the Navigator to continue after completing this screen. Loan Agreement versus Universal Note Check Application documents if you want the program to autoselect a Commercial Loan Application Summary (CLAS) and an authorization resolution. Click the arrow to display a dropdown list of authorization types to select. The documents autoselected when Commercial/Agricultural is chosen as the loan purpose are dependent on which option is selected immediately after the collateral type. The table below shows the impact on document selection by ARTA Lending when Loan agreement is selected on the Criteria page instead of Universal note. This grid assumes the collateral is not Residential Real Estate and that multiple advance applies. User's Guide - Bank 119

128 Commercial/Ag Loans Application Phase Closing Documents Phase Loan Agreement COMM-APP Commercial Loan Application COMM-AGREE Commercial Loan Agreement COMM-NOTE Commercial Promissory Note COMM-ADD-SA Commercial Security Agreement CLAS Universal Note Commercial Loan Application Summary MPN-CU Multi-Purpose Note SA-BUS Security Agreement LCA Line of Credit Agreement Borrower Commercial loans can also be used for individuals. Click to go to the next window or select Fees on the Navigator User's Guide - Bank

129 Commercial/Ag Loans Completing the Borrower Information The Borrower type selected will affect the formatting of the name and address data entry fields. Only one business name borrower is allowed with up to six signers. ZIP and postal codes are automatically formatted with hyphens if needed. Five-digit ZIP code = Nine-digit ZIP code = Canadian postal code: T2T 2T2 If your borrower has a business name, you must click the Details button to collect information regarding who will sign on behalf of the business. Borrower Details Check these boxes if you would like the Signers name(s) to appear on the loan documents. User's Guide - Bank 121

130 Commercial/Ag Loans Tips for Completing Borrower Details Use the scroll bar to move information up or down. Remember to choose an Organization Type from the dropdown. This is very important for the printing of documents. Telephone numbers are formatted accordingly: Ten-digit telephone number = (320) Seven-digit telephone number = Information from these details will appear on the loan documents. Click OK to return to the Borrower s page and continue entering information, such as the note date, officer, processor, and loan number before clicking Next to continue on to Fees. Fees This option allows you to define the fee as a fixed dollar amount ($) or as a percent of the loan amount (%). The Value field is intended for a number. The $/% field is for a symbol only. Miscellaneous fees that do not Add the other fees. You can type the name of the fee recipient in the Paid to field, or choose from the available options by clicking the drop-down arrow. Tips for Completing Fees The Value field is intended for a number. The $/% field is for a symbol only. Paid to: You can type the name of the fee recipient in the Paid to field, or choose from the available options by clicking the drop-down arrow: Public officials, Lender User's Guide - Bank

131 Commercial/Ag Loans NOTE: ARTA Lending is a state-specific program. Fees vary from state to state. Specific fees for your state will appear in your program. Some state fees are processed during calculations. Complete each field and continue to Calculations by clicking Next. Calculations Completing Calculations Click to view the calculation options. The options will vary depending on the type of repayment method you choose. Funding Date If using the system date as the funding date, you may use a shortcut and type in a 0 or a T, which results in the system date. You may also type in a number and get that many days from the system date, or type a number and M to get that many months from the system date. First Payment Date You can take advantage of entering a number of days in the first payment date field. For example: enter 30 in the first payment date field; the program sets the first payment date to 30 days after the funding date. The date is set based on the funding date not the system date. First Payment Date Shortcuts first = first date of next month following the funding date 1m = one month from the funding date 3m = three months from the funding date 31 = 31 days from the funding date User's Guide - Bank 123

132 Commercial/Ag Loans Credit Insurance Applies Checkbox The Credit insurance applies check box is available for loans. Different types of insurance are available including disability, life, and unemployment insurance. Check this box to truncate disability insurance. Type the length of the term, in months, covered by disability insurance if less than the full term of the loan, Click this button to see the calculation results, which will show you the payment schedule. Repayment Methods The following repayment methods are available, depending on the type of insurance selected: Life installment balloon/amortized balloon single pay interest only principal reduction Disability installment balloon/amortized balloon Disability insurance will calculate in ARTA lending on weekly, every other week, semimonthly, and monthly payments. Please verify which are available from your credit insurance company. Custom Repayment Method This repayment method is only available for commercial/agricultural loans. It allows you to customize your payment language for loans where other repayment types do not meet your needs; however, no User's Guide - Bank

133 Commercial/Ag Loans calculations are performed. You will need to override validation and no Wolters Kluwer Financial Services warranty will be in effect. NOTE: Descriptions of the standard loan repayment methods can be found in the Glossary. Multiple Advance Check Box The Multiple Advance check box is only available for the following commercial loan types: single payment interest only principal reduction demand two phase irregular payment custom repayment Checking the Multiple Advance check box allows you to define if a commercial purpose, multiple advance loan is open end or closed end. Calculation Options Button These items can be preset as part of a Policy profile. If you check Skip payment months apply, check the months in which no payments are required available only with installment loans. State-Specific Fee Processing Florida A special Florida Fees check box appears in the Calculations screen when the loan policy s applicable state law is Florida. This check box is used to add the Florida Doc Stamp, Intangible Tax, and Processing Fee to the transaction. Check the special Florida Fees check box in the Calculations screen when any of these fees apply to the transaction. You can choose which fees apply to the transaction, specify how they are to be collected, and indicate an exemption amount, if applicable, for the fee. The selected fees are then calculated when the loan is calculated. Tennessee The Tennessee Loan Fee calculation is available on installment and single payment transactions when the applicable state law is Tennessee. The Tennessee Loan Fee can be selected in User's Guide - Bank 125

134 Commercial/Ag Loans the Calculations screens by checking the TN Loan fee applies check box. You can choose how the fee is to be collected, as well as an exclusion amount, if applicable. The Tennessee Loan Fee is then calculated when the loan is calculated. Georgia Georgia Industrial Loan Act (GILA) ARTA Lending calculates the GILA fee and maintenance charge based on the fee percentages and maintenance charge amounts specified in Policy Setup. When creating a GILA loan, two additional payment methods are available: GILA Installment and GILA Single payment. GILA Installment and GILA Single payment are available on the Repayment method list. Additional GILA details are requested in the Calculations window. Calculations Results ARTA Lending lets you review the loan calculation results. The payment schedule presented on the Calculations Results window is in accordance to Regulation Z. Click this button to preview or print the Amortization Schedule. Click this button to print the Calculation Summary User's Guide - Bank

135 Commercial/Ag Loans Disbursements Type all payees to receive the disbursements and the amount of each disbursement. Other fees that are added to the amount requested or subtracted from proceeds on the Fees screen will be supplied in this section. Disbursement Authorization (DA) The disbursement information entered here will print on the Disbursement Authorization form, if manually selected. You can use the DA document to disclose the various disbursements being made at closing for transactions where a HUD settlement statement is not appropriate. User's Guide - Bank 127

136 Commercial/Ag Loans Documents Click this button to remove selected documents from the list. Click this button to add documents to this loan. The Document List shows all of the documents selected for this loan and also displays them on the Navigator. Place a check mark in the box next to the documents you want to remove. Here s where you can make changes to the number of copies. Tips for Completing Documents Any document that appears in yellow or red on the Navigator indicates the document is either Not Needed or is Invalid. Check the document status by right clicking on the document name in the Navigator and choosing Properties to view the explanation. Status shows if the document is suitable for this loan = (OK), whether it was autoselected = (OK Auto), whether is was manually selected = (OK Manu). It may also indicate a document is either Not Needed or Invalid. NOTE: If a document is added to a template that has Bypass auto-selection chosen, the status will display (Manually) User's Guide - Bank

137 Commercial/Ag Loans Adding Documents If you choose to add any documents to the loan or application, click the Add documents button. This brings us to the following screen. Displays the installed directory path containing the documents. Allows you to change to other state documents sets by clicking the Browse button. Select the document you want to add to the loan. To select multiple documents, press the Ctrl key as you select each document. Removing Documents Place a check mark in the box next to the documents you want to remove, then click the Remove selected documents button. To complete all applicable document prompts, click Next. When you have completed all document prompts, click Validation. User's Guide - Bank 129

138 Commercial/Ag Loans Validation The validation process signals possible data entry errors. It checks the system for accuracy, consistency, and regulatory issues. It signals data entry errors for visual verification and lets you fix them before they become problems. You must have permission to override validation warnings. Click this button to print a report of the validation results. Handling Validation Warnings and Notices ARTA Lending checks for missing or invalid data and displays Warnings and/or Notices as appropriate. Warnings require correction or you may override warnings. Notices are informational and do not require action. To correct errors, click on the Navigator item displaying the error. Make the correction and return to Validation to verify no additional warnings exist. IMPORTANT: Failing to correct a validation warning or to override the warning will result in having the word INCOMPLETE watermarked on all of the documents for that transaction. NOTE: More in-depth information about validation can be found in Processing Loans User's Guide - Bank

139 Commercial/Ag Loans Print Print your selected documents by clicking the Print All Selected Documents button. Print Buttons Deselect all documents Clicking this button clears all check marks. Check the applicable boxes for the documents you want to print or preview. Print All Selected Documents Prints all of the documents that are checked. Preview All Selected Documents Previews all of the selected documents on-line before printing the documents. You can print from the preview. Print Document Checklist Prints a checklist of your documents. Print Validation Report Prints the validation results. Tip for Printing your Loan Documents Make sure you have your Document Setup information completed before printing your loans. You can set the default number of copies, binding preference, and copy watermark. Setting up this information will assure your documents print the way you want. NOTE: More in-depth information about printing can be found in Processing Loans. User's Guide - Bank 131

140 Residential Real Estate Loans Residential Real Estate Loans Introduction ARTA Lending guides you through each of the loan steps unique to real estate loans and selects the documents for you. Prior to creating real estate loans or applications, you may find it beneficial to set up a template for processing residential real estate loans and applications. There are separate templates for Applications and Loans if the Application Module is installed. Also, remember to set up your Private Mortgage Insurance (PMI) plans in the Insurance setup section. This chapter steps you through the process of creating residential loans secured by real estate. Flood Hazard Determination ARTA Lending provides the ability to obtain a flood hazard determination for your application or loan. Flood determinations through ARTA Lending integrate with Flood Determination Services. ARTA Lending customers using this integrated flood determination service will be billed a per-transaction fee by USDS for each determination obtained. For ordering information, click the Flood Determination Services icon on the toolbar. NOTE: See the Guide to Flood Certification on the ARTA Lending CD or on the Wolters Kluwer Financial Services web site for more detail about Flood Determination Services. Templates You can create a loan by choosing a template and fill in the required information. This frees you from worrying about many of the details, improving the consistency of your work and saving you time. When using templates, remember that someone may have preset information in the templates. Information can be changed when processing a loan, unless field properties were set during template creation that do not allow for a change to the field. NOTE: Refer to the Template and Report Setup for details on creating templates. To create a new loan 1. From the transaction Navigator, expand Loans and select New. 2. Choose an existing template to begin a new loan or select ***New loan without template*** to begin a loan without a template. 3. The Navigator menu changes, and you begin in Criteria User's Guide - Bank

141 Residential Real Estate Loans Criteria A real estate loan is a consumer loan secured by residential real estate. ARTA Lending is designed to help you automate your title and escrow processes from opening to closing. For purchase money loans, the property address is for the property being purchased. This address prints on various application and closing documents. This should be completed even in cases where the property address is the same as the borrower s address (e.g., Refinance). Documents may differ from stateto-state. Tips for Completing Criteria Information that was preset in the setup sections of the program will appear when creating your loans. If you have more than one lender set up, make sure you select the desired lender from the list when processing your loans. Remember, when using templates, someone may have preset information in the templates. Preset template information can be changed during processing a loan, unless field properties were set to protected and cannot be changed or invisible. User's Guide - Bank 133

142 Residential Real Estate Loans IMPORTANT: The legal description entered on the Criteria screen has a one time default to the forms. This prints in the legal description area of the documents unless you change it at the document prompting level. If you make a change to the legal description on the Criteria screen after the initial default, the changes will not pull through to the documents. If you have changed the legal description text on a document but you want the legal description from the Criteria screen to print, remove the document from the Documents list and re-add it. This reapplies the one-time defaults. Borrower Type in the first letter of the loan officer s name to select. Loan officers should have been entered in the General Setup, User section. Click to go to the next window or select Fees on the Navigator User's Guide - Bank

143 Residential Real Estate Loans Tips for Completing Borrower Information ARTA Lending allows up to six individual borrowers. When entering a business name, up to six signers can be entered. ZIP and postal codes are automatically formatted with hyphens if needed: Five-digit ZIP code = Nine-digit ZIP code = Canadian postal code: T2T 2T2 Click the Cosigners button to enter cosigner information. Click the Details button to enter additional borrower information, such as social security and tax ID numbers. Borrower Details Enter as much information as you can for best results. SSN is formatted as nine-digits: If you enter an EIN with a single dash, it formats as If you enter an EIN with zero or two dashes, it formats as Tips for Completing Borrower Details The Birth date is required to document credit life and disability details for Truth-in-Lending purposes. Date of birth is also a requirement of Section 326 of the USA PATRIOT Act. Use the scroll bar to move information up or down. Telephone numbers are formatted accordingly: User's Guide - Bank 135

144 Residential Real Estate Loans Ten-digit telephone number = (320) Seven-digit telephone number = Information from these details will appear on the application documents. Completing the Cosigner Information Click the Details button to add more information about cosigner(s). Cosigner Details User's Guide - Bank

145 Residential Real Estate Loans Fees The Fees screen for residential real estate follows the HUD Settlement Statement. Multiple columns exist for splitting of a fee between borrower, seller, and lender. Select the POC check box if a fee is paid outside of closing. Check the APR box if the fee is a finance charge and should affect the APR. User's Guide - Bank 137

146 Residential Real Estate Loans Line # 901 Line # 902 Line # 904 Line # 1000 series Reserves Deposited with Lender The amounts for these items cannot be entered into this window. These items are supplied from data entered in the Calculations area User's Guide - Bank

147 Residential Real Estate Loans Mortgage/DOT is used to list the fee for recording a mortgage or deed of trust. ARTA Lending will calculate your fee totals after you complete the Calculations information. State-Specific Fees ARTA Lending is a state-specific program. Fees vary from state to state. Specific fees for your state will appear in ARTA Lending based on the information entered into Policy Setup and which policy was selected for a transaction. Some state fees are processed during calculations. User's Guide - Bank 139

148 Residential Real Estate Loans NOTE: See Lending Setup for more detail on setting up policies. Calculate Totals Button If a loan is secured by residential real estate, the Calculate Totals button cannot calculate the total until all of the necessary information has been completed in the Calculations information. Click Next to move to the Calculations section. HOEPA Determination Feature In addition to the HOEPA determination, Wiz Sentinel Home Ownership and Equity Protection Act also performs multiple tests (HPML, ATR/QM) through the HOEPA Detminiation function. The Home Ownership and Equity Protection Act (HOEPA) is a consumer protection statute that contains disclosure requirements and other transaction restrictions for home loans with high annual percentage rates or high fees. HOEPA is implemented by Regulation Z at 12 CFR ,.32, and.34. HOEPA covers consumer credit transactions that are secured by the consumer's principal dwelling, other than a reverse mortgage transaction; a transaction to finance the initial construction of a dwelling; a transaction originated by a Housing Finance Agency, where the Housing Finance Agency is the creditor for the transaction; and a transaction originated pursuant to the United States Department of Agriculture's Rural Development Section 502 Direct Loan Program. The transaction will be covered under HOEPA if any of the following criteria is met. Annual percentage rate threshold. A transaction will be covered by HOEPA if the annual percentage rate exceeds the average prime offer rate for a comparable transaction by more than: 6.5 percentage points for a first-lien transaction other than a first-lien transaction if the dwelling is personal property and the loan amount is less than $50, percentage points for a first-lien transaction if the dwelling is personal property and the loan amount is less than $50, percentage points for a subordinate-lien transaction. Fee threshold. A transaction will be covered by HOEPA if the total points and fees paid by the consumer exceed the greater of a predefined percent of the total loan amount or a predefined dollar amount. See Comment #2 to Regulation Z (a)(1)(ii) for the current thresholds. Prepayment penalties. A transaction will be covered by HOEPA if, under the terms of the loan contract or open-end credit agreement, the creditor can charge a prepayment penalty, more than 36 months after consummation or account opening, or prepayment penalties that can exceed, in total, more than 2 percent of the amount prepaid. The following documents have been created to support HOEPA: VMP-763, HE-F-REGZ32, HE-V#-REGZ32, and HE-V#-Z32-WI (Mortgage Disclosure Regulation Z, Section 32): This disclosure is required by Regulation Z (c) and must be given at least 3 business days before closing. This form will be autoselected at the application, early disclosure, or closing stage if the consumer credit transaction secured by the consumer's principal dwelling is subject to HOEPA. HOEPA-A, HOEPA-A-1, HOEPA-A-IA and HOEPA-A-WI (HOEPA Addendum): These addenda amend the default provisions of the Wolters Kluwer Financial Services promissory notes to bring them within the HOEPA limitations. The HOEPA-A is applicable to all states except IA, ID, KS, ME, MO, SC, and WI. The HOEPA-A-1 is applicable to the states of ID, KS, ME, MO and SC. The addenda will User's Guide - Bank

149 Residential Real Estate Loans be autoselected at closing if the consumer credit transaction secured by the consumer s principal dwelling is subject to HOEPA. HOEPA-R, HOEPA-R-1, HOEPA-R-IA, and HOEPA-R-WI (HOEPA Rider): These riders amend the default section of the Wolters Kluwer Financial Services security instruments to bring them within HOEPA limitations. The HOEPA-R is applicable to all states except IA, ID, KS, ME, MO, SC, and WI. The HOEPA-R-1 is applicable to the states of ID, KS, ME, MO, and SC. The riders will be autoselected at closing if the consumer credit transaction secured by the consumer s principal dwelling is subject to HOEPA. VMP-93 (Notice to Assignee): This notice is required to be given whenever a creditor sells or assigns a transaction that comes under HOEPA. The requirement for this notice can be found at (a)(2). The notice is available as a manually selected document. NOTE: The Fannie Mae and Freddie Mac documents do not need the HOEPA addenda or HOEPA riders. The default provisions within those documents do not conflict with the restrictions on default within HOEPA. Similarly, the MPFR-MN document (drafted by Wolters Kluwer Financial Services, but designed to work with Fannie Mae/Freddie Mac security instruments) does not require the addenda. To determine the federal HOEPA status of a transaction, ARTA Lending integrates to Wiz Sentinel Home Ownership and Equity Protection Act to collect HOEPA data for a single application or loan transaction. Obtain the HOEPA and Higher Priced Mortgage determination for a transaction. Select appropriate federal disclosure documents for the transaction. Where state or local high-cost lending laws apply, ARTA Lending also provides a means to: Collect state/local data for a single application or loan transaction. Obtain state/local determination for a transaction. NOTE: State-specific high-cost lending documents are not supported by ARTA Lending. Only the determination is provided. You should consult with your legal counsel to determine the appropriate documents to provide based on the determination. Higher-Priced Mortgage Loan Feature Regulation Z Section 35 defines a higher-priced mortgage loan as a consumer credit transaction secured by the consumer s principal dwelling with an annual percentage rate (APR) exceeding a certain percentage. The classification as a higher-priced mortgage loan is based solely on the following APR thresholds: Threshold for first liens The APR exceeds the average prime offer rate for a comparable transaction as of the rate-lock date by 1.5% or more. Threshold for subordinate liens The APR exceeds the average prime offer rate for a comparable transaction as of the rate-lock date by 3.5% or more. Higher-priced mortgage loans include closed-end purchase money as well as refinancings and home equities, but exclude HELOCs, reverse mortgages, construction only loans, and bridge loans with a term of no more than 12 months. User's Guide - Bank 141

150 Residential Real Estate Loans Borrower s Ability to Repay(ATR)/Qualified Mortgage(QM) Regulation Z, Section 43 defines requires creditors to determine the consumer's ability by either meeting the minimum Ability to Repay standards and/or meeting the Qualified Mortgage standards. The ATR/QM requirements apply to closed-end, consumer credit transactions secured by a dwelling. See Regulation Z (a) for details pertaining to exempt transactions. Setting Up to Use the Feature The federal HOEPA and Higher Priced Mortgage Determination feature of ARTA Lending is provided free of charge and without a separate license requirement. This arrangement allows Wolters Kluwer Financial Services to provide you with all of the necessary federal documents and the appropriate corresponding calculations. Registration is required the first time you click the HOEPA icon only. You will be presented with information and instructions on how to register so that you may begin using the HOEPA determination feature in ARTA Lending. You will receive a user name and password that you will enter for each user in the general setup area (pictured below). Using the HOEPA Determination Feature The Fees screens in ARTA Lending have been modified to allow you to specify if the fee will be considered by Wiz Sentinel Home Ownership and Equity Protection Act in its HOEPA calculations by checking the HOEPA check box. Where state/local determination applies, you also specify which fees are to be considered by Wiz Sentinel state/local high cost lending calculations by checking the State check box User's Guide - Bank

151 Residential Real Estate Loans From within an open application or loan transaction, click the HOEPA icon on the Transaction Toolbar. HOEPA icon This displays the Request Determination screen. Various transaction information defaults to this screen, but you may be required to enter some additional information. ARTA Lending transfers this data and your fee designations to Wiz Sentinel. Wiz Sentinel performs the federal HOEPA determination calculations, and checks the transaction against federal HOEPA regulation thresholds and state/local laws (if appropriate). Wiz Sentinel returns the determination HOEPA threshold met or HOEPA threshold not met, indicating the transaction either does or does not fall under federal HOEPA regulation. Where you have contracted for state/local determination, a state/local high-cost lending determination is also returned. NOTE: When applicable, the Higher-Priced Mortgage Determination is also returned. User's Guide - Bank 143

152 Residential Real Estate Loans After the HOEPA determination is returned from Wiz Sentinel, click the Print Preview button in the Request Determination view to display the HOEPA Determination Report Preview. NOTE: The Higher Priced Mortgage Determination appears when applicable User's Guide - Bank

153 Residential Real Estate Loans Calculations Check this box if there are long days to the first payment, that is, more than a month on a monthly pay loan, and the odd days are prepaid. Check this box if there are short days to the first payment, that is, less than a month on a monthly pay loan and to calculate a full unit, that is, a full month to the first payment. The extra days of interest will be refunded to the customer on Line 901 of the HUD Settlement Statement. Enter the date to lock in the rate. Check this box and complete the remaining PMI prompts that will appear. Check this box to truncate the credit life insurance. Type the length of the term, in months, covered by decreasing life insurance if less than the full term of the loan. Type the length of the term, in months, covered by level life insurance if less than the full term of the loan. Check this box if credit insurance applies. Click this button to see the calculation results, which will show you the payment schedule. User's Guide - Bank 145

154 Residential Real Estate Loans Calculation Options Click the Calculation Options button to view the available options. The options will vary depending on the type of repayment method you choose. These items can be preset as part of a Policy profile. If you check Skip payment months apply, check the months in which no payments are required available only with installment loans. Click OK to return to the Calculations information. Credit Insurance Applies Check Box The credit insurance applies check box is available for the following loan types: Credit Life installment balloon/amortized balloon single pay interest only principal reduction Disability installment balloon/amortized balloon Disability insurance will calculate in ARTA Lending on weekly, every other week, semimonthly, and monthly payments. Please verify which are available from your credit insurance company. State-Specific Fee Processing Florida A special Florida Fees check box appears in the Calculations screen when the loan policy s applicable state law is Florida. This check box is used to add the Florida Doc Stamp, Intangible Tax, and Processing Fee to the transaction. Check the special Florida Fees check box in the Calculations screen when any of these fees apply to the transaction. You can choose which fees apply to the transaction, specify how they are to be collected, and indicate an exemption amount, if applicable, for the fee. The selected fees are then calculated when the loan is calculated. Private Mortgage Insurance Applies If a loan carries private mortgage insurance, the lender may be subject to the Homeowners Protection Act of 1998 (HOPA). This act limits how long a borrower must pay PMI premiums for an individual mortgage or loan involved in a residential mortgage transaction User's Guide - Bank

155 Residential Real Estate Loans PMI Setup Make sure that your PMI plans are entered into the Insurance setup section before processing your loans. This information is needed to calculate Private Mortgage Insurance. How to Specify HOPA Information The HOPA prompts are located on the Calculations screen of a residential real estate transaction with PMI. General terms are prompted for, such as who pays the PMI premium, whether the loan is defined as a high-risk loan, and the original value of the property. These terms are used to calculate the (automatic) termination date and a (borrower-initiated) cancellation date when applicable. The termination date and cancellation date, along with other HOPA results, appear on the Calculations Summary Report. Check this box if credit insurance applies. User's Guide - Bank 147

156 Residential Real Estate Loans Entering Escrow Information On the Calculations view for Residential real estate transactions, an Escrow applies checkbox will collect escrow information. Marking this checkbox will display prompts to enter escrow information. The Calculate button will calculate an escrow payment based on the payment frequency selected in the payment options. Users can choose a cushion, for example, one or two month, or can manually enter a specific cushion amount. The Update Escrow button should be used to update the escrow figures and initial escrow schedule. The Calculate Payments button will do the regular loan calculation, displayed in Calculation Results User's Guide - Bank

157 Residential Real Estate Loans Calculations Results ARTA Lending lets you review the loan calculation results. Clicking Print Calculation Summary will allow you to preview and print the document. User's Guide - Bank 149

158 Residential Real Estate Loans Disbursements Type all payees to receive the disbursements and the amount of each disbursement. Tips for Completing Disbursements Disbursement details typically appear only on closing documents, so you may choose to wait and enter this information when processing closing documents. If disbursements are not entered when processing early disclosure documents, Validation will display a notice that the loan is not fully disbursed User's Guide - Bank

159 Residential Real Estate Loans Documents Click this button to add documents to this loan. The Document List shows all of the documents selected for this loan and also displays them on the Navigator. Place a check mark in the box next to the documents you want to remove. Here s where you can change the number of copies to print. Tips for Completing Documents Any document that appears in yellow or red on the Navigator indicates the document is either Not Needed or is Invalid. Check the document status by right clicking on the document name in the Transaction Navigator and choosing Properties. The status column will display one of four different statuses: OK Auto Acceptable document, autoselected by ARTA Lending. OK Manu Acceptable document, manually selected by the user. Not Needed Previous selections indicate to ARTA Lending the document is not necessary for the given conditions. Invalid Previous selections indicate to ARTA Lending that using the selected document may create compliance issues. After completing all applicable document prompts, click Next. User's Guide - Bank 151

160 Residential Real Estate Loans Adding Documents If you choose to add any documents to the loan, click the Add documents button. This brings us to the following screen. Displays the installed directory path containing the documents. Allows you to change to other state documents sets by clicking the Browse button. Select the document you want to add to the loan. To select multiple documents, press the Ctrl key as you select each document. Removing Documents Place a check mark in the box next to the documents you want to remove, then click the Remove selected documents button. NOTE: The autoselected documents you remove will be added back if you return to a page listed above Disbursements in the Navigator. To complete all applicable document prompts, click Next. When you have completed all document prompts, click Validation in the Transaction Navigator User's Guide - Bank

161 Residential Real Estate Loans Validation The validation process signals possible data entry errors. It checks the system for accuracy, consistency, and regulatory issues. It signals data entry errors for visual verification and lets you fix them before they become problems. Viewing Validation Results: Warnings and Notices Here are some examples of validation results. Nothing Reported. Displays warnings, invalid documents and notices. Click this button to override the validation warnings (you must enter comments into the override validation pop-up text box). ARTA will process the loan as is; and the comments will print on the Validation Report. Notices do not require you to override. Handling Validation Warnings and Notices ARTA Lending checks for missing or invalid data and displays Warnings and/or Notices as appropriate. Warnings require correction or you may override warnings. NOTE: A user must have permission to override validation. Permissions are given in Group and User Setup. Notices are informational and do not require action. To correct errors, click on the Navigator item where the error is occurring. Make the correction and return to Validation to verify no additional warnings exist. User's Guide - Bank 153

162 Residential Real Estate Loans IMPORTANT: Failing to correct a validation warning or to override the warning will result in having INCOMPLETE watermarked on all of the documents for that transaction. More Information More in-depth validation information is presented in Processing Loans. Print Print your selected documents by clicking the Print All Selected Documents button. Print Buttons Deselect all documents Clears all check marks. Check the applicable boxes for the documents you want to print or preview. Print All Selected Documents Prints all of the documents that are checked. Preview All Selected Documents Previews all of the selected documents on-line before printing the documents. Print Document Checklist Prints a checklist of your documents. Print Validation Report Prints the validation results. Tip for Printing Your Loan Documents Make sure you have your Document Setup information completed before printing your loans. You can set the default number of copies, binding preference, and copy watermark. Setting up this information will assure your documents print the way you want User's Guide - Bank

163 Processing Loans Processing Loans Introduction The Loans section allows you to process loans for multiple loan types. ARTA Lending automatically selects the documents for you and guides you through each of the loan steps, providing What s This? Help for fields when you need assistance. The following topics are discussed in this chapter: Recalling Loans Validation Using the Print Preview Printing Denying a Loan Request Recalling Loans ARTA Lending allows you to quickly gain access to your existing loans by selecting from the list or by searching for the loan by using a search function. Recalling a Loan 1. From the Navigator, expand Loans. 2. Select Recall. 3. Select the existing loan from the list or use the Search criteria to search for the loan transaction. User's Guide - Bank 155

164 Processing Loans Searching for a Loan The Search function, found below the list of loan applications, offers a quick method for locating your desired loan transaction. Enter the desired search criteria and click Update List. The Path contains the root level and subdirectory folders pointing to the location where the recalled loans can be found, within the hierarchy of folders on your computer. These folders can be expanded in a manner similar to that used with Windows Explorer. This field can be used to locate a particular transaction with a borrower name. Click this button to refresh the list of loan transactions according to the criteria specified for a loan search. TIP: In addition to filtering by name to search for a loan, you can also filter by the timeframe of the last edit of the transaction, loan amount, loan purpose, collateral type, and loan number. Use as many or as few filters as you need to narrow or expand your search. After you have selected your loan, ARTA Lending brings you to the Criteria information where you may continue to make changes and proceed with the loan process. Validation The validation process signals possible data entry errors by checking the system for accuracy, consistency, and regulatory issues. It signals data entry errors and lets you fix them before printing. Viewing Validation Results: Warnings and Notices Here are some examples of validation results User's Guide - Bank

165 Processing Loans Displays Warnings. Click this button to over-ride the validation warnings (you must enter comments into the override validation pop-up text box). ARTA will process the loan as is; and the comments will print on the Validation Report. Notices do not require you to override. Click this button to print a report of the validation results. Nothing Reported. Displays Warnings, including invalid documents and it displays Notices. Click this button to go to the Next item on the Navigator: Print. Correcting Validation Warnings and Notices ARTA Lending checks for missing or invalid data and displays Warnings and/or Notices as appropriate. Warnings require correction or you may override warnings. Notices are informational and do not require action. To correct errors, click on the Navigator item where the error is occurring. Make the correction and return to Validation to verify no additional warnings exist. User's Guide - Bank 157

166 Processing Loans Overriding Validation If there are validation warnings, the documents will have an INCOMPLETE watermark printed on them. You can choose to override those warnings and print the documents. If you choose to override validation the watermark will not print, but the footer prints the letters VO (validation override) and the program version number to identify it as overridden. Validation Buttons Override Validation Overrides the validation results. The override validation comments will print on the Validation Report. Print Document Checklist Prints a list of the documents along with their applicable status. The Document Checklist includes an explanation if the status is either Invalid or Not Needed. Print Validation Report prints a copy of the validation report showing all validation warnings and notices. Authorization to Override Validation Each user who works in ARTA Lending must be assigned a User ID and password. This is specified in each user s profile. The Security Group the user belongs to will dictate their permissions to perform a validation override. If a user does not have validation override permissions, another user with permission will need to enter their user ID and password if the Override Validation button is pressed. If the user does not have permission and presses the Override Validation button, a request for User ID and password opens as shown below. To override, someone with the proper permissions must enter their user ID and password. The user s name is saved on the Validation Report User's Guide - Bank

167 Processing Loans NOTE: See Starting Setup for more security setup information. Print Print your selected documents by clicking the Print All Selected Documents button. Print Buttons Deselect all documents Clears all check marks. Check the applicable boxes for the documents you want to print or preview. Print All Selected Documents Prints all of the documents that are checked. Preview All Selected Documents Previews all of the selected documents on-line before printing the documents. Print Document Checklist Prints a checklist of your documents. Print Validation Report Prints the validation results. Tip for Printing your Documents Make sure you have your Document Setup information completed before printing your loans. You can set the default number of copies, binding preference, and copy watermark. Setting up this information will assure your documents print the way you want. Using the Print Preview Take advantage of the Print Preview function to view documents on-line in their entirety before you print them. User's Guide - Bank 159

168 Processing Loans Print Preview Toolbar Toolbar Buttons Close Preview. If working with a group of forms, the next form displays for viewing. Print the form. Use the Hand tool to move the form. Increase the magnification of the form. Decrease the magnification of the form. Display the form in the full width of the viewing area. Tile multiple form pages within the viewing area. Move to the first page of the form. Move to a previous page of the form. Move to the next page of the form. Move to the last page of the form. Exit the preview function. Printing We recommend that you go into Document Setup before printing any loans. You can set the default number of copies, duplex preference, print all data in uppercase, and copy watermark. Setting up this information will save you time. The initial document setup configuration for binding type is Default. The default binding type is typically top duplex, but varies from document to document. This may be changed to Simplex, Top Duplex or Left Duplex on a per document basis. Some documents specifically programmed to print simplex, such as the UCC, will always print simplex User's Guide - Bank

169 Processing Loans What Compatible Printers Work with ARTA? ARTA-supported output devices include page printers with a Windows 2000 or Windows XP device driver, as appropriate for your operating system. Printer requirements are: Must be PCL5 or PCL6 compatible Must have two (not one multipurpose) programmable paper trays, one of which must be an 8 ½ X 14"paper tray Minimum printer memory: 300dpi 8MB printer RAM 600dpi 16MB printer RAM 1200dpi 32MB printer RAM Printer Drivers A print driver contains important information that Windows needs to know about your printer, such as details about printer hardware con-figuration and the printing interface, descriptions of fonts, definitions of character widths, print quality, and control sequences used by the printer to achieve various formats. Verify the latest printer driver is installed on the computer. The latest version of most printer drivers can be downloaded from the printer manufacturer's web site. For instance, if you have a Hewlett- Packard printer, browse to their web site at and click to their Support & Drivers Section. For Lexmark printers, contact Lexmark International, Inc at and click to their Drivers and Downloads section. IMPORTANT: Make sure you know the exact model number of your printer and the version of Windows installed on your machine before choosing which driver to download from the manufacturer s web site. Contact your IT department if you are unsure. Troubleshooting Tips Here are some tips if you experience problems with the number of copies, page size, duplex binding, watermark, and illegible printing or illegal operation errors when printing. If Windows has a printer driver for your printer, you probably installed it when you ran the Windows Setup program. Installing printer drivers is a function of the Windows operating system. The procedures for installing additional printers differ if you are connected to a local area network (LAN) or if you are using a stand-alone machine. If you are connected to a LAN, installing printers may be a task for your network administrator. Consult with your administrator. If you are not connected to a LAN, use the Control Panel to install a printer driver. For more information, see your Windows documentation. In some cases, updating the printer driver with the latest version available is suggested. You can usually download the latest printer driver from your printer manufacturer s web site. In some cases installing the latest operating system service pack in conjunction with installing the latest printer driver is suggested. User's Guide - Bank 161

170 Processing Loans In other cases, fine-tuning the print quality in the printer driver improves printing performance. Remember that your printer must have the memory to support higher the quality. If you should experience additional printing problems, contact SupportLine at , ext NOTE: See Using the Utilities for more information on using a printer other than the Windows default for printing from ARTA Lending. Denying a Loan Request To print a Notice of Action Taken Document 1. From the Navigator expand Loans and click New. 2. Click ***New loan without template***. 3. In the Criteria area, select the Loan purpose. 4. Clear the checkbox labeled Closing documents. 5. Select the Notice of Action Taken document only checkbox User's Guide - Bank

171 Processing Loans By selecting Notice of Action Taken document only, ARTA Lending will autoselect the form DN-FCRA-C. No validation will occur. 6. Click Next. 7. In the Borrower area, type a name and address. 8. On the Navigator, click the Documents. Click Next to display the document prompts for DN-FCRA-C. User's Guide - Bank 163

172 Processing Loans 9. Click Next to complete prompts for the DN-FCRA-C (Notice of Action Taken). 10. When all document prompts are completed, click Print. 11. Save the transaction. 12. To display the document before printing, click Preview All Selected Documents. 13. Print the document and close the transaction. NOTE: Wolters Kluwer Financial Services has chosen to autoselect the DN-FCRA-C document. If you want to use the REG-B-NAT document, you may manually add it to the documents page or create a template using the REG-B-NAT User's Guide - Bank

173 ARM Early Disclosure ARM Early Disclosure Introduction If you offer adjustable rate mortgages you must, at the time of application, provide a disclosure to the applicant informing them about the features of the product. The ARM early disclosure(s) can be created using a fixed rate, a user-defined variable rate, or any of 15 predefined, commonly used variable indexes. NOTE: The Wolters Kluwer Financial Services-supplied index histories are updated on a regular basis. Updates are available on the Wolters Kluwer Financial Services support web site. The early disclosures generated by ARM Early Disclosure are designed to be consistent with the regulations that implement the Truth-in-Lending Act. See 12 C.F.R et seq. Key Features ARM Early Disclosure guides you through the steps necessary to build your dynamic disclosures based on the ARM programs within your institution, and the requirements of Reg Z. You can setup ARM Early Disclosure based on information in this chapter and print one or multiple disclosures. Note that you will not be able to print an ARM disclosure from within an application or loan transaction. ARM Early Disclosure supports the ability to round payments up or down to the nearest penny, or round to the nearest penny. Index options are built into the program and are updated periodically. The program also allows you to create your own unique indexes and update them when necessary. ARM Early Disclosure supports Simple (US Rule) compounding. ARM Early Disclosure supports interest only loans and FNMA biweekly amortized balloon loans. A data validation function checks for possible data entry errors and allows you to correct them, which helps improve accuracy, consistency, and regulatory compliance. A print preview function is available for viewing your documents before printing them. ARM Early Disclosure allows you to the final disclosure in an RTF format for viewing in Microsoft Word. A data transfer function allows importing and exporting of data to and from your program. The ability to restrict users to printing only for transactions or to restrict users to print and setup functions only. What Documents Are Generated? The ARM Early Disclosure module provides three variations of the ARM Early Disclosure. Any one of these variations can be provided for an ARM transaction. Simplified Disclosure This is a version of the ARM Early Disclosure that does not include the 15-year historical example but does include the worst-case scenario paragraph. User's Guide - Bank 165

174 ARM Early Disclosure Simplified 15-Year History Disclosure This is a version of the ARM Early Disclosure that does not include the worst-case scenario paragraph, but does include the 15-year historical example. 15-Year Historical Example: This is an optional component of the ARM Early Disclosure. See 12 C.F.R. sec (b)(2)(viii)(A). The example is based on a hypothetical $10,000 loan, and illustrates how payments and the loan balance would have been affected by interest-rate changes implemented according to the terms of the program during a 15-year period. The example reflects all significant loan-program terms, such as negative amortization, interest-rate carryover, interestrate discounts, and interest-rate and payment limitations. See 12 C.F.R. sec (b)(2)(viii)(A). Combined This is a version of the ARM Early Disclosure that includes both the 15-year historical example and worst-case scenario paragraph. Worst-Case Scenario Paragraph: This is an optional component of the ARM Early Disclosure. See 12 C.F.R. sec (b)(2)(viii)(B). This is a paragraph that discloses the maximum interest rate and payment for a hypothetical $10,000 loan originated at the initial interest rate assuming the maximum periodic increases in rates and payments under the program. ARM Programs Supported When creating an ARM program, you must select a document on which to base your early disclosure. ARM Early Disclosure offers two categories: (1) FNMA/FHLMC and (2) Non-FNMA/FHLMC. FNMA/FHLMC Documents National standards for mortgage loans are set by Fannie Mae, commonly abbreviated FNMA, the Federal National Mortgage Association. Together with Freddie Mac, commonly abbreviated FHLMC, the Federal Home Loan Mortgage Corporation, they buy mortgages from lenders for resale in the secondary market. As a result, your organization must use FNMA/FHLMC guidelines. Wolters Kluwer Financial Services Documents (Non-FNMA/FHLMC) Wolters Kluwer Financial Services ARM documents fit into two categories: CCLD (consumer commercial lending documents) Other CCLD The dynamic promissory note (Consumer Commercial Lending Document). Other If you are not using Wolters Kluwer Financial Services or FNMA/FHLMC ARM documents, you may still generate an ARM early disclosure for your ARM program by selecting Other as the document. Creating an ARM Program To create an ARM program: 1. From the Navigator, expand Early Disclosure and select ARM Programs User's Guide - Bank

175 ARM Early Disclosure NOTE: You must have permissions to Early Disclosure to add or edit the contents. 2. Select ***Add New***. 3. The options on the Navigator change, displaying five new options as explained below: Product Payment Rate Validation Print Specifies the product information. Defines the payment information and the repayment method. Specifies information needed to disclose the terms of the repayment method. Defines the interest rate information. Specifies the index and margin used for determining the rate at which interest accrues. Shows a validation result of potential compliance concerns. Previews and prints the early disclosure. Product Complete the information in the Product screen, selecting the type of loan documentation you are using for your ARM program. User's Guide - Bank 167

176 ARM Early Disclosure NOTE: If you have a question at any point on any field, use What s This Help to display further explanations as popups. The Program name entered here will print at the top of the disclosure User's Guide - Bank

177 ARM Early Disclosure FNMA/FHLMC Documents National standards for mortgage loans are set by Fannie Mae. Together with Freddie Mac, they buy mortgages from financial institutions for resale on the secondary market. As a result, your organization must use FNMA or FHLMC guidelines. The FNMA/FHLMC forms are described below, each with a table of characteristics FNMA Adjustable Rate Note FNMA Adjustable Rate Rider Monthly payments Fully amortized (Installment Repayment Method) Payment must occur on the first day of the month 3-Year Treasury Index Periodic cap is 2% Rates and payments change at the same time Payment changes every 36 th month (subsequent payment changes) No interest rate floor No negative amortization No conversion to fixed rate is allowed FNMA/FHLMC Adjustable Rate Rider Monthly payments Fully amortized (Installment Repayment Method) 1-Year Treasury Index Rates and payments change at the same time Payment changes every 12 th month (subsequent payment changes) Periodic cap is 1% No interest rate floor No negative amortization Conversion to fixed rate is available FHLMC Adjustable Rate Note FHLMC Adjustable Rate Rider Monthly payments Fully amortized (Installment Repayment Method) 1-Year Treasury Index Rates and payments change at the same time Payment changes every 12 th month (subsequent payment changes) No interest rate floor (minimum interest rate) User's Guide - Bank 169

178 ARM Early Disclosure No negative amortization Conversion to fixed rate is available FNMA/FHLMC Adjustable Rate Rider Monthly payments Fully amortized (Installment Repayment Method) Interest rate may change once during the term of the loan Rates and payments change at the same time No interest rate floor No negative amortization No conversion to fixed rate is allowed FNMA/FHLMC Adjustable Rate Note FNMA/FHLMC Adjustable Rate Rider Monthly payments Fully amortized (Two phase Repayment Method) 1 Year LIBOR Index Rates and payments change at the same time Payment changes every 12 th month (subsequent payment changes) No interest rate floor No negative amortization No conversion to fixed rate is allowed FNMA/FHLMC Adjustable Rate Note FNMA/FHLMC Adjustable Rate Rider Monthly payments Fully amortized (Two phase Repayment Method) Interest rate may change during the term of the loan 1 Year Treasury Index Periodic cap is 2% Rates and payments change at the same time Payment changes every 12 Months (subsequent payment changes) No interest rate floor No negative amortization No conversion to fixed rate is available FNMA/FHLMC Adjustable Rate Rider Monthly payments Fully amortized (Two phase Repayment Method) User's Guide - Bank

179 ARM Early Disclosure Interest rate may change during the term of the loan 1 Year Treasury Index Periodic cap is 2% Rates and payments change at the same time Payment changes every 12 Months (subsequent payment changes) No interest rate floor No negative amortization No conversion to fixed rate is available FNMA/FHLMC Adjustable Rate Note FNMA/FHLMC Adjustable Rate Rider Monthly payments Fully amortized (Two phase Repayment Method) Interest rate may change during the term of the loan 1 Year Treasury Index Rates and payments change at the same time Payment changes every 12 Months (subsequent payment changes) No interest rate floor No negative amortization No conversion to fixed rate is available FNMA/FHLMC Adjustable Rate Note FNMA/FHLMC Adjustable Rate Rider Monthly payments Fully amortized (Two phase Repayment Method) Interest rate may change during the term of the loan 1 Year Treasury Index Rates and payments change at the same time Payment changes every 12 Months (subsequent payment changes) No interest rate floor No negative amortization No conversion to fixed rate is available FNMA/FHLMC Adjustable Rate Note FNMA/FHLMC Adjustable Rate Rider Monthly payments Fully amortized (Two phase Repayment Method) Interest rate may change during the term of the loan User's Guide - Bank 171

180 ARM Early Disclosure 1 Year LIBOR Index Rates and payments change at the same time Payment changes every 12 Months (subsequent payment changes) No interest rate floor No negative amortization No conversion to fixed rate is available FNMA/FHLMC Fixed Note Monthly payments Fully amortized (Two phase Repayment Method) Interest rate may change during the term of the loan 1 Year LIBOR Index Rates and payments change at the same time Payment changes every 12 Months (subsequent payment changes) No interest rate floor No negative amortization No conversion to fixed rate is available FNMA/FHLMC Adjustable Rate Note FNMA/FHLMC Adjustable Rate Rider Monthly payments Fully amortized (Installment Repayment Method) Interest rate may change during the term of the loan 6 Month LIBOR Index No interest rate floor No negative amortization Conversion to fixed rate is available FNMA/FHLMC Adjustable Rate Note FNMA/FHLMC Adjustable Rate Rider Monthly payments Fully amortized (Installment Repayment Method) Interest rate may change during the term of the loan 6 Month LIBOR Index No interest rate floor No negative amortization No conversion to fixed rate is available User's Guide - Bank

181 ARM Early Disclosure Non-FNMA/FHLMC Forms and Wolters Kluwer Financial Services Documents CCLD The CCLD is the dynamic promissory note. Non-FNMA/FHLMC Forms and Non- Wolters Kluwer Financial Services Documents Other If you are not using FNMA/FHLMC ARM documents, you may still produce an ARM early disclosure for your ARM program by selecting Other for the document. Negative Amortization Negative amortization occurs when the scheduled payment is not enough to pay all of the interest that has accrued. Choose the Negative Amortization Method You ll need to choose how the interest should be calculated if negative amortization occurs. A negative amortization method can only be selected if non FNMA/FHLMC documents are selected. Two negative amortization methods are available: Simple (U.S. Rule) The interest not covered by the scheduled payment is not added to the account balance. In other words, interest does not then accrue on that interest. Compound The interest not covered by the scheduled payment is added to the account balance. User's Guide - Bank 173

182 ARM Early Disclosure Negative Amortization Limits Negative amortization limits, if applicable, are set on the next screen, Payment, by selecting the Negative amortization limit checkbox. If the negative amortization limit is reached, the loan will be re-amortized. Payment On the Payment screen, you can select define the payment structure including repayment methods and frequency. Repayment Methods The following repayment methods are available. All FNMA/FHLMC programs have a repayment method of installment User's Guide - Bank

183 ARM Early Disclosure Balloon/Amortized Balloon Balloon: Used for payments at regular intervals, with a balloon payment due at the last payment of the term. If you specify a regular payment amount, the balloon payment is calculated at the time the disclosure is printed. If you specify a final payment, the regular payment is calculated at the time the disclosure is printed. Amortized Balloon: Used when a regular payment is calculated on a long-term amortization, with a balloon payment due at a shorter term (call term). Interest Only Used for interest payments due at regular intervals, with the final payment comprised of the principal and any remaining interest. Installment Used when repaid in substantially equal periodic payments of principal and interest. Installment loans are fully amortized over the term of the note. User's Guide - Bank 175

184 ARM Early Disclosure Rate After you select an index, the Index Details button can be used to view and print the rates for the previous 15 years. Choose the appropriate option to describe whether or how periodic rate caps are applied. As you work through the program, you will notice that certain fields, options, buttons, and check boxes are gray (unavailable). The options may not available because: 1) the option is not logical with another option, or 2) the option is forced because of the form selected, that is, either FNMA/FHLMC or non- FNMA/FLMC, from the Payment screen User's Guide - Bank

185 ARM Early Disclosure Check this box to specify that interest carryover can occur. Interest carryover means that interest rate increases or decreases can be carried over to subsequent periods, if a rate cap prevented a full implementation of the change. Completing the Conversion Information A conversion option is a consumer s right to convert a variable-rate loan to a fixed-rate loan. Note that: If an ARM program has a conversion option, it must be disclosed in the ARM Early Disclosure. Official Staff Commentary to 12 C.F.R (b)(2)(vii), Comment 3. The conversion choices are only available if you have selected Other from the Non-FNMA/FHLMC list on the Product screen and for some FNMA/FHLMC programs. Choose the index on which the conversion interest rate is based. Type the percent of any margin that is added to the index rate to determine the interest rate after conversion. If you do not have a margin, leave this field blank or enter 0. Validation ARM Early Disclosure is designed to signal potential errors during validation. It checks the system for data entry errors, accuracy, consistency, and some regulatory issues. The program allows you to fix the errors before printing. User's Guide - Bank 177

186 ARM Early Disclosure Validation reports two conditions: Warnings and Notices Warnings require correction; however, you may override warnings. Notices are informational and do not require action. Correcting Errors To correct errors, click the item on the Navigator where the error is occurring. After you make the correction(s), return to Validation to verify no additional warnings exist. Tips When Working in Validation Clicking the Override Validation button allows you to override the validation results by entering required comments, then continuing to process the documentation with errors. Clicking the Print Validation Report button prints a copy of the validation report, showing all warnings and notices. If validation warnings exist, you can choose to override those warnings and print the documents as they are. However, they will be noncompliant and print with an overridden identification in the footer such as, V4.2, which represents the version of your program. If you don t override the warnings, you can still print the documents; however, they will have incomplete watermarks printed on them. Validation Override Authorization When you click the Override Validation button, if you do not have authorization to override validation, you will be requested to enter a user ID and password with authorization privileges. If you belong to the security group with permission to override validation, pressing the Override Validation button will immediately begin the overriding process. Type your comments to explain the reason for overriding the validation results and click OK User's Guide - Bank

187 ARM Early Disclosure The comments that you type in the text box will print on the Validation Report. Print Remember to save your ARM program before printing or previewing your early disclosures. In the Customer (optional) text box, type the applicant s name(s) and address to personalize your disclosure. Simplified Disclosure This version of the early disclosure does not include the 15-year historical example, but does include the worst-case scenario paragraph. Simplified 15-Year History Disclosure This version of the early disclosure does not include the worst-case scenario paragraph, but does include the 15-year historical example. Combined Disclosure This version of the early disclosure includes both the 15-year historical example and the worst-case scenario paragraph. Worst-Case Scenario Paragraph The worst-case scenario paragraph is the paragraph disclosing the maximum interest rate and payment for a $10,000 loan originated at the initial interest rate, assuming the maximum periodic increases in rates and payments under the program. See 12 C.F.R (b)(2)(viii). Print Buttons Print Selected Documents Prints all of the documents that are selected. Note that previewing and printing early disclosures will take a few seconds longer than ARTA Lending loan documents. This is due to the dynamic nature of the early disclosure documents. User's Guide - Bank 179

188 ARM Early Disclosure Preview Selected Documents Previews all of the selected documents before printing the documents. Override Validation Overrides the validation results and processes the documents as they are. Print Validation Report Prints the validation results. Print Program Setup Prints the ARM program information. Print To File Prints the early disclosure to a file, which can be saved as an RTF (Rich Text File format) file. The Print-to-File function allows you to save a disclosure to a specified location. It can then be viewed and printed from any workstation using Microsoft Word even if ARM Early Disclosure is not installed on that workstation. The Save Disclosure screen appears allowing you to select the location folder. Type the file name and path to which the file is to be saved, and then click OK. NOTE: The default path is C:\Program Files\bsiapps\ARTA Lending. Type in a name that you d like to save the disclosure as and click Save User's Guide - Bank

189 ARTA Lending Plus HE ARTA Lending Plus HE Introduction If you offer open-end Home Equity lines of credit, you must provide a disclosure to the applicant at the time of application about the features of the product. With the purchase and installation of the optional Home Equity module, ARTA Lending can produce this early disclosure. The open-end Home Equity early disclosure can be created using a fixed rate, a user-defined variable rate, or any of 12 predefined, commonly used variable indexes. NOTE: The Wolters Kluwer Financial Services-supplied index histories are updated on a regular basis. Updates are available on the Wolters Kluwer Financial Services support web site. Home equity lines are open-end, revolving lines of credit secured by the consumer s dwelling. The Home Equity Early Disclosure module produces documents for open-end consumer lending (home equity loans). Module Components include: Home Equity Early Disclosures Standard Open-End Home Equity Agreements The optional Home Equity module must be purchased and installed to produce Home Equity early disclosures in ARTA Lending. The procedures in this lesson assume you have this optional module. Documents generated include: Home Equity Early Disclosures List of Conditions Third-Party Fees The home equity early disclosures generated by HE Early Disclosure are designed to be consistent with the regulations implementing the Home Equity Loan Consumer Protection Act of See 12 C.F.R et. seq. Key Features HE Early Disclosure features include: Ease of use The setup section is brief and direct, using information collected during loan application transactions. Policy Setup HE Early Disclosure guides you through the steps necessary to build your disclosures based on the plans within your institution, and the requirements of Reg Z. Index options Shipped indexes are updated periodically. You can also enter your own unique indexes and update them when necessary. Data validation This function checks for possible data entry errors, which helps improve accuracy, consistency, and regulatory compliance. User's Guide - Bank 181

190 ARTA Lending Plus HE Print preview This function is available for viewing your documents before printing them. Data transfer This function allows importing and exporting of data to and from other programs. State-specific information The program contains documents for 51 jurisdictions. You have access to early disclosure documents from every state/jurisdiction. This makes expanding your operations across state lines easier, and saves you the expense of purchasing multiple single-state versions. User access The ability to restrict users to only print the disclosure or to access both print and setup functions. Before Processing Your HE Plans Recommended Setup: Lender, Repayment Methods, and Index To get the most from the program, setup is recommended, including policy setup and Lending Setup. You ll need to invest some time to complete the General Setup information at the onset, but you ll quickly make it up as you complete formerly time-consuming tasks in seconds. You will also find the results are consistent. Note that at least one repayment method must be specified in Lender, Repayment Methods, and Index Setup in order to print the repayment information on your early disclosures. Setting Up the Repayment Methods These are the repayment method options available for computing the minimum payment during the draw period and repayment period. Select the repayment methods that will be used by your institution. Check all of the repayments that you want available for all of your HE plans. Any selected repayment methods will be available during creation of the home equity plan. Creating a Home Equity Plan Interest Rate Charges and Plan Features Home equity plans typically involve variable interest rates rather than fixed rates. A variable rate must be based on a publicly available variable index (such as the prime rate published in some major daily newspapers or a U.S. Treasury bill rate); the interest rate will change, mirroring fluctuations in the index. To figure the interest rate that the consumer will pay, most lenders add a margin which results in the variable rate for the loan. Because the cost of borrowing is tied directly to the index rate, it is important to find out what index and margin is used, how often the index changes, and how high it has risen in the past. Variable rate plans secured by a dwelling must have a ceiling (or cap) on how high the interest rate can climb over the life of the plan. Some lenders permit consumers to convert a variable rate to a fixed interest rate during the life of the plan, or to covert all or a portion of the line to a fixed term installment loan User's Guide - Bank

191 ARTA Lending Plus HE To Create an HE Plan NOTE: You must have permission for HE Plans to add or edit disclosures. See Starting Setup for details on security setup. 1. From the Navigator, expand Early Disclosure and select HE Plans. 2. Select ***Add New***. 3. The Navigator changes and the following options are now available: Product Payment Rate Fees Validation Print Specifies the product information. Defines the payment information and the repayment method. Specifies information needed to disclose the terms of the repayment method. Defines the interest rate information. Specifies the index and margin used for determining the rate at which interest accrues. Defines the fee information. Shows a validation result of potential compliance concerns. Previews and prints the early disclosure. User's Guide - Bank 183

192 ARTA Lending Plus HE Product The entered Plan name will print at the top of your disclosure. As you enter data, use What s This? Help as needed. Negative amortization method What is Negative Amortization? Negative amortization occurs when the scheduled payment is not enough to pay all the interest that has accrued on a line. You ll need to choose how the interest should be calculated if negative amortization occurs. Simple (U.S. Rule) The interest not covered by the scheduled payment is NOT added to the account balance. In other words, interest does not then accrue on that interest. Compound The interest not covered by the scheduled payment is added to the account balance. Payment Repayment period options are available for computing the minimum payment during this phase of the HE plan User's Guide - Bank

193 ARTA Lending Plus HE Stepping Through the Repayment Period Options In an open-end loan, draws can be taken while payments are made. Two loan repayment designations further distinguish the loan. Draw Period Only A Draw period only designation indicates that the loan does not have a separate repayment period. Periodic payments are made and a borrower can take advances throughout the loan term. In a loan with a draw period only, the borrower must pay off the loan at the end of the draw period. Draw Period Followed by Repayment Period A repayment period followed by the repayment period designation indicates that the loan has a separate repayment-only period. The loan has a period of time in which periodic payments are made, and the borrower can take advances, but there is also a separate period in which the borrower can no longer take advances but must continue to make periodic payments on the loan. In a loan with draw and repayment periods, a borrower does not have to pay off the outstanding balance at the end of the draw period. Select how often payments will be made under this plan. Select a second payment frequency if you want to disclose two-payment frequency options on one disclosure; for example, monthly or quarterly payments. This additional payment frequency is optional. Draw Period Only Repayment Method (Select up to 3) You may select up to a maximum of three repayment methods, and then specify Use the greater or Use the lesser of the specified dollar amount or percentage amount. Remember that you are creating the early disclosure for a single plan. While other plans may have different repayment methods, you should only be selecting multiple repayment methods if they are applicable to this plan. User's Guide - Bank 185

194 ARTA Lending Plus HE Draw Period Followed by Repayment Period You may select up to 3 repayment methods, and then specify Use the greater or Use the lesser of the repayment methods selected. If you choose more than one repayment method you are indicating that the minimum payment under the plan is the greater or lesser (which you will indicate later) of the repayment methods chosen. To put it simply, if you select more than one repayment method you are doing a comparison of the repayment methods chosen. For example, if your plan provides that the minimum payment equals the amount of accrued finance charges on the last day of the billing cycle OR $50, whichever is greater, you will notice that no single repayment method provides this exact text. However, you can build this repayment method by selecting: (1) Amount of accrued finance charges on the last day of the billing cycle; and (2) Dollar Amount $(and inserting 50), and indicating use the greater. You may find that the method by which you compute your minimum payment matches exactly a single repayment method. Or, you may have to combine two or three repayment methods to build a repayment method that matches what you do under your plan. As previously noted, however, you may not select more than three repayment methods. Specify Use the greater or Use the lesser of the repayment methods selected when more than one repayment method is selected User's Guide - Bank

195 ARTA Lending Plus HE Repayment Period Following the Draw Period You may select up to a maximum of three repayment methods, and then specify Use the greater or Use the lesser of the repayment methods selected. The Repayment Period information appears after the Draw Period information. Remember that you are creating the early disclosure for a single plan. While other plans may have different repayment methods, you should only be selecting multiple repayment methods if they are applicable to this plan. User's Guide - Bank 187

196 ARTA Lending Plus HE Rate Select Fixed rate or Variable rate. Choose the index on which the interest rate is based. Type the percent of any margin that is added to the index rate to determine the interest rate. If you do not have a margin, leave this field blank. Check this box to convert from a variable rate to a fixed rate. Check this box if the plan contains a preferred rate feature User's Guide - Bank

197 ARTA Lending Plus HE Completing the Conversion Information A conversion option is a consumer s right to convert a variable rate loan to a fixed rate loan. If an HE plan has a conversion option, it must be disclosed in the HE early disclosure. Official Staff Commentary to 12 C.F.R (d)(5)(ii), Comment 2. Any information entered into these fields will be printed on the HE Plan documents. User's Guide - Bank 189

198 ARTA Lending Plus HE Completing the Preferred Rates Information Check this box if the plan contains a preferred rate feature; for example, a lower rate for employees, deposit account holders, or consumers who agree to pay via automatic withdrawal or maintain a qualifying minimum balance. Notes about Preferred Rates If a plan has a preferred rate provision, it must be disclosed in the early disclosure. 12 C.F.R (d)(6) & (d)(12)(viii) If you offer a preferred rate to employees, enter the amount of this discount. This is the amount the rate will increase if the consumer leaves your employment. If you offer a preferred rate to deposit account holders or to consumers who agree to maintain a qualifying minimum balance enter the amount of this discount. This is the amount the rate will increase if the deposit account is closed or if the consumer fails to maintain the qualifying minimum balance. If you offer a preferred rate to consumer s who agree to make payments under the plan via automatic withdrawal, enter the amount of this discount. This is the amount the rate will increase if the consumer terminates the automatic withdrawal agreement. If you offer a preferred rate to consumer s who agree to maintain a qualifying minimum balance enter the qualifying minimum balance amount. Do not enter anything, if you offer a preferred rate to deposit account holders, and the rate increases only if the deposit account is closed User's Guide - Bank

199 ARTA Lending Plus HE Fees Check this box if you choose to disclose fees paid to third parties on this disclosure. You are required to include in the early disclosure a good faith estimate of the total amount of third-party fees, stated as a single dollar amount or range. 12 C.F.R (d) (8). Choose how you will make this good faith estimate. The program cannot add the individual itemized third-party fees to the good faith estimate, because you have entered fees on a cost/unit basis. Again this is a good faith estimate and it need not match exactly the total amount of thirdparty fees that you charge to each customer. User's Guide - Bank 191

200 ARTA Lending Plus HE Cost/Unit Information Type the cost/unit basis of the third-party fee. Whatever you type in this field will appear exactly as entered in your itemized estimate of third-party fees for how you calculate this fee; for example, you could enter the following: $5 per $1,000 of credit; $5/$1,000 of the credit limit; $15 per recorded document; or $.25 per acre. Validation The Validation function checks the system for data entry errors, accuracy, consistency, and some regulatory issues. The program allows you to fix the errors before printing. Validation reports two conditions: Warnings and Notices. Warnings require correction; however, you may override warnings. Notices are informational and do not require action. Correcting Errors To correct errors, click the item on the Navigator where the error is occurring. After you make the correction(s), return to Validation to verify no additional warnings exist. Clicking this button prints a copy of the validation report showing all warnings and notices. Notes about Validation If validation warnings exist, you can choose to override those warnings and print the documents as they are. However, they will be in noncompliance and will print an overridden identification in the footer such as V5.0 representing the version of your program User's Guide - Bank

201 ARTA Lending Plus HE If you don t override the warnings, you can still print the documents, however, they will have the word Incomplete as a watermark on them. Validation Override Authorization When you click the Override Validation button, if you do not have authorization to override validation, you will be requested to enter a user ID and password with authorization privileges. If you belong to the security group with permission to override validation, pressing the Override Validation button will immediately begin the overriding process. Type your comments to explain the reason for overriding the validation results and click OK. The comments that you type in the text box will print on the Validation Report. When you override the validation results, you are required to enter comments explaining the reason for your actions. The comments will print on the Validation Report. Print NOTE: Remember to save your HE plan before printing or previewing your early disclosures. In the Customer text box, type the applicant s name(s) and address to personalize your disclosure. Print Buttons Print Selected Documents Prints all of the documents that are selected. Note that previewing and printing early disclosures will take a few seconds longer than ARTA Lending loan documents. This is due to the dynamic nature of the early disclosure documents. User's Guide - Bank 193

202 ARTA Lending Plus HE Preview Selected Documents Previews all of the selected documents online before printing the documents. Override Validation Overrides the validation results and processes the documents as they are. Print Validation Report Prints the validation results. Print Program Setup Prints the ARM program information. Print To File Prints the early disclosure to a file, which can be saved as an RTF (Rich Text File format) file. The Print-to-File function allows you to save a disclosure to a specified location. It can then be viewed and printed from any workstation using Microsoft Word even if ARM Early Disclosure is not installed on that workstation. The Save Disclosure screen appears allowing you to select the location folder. Type the file name and path to which the file is to be saved, and then click OK. NOTE: The default path is C:\Program Files\bsiapps\ARTA Lending. Type in a name that you d like to save the disclosure as and click Save User's Guide - Bank

203 Using the Utilities Using the Utilities Introduction This chapter discusses each of the options available from Utilities, located on the Main Menu for quick and easy access. NOTE: You must have permissions to add or edit information in Utilities. See Starting Setup for more information on security setup. Backup and Restore Backup and Restore utilities are built into ARTA Lending to allow you to back up and/or restore your data files. Backup Guidelines Your security administrator may provide a unique method for backing up ARTA Lending on your network. If so, follow those procedures. Otherwise, the Backup and Restore option is available on the Utilities menu. A full backup should be performed after the initial installation and setup, as well as immediately before and after installing each update you receive. Backing up your files safeguards them against loss if your hard disk fails or you accidentally overwrite or delete data. Because it is important to perform regular backups of your data files, we recommend you establish a frequent, routine data backup program to ensure your data files are always protected. Your backup disks are typically your only protection against data loss. If you lose or misplace backup disks, you cannot recover your files. Be sure to keep backup disks in a safe place. User's Guide - Bank 195

204 Using the Utilities Backing Up Your Data Files 1. From the Utilities menu, select the Backup and Restore option. The following warning message appears: IMPORTANT: Make sure there are no other users working in ARTA Lending before beginning backup. 2. The main ARTA Lending screen closes; the ARTA Lending Data Backup and Restore dialog box appears when you click OK. Click Cancel to stop the operation. 3. Set the Archive path to point to your backup location. This can be another directory on your local machine, a network share, an external drive or tape drive, or a floppy drive. You can type the path in directly or Browse to it. 4. Choose which Global paths from the list of checkboxes you want to backup. These paths are preset when ARTA Lending is installed. Note that the Global paths available for backup will be dependent on which ARTA Lending modules, if any, are installed. 5. Choose any Client paths you wish to back up. Client paths only apply to the client workstation where they are set. For a local installation of ARTA Lending, the client paths and the global paths will be the same User's Guide - Bank

205 Using the Utilities 6. When you re satisfied with your path choices, click the BACKUP selected paths button. ARTA Lending begins the backup and displays a dialog box when it is complete. NOTE: If you are using floppy diskettes for backup, label the first disk with the ARTA Lending version number and the series number of the diskette. For instance, the first floppy used to backup ARTA Lending 4.2 would be labeled The second diskette would be labeled 42.2 and so on. Restoring Your Data Files Some events, such as a hard drive failure, will require that you restore files previously saved in a backup operation. Restore Guidelines The restore function works only with files that were created with the backup option in ARTA Lending. Data must be restored to the same version of ARTA Lending that was backed up. The entire ARTA Lending program cannot be restored but must be reinstalled from the product CD-ROM to create the proper registry entries to restore to a stand-alone system or server. 1. From the Utilities menu, select the Backup and Restore option. The following warning message appears: IMPORTANT: Verify no other users are working in ARTA Lending before beginning the restore operation. 2. The main ARTA Lending screen closes; the ARTA Lending Data Backup and Restore dialog box appears if you click OK. Click Cancel to stop the operation. User's Guide - Bank 197

206 Using the Utilities 3. Set the Archive path to point to location of your last backup. This can be another directory on your local machine, a network share, an external drive or tape drive, or a floppy drive. You can type the path in directly or Browse to it. 4. Choose which Global paths from the list of checkboxes you wish to restore. These paths are preset when ARTA Lending is installed. Note that the Global paths available for backup will be dependent on which ARTA Lending modules, if any, are installed. 5. Choose any Client paths you wish to restore. Client paths only apply to the client workstation where they are set. For a local installation of ARTA Lending, the client paths and the global paths will be the same. 6. When you re satisfied with your path choices, click the RESTORE selected paths button. ARTA Lending will begin the restore operation and display a dialog box when it is complete. NOTE: When restoring from a floppy drive, make sure the diskette is in the drive specified in Archive path. If the backup used multiple diskettes, place the last diskette into the drive first. ARTA Lending will prompt you to insert each of the remaining diskettes. File Operations From Utilities, File Operations on the Main Menu, you can delete transaction files. The process of finding transactions to delete is simplified by using search and filtering criteria to select only a specific subset of transactions. You can also export existing transaction files to XML (extensible Markup Language) files User's Guide - Bank

207 Using the Utilities Searching for and Deleting Transaction Files To begin working in File Operations choose Utilities, File Operations from the Main Menu. NOTE: The filters available for searching may vary from the figure above depending on which ARTA Lending modules are installed, that is, Applications or Credit Bureau. Searching for Loans The Search function offers a quick method for locating a desired loan transaction. Enter the desired search criteria and click Update List. The list of loan transactions will be updated according to the criteria specified for the search. Deleting Loans Once the file list has been filtered, based on your search criteria, you can now delete loan files. To delete a file, select it with your mouse and click the Delete button. A delete confirmation box will appear. Click Yes to confirm the deletion. User's Guide - Bank 199

208 Using the Utilities To select a sequential group of loans, click on the first loan, then press the Shift key and click on the last loan in the group. Clicking Delete will remove all the loans in the highlighted group. To select a nonsequential group of loans, click on one loan, then press the Ctrl key and click on another loan. Continue until all the loans you wish to delete are selected, continually holding down the Ctrl key during this process. Clicking Delete will remove all the loans in the highlighted group. Click Cancel when you have finished deleting loans to return to the ARTA Lending main screen. Exporting Loans to XML Any loan application selected can be exported as an XML file simply by clicking the Export XML button. You can find the resulting XML file in a sub folder named XMLOut under the main loan storage folder. Each application will be stored in a separate file, named starting with the primary borrowers name. Other key information, such as loan type and date of loan are also included in the XML filename. Autoselection Defaults The Autoselection Defaults allow you to select the forms that you want the program to automatically select for processing loans. Three tabs exist: Application, Residential RE, and Other. Check the appropriate documents for your autoselection defaults. Application tab Flood Insurance Notice (FIN) Notice of Reporting Address Shared Information Disclosure User's Guide - Bank

209 Using the Utilities Residential RE tab Other tab Check this box for the agreement to provide insurance document used for loans secured by auto, personal property perfected by UCC, mobile home, equipment accounts receivable, inventory, general intangibles, and farm products. Checking Autoselection defaults allows you increased control over documents. You select the forms that you want the program to automatically select for processing loans. User's Guide - Bank 201

210 Using the Utilities Documents not chosen for autoselection can still be manually selected during loan creation. The document status will display Not Needed with the explanation option not selected under utilities autoselection defaults. NOTE: For more information on ordering a customized privacy policy for ARTA, call your Wolters Kluwer Financial Services sales representative at Font Settings In ARTA Lending you can change the size of the font for user-entered text. NOTE: The default font size is 9-point condensed. To change the font size: 1. From the menu bar, choose Utilities, Font Settings. 2. Change the point size. Always leave the Condensed option checked regardless of the font size chosen. 3. Click OK. IMPORTANT: Changing the font size will only affect user-entered text. The larger the font size the greater the chance that text may overflow into other fields, so it is important to review your documents after the font size is changed. Client Directories Client Directories information is stored in the client registry and only affects that client workstation in a thin client LAN configuration. Client Directories contain the file storage paths specified during ARTA Lending installation. NOTE: A thin client local area network may have been installed by your IT department. If in doubt, do not change any directory paths without consulting the technically responsible personnel. Changing Client Directories To change the custom default storage paths: 1. From the menu bar, choose Utilities, Client Directories User's Guide - Bank

211 Using the Utilities 2. Click Browse to change the path to a new location. User's Guide - Bank 203

212 Using the Utilities Customer Number The Customer Number option on the Utilities menu allows you to change or add your Wolters Kluwer Financial Services customer number. To input your customer number: 1. Choose Customer Number from the Utilities menu. 2. Type your customer number. 3. Click OK to save the information. NOTE: Your customer number information is available from the Help, About option in the Main Menu. This information is required when calling Wolters Kluwer Financial Services for assistance. TRID Effective Date Selecting this menu option gives you the date field to edit. The default is 10/3/15. This field is editable and determines document autoselection for TILA/RESPA User's Guide - Bank