Construction to Permanent FNMA One Time Close DU Data Entry MOTION Important: Items must be completed in the following order Create or Import a construction to permanent loan Select construction product Fees, Important Dates and creation of Loan Estimate and Initial Disclosures Upload Loan Documents Submit Loan to Crescent The following reference will illustrate how to enter a one-time-close construction to permanent loan in the MOTION system. I. Creating a one-time close construction to permanent loan or a one-time close renovation to permanent loan. Import 3.2 file, or Create loan using Import or New respectively. Important: When importing or creating loan, select Correspondent as channel. (You will not see CP programs available in Wholesale channel. Complete Registration and Product Selection screen required fields. II. Construction Loan Product Selection To streamline the disclosure and compliance around the one time close construction to permanent program, your institution must make its construction loans under one of the following programs. This is how your construction loan will be disclosed to the borrower, as well as how the loan closes. Rate Type Rate Terms Index Type Caps Margin CMC Product Name Available Amortization ARM 10/1 Treasury 5/2/5 2.75 CP 1x 10/1 TBILL ARM 275 5/2/5 168-360 months ARM 10/1 LIBOR 5/2/5 2.75 CP 1x 10/1 LIBOR ARM 275 5/2/5 168-360 months ARM 7/1 Treasury 5/2/5 2.75 CP 1x 7/1 TBILL ARM 275 5/2/5 168-360 months ARM 7/1 LIBOR 5/2/5 2.75 CP 1x 7/1 LIBOR ARM 275 5/2/5 168-360 months ARM 5/1 Treasury 2/2/5 2.75 CP 1x 5/1 TBILL ARM 275 2/2/5 168-360 months ARM 5/1 LIBOR 2/2/5 2.75 CP 1x 5/1 LIBOR ARM 275 2/2/5 168-360 months Fixed 30 Year N/A N/A N/A CP 1X 30 YR Construction 348-360 months Fixed 15 Year N/A N/A N/A CP 1x 15 YR Construction 168-180 months Page 1 of 11 CP Input for MOTION Rev 11/16/2016 FW
Navigate to the Product and Pricing Wizard from the Registration screen. Ensure YES is selected for Loan is 1X Close Const- Perm on the PPE Borrower and Property screen in the Wizard. *Very Important* - The rate you select on this screen should be the Note Rate the One Time Construction loan will be closing at and will be disclosed as the interest rate on the Loan Estimate and Closing Disclosure. This should be the interest rate of the construction period. Page 2 of 11 CP Input for MOTION Rev 11/16/2016 FW
Navigate to Construction Loan screen in the left-hand navigation menu. Select Loan Application, then Construction to Permanent Loan or use the Construction Wizard. Regardless of if you are using Motion to generate initial disclosures or not, fields A-H are required to be completed prior to submission to underwriting. 1. Title to lot If the borrowers have title prior to application select YES: 1. You must complete the 1003 Assets and Liabilities screen. Please see page _ for how to enter the fully drawn construction loan liability. 2. Enter the estimated lot payoff amount. If the lot is owned free and clear, you MUST enter 0 into the field. This field cannot be left blank if the borrowers have title to the lot. a. If there is a payoff amount on the lot greater than $0 entered, the loan estimate loan purpose will reflect Refinance. b. If there is a payoff amount on the lot of $0 entered, the loan estimate loan purpose will reflect Construction. If the borrowers do not have title prior to application select NO: 3. You must enter the purchase price of the lot. This value will be reflected as the Sales Price on the loan estimate. 4. Verify you have correctly input the subject property information by reviewing the current loan estimate loan purpose shown on the screen. a. The loan estimate loan purpose will reflect Purchase Page 3 of 11 CP Input for MOTION Rev 11/16/2016 FW
2. Construction Loan Product Your construction loan is disclosed and closed as one of the programs listed below. Crescent then gives your borrower the option to modify, at time of completion to either a 30 year or a 15 year fixed rate mortgage at prevailing interest rates. Please see underwriting parameters for all available modification option 3. Initial Close Date The date you wish to close the construction loan on. This is also your estimated closing date. 4. Permanent Loan Term The Permanent Term (months) is the total number of months with P&I payment. 360 = Loan will be fully amortized as a 30 year term loan (360 months P&I + 12 months IO) 348 = Loan will be fully amortized as a 29 year term loan (348 months P&I + 12 months IO) 5. Interest Rate This is the rate you selected when you chose the product in the Products and Pricing Wizard. If you wish to change the interest rate, you must use the Products and Pricing Wizard on the Registration screen. 6. Rate Locked for Loan Estimate This should be completed if the Loan Estimate is being prepared in Motion. If the Loan Estimate should show that the loan is locked with your institution, select Yes and enter the date the lock expires. 7. Qualifying Modification Rate for Underwriting Enter the rate the underwriter should qualify the borrower(s) at for Modification. This rate is for Underwriting purposes only and is not disclosed to the borrowers. Page 4 of 11 CP Input for MOTION Rev 11/16/2016 FW
I. 1003: REO/Liabilities & Property There are two difference scenarios dependent on whether the borrowers have title to the lot at time of application. Follow the steps applicable to your loans scenario. First, Navigate to the Loan Application (1003) screen in Motion. You can use the 1003 Application button at the top of the Construction screen. Scenario 1: Borrowers have title to the lot prior to application a. Select VI. Assets and Liabilities from the top of the Loan Application (1003) screen. b. Review the REO section under Liabilities. The subject property should be listed under this section. Click Add to populate the subject property in the REO table. c. Complete the information in the Real Estate Owned popup. The amount of Mortgages and Liens will populate once you add a corresponding liability in the next step. d. Either click Add to enter a new liability, or double click an already existing liability (populated from the 3.2 loan import). Page 5 of 11 CP Input for MOTION Rev 11/16/2016 FW
e. Add a liability tied to the subject property REO for the fully drawn construction loan amount. Ensure the Will be paid checkbox is selected and the Paid at Closing box marked yes. i. If you imported your loan into Motion, there might already be an existing liability. You must ensure the liability is linked to the subject property REO. The liability and the REO must have the same order id. The REO Order ID will match that of the corresponding liability. In the example to the left the REO and Liability both have REO Order ID of 1. Scenario 2: Borrowers do not have title prior to application a. Enter the sales price of the lot + the construction contract amount as the Sale Price on the Details of Transaction section of the Loan Application. You can also enter this value on the Registration screen. b. The sales price of the lot is broken out on the Construction to Permeant screen. This value will populate as the sales price on the Loan Estimate and Closing Disclosure. Please see the data entry instructions on page 3 and 4 of this document. Page 6 of 11 CP Input for MOTION Rev 11/16/2016 FW
III. Fees & Important Dates If you are using Motion for creation of your Loan Estimate &/or Initial Disclosure Package you must complete the following sections. If you are not using motion for disclosures, you can still enter this information to expedite loan submission, or skip to next section for submission to DU. Navigate to the LE Fees Page by clicking LE Fees at the top of the Construction to Permanent page. Step 1: Complete disclosure dates Step 2: Taxes and Insurance o Input estimated values of the proposed construction for Hazard, Property and Flood Insurance (If in a flood zone). o The estimated monthly values will be disclosed on Page 1 of the Loan Estimate under the Estimated Taxes and Insurance Section. *Very Important: You must select the Waive Escrow box next to each Tax/Insurance type that is being waived. Page 7 of 11 CP Input for MOTION Rev 11/16/2016 FW
Step 3: Mortgage Insurance (If LTV is in excess of 80%, MI must be disclosed) Step 4: Consolidated Fees & New Subordinate Financing *If there is new subordinate financing that must be factored into the cash to close and be disclosed on the Loan Estimate, it must be entered into the field in Step 4. Once in Consolidated Fees All fees should be added here. Remember every fee name can be edited for your specific needs. At modification, the borrower cannot pay additional fees which should have been known and disclosed at closing. Review amounts disclosed for draw fees and title update fees as any shortage must be paid by your institution. Be sure to include: Any fees POC or Paid at Initial Closing (Example: Origination, Appraisal, Title, Builders Risk Premium) Any fees known to exist after Initial Closing and Prior to Modification (Example: Draw Fees, Inspection Fees) Any fees known to be payable at Modification (Example: Title Update, Modification Fee, Final Inspection) Draw Inspection Fees collected in the name of the institution must be disclosed in Section A Origination Charges. If the Draw Inspection fee is shown as FBO a third party, the fee must be disclosed in Section B - Services You Cannot Shop For. See below for instructions on adding a Draw Fee into the appropriate section. Don t see a fee you need to disclose listed in Consolidated Fees? You can change the name of a fee already listed OR you can add a new fee. Edit name/totals/paid to: Page 8 of 11 CP Input for MOTION Rev 11/16/2016 FW
To add a new fee: Select the fee(s) that need to be added and click Add at the bottom of the Add Fees popup. Filter the fees avaliable by selecting the Loan Estimate section the fee will be disclosed in. Step 5 Settlement Services Providers List You must complete the SSPL if you are generating an initial loan estimate in Motion. You do not complete the Anti-Steering on a Correspondent loan. Step 6 Preview and Print Loan Estimate Step 7: Generate & View Disclosures Page 9 of 11 CP Input for MOTION Rev 11/16/2016 FW
Step 8 & Step 9 IV. Submit to Desktop Underwriter (DU) Navigate in Left hand menu to DU, LP, and Credit Select service type as DU and the appropriate service request. You should either be asked for credit credentials, or Credit reference numbers if you already obtained a credit report. Select Submit Request. You should receive your findings in 2-3 minutes. IMPORTANT: once findings are received, you must click button called Reload Loan to populate underwriting conditions and AUS findings information to the loan. Page 10 of 11 CP Input for MOTION Rev 11/16/2016 FW
Once you have received findings and clicked Reload Loan, you can then generate / view / print a complete loan submission checklist that will contain all DU conditions, as well as Crescent specific conditions for the construction to permanent loan. V. Upload Loan Documents Upload all applicable loan documents for underwriting based on your submission checklist by navigating to Imaging, Disclosures, Attachments folder on left hand navigation, then select Uploads and Attachments screen. Click arrow by Attachment Upload to expand upload option. Browse for files to upload. The file type MUST be PDF and MUST NOT be encrypted. Select category as Credit Package. Click Upload VI. Submit loan to Crescent Mortgage for Underwriting Navigation: Left hand navigation tree, Actions and Services folder, Submit Loan to Crescent screen. Page 11 of 11 CP Input for MOTION Rev 11/16/2016 FW