Processing Overview I - PDF Free Download

2/14/2017

Introduction: In this training material and supplemental training exercises, we explore the items necessary to open a loan. We will step by step walk you through the general processes and required procedures. The information contained here is meant to be a basic guide for each and every loan opened.

Topics covered in this training: 1. File Labeling Documentation 2. Downloading Disclosures from the efolder 3. Splitting files in the efolder 4. Entering File Contacts 5. FHA Case #s 6. Ordering Flood Certs 7. LDP/GSAs and Exclusions 8. Ordering Tax Transcripts (4506T) 9. Ordering an Appraisal 10. QC Audit List 11. Completion of Opening Notes 12. The Milestone Worksheet and Moving the Milestone

File Labeling Documentation: Processing Overview I

1. Select 2. Access 3. Retrieve Downloading Disclosures

Downloading Disclosures from the e-folder: 1. As disclosures begin downloading, the landscape icon will appear indicating that particular disclosure has been downloaded 2. Disclosure downloads will take an estimated 30-45 seconds to complete

The handful of wet signed Disclosures: Documents requiring a wet signature will need to be placed into their respective placeholders. These documents include: 1. These include a few FHA and VA forms needing to be wet signed 2. Borrowers Authorization 3. Appraisal (Credit Card Form) 4. Social Security (SSA-89)

Splitting of files from the file manager to efolder: For documents or disclosures which have not been assigned to a place holder, they will remain in the file manager needing to be placed Loan Officers should remain in the file manager (unassigned) portion of the efolder Make sure pages are upright drag and drop income and asset information into the appropriate place holder If place holder does not exist it will need to be added from the drop down menu

The handful of wet signed Disclosures: Forms needing to be wet signed by the borrower can be securely emailed from FastTrack 360 or securely emailed through Outlook. Once the documents are returned by the borrower, they can be: 1. Retrieved from the efolder if the borrower uploaded them to the borrower portal 2. Retrieved from email and uploaded to the efolder file manager 3. Wet signed disclosures will need to be placed in their corresponding place holder

Minimum Requirements to Open: File Opening Loan Estimate Intent to Proceed 4506T Written List of Service Providers Compliance Report Credit Card Authorization Borrowers Authorization

Entering File Contacts: 1. In the bottom right hand corner of your FT360 Screen select the Tools tab 2. Under Tools select the File Contacts

Entering File Contacts: 1. Select the Category/Role of the contact you wish to update in this instance select the Sellers Agent 2. Enter/Update the contact records information accordingly 3. Complete file contacts upfront will save time when completing LDP/GSAs 4. Enter all fields to avoid any hard stops 5. When Complete Save the loan

FHA Case # s : If setup gets the request prior to file opening, typically the FHA case number and caviars will be provided. 1. Go to file manager and check FHA: Connection Documents placeholder to determine if the FHA Case # and Caviars are available 2. Should the FHA Case # and Caviars not be available, please refer to the workflows and procedures regarding FHA Case # and Caviars.

FHA Mortgagee ID: FHA Mortgagee ID 1. Locate your branch s FHA Mortgagee ID from the FHA Mortgagee ID Number lookup table 2. Select the FHA Mortgagee ID Number which corresponds with your branch 3. Please enter the FHA Mortgagee ID Number in the *General Information* Screen Note: For new branches which have not been assigned an FHA Mortgagee ID Number please connect with QC for further assistance

FHA Connection Login: 1. Log onto the FHA Connection website: https://entp.hud.gov/clas/index.cfm 2. Enter your FHA Connection username and password combination

Single Family FHA: 1. Click Single Family FHA 2. Click Single Family Origination

FHA Case Query: 1. Click Case Query

FHA Case Query: 1. Select the Field Office from the dropdown menu 2. Type the Borrower s SSN (Social Security Number) / TIN (Taxpayer Identification Number) 3. Click Send

FHA Case Query Results: 1. Select the correct Borrower from the List 2. Click Send

Case Query Record Detail: 1. Click the Sponsor/Agent Name: hyperlink 2. Call the lender to determine how they would like the FHA Case transfer request handled 3. Click Close

Establish a New Case: 1. Click Establish a New Case 1. Enter Property Address Information 2. HECM Case Remains NO 3. Enter Borrower Data 2. Click Send Note: Borrower identification information is validated overnight against government records Use Holds Tracking the next business day to determine if all borrowers passed validation

New Case Confirmation: 1. Print the results into the placeholder in the efolder and call it FHA: Connection Documents FHA puts a 24 hour hold to validate borrower(s) A final success result will be needed and placed in the file

FHA Streamline: 1. Click Establish a New Case 1. Enter Property Address Information 2. HECM Case Remains NO 3. Enter Borrower Data 2. Click Send

FHA Streamline: The existing FHA Case No. can be access though FHA Connection through a case query lookup or by looking at a copy of the existing NOTE

FHA Streamline: 1. Select FHA to FHA Refinance Type Streamline 2. Is it a Cash-Out Refinance No 3. Enter the Prior FHA and prior REO cases: Enter case number of previous case

FHA Streamline: Results Confirmation Note: Borrower identification information is validated overnight against government records Use Holds Tracking the next business day to determine if all borrowers passed validation

Confirming Case Number Results: 1. Under Case Processing from the Case Number Assignment click Update and Existing Case 2. Enter the FHA Case Number 3. Click Send Case Number Assignment Update will display results Print Success report and place into efolder

CAIVRS LOGIN: 1. Log onto the FHA Connection website: https://entp.hud.gov/clas/index.cfm 2. Enter your FHA Connection username and password combination

CAIVRS Request: 1. Click Single Family FHA Select Case Processing 2. Click CAIVRS Authorization

CAIVRS Request: 1. Select SSN from the dropdown menu and enter the Social Security # (SSN) for each borrower 1. Enter the Lender ID (Branch FHA Mortgage ID) 2. Select the Agency from the Drop Down Typically HUD FHA Single Family 2. Click Send

CAIVRS Results: 1. Print the results into the placeholder in the efolder and call it FHA: Connection Documents

Requesting a Flood Certificate Locate the Borrower Summary (PRMG) from the forms tab 1. Click Borrower Summary (PRMG) Locate the Subject Property Info Section 1. Click the Order Flood Button

Requesting a Flood Certificate 1. Choose Order Type New from the drop down 2. In Flood Products click Life of Loan with Census 3. Click Order

Flood Certificate 1. When the Flood Certificate is returned, it will automatically upload into efolder under the Flood Services document placeholder 2. Click Close 3. Click Cancel at the Flood Service Order Screen

Check Status/View Result You are able to view the status and the results by selecting the Order History/Status tab Double click the document to view

Subject Propert is in Flood Zone Should the subject property require Flood Insurance, then our practice is to review the flood zone data from the Standard Flood Hazard Determination Form to FT360 data entry as soon as it is returned from CoreLogic Flood Services With this integration specific fields are auto populated Processing Overview I

Reviewing Flood Cert Section B & F 1. Go to the Forms Tab and click Property Information 2. The Flood Zone determination in the Subject Property section will be auto populated

Subject is in Flood Zone Processing Overview I Use section D (Determination) of the Flood Certificate to determine if the property is in a Special Flood Hazard Area/Zone containing the letters A or V. Next, review sections A and B of the Flood Certificate to the Notice of Special Flood Hazards and Availability of Federal Disaster Relief Assistance in FT360 to ensure accuracy of the additional required fields Note: NFIP Map Number or Community Panel Number (B.1) will NOT auto-populate. This field requires a manual entry and is a required field by the Resubmittal milestone.

Flood Information Screen Processing Overview I When the subject property is in a Flood Zone, the Flood Zone check box will be automatically selected and the drop down menu will reflect the correct flood zone. Manually enter the Flood Company Name as it appears on the insurance dec page

Flood Information Screen One of these two (2) checkboxes will be automatically selected based on the results of the Flood Certificate received The Community Name will also be auto-populated Processing Overview I

HMDA Information Screen These HMDA fields are completed by the information returned on the Flood Certificate Post-Closing Dept Post-Closing end-users will also recognize some system automation within the FT360 custom form: Cenlar Interface Details The NFIP Map Number will only reflect here if the information has been entered in the Property Information screen. In addition, this field should reflect no extra spaces or special characters i.e., dashes. Currently, this field is only required when the subject property be located in a Flood Zone

Compliance Requirements Notice to Borrower Flood insurance must be impounded (escrowed) for all loans with a Note date of 01/01/2016 or later if the property is in a Special Flood Hazard Area (SFHA), designated as a flood zone beginning with A or V, regardless of LTV and/or federal exemptions and is required for the life of the loan. It is not required to be impounded if the flood insurance is paid through the condominium association, HOA dues, etc. Additionally, the escrow requirement needs to be stated in the Flood Notice that is provided to the borrower. When the subject property be in a Special Flood Hazard Area (SFHA), then the following requirements must be satisfied: 1. The Notice of Special Flood Hazards and Availability of Federal Disaster Relief Assistance (Flood Hazard Notice) must be delivered to the borrower at least one business day prior to closing/docs. A. On purchase transactions, notifying the borrower that the property is in a SFHA at least three business days prior to closing is preferred (our Flood Hazard Notice may be the borrower s first indication that the property is in a flood zone requiring the addition of flood insurance). But if adequate flood insurance coverage is already in force, sending the Flood Hazard Notice to the borrower one business day prior to closing is compliant. B. On refinances, especially where adequate flood insurance coverage is already in place, sending the Flood

Compliance Requirements Notice to Borrower Processing Overview I 2 The Flood Hazard Notice to the Borrower is esignable. The borrower s signature acknowledging receipt is required, but the Flood Hazard Notice may be signed before or at closing. A. When the borrower returns the esigned Flood Hazard Notice, mark it Ready to Ship in the efolder. B. Doc drawers will see a Flood Hazard Notice Task at the Docs Out Milestone to check for the esigned copy from the borrower. If the borrower did not return it, the doc drawer must retrieve the Notice from the efolder and attach it to the closing document package for the borrower s signature at closing. C. Funders will see a Flood Notice Task at the Funding Milestone to verify that we have a copy of the Flood Hazard Notice signed by the borrower if the property is in a SFHA and adequate flood insurance coverage in place. If the signed Notice is missing, the funder must Request it from the borrower, following the procedure described in 4.a. above. The Flood Notice signed by the borrower is a PTF Condition when the property is in a SFHA.

Massachusetts Properties Only Processing Overview I 1. Follow the procedure in 4.b. above to send the Federal Flood Hazard Notice in an edisclosure package 2. Effective 11/2014, the State requires that a separate MA Notice of Flood Insurance Coverage accompany the federal Flood Hazard Notice to the borrower. 3. At the Approval Milestone, you will see a Task reminding you to edisclose to order the MA Notice of Flood Insurance if the Flood Cert indicates the property is in a Special Flood Hazard Area requiring flood insurance. A. If the rate is not locked yet, or the locked GFE has already been sent, this is the only edisclosure that will come up. B. Click [Add Additional Docs] C. From the Standard Documents List, select Property: Flood Hazard Notice and click [Add] D. The federal Flood Hazard Notice will be added to your edisclosure line-up and go out along with the MA Notice of Flood Insurance and any other disclosures in the package (e.g. locked GFE, if done at the same time) E. Both the Federal Flood Hazard Notice and the MA Notice of Flood Insurance are esignable.

Delivering the Flood Notice The flood request is returned with both the Flood Certificate and the Notice to Borrower in Special Flood Hazard Area NFIP Participating Community form. Ensure the notice is placed into the correct Document Placeholder: Property: Flood Hazard Notice. 1. Choose the procedure in a. or b. below to send the Flood Hazard Notice to the borrower: 1. Send the Notice as standalone disclosure to the borrower i. Locate the document in the efolder ii. ii. Click [Request] iii. iii. Check the box next to the document name iv. iv. Click [Send] v. An e-mail template will open. Ensure the borrowers e-mail address and the Borrower Signing Options are correct (Use the last four-digits of the borrowers SSN) and click [Send]:

LDP/GSAs: 1. Services -> Order Fraud Audit 2. Select DataVerify as the provider 3. Click Order 4. Click OK on completion notification

LDP/GSAs: The DataVerify window will pop up requesting you log in 1. Enter your username and password credentials and Login Note: if you are accessing previously requested results select he view result tab and click View Result

LDP/GSAs: 1. Enter your Loan Number 2. Click Search Your search results will appear at the bottom of the screen click edit on the desired Loan Number

LDP/GSAs: 1. Click on Participants to add AKA s from Credit Report 1. Please note when adding participants please pay special attention to the naming conventions on the DataVerify Drop Down Screen 2. Click Run Scoring

LDP/GSAs: 1. In Detail Reports sidebar select the Print Options hyperlink 2. Check and verify all report checkboxes are selected 3. Make sure the Use Page Breaks Between Reports checkbox is checked 4. Click Print All

LDP/GSAs: 1. Click Print 1. You can print directly to the efolder however printing to PDF file is faster and more efficient 2. After you have printed to a PDF file please drag and drop report into efolder and split the file accordingly 2. Split files according to the table on the right Report Name MERS Income Reverse Search LDP/GSA: 1) OFAC Report 2) Loan Participant Analysis 3) Watch List All Other Reports (label as Fraud_Audit.pdf) Placeholder Legal: Closing Documents Income: Reverse Search Misc: LDP/GSA Fraud/Audit Services

Steps To Take When Exclusions Have Been Found: When any matches have been found for GSA-EPLS, proper steps need to be followed to be able to determine if the exclusion listed is our party to the transaction 1. DataVerify Loan Participant Analysis. See only two columns as listed to the right: 2. Example of matches (exclusions found). In this scenario it was our Loan Officer and both sellers: 1 2

Steps To Take When Exclusions Have Been Found (Continued): 1. Because it is not our borrower(s), we do not have easy access to a social security number. See attached sample (next slide) Processor/Underwriter Cert that should be completed. An interview directly with the individual (over the phone) in question should be performed to be able to try and determine if the exclusion and our party is the same person. 2. Before you actually make the call, review the details of the exclusion as per below. You can see that this particular individual s name is Robin L Williams and another name is listed as Robin Smith Williams. Other information listed includes addresses which in this case is Nebraska and South Carolina. You can see the agency who reported & the exclusion type. The interview should be performed first and if you determine that our party is the same person, then more steps will need to be taken through each of the agencies to ultimately determine whether PRMG can continue with the loan or change personnel on the loan etc.

Steps To Take When Exclusions Have Been Found (Continued): Interview/Processor Cert sample of what type of questions you will ask For this scenario, the subject property is in Massachusetts Your questions should not lead to any of the information listed on the exclusion details: 1) Have you lived/worked in another state besides Massachusetts? 2) What is your full name (Always obtain the middle name)? 3) What is your maiden name (If you are speaking to female)? 4) Have you had any other last name besides Williams and Anderson? Note: These questions are the foundation of your interview; however, you are welcome to ask other questions as applicable Place all findings in Misc: LDP/GSA Placeholder

Steps To Take When Exclusions Have Been Found (Continued): Only after obtaining the answers to your questions during the interview and you feel that maybe this could be a match, you can ask the individual if they would be willing to complete a verification process. Let them know that you will send to them the website link and instructions as to how to complete it. Remind them that the website is a protected government website that is public and can be accessed, by them. Their personal information will stay confidential. All they will need to do is send over the results via email back to you. *Ensure the individual that the document he/she sends back will only reflect his/her name and will reflect that no match displayed for the SSN entered. It will not show his/her social. Do not ask for the social security number to complete yourself. If the individual does not opt to complete the process themselves, then you need to go ahead and end the call. This is an example of how it would look: The next slide are the actual instructions you can send to the individual. For our borrowers/clients, you will verify yourself and you do not need to have them complete it. Remember, the interview and steps outlined are for individuals where a social security number is not accessible.

Steps To Take When Exclusions Have Been Found (Continued): Go to https://www.sam.gov/portal/sam/#1 1. Click on Search Records 2. Click on Advanced Search Exclusion 1 2

Steps To Take When Exclusions Have Been Found (Continued): Go to https://www.sam.gov/portal/sam/#1 1. Click OK 2. Click on SSN/TIN Search 1 2

Steps To Take When Exclusions Have Been Found (Continued): 1. Fill in Name and SSN 2. Click Search 3. Click the Save PDF button on the screen 2 1 Place all findings in Misc: LDP/GSA Placeholder

Ordering Tax Transcripts: 1. Review most recent tax return for name, address etc. ensuring the 4506-T is properly filled in 2. Line 12 indicates if there is self employment or a schedule C 3. Line 17 will determine if the 1065 checkbox needs to be selected when ordering tax transcripts. Checkbox 1065 is for ALL incorporated businesses 4. Review the most recent two years tax returns if money was owed you will need to order a Record of Account on the SharperLending order form

Ordering Tax Transcripts: 1. Services -> Verification -> Sharper Lending Select last two years transcripts Products or Guidelines or AUS findings will determine products to order If they owed money select order record of account (do not do this for a business) Attach executed 4506T form from placeholder 2. Please leave any opening file notes upon completion

Appraisal Ordering: Verify credit card authorization form has been received in placeholder 1. Under Services order appraisal 1. Select Branch ID 2. Loan Officer 3. Loan Processor 4. Pick Appraisal Product 5. Property Type 6. Due Date set for 1 week out 7. If purchase select purchase and Sales Contract 8. Fill in Appraisal contact information 9. Fill in credit card billing information under Payment tab 10. Click Order Appraisal Button

QC Audit List: 1. QC is required for ALL loan officers new to PRMG for the first 3 loans 2. Notation to be made in conversation log indicating QC required for new loan officers

Completion of Opening Notes: Notes to be placed in Conversation Log 1. Recap of what was completed during file opening Example 1. Appraisal Ordered by Branch 2. LDP/GSA complete 3. Flood Ordered 4. Transcripts not ordered bad social security # Go to Log and setup will finish send to processing milestone 1. Qualification and Setup is completed by the Loan Officer 2. Processor finished processing and Submittal

The Milestone Worksheet: 1. Assigned Loan Team Members 2. Days to Finish 3. Finished Checkbox 4. Documents 5. Tasks 6. Required Fields 7. Milestone Comments 1 3 2 4 6 Processing Overview I 5 7

Unfinished Business: An email will go out to the loan officer and processor letting them know what is missing when the file is placed on hold Email copy placed in Conversation log

Moving the Milestone: In log click on Send to processing milestone 1. Select/Assign Processor 2. Click finished File needs to be in My Pipeline and Setup Finished Milestone complete