Banker Edition Release Notes Updates and Enhancements (build 6.7.0.2), January 13, 2011
Copyright Statement 2011 Ellie Mae, Inc. Ellie Mae, Encompass, Encompass360, and Ellie Mae Network and the Ellie Mae logo are trademarks or registered trademarks of Ellie Mae, Inc. or its subsidiaries. All rights reserved. Other company and product names may be trademarks of their respective owners. Products, services and programs are subject to change without notice. Encompass360 Banker Edition Release Notes, Updates and Enhancements (build 6.7.0.2) Rev. 01/24/2011
Table of Contents Encompass360 Banker Edition Release Notes... 1 Important Information Regarding This Encompass360 Update... 1 Overview of Updates and Enhancements... 1 Compliance Updates... 1 Additional Form Updates... 2 efolder Enhancements... 4 Admin Tools Update... 4 Encompass Compliance Service Enhancements... 5 Additional Updates and Enhancements... 6 Detailed Procedures... 8 New Interest Rate and Payment Summary Tables... 8 Loan Description: Fixed Rate... 8 Loan Description: Fixed Rate, Interest Only... 9 Loan Description: Fixed Rate, Balloon Payment... 9 Loan Description: Fixed Rate, Balloon Payment, Interest Only Period Greater Than Balloon Term... 10 Loan Description: Fixed Rate, Balloon Payment, Interest Only Period Less Than Balloon Term... 10 Loan Description: Fixed Rate, Buydown...11 Loan Description: ARM, Introductory Rate Greater Than Five Years 11 Loan Description: ARM Loan... 12 Loan Description: Fixed Rate, Construction, Interest Calculated using Half Loan (Method A)... 13 Loan Description: Fixed Rate, Construction, Interest Calculated using the Full Loan (Method B)... 14 Settings Sync Tool... 14 GFE Application Date Lock Icon Access... 15 i
Encompass360 Banker Edition Release Notes Updates and Enhancements (build 6.7.0.2), Available January 13, 2011 This Updates and Enhancements release includes the key features described below. This document includes a high-level overview of key features and enhancements, followed by more detailed information and instructions where appropriate. Refer to the Encompass360 Banker Edition online help and the Documentation Library for additional information and related documents. Important Information Regarding This Encompass360 Update PLEASE NOTE, this Updates and Enhancements release will take more time to download than a typical Encompass360 update. Due to the addition of new forms and a significant number of form updates, the file size for this Updates and Enhancements release is approximately 13MB. For customers whose Encompass360 system is hosted by Ellie Mae: You will receive this update when you are in Encompass360 On Demand. Features, tools, forms and all other areas that are affected by this release will be updated as you access them. For customers whose Encompass360 system is hosted by their company: You will need to allow more time to download this update to your machine than a typical Encompass360 update. You will receive the update the next time you log into Encompass360 (after the update has been fully downloaded). Overview of Updates and Enhancements The table below describes each change, indicates whether or not the change is automatically enabled, and describes any setup requirements. Click the page number links on the title lines to jump to detailed information if applicable. Description of Feature Automatically Enabled Setup Requirements Compliance Updates Mortgage Disclosure Improvement Act (MDIA) Interim Rule for Closed-End Loans - Effective Date 01/30/2011 New Interest Rate and Payment Summary Tables page 8 New Interest Rate and Payment Summary tables now display on the REGZ-TIL input form and Federal Truth-in- Lending Disclosure Statement (output form). The table displayed on the forms is determined by the purpose of the loan, its amortization type, and the term of the loan. The table states the following: The initial interest rate together with the corresponding monthly payment, including any estimated escrow account for taxes and property insurance and/or private mortgage insurance. For adjustable-rate and Buydown loans, the maximum interest rate and payment that can occur during the first five years and a worst case example showing the maximum rate and payment possible over the life of the loan. January 2011 Encompass360 Banker Edition Release Notes 1
Description of Feature No Guarantee to Refinance Statement Creditors are now required to disclose a statement that borrowers should not assume that their loans can be refinanced. The following statement has been added to the Federal Truth-in-Lending Disclosure Statement for closed-end mortgage loans secured by real property or a 1-4 unit dwelling: There is no guarantee that you will be able to refinance to lower your rate and payments. Determining When Old or New REGZ-TIL Form is Used The TIL Application Date (field ID 3292) and the Application Date (field ID 745) will determine if the new REGZ-TIL form is used. If the TIL Application Date entered is 1/29/2011 or earlier, the old REGZ-TIL form will be used. If the TIL Application Date field is blank, the Application Date field will determine which form to use. If the Application Date is 1/29/2011 or earlier, the old REGZ-TIL form will be used. If both date fields are blank, the new REGZ-TIL form will be used. This ensures that the new REGZ-TIL becomes the default version to use for loans going forward. If there are different dates entered in the two date fields, the TIL Application Date determines if the new REGZ-TIL form is used. From GFE Section Number Now Referenced on HUD-1 Page 2 All applicable from GFE # references are now listed on the HUD-1 Page 2 output form as required by RESPA. The references (for example, from GFE #4), are listed on individual fee lines, to the left of the Paid From Borrower s Funds at Settlement column. Additional Form Updates Doc Signing Date Field No Longer Populated Automatically To help ensure accurate dates are reflected in the loan file, the Doc Signing Date field (field ID 1887) on the Closing RegZ input form is no longer automatically populated when the Doc Signing milestone is finished. Previously, the date that the Doc Signing milestone was finished was immediately added to the Doc Signing Date field. REGZ-TIL and Closing RegZ Form Enhancement for Encompass Docs Clients All values entered on the REGZ-TIL and Closing RegZ input forms are now applied to the Federal Truth-In-Lending Disclosure Statement (output form) in edisclosure packages and closing packages. Table Removed from Credit Score Disclosure Exception: Model H3 The table has been removed from the How your score compares to the scores of other consumers section on page 1 of the Credit Score Disclosure Exception: Model H3 output form. Automatically Enabled Setup Requirements January 2011 Encompass360 Banker Edition Release Notes 2
Description of Feature Privacy Policy Form Updates The following updates have been made to the Affiliate Opt-Out, Affiliate No Opt-Out, No Affiliate Opt-Out, No Affiliate No Opt-Out Privacy Policy forms: The Does [Company Name] share? table header on page 1 has been adjusted to accommodate longer company names. Additional space has been added to the How does [Company Name] protect my personal information? row on page 2 to accommodate text that is entered in the Additional privacy safeguards text box in the Privacy Policy tool in Encompass Settings. (A maximum of 30 words can be entered.) The following update has been made only to the No Affiliate No Opt-Out form Privacy Policy form: The last four words in the third line of text in the How? row on page 2 have been moved to the fourth line, enabling the entire company name to display in the third line. 2010 HUD-1 Page 3 Update To accommodate fees entered on the HUD-1 Page 2, 11 additional lines have been added to the Charges that Can Change section of the HUD-1 Page 3, while 11 unessential lines have been removed from the Charges that in Total Cannot Increase More Than 10% section. New Loan-To-Value (LTV) Rounding Policy Three new fields have been added to the FNMA Streamlined 1003 input form to address the new rounding logic for LTV, CLTV, and HCLTV calculations introduced by Fannie Mae in DU Version 8.2. The new policy states that an LTV ratio calculation must first be truncated to two decimal places, and then rounded to the next whole number. For example, 81.7983579% will first be truncated to 81.79%, and then rounded up to 82%. The new fields added to the input form are LTV (field ID MORNET.X75), CLTV (field ID MORNET.X76), and HCLTV/HTLTV (field ID MORNET.X77). New State-Specific Disclosure Fields New fields have been added to the State-Specific Disclosure Information input form for Hawaii, New York, Ohio, South Carolina, and Washington. Font Size Increased, Made Bold on REGZ-TIL The font size for the Annual Percentage Rate, Finance Charge, Amount Financed, and Total of Payments values on the Federal Truth-in-Lending Disclosure Statement (REGZ-TIL output form) has been increased. This font is now bold as well. Automatically Enabled Setup Requirements January 2011 Encompass360 Banker Edition Release Notes 3
Description of Feature Automatically Enabled Setup Requirements efolder Enhancements Updates to the Borrower Consent Agreement for Electronic Documents Changes have been made to the consent agreement that borrowers must accept before they can receive documents electronically. The content has been reformatted and additional language has been added for clarity and readability. The agreement now includes the phone number, street address, and email address from your Company Information settings to allow borrowers to contact you to revoke consent, request paper copies of electronic documents, or update their contact information. The agreement also specifies the amount of any additional fees that will be charged if the borrower opts to receive printed copies of the documents rather than electronic copies. Additionally, an option has been added to the edisclosure tool in Encompass Settings that allows the administrator to indicate in the consent form whether a fee will be charged and the fee amount. edisclosure Package Sent by/recipient Details Available for Review A View Details link has been added to the edisclosure Tracking tab on the Disclosure Tracking tool that, when clicked, displays the original email message (including the From: and To: email addresses) that was sent to the borrower when sending an edisclosure package. Unassign a File in File Manager You can now unassign a file using the File Manager by dragging the file from the Documents section into the Unassigned section. Previously this action resulted in an error stating that additional rights were required. Use the edisclosures setting to indicate if a fee will be charged for printed copies of the disclosures, and what the amount will be. (Settings>eFolder Setup>eDisclosures) Admin Tools Update Settings Sync Tool page 14 Administrators can use the new Settings Sync Tool to import Encompass360 settings from one system to another. The tool enables Administrators to log into two systems at the same time, where they can select settings on one system and copy them to the second system. This tool will most commonly be used to copy settings from the production environment to the test environment to prepare for testing and then back to the production environment after changes are made. Settings that are supported by the tool include business rules, personas, and user groups. Use the Encompass360 Admin Tools>Settings Sync Tool to log in to the tool. January 2011 Encompass360 Banker Edition Release Notes 4
Description of Feature Automatically Enabled Setup Requirements Encompass Compliance Service Enhancements New TIL Application Date Field The TIL Application Date field (field ID 3292) has been added to the Section 32 TIL input form and the Compliance Timeline section of the Disclosure Tracking tool. This is the date on which the creditor receives a written application (submission of a borrower s financial information in anticipation of a credit decision). An application is received when it reaches the creditor. If it reaches the creditor through an intermediary agent or broker, the application is received when it reaches the creditor, not when it reaches the agent or broker. This application date is checked during the Encompass Compliance Service test for MDIA compliance. New Fields for Bona Fide Discount Points Two new fields have been added to Encompass360 to meet Encompass Compliance Service test requirements: The Bona Fide check box (field ID NEWHUD.X1067) displays on line 802 of the 2010 HUD-1 Page 2 (next to Origination Points). If selected, it indicates that the discount points in the loan are eligible to be bona fide by the Encompass Compliance Service s High Cost or GSE Points and Fees Threshold test. The UnDiscounted Rate field (field ID 3293) displays on the Borrower Summary input form. Use this field to enter the Rate at par Pricing. This is what the Note Rate would be if the borrower did not pay any Discount Points. Encompass Compliance Service Fee Mapping Added to 2010 Itemization Fee Management Tool Admins must now use the 2010 Itemization Fee Management tool in Encompass Settings to map Encompass360 fees to Encompass Compliance Service fees. Previously, the fee mapping feature was included in the Compliance Review Setup tool. Closing-cost templates must be mapped to specific fields in the Encompass Compliance Service in order for the compliance reports to produce complete and accurate results. NOTE: If you have already mapped fees using the Compliance Review Setup tool, you have the option to continue using that tool or you can transfer the fees to the Fee Management tool. New users or users who have not previously mapped fees can only use the Fee Management tool for fee mapping. Email Notifications for Un-Mapped Fees If a user enters a fee on the 2010 Itemization that is not included in the Fee List on the 2010 Itemization Fee Management tool in Encompass Settings, and then orders a compliance review, an email notification is sent to the user alerting them to the un-mapped fee. The fee name is automatically added to the Fee List, but is not mapped to a compliance fee. If a user enters a fee on the 2010 Itemization that has not been mapped to a compliance fee, but is included in the Fee List, and then orders a compliance review, an email notification alerting the user to the un-mapped fee will not be sent. To start mapping fees using the 2010 Itemization Fee Management setting, go here: Settings>Tables and Fees>2010 Itemization Fee Management To transfer an existing fee list to 2010 Itemization Fee Management, go to: Settings>Additional Services> Compliance Review Setup, and then go to the Fee Mapping tab. January 2011 Encompass360 Banker Edition Release Notes 5
Description of Feature Automatically Enabled Setup Requirements Additional Updates and Enhancements Write a Business Rule for GFE Application Date Lock Icon Access page 15 Administrators can now create a business rule that prevents users from clicking the GFE Application Date field s lock icon on the Disclosure Tracking tool (field ID 3142) and entering their own date. The rule can be written so the user can t update the GFE Application Date field, but the Encompass360 system can. Query for Empty or Non-Empty Date Fields Using COM Interface New methods have been added to enable Encompass360 users who use the COM interface for the Encompass API to query for empty or non-empty date fields. Mortgage Payment-to-Income Ratio Calculation Update The Mortgage Payment-to-Income qualifying ratio (field ID 740) on the HUD-92900LT FHA Loan Transmittal form is now calculated using the total monthly housing expense (field ID 912) divided by the borrower s and co-borrower s gross monthly income (field ID 1389). This calculation update applies to FHA loans where there is a borrower occupying the subject property as their primary residence and a co-mortgagor (secondary residence/non-occupying). REGZ-TIL Payment Schedule Calculations Values in the REGZ-TIL input form s Payment Schedule are now recalculated and updated only during the following occurrences, resulting in improved Encompass360 system performance when fields affecting the Payment Schedule are updated: When the REGZ-TIL is opened or printed. When an edisclosure package is sent. When ordering initial disclosures or closing documents. When an order is submitted through the Ellie Mae Network. Each time the loan file is saved. Appraisal Ordering Enhancements When you retrieve an appraisal from your service provider in Encompass360, you can now choose to import the subject property s appraised value (field ID 356), the appraisal fee (field ID 645), and the appraiser s name (field ID 618) and license information (field ID 974 in the Business Contacts tool) directly to the loan file. You can also select multiple documents to import to the efolder. New Passwords are now Recognized New users who are forced to create a new Encompass360 log in password the first time they log in, can now view the Home Page and access Ellie Mae Network services without being prompted for the password again. When a user who has logged into Encompass360 at least once creates a new log in password, they will be prompted for their old password before they can view the Home Page and access Ellie Mae Network services. The administrator must create the business rule, such as Persona Access to Fields. These new import options are only available if the appraiser sent the appraisal using the Encompass Appraisal Center. January 2011 Encompass360 Banker Edition Release Notes 6
Description of Feature Disclosure Notices Update The Consumer Handbook on Adjustable Rate Mortgages statement on the Disclosure Notices form now states that the handbook was prepared by the Board of Governors of the Federal Reserve System and the Office of Thrift Supervision. Add Borrower Vesting Dropdown Fields to Custom Forms The Borrower Vesting Borr 1 POA (field ID 1870) and Borrower Vesting Borr 2 POA (field ID 1875) drop-down fields can now be added to a custom input form, where the fields are editable with pre-defined options, and may be used when configuring a Field Triggers business rule. Clearing the GFE Date Clearing the GFE Date field (field ID 3170) on the 2010 GFE input form now clears the date from line 2 in the Important Dates section of the form (field ID NEWHUD.X2) without error. Automatically Enabled Setup Requirements January 2011 Encompass360 Banker Edition Release Notes 7
Detailed Procedures New Interest Rate and Payment Summary Tables New Interest Rate and Payment Summary tables now display on the REGZ-TIL input form and Federal Truth-in-Lending Disclosure Statement (output form). The table displayed on the forms is determined by the purpose of the loan, its amortization type, and the term of the loan. Below is a list of the various Interest Rate and Payment Summary tables that are used on the REGZ-TIL input and output forms. Loan Description: Fixed Rate For loans with a Fixed Rate amortization (field ID 608), the following Interest Rate and Payment Summary table displays on the REGZ-TIL. For Fixed Rate, Construction-Perm (field ID 19) loans, the following statement is added above the table on the output form: Repayment: Interest on the amount outstanding during the construction period will be paid monthly and may vary, followed by: January 2011 Detailed Procedures 8
Loan Description: Fixed Rate, Interest Only For Fixed Rate (field ID 608), Interest Only (field ID 1177) loans, the following Interest Rate and Payment Summary table displays on the REGZ-TIL. Loan Description: Fixed Rate, Balloon Payment For Fixed Rate (field ID 608) loans with a balloon payment (amortization term (field ID 4) greater than the payment term (field ID 325)), the following Interest Rate and Payment Summary table displays on the REGZ-TIL. NOTE: For Fixed Rate, Interest Only, Construction-Perm (field ID 19) loans, the Repayment: Interest on the amount outstanding during the construction period will be paid... statement discussed on page 8 is also displayed on this output form. NOTE: For Fixed Rate, Construction-Perm (field ID 19) loans with a balloon payment, the Repayment: Interest on the amount outstanding during the construction period will be paid... statement discussed on page 8 is also displayed on this output form. January 2011 Detailed Procedures 9
Loan Description: Fixed Rate, Balloon Payment, Interest Only Period Greater Than Balloon Term For Fixed Rate (field ID 608) loans with a balloon payment (amortization term (field ID 4) greater than the payment term (field ID 325)), that is also Interest Only (field ID 1177) where the interest only period is greater than the balloon term, the following Interest Rate and Payment Summary table displays on the REGZ-TIL. Loan Description: Fixed Rate, Balloon Payment, Interest Only Period Less Than Balloon Term For Fixed Rate (field ID 608) loans with a balloon payment (amortization term (field ID 4) greater than the payment term (field ID 325)), that is also Interest Only (field ID 1177) where the interest only period is less than the balloon term, the following Interest Rate and Payment Summary table displays on the REGZ-TIL. January 2011 Detailed Procedures 10
Loan Description: Fixed Rate, Buydown For Fixed Rate (field ID 608) loans featuring a Buydown rate (field IDs 425, 1269), the following Interest Rate and Payment Summary table displays on the REGZ- TIL. Loan Description: ARM, Introductory Rate Greater Than Five Years For an adjustable rate mortgage (ARM) (field ID 608) with an introductory rate where the maximum percentage the loan can adjust at the first adjustment period (field ID 697) is greater than or equal to the Life Cap (field ID 247), the following Interest Rate and Payment Summary table displays on the REGZ-TIL. January 2011 Detailed Procedures 11
NOTE: If the loan s Interest Rate (field ID 3) and the total Margin and Index (field ID 1827) are equal, N/A is substituted for the values discussed in the Introductory Rate Notice below the Interest Rate and Payment Summary table. Loan Description: ARM Loan For an ARM (field ID 608) with an introductory rate where the maximum percentage the loan can adjust at the first adjustment period (field ID 697) is less than the Life Cap (field ID 247), the following Interest Rate and Payment Summary table displays on the REGZ-TIL. NOTE: For ARM, Construction-Perm (field ID 19) loans with an introductory rate that adjusts within five years after the first regular periodic payment is due, the Repayment: Interest on the amount outstanding during the construction period will be paid... statement discussed on page 8 is also displayed on this output form above the Interest Rate and Payment Summary table. January 2011 Detailed Procedures 12
NOTE: If the loan s Interest Rate (field ID 3) and the total Margin and Index (field ID 1827) are equal, N/A is substituted for the values discussed in the Introductory Rate Notice as described on page 12. NOTE: For ARM, Construction-Perm (field ID 19) loans with an introductory rate that adjusts within five years after the first regular periodic payment is due, the Repayment: Interest on the amount outstanding during the construction period will be paid... statement discussed on page 8 is also displayed on this output form above the Interest Rate and Payment Summary table. Loan Description: Fixed Rate, Construction, Interest Calculated using Half Loan (Method A) For a Construction (field ID 19) mortgage, where Method A is used (interest is payable only on the amount advanced for the time it is outstanding), the following Interest Rate and Payment Summary table displays on the REGZ-TIL. NOTE: The Construction Mortgage section of the REGZ-TIL input form contains the Est. Interest On field where you can select A (Half Loan) or B (Full Loan). January 2011 Detailed Procedures 13
Loan Description: Fixed Rate, Construction, Interest Calculated using the Full Loan (Method B) For a Construction (field ID 19) mortgage, where Method B is used (interest is payable on the entire loan amount regardless of actual dates of disbursement), the following Interest Rate and Payment Summary table displays on the REGZ- TIL. NOTE: The Construction Mortgage section of the REGZ-TIL input form contains the Est. Interest On field where you can select A (Half Loan) or B (Full Loan). Settings Sync Tool Use the Settings Sync Tool to import Encompass360 settings from one system to another. You can copy settings from a production environment to a test environment to prepare for testing, and then back to the production environment after you make any changes. To Open the Settings Sync Tool: 1 Click Start, point to All Programs, point to Ellie Mae Encompass360, and then click Admin Tools. 2 Double-click Settings Sync Tool. 3 On the Encompass360 Settings Tool Log In window, enter the following login information for your production environment. User ID: admin Password: [created during installation] Connection: Networked Server: [The name of your Encompass360 server] 4 Enter the login information for your test environment. 5 Click Log In. January 2011 Detailed Procedures 14
To Configure the Setting: 1 On the menu bar, click Encompass, and then click Settings. 2 On the left panel, click Business Rules, and then click Persona Access to Fields. 3 On the Persona Access to Fields tool, click the New icon. To Copy Settings From System to System: 1 To copy settings from the production environment on the left panel to the test environment on the right panel, click the right arrow. 2 Click a tab at the top of the screen to view the setting, and then change the setting as needed on the right panel. 3 Repeat step 2 to view and change additional settings. 4 After testing the settings in the test environment, click the left arrow to copy the settings from the test environment back to the production environment. When copying a settings item such as a user or loan folder, settings associated with the item are copied as well. For example, when you copy a user from one system to another, the user s persona settings are also copied. If the user is a member of a User Group, the User Group will be added to the system too. To Change the Panel Orientation: 1 To align the panels from side-by-side to top and bottom, click View, and then click Toggle Left-Right/Top-Bottom. 2 Repeat step 1 to realign the panels to side-by-side. GFE Application Date Lock Icon Access Use the Business Rules settings to create a Persona Access to Fields business rule that prevents users from accessing the GFE Application Date s lock icon on the Disclosure Tracking tool. Create a Rule Name Type the name of the rule. To Add and Apply Lock Icon Rules 1 Select the channels the rule applies to, and then select a condition for this rule. 2 Click the Add button. 3 On the Add Required Fields window, in the Field ID field, type LOCKBUTTON_3142, and then click Add. 4 In the Assign Right section, locate the persona to which you are assigning the right, and then double-click the right in the Rights column. 5 Select Hide or View Only/Disable from the drop-down list. 6 Repeat steps 4 and 5 to assign rights to additional personas. 7 When finished, click Save. January 2011 Detailed Procedures 15
January 2011 Detailed Procedures 16