Encompass Compliance Service September 18 2014 Release Notes

Encompass Compliance Service (ECS) Release Notes

September 18, 2014 Release

The ECS September 18, 2014 Release includes the key features described on the following pages. This document includes a high-level overview of key features and updates, followed by more detailed information and instructions where appropriate. Refer to the Encompass online help and the Documentation Library for additional information and related documents.

Overview of Updates and Enhancements

The following tables describes each change, indicate whether or not the change is automatically enabled, and describe any setup requirements.

Description of Feature

Automatically Setup Requirements

Enabled

NMLS Review Can Now Be Performed as of Application Date, Consummation Date, or Both

page 4

Since loans can be handed from one loan officer to another (they may not be licensed throughout the entire transaction), the NMLS Review has been updated to allow the review to be performed as of the application date, consummation date, or both.

CE-739

None

Administrative Users Can Now Specify When TILA Review Finance Charge Tolerance is Run

page 5

The TILA Review run conditions currently allow administrative users to specify when the TILA Review is run, based on the channel type, milestone reached, or certain data fields being completed.

Administrative users can now specify when the finance charge tolerance portion of the review is run. NOTE: The finance charge run conditions are subject to the existing TILA Review run conditions.

CE-1807

None

Added Zero Interest Bond Loans Not Currently Supported Message

Currently, ECS cannot run tests on zero interest bond loans because an APR and finance charge cannot be calculated (note rate is 0).

For second lien loans (field ID 420 is "Second") with a Note Rate (field ID 3) of "0", the audit window will display a message, "Zero interest loans are not supported by ECS". NOTE: The audit message does not prevent EDS users from ordering documents.

CE-1954

None

Last Revised: September 18, 2014

Encompass Compliance Service (ECS) Release Notes

1

Description of Feature

Automatically Setup Requirements

Enabled

Added Mapping for Exempt from Right of Rescission Flag

ECS applies the TILA Right of Rescission requirements to all non-purchase money loans secured by 1 - 4 unit dwellings unless the lender claims a loan-level exemption from the requirement.

The Encompass Exempt from Right of Rescission (field ID 3942) allows you to exempt the loan from the Right of Rescission rules based on the exemptions allowed under Reg Z, CFR ? 1026.23(f). If the value is "True", the TILA Right of Rescission rules will not be applied. NOTE: The Exempt from Right of Rescission flag will not be available in Encompass until the 15.1 release.

CE-1410

None

Added Additional HMDA Purchaser Types

To ensure that all available HMDA purchaser types pass (and an exception is not generated by the HMDA Review), mappings have been added for the following Type of Purchaser (field ID 1397) enumerations:

None

Type of Purchaser Loan was not originated or not sold Fannie Mae Ginnie Mae Freddie Mac Farmer Mac Private Securitization Commercial Bank, Savings Bank, or Savings Associations

PurchaserTypeCode Value 0 1 2 3 4 5 6

CE-1610

VA Loans Now Defaulted to VA QM Rules ECS users who make VA loans can now have ECS apply the VA QM rules to all non-ATR exempt VA loans made on or after 5/9/2014. This eliminates the need to manually select "VA QM" or "Agency/GSE QM" in the Qualified Mortgage Type field (field ID QM.X24).

CE-1924

Previous Loan Information Monthly Payment Now Used for VA IRRRL Rules ECS users who make VA loans can now use the Previous Loan Information Monthly Payment field (field ID VASUMM.X19) to indicate the amount of the prior loan's mortgage payment. This eliminates the need to enter that value in the Total Monthly Mortgage Obligation field (field ID NTB.X21) on the Net Tangible Benefit for ECS VA QM eligibility tests and the Previous Loan Information Monthly Payment field for Encompass eligibility tests.

CE-1925

None None

Last Revised: September 18, 2014

Encompass Compliance Service (ECS) Release Notes

2

Description of Feature

Automatically Setup Requirements

Enabled

TILA-ROR Results Now Exports to COMPLIANCEREVIEW.X13 Field

An issue occurred during the TILA-ROR Review. The value in the COMPLIANCEREIVEW.X13 field was empty. This issue has been resolved and the correct value is now exported to the COMPLIANCEREIVEW.X13 field.

CE-1774

None

HMDA Review No Longer Generates Warning When First Borrower Pair Has No Income But Second Borrower Pair Has Income

An issue occurred during the HMDA Review when the first borrower pair did not have any income, but the second borrower pair had income. ECS captured the income for all applicants as "NA" and a warning message was generated. This issue has been resolved and the correct income is now captured by ECS when running the HMDA Review. NOTE: This issue only affected the HMDA Review and did not have any impact on the income-related tests under ATR/QM.

CE-1886

None

Compliance Review No Longer Displays Error When Sale Rep or TPO Organization Cannot Be Found

An issue occurred when a loan, with an assigned external TPO, was transferred to a different server or Encompass ID, and then a compliance review run. An "object reference not set to an instance of an object" error was displayed. This issue has been resolved and Encompass now retrieves the appropriate license information (Broker or Lender) from ECS Setup when running a compliance review.

CE-1887

None

Compliance Review No Longer Displays Error When License Not Selected For Company/Organization

An issue occurred when a new company/organization was created without any licenses, a new user was created under that company/organization, that user was assigned to a loan, and then a compliance review run. An "object reference not set to an instance of an object" error was displayed. This issue has been resolved and Encompass now applies licenses properly when running a compliance review.

CE-1926

None

Last Revised: September 18, 2014

Encompass Compliance Service (ECS) Release Notes

3

Detailed Procedures

NMLS Review Can Now Be Performed as of Application Date, Consummation Date, or Both

Since loans can be handed from one loan officer to another (they may not be licensed throughout the entire transaction), the NMLS Review has been updated to allow the review to be performed as of the application date, consummation date, or both.

To Manage the NMLS Review Run Conditions: 1 On the menu bar, click Encompass, and then Settings. 2 In the left panel, click Additional Services, and then Compliance Review

Setup. 3 If this is the first time you are accessing the Compliance Review Setup, click

Get Setup (upper right corner of the screen). ? Or, if you have completed the setup but want to change the settings, click

Change Setup (upper right corner of the screen). 4 In the Reviews to include section, click the Setup NMLS Review Run

Conditions button next to the NMLS Registration Review field.

5 In the NMLS Review Run Conditions pop-up window, select the milestones at which the NMLS Review should be run.

Last Revised: September 18, 2014

NOTE: You can select either the Application Date, Consummation Date, or both.

? If only the Application Date is selected, the NMLS Review only checks the loan's current finished milestone as of the application date.

? If only the Consummation Date is selected, the NMLS Review only checks the loan's current finished milestone as of the consummation date.

Detailed Procedures

4

6 If you select both the Application and Consummation date for a milestone, select whether registration is required as of BOTH the Application Date AND Consummation Date or as of EITHER the Application Date OR Consummation Date in the drop-down field.

? If both the Application Date and the Consummation Date are selected and the drop-down selection is "Application Date AND Consummation Date", the NMLS Review checks the loan's current finished milestone as of the application date and the consummation date, and returns a failure if the loan officer is not registered/sponsored as of either date.

? If both the Application Date and the Consummation Date is selected and the drop-down selection is "Application Date OR Consummation Date", the NMLS Review checks the loan's current finished milestone as of the application date and the consummation date, and returns a failure if the loan officer is not registered/sponsored as of both dates.

7 Click Save.

Administrative Users Can Now Specify When TILA Review Finance Charge Tolerance is Run

The TILA Review run conditions currently allow administrative users to specify when the TILA Review is run, based on the channel type, milestone reached, or certain data fields being completed. Administrative users can now specify when the finance charge tolerance portion of the review is run. NOTE: The finance charge run conditions are subject to the existing TILA Review run conditions.

To Manage the TILA Review Run Conditions: 1 On the menu bar, click Encompass, and then Settings. 2 In the left panel, click Additional Services, and then Compliance Review

Setup. 3 If this is the first time you are accessing the Compliance Review Setup, click

Get Setup (upper right corner of the screen).

? Or, if you have completed the setup but want to change the settings, click Change Setup (upper right corner of the screen).

4 In the Reviews to include section, click the Setup TILA Review Run Conditions button next to the TILA Review field.

5 In the TILA Review Run Conditions pop-up window, select when the finance charge tolerance is run in the TILA Finance Run Conditions section.

6 If the Run review only when a certain milestone is reached option is selected, a list of channels and milestones are displayed. NOTE: The Select Additional Condition applies to the entire TILA Review.

Last Revised: September 18, 2014

Detailed Procedures

5

The available milestones under each corresponding TILA Review finance charge run condition channel are ones that are equal to or later than the milestones selected in the TILA Review run condition channels.

NOTE: The milestone selected in the corresponding channel under the TILA Review run conditions is the default channel selected under the TILA Finance Charge run conditions for that channel.

7 Click Save.

Last Revised: September 18, 2014

Detailed Procedures

6

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