loan origination essentials - ellie mae

Loan Origination Essentials

Copyright Statement

© 2011 Ellie Mae, Inc. Ellie Mae®, Encompass® Encompass360®, DataTrac®, Mavent®, Ellie Mae Network™, En-compass 4506-T Service™, Encompass CenterWise™, Encompass Compliance Service™, Encompass Product and Pricing Service™, Encompass Closer™, Encompass Assured GFE™ (and the Ellie Mae, Mavent Logo) are registered trademarks or 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. Loan Origination Essentials Student Guide

Rev. 01/31/12


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Table of Contents

Introduction ........................................................................................................................................................................... 1

Course Overview ................................................................................................................................................................ 2

Learning Path...................................................................................................................................................................... 3

Student Guide Icons ........................................................................................................................................................... 4

Encompass360 Review......................................................................................................................................................... 5

Introduction and Learning Objectives ................................................................................................................................. 6

Home Page ......................................................................................................................................................................... 7

Pipeline ............................................................................................................................................................................... 8

Loan Workspace............................................................................................................................................................... 11

Getting Help with Encompass360..................................................................................................................................... 14

Shortcuts........................................................................................................................................................................... 15

Lesson Summary .............................................................................................................................................................. 16

Originating Loans ............................................................................................................................................................... 17

Introduction and Learning Objectives ............................................................................................................................... 18

Origination Workflow......................................................................................................................................................... 19

Originating Loans.............................................................................................................................................................. 20

Borrower Summary - Origination ...................................................................................................................................... 23

Order Credit and Import Liabilities .................................................................................................................................... 29

Additional Loan Forms...................................................................................................................................................... 32

Co-Mortgagors .................................................................................................................................................................. 36

Send Initial Disclosures .................................................................................................................................................... 38

Ordering Services ............................................................................................................................................................. 42

Product and Pricing........................................................................................................................................................... 44

Locking the Loan............................................................................................................................................................... 50

File Contacts ..................................................................................................................................................................... 56

Address Book.................................................................................................................................................................... 58

Conversation Log.............................................................................................................................................................. 60

Document Management ................................................................................................................................................... 62

Milestones......................................................................................................................................................................... 63

Sending a Loan to Processing.......................................................................................................................................... 65

Learning Lab 1 .................................................................................................................................................................. 66

Knowledge Check............................................................................................................................................................. 70

Lesson Summary .............................................................................................................................................................. 71

Course Summary .............................................................................................................................................................. 72


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Introduction


2 Introduction

Course Overview

This course gives loan officers the essential skills needed to originate loans. You’ll learn the basics of originating a loan from the Pipeline or Contacts, and how to complete the Borrower Summary form and order credit. You’ll also learn to add conversation log entries, use the co-mortgagors tool, lock the loan, and send the loan to the processor.

Intended Audience This course is intended for loan officers.

Pre-Requisites Users who are new to Encompass360 should have taken the Introduction to Encompass360 course to become familiar with the Encompass360 software.

Course Outline

Lesson 1: Encompass360 Review

Home Page

Pipeline

Loan Workspace

Lesson 2: Originating Loans

Originate Loans

Borrower Summary

Credit Report

Co-Mortgagors

Initial Disclosures

Request Underwriting

Lock Request Form

Product and Pricing

File Contacts

Business Contacts

Conversation Log

Disclosures

Documents

Milestone Worksheet


Introduction 3

Learning Path

Below is the recommended learning path for loan officers.


4 Introduction

Student Guide Icons

Icon Description

Knowledge Check - Indicates a question to assess knowledge transfer.

Note - Calls attention to important information and additional functionality.

Practice - Indicates hands-on activities.

Reference - Identifies items where you can find additional help within this student guide or in other resources.

Encompass360 Review

Lesson

1


6 Lesson 1: Encompass360 Review

Introduction and Learning Objectives

This lesson reviews key features of Encompass360 and emphasizes areas you will access in lesson 2.

Learning Objectives By the end of this lesson, you will be able to:

Describe the:

Home Page

Pipeline

Loan Workspace

Access online help


Lesson 1: Encompass360 Review 7

Home Page

The Home Page is the first screen users see after logging in to Encompass360. It serves as a central location for viewing important information. Information is contained in modules that can be configured to display a range of loan data and other business-related information. Links on the modules allow you to quickly access loan files, tools, and other resources.

Modules are arranged in three columns on the Home Page. Modules in the left and center columns are configurable. You can add, remove, or reposition them. The modules in the right column are permanent and cannot be changed.

Loan Officer Modules Select modules to view information important to you. Suggested loan officer modules are:

Recently Viewed Loans - Loans in your pipeline that you have recently viewed.

Loans with Alerts - Loans in your pipeline with alerts.

Loans by Rate Lock Expiration Date - Loans in your pipeline that have a Rate Lock Expiration date.

Admin Whiteboard – Messages from your administrator.

Company Custom Links – Website links created by your administrator for the entire company.

Custom Links – Create a list of your own custom links. Examples: National Mortgage News, Google Mortgage News, and Mortgage Market Guide.

CBS MarketWatch Market Rates - The latest market rates provided by CBS MarketWatch.

RSS Feed – Add your favorite blogs and RSS feeds. Example: Mortgage News Daily RSS Feed.

Production Shortcuts - Shortcuts to common Encompass tasks and actions.

Encompass Tip of the Day - Daily tips for getting the most out of Encompass360.

Appointments – Appointments scheduled on your Encompass360 Contacts Calendar. Use this module if you are using Contacts to schedule appointments in Encompass360.

New Leads Available to Import – New leads available to import into Encompass360. Use this module if you are getting leads through the Contacts tab. Leads are generated from purchasing leads through the Buy Leads button (Contacts, Borrower Contacts), or from your WebCenter.

Reference: For more information on how to configure the Home Page, refer to the Introduction to Encompass360 Student Guide, lesson 1 (Encompass360 Overview), or refer to Online Help.



Pipeline

The Pipeline is the starting point for viewing key information and initiating tasks for users involved in loan origination and processing. From the Pipeline, users can: Originate loans View loan summary and detail information Search, sort, move, delete, and duplicate loans Manage alerts Import and transfer loans Click icons to view key loan information without opening the loan file

Create views

In this course, you will:

Originate a loan from the pipeline Order services such as credit

Request a lock using the Lock Request Form

Views Users will have one or more default views from which to choose. The administrator determines the views that are available to you based on your assigned personas. The administrator also controls the default columns that are included in the view, the order in which the columns appear, and how they are sorted.

Create Views After changing the columns, sorting the data, applying search criteria, or selecting All Loans or My Loans (where applicable), you can save the new configuration as a new custom view. Once you save a view, you can select it at any time to apply the criteria to your loan summary list.



Manage Views

Click the Manage Views icon to the right of the Pipeline View field to view the default views and your custom views. From the Manage Views window, you can copy, delete, and rename your custom views. You can also set a view as default.

Reference: For more information on how to create and manage views, refer to the Introduction to Encompass360 Student Guide, lesson 1 (Encompass360 Overview), or refer to Online Help.

Suggested Views

Two common views are listed below. Each list shows the columns in the view.

Generic View Fannie Mae Unlocked View

Alerts Messages Loan # Loan Amt Borrower Name Subject Property Address Subject Property City Subject Property State Interest Rate Lock & Request Status Lock Expiration Est Closing Date Loan Type Loan Purpose Amortization type Loan Processors Name Last Finished Milestone Current Loan Team Member Next Expected Milestone

Alerts Messages Borrower Name Loan Type = Conventional Loan Amt < 417001 Est closing Date Interest Rate Lock & Request Status = Not Locked Rate Lock Expires Last Finished Milestone Subject Property Street



Pipeline Tasks Using the icons on the pipeline, you can perform tasks such as order services, product and pricing, request a lock, and create a conversation log entry.

Icon Task Description

Alert - Manage alerts.

Messages – View the following types of messages:

Fax - Borrower has returned requested documents via fax

Appraisal Order - Service provider has accepted or rejected an appraisal order

eDisclosure - Borrower has accepted, signed, or returned an eDisclosure package

Lock – Search for Product and Pricing and open the Lock Request Form.

Borrower Contact – Order credit, email contact, and create a conversation log entry.

Business Contact – Email current loan team member and create a conversation log entry.

House – View a map of the subject property address, order an appraisal and title.

Reference: For more information on pipeline tasks, refer to the Introduction to Encompass360 Student Guide, lesson 1 (Encompass360 Overview), or refer to Online Help.



Loan Workspace

When a user originates or opens a loan, the Loan Workspace opens on the Loan tab. The workspace is the focal point for tracking, managing, and carrying out loan activities. The workspace has four sections:

Work Area Header

Left Panel, Upper Section - Alerts & Messages and Log tabs

Left Panel, Lower Section - Tools to process the loan

Right Panel - Work Area

Alerts & Messages

Log

Forms

Tools

Services

Work Area

Work Area Header

The Work Area Header contains a summary of key loan information such as loan amount, loan number, and loan rate. On the right side of the header, the name of the currently-assigned loan team member is displayed. You can click the arrow to the right of the current loan team member to view a list of all team members associated with the loan. You can also click the Borrower Contact icon and select a phone number or email address to initiate a conversation log entry. Above and to the right of the header information is the eFolder icon, used to open the Encompass360 eFolder.



Left Panel, Upper Section - Alerts & Messages and Log Tabs

The Log communicates historical, current, and future loan-related activities and events. Log entries contain information such as completed and future milestones, email and phone communications, notifications of required actions (alerts), document tracking details, and general notations.

The Alerts & Messages tab displays the active alerts and unread messages for a loan.

Left Panel, Lower Section – Forms, Tools, and Services Tabs

The lower left panel contains the following tabs:

Forms - Access to input forms. Users enter data on input forms such as the Borrower Summary, 1003, and REGZ - TIL. To see all the available forms, check Show All at the bottom of the tab.

Tools - Access to tools. Some examples of the tools are Tasks, File Contacts, Co-Mortgagors, and Conversation Log.

Services - Access to services of the Ellie Mae Network. Users can order services such as a credit report or an appraisal.

NOTE: To alphabetize the Forms, Tools, or Services tabs, check Show in Alpha Order.



Right Panel - Work Area

The right side of the workspace displays the input forms and worksheets used to enter data and update loan information. For example, if you click a milestone entry in the Log, a milestone worksheet opens in the right panel. If you click the File Contacts tool on the Tools tab in the left panel, the File Contacts tool opens in the right panel.

In this example, the 1003 Page 1 form was selected.

In this course, you will:

Add entries to the Log

Complete the Borrower Summary on the Forms tab

Use the tools on the Tools tab such as Co-Mortgagors



Getting Help with Encompass360

Online Help The Encompass360 online help system provides comprehensive Encompass360 information, including detailed descriptions of features and tools, step-by-step instructions, and video tutorials.

To access the help system, click Help on the menu bar and then click Encompass360 Help or press F1 on your keyboard.

The help system opens to context specific help. In the example below, Encompass360 was opened on the Home Page, therefore Help displayed the Home Page information.



Documentation Library The Documentation Library contains the latest versions of Encompass360 documentation, including user guides, release notes, quick reference guides, white papers, and tutorials.

Field-Level Help in Encompass360 Field-based help automatically displays when you hover your mouse pointer over a field on an input form. The help contains the field ID followed by its description. To disable field-level help, but continue to display the field ID, clear the Enable field-level help check box on the My Profile screen on the Settings screen.

HelpPad The HelpPad allows you to capture field-level help in a separate HelpPad window. This is especially useful for fields that contain detailed definitions or calculations.

To Access the HelpPad:

1 Press the CTRL key on your keyboard and then click a field on a form. HelpPad opens with the selected field-level help displayed.

2 Repeat step 1 to add more field information to HelpPad. You can now view, print, copy, or save the information as needed.

Shortcuts

Listed below are several popular shortcuts. To see the full list of shortcuts, refer to the Keyboard Shortcuts document located in the Documentation Library.

Help - F1

Current Date - Ctrl+D

Go To Field - Ctrl+G

Go To Field

The Go To Field option locates a field based on its field ID.

To Find a Field:

1 With a loan open, press Ctrl+G.

2 Type a field ID and click Find.

The first form on which the field is found is opened, with the field highlighted.

NOTE: Only forms displayed on the Forms list will be searched. If you wish to search additional forms, select Show All Forms at the bottom of the Forms tab.



Lesson Summary

In this lesson, you learned how to:

Describe the:

Home Page

Pipeline

Loan Workspace

Access online help

Originating Loans

Lesson

2


18 Lesson 2: Originating Loans

Introduction and Learning Objectives

In this lesson you will learn the basics of originating a loan. We’ll cover topics such as the Borrower Summary, ordering credit, and how to use various tools.

Learning Objectives By the end of this lesson, you will be able to:

Originate a new loan

Complete the Borrower Summary

Order a credit report and import the liabilities

Use the Product and Pricing feature

Lock the loan

Use the Co-Mortgagors tool

Complete the Send to processing milestone


Lesson 2: Originating Loans 19

Origination Workflow

This course uses the following basic workflow for originating loans:



Originating Loans

There are a variety of ways to originate a loan in Encompass. This course addresses originating a loan from the Pipeline and from Contacts.

Loan Templates When you originate a loan from the Pipeline or the Contacts tool, you can apply a predefined loan template. Applying a template saves time and improves the accuracy of loan information by populating loan forms with data such as predefined closing costs and loan terms.

Loan Template Components

Each loan template is comprised of one to seven components that are separately maintained. The components are used in different combinations to create each loan template.

Loan Programs - A set of predefined loan terms and properties that appears primarily on the Truth-In-Lending Disclosure and the 1003 application.

Closing Costs - A set of predefined closing costs that appears primarily on the Good Faith Estimate and the 1003 application.

Input Form Sets - A set of the input forms that displays on the Forms tab in the loan workspace.

Settlement Service Providers - A set of settlement service providers to display on the Settlement Service Providers List form.

Document Sets - A set of documents used for the processing of different loan scenarios (such as conventional or VA), or to meet the requirements of entities such as lenders or government agencies.

Task Sets - A set of milestone-specific tasks that are completed during the loan's workflow.

Data Templates - A set of default loan data that is automatically populated on loan forms when a loan is created.

Originate a Loan from the Pipeline

To Originate a Loan from the Pipeline:

1 Click the New icon.



2 The New Loan window opens. You have a choice of using the default template, selecting from the list of public or personal templates, or not using a template.

To use the designated default template, click Default Template.

To select from a list of available templates, click the Folder field to select Public Loan Templates or Personal Loan Templates folder. Click the desired template and then click Select Template. To view template components before selecting it, click Details.

Click New Blank Loan to start the loan without applying a predefined template.

Best Practice: It’s recommended to select a template when originating a loan.

If you are applying a template to a new loan that contains data in more than one template component, data will be applied to the loan file from the Data Template first, then the Loan Program template, and lastly the Closing Costs template. Data from a template, including blank fields, will overwrite the data applied from the previous template.

Append Template Data Check Box

You have the option to append the template data rather than override the data.

Append - If you select the check box, only fields from the template that contain a value are applied.

Override - If you do NOT select the check box, all template fields (including blank fields) overwrite the associated fields in the loan.

Viewing Loan Templates

Click Detail to view the components of the template selected in the template list.

Default File Contacts

When originating a loan, the default providers are copied from the Default File Contacts tool (located in Personal Settings) to the appropriate loan forms and to the File Contacts tool for the loan.

NOTE: If a Data Template contains entries for file contacts, they will overwrite default provider entries when a loan is created.



Originate a Loan from Contacts Originating a loan from the Contacts tab enables you to:

Copy contact data directly to the loan forms

Include a borrower and co-borrower

Create a record in the contact history file

To Originate a Loan from the Contacts Tab:

1 Click the Borrower Contacts tab and select a borrower contact.

2 On the Contact Details section, click Originate Loan.

If a loan is currently open on the Loan tab, a pop-up message displays. Select a save option, and then click OK.

If the contact is already linked to an active loan, the Existing Loan window displays. Select the active loan and then click Select to open the loan or click Create New to start a new loan.

3 On the Originate Loan window, in the Borrower Contact section, click Add Co-Borrower to select a co-borrower from the list of borrower contacts if needed, and then click Done.

4 On the Loan Template section, click Select Template to apply a template to the loan.

5 On the Select Loan Template window, select a folder where the template is located.

6 Select the Append template data check box if you want only non-blank fields in the template to be written to the loan.

7 Select a loan template and click Select Template.

Or click Default Template to use the default loan template.

Or click New Blank Loan to start the loan without applying a predefined template.

NOTE: If you do not select a template, the loan will be blank except for the information from the Details and Opportunity tabs.

8 On the Loan Folder section of the Originate Loan window, select a loan folder for the loan.

9 Click Continue to create the loan.



Borrower Summary - Origination

When starting a new loan, the Borrower Summary input form opens in the Loan Workspace. Use the Borrower Summary form to record basic borrower and loan information. The Borrower Summary is typically the first form filled out in the loan process. The data entered here will automatically populate the same field information on various forms such as the 1003 and REGZ. Similarly, if you enter information on a form such as the 1003, it populates the same field information on the Borrower Summary. You can also order services such as credit reports and appraisals from the Borrower Summary.

The Borrower Summary is divided into seven sections described below and on the next several pages.

Channel and Current Status Section From the top of the Borrower Summary, select a Channel from the list to indicate how your company is handling the loan: Brokered, Banked-Retail, Banked-Wholesale, or Correspondent.

The Current Status value is synchronized with the Action Taken field on the HMDA Information form. By default the status is Active Loan when you start a new loan file.

NOTE: The Date field for Current Status is used only when an adverse status has been selected.

Borrower Information Section The Borrower Information section is divided into these categories:

Borrower and Co-Borrower

Social Security Number Verification

Present Address

Previous Address

Borrower and Co-Borrower

Complete the borrower information, including name, SSN, phone and email contact information. Then complete the co-borrower information. To copy information from the Borrower section, click Copy From Borrower. You can edit the copied information as needed.



Social Security Number Verification

Social Security Number Verification lists the specific purpose for which the borrower is granting the loan origination company or its agent’s permission to request validation of the borrower's name and social security number from the Social Security Administration.

Enter the purpose of the transaction and the number of days consent is valid. These fields are copied to the borrower's printed SSA-89 form.

The Company's Agent fields are populated by default from the Name field in your Company Information setting when a new loan is created.

Present Address and Previous Address

Enter the present and previous addresses. If you have multiple previous addresses, the information is added to the 1003 form.

NOTE: To shortcut the entry of address information, type the zip code first. The City, State, and County fields will automatically be filled.



Credit Information Section Once you have entered the borrower data you now have enough information to order credit. From the Credit Information section you can:

Order Credit

View Credit

Import the Liabilities

Record additional credit information

Reference: See page 29 for details on how to order credit.

Subject Property Information Section 1 Complete the Subject Property information or click Copy from Present to copy the address

information from the borrower's Present Address section.

2 Click the appropriate buttons to order appraisal, flood, and title reports from selected providers.

3 Select Property Type from the dropdown list.

4 Complete the Estimated Value and Appraised Value fields when appropriate.



Transaction Details Section Enter basic loan information including purpose, type, and terms in the Transaction Details section.

1 Click Product and Pricing to search for best fit program and pricing information using the Product and Pricing service.

Reference: See page 44 for details on how to use the Product and Pricing service.

2 Use the Access Lenders button to pre-qualify the borrower with a selected lender.

3 Click the Address Book icon to select a lender from your business contacts, if not already filled from your Default Providers list. You can also type a name and then right-click the field to add a new contact to your business contacts.

4 Click the magnifying glass Find icon next to the Loan Program field to select a loan program template such as 30 year fixed.

5 Click the magnifying glass Find icon next to the Closing Cost field to select the appropriate closing cost template for the loan product/program combination.



6 Click Sub. Financing to open a window to record details related to funds from other sources, such as a second mortgage.

7 Click the Edit icon next to the Income (monthly) field to open a window to add and calculate the borrower's monthly income. This information also displays on Page 2 of the 1003 application.

On the Quick Entry – Monthly Income window, click the Edit icon for the Base income to use the

Calculate Base Income tool.



Registration Section The Registration section contains current registration information.

NOTE: Loans can also be registered from the Secondary Registration tool.

1 Click Add Registration.

2 Set the Registered On and Registration Expires dates as required.

3 Type an Investor Name, or right-click to select an investor from your business contacts.

4 Type a Reference Number, such as the commitment number.

5 Click OK.

An entry is added to the log and the registration information is applied to the Registration tab on the Secondary Registration tool.

An alert will display when the registration expires or expiration is pending (depending on your system settings).

Source Section In the Source section, type the name of the referral source or, click the Address Book icon or, right-click the field to open and select from your business contacts.



Order Credit and Import Liabilities

A credit report can be ordered from various areas of Encompass360 including the Services tab and Borrower Summary form.

To Order Credit:

1 Click Order Credit from the Borrower Summary form or the Services tab.

2 On the Credit Report window, select your provider and click Submit.

3 On the Credit Report Request window, enter your username and password.

4 Select a request type:

New Request

Retrieve an existing credit report

5 Select one or more credit bureaus and click Finish.



NOTE: The Credit Report Request window is different for each provider.

The returned credit report displays on the Services View tab.



To Import Liabilities:

1 On the Borrower Summary form, click Import Liabilities to import data from the credit report to the Verification of Liabilities (VOL) form.

2 On the Liability Import window, de-select any liabilities that you don’t want imported and click Import.

Reference: Ordering Credit Video Tutorial



Additional Loan Forms

Once the Borrower Summary is complete, the next loan forms to be completed include:

1003

2010 Itemization

2010 GFE

REGZ-TIL

Settlement Service Provider List

Access the forms on the Forms tab. In the example below, the 1003 Page 1 form has been selected. At the top of the form are links to other forms and tools.

1003 Form Use the 1003 Loan Application for conventional, FHA, and VA loans. When completing the 1003 form after the Borrower Summary, many of the fields will already by populated. Using links from within the 1003 application, you can create and update verification forms.

Verifications

Verification forms are used to record information such as bank deposits and employment history that you or the processor verifies with outside sources. There are five verification forms available in Encompass360.



Verification of Residence (VOR) - Used to record current and previous residences. When you add residence information on the VOR, the current and first previous residence display on Page 1 of the 1003 loan application. If you add residence information on Page 1 of the 1003, the information is added to the VOR.

Verification of Employment (VOE) - Used to record current and previous employers. When you add employment information on the VOE, the first record for the borrower, and co-borrower, displays on Page 1 of the 1003 loan application. If you add employment information on Page 1 of the 1003, the information is added to the VOE.



Verification of Deposit (VOD) - Used to record deposit and associated account information. When you add deposit information on the VOD, the total displays in the Assets and Liabilities section on Page 2 of the 1003 application.

Verification of Liabilities (VOL) - Used to record liability and associated payment information. When you add liability information on the VOL, the first seven records display on Page 2 of the 1003 loan application. If you add liability information on Page 2 of the 1003, the information is also added to the VOL.



Verification of Mortgage (VOM) - Used to record current mortgages. When you add mortgage information on the VOM, the totals display in the Schedule of Real Estate Owned on Page 3 of the 1003 loan application.

Accessing Verification Forms

There are three ways to open verification forms:

In the left panel, click the Forms tab, and select the desired verification form.

1003 loan application:

Page 1 includes a button to access all VOR and VOE forms.

Page 2 includes a button to access all VOD and VOL forms.

Page 3 includes a button to access all VOM forms.

In the top menu bar, click on Verifs and select the desired verification form.

Reference: To learn more about the 1003, GFE, and REGZ-TIL forms, refer to the following resources:

Video Tutorials

The 1003 Form

REGZ-TIL

2010 RESPA Workflow

Quick Reference Guide

2010 RESPA Workflow

White Papers

Disclosing Lender-Paid LO Compensation to Brokers

Managing LO Compensation



Co-Mortgagors

Use the Co-Mortgagors tool to manage the co-mortgagors associated with a loan. Co-mortgagors are added as borrower pairs and each pair can include a borrower and co-borrower. You can then manage the information for each borrower pair, including reordering the borrower pairs, swap the borrowers and co-borrower within each pair, or delete a co-borrower from a borrower pair. When you add co-mortgagors to a loan, the co-mortgagor information is combined in the primary borrower file. However, separate sets of forms are created on which to record co-mortgagor information.

To Add a New Borrower Pair:

1 On the Tools tab, click Co-Mortgagors.

The Manage Borrowers window opens with the primary borrower at the top of the Borrower Pairs list. The borrower pair at the top of the list is always the primary borrower associated with the loan.

Detailed information about the Borrower and Co-Borrower displays at the bottom of the window.

2 Click the New icon. A new Borrower Pair displays on the list.

3 Type information in the Borrower and Co-Borrower sections.

To Change the Positions of Borrower Pairs: Select a borrower pair from the list, and then click the Up or Down arrows to change the pair's position. The pair at the top of the list (Pair 1) is always considered the primary borrower associated with the loan.

To Swap the Borrower and Co-Borrower Within a Pair: Select a borrower pair, and then click Swap with Co-Borrower. The information is swapped in the Borrower and Co-Borrower sections, and the name of the new borrower displays in the Borrower Pairs section.



To Delete a Borrower Pair:

1 Select a borrower pair from the list.

2 Click Delete Borrower Pair.

3 Click Yes in response to the confirmation message.

To Delete a Co-Borrower:

1 Select a borrower pair from the list.

2 Click Delete Co-Borrower.

3 Click Yes in response to the confirmation message.

To View Co-Mortgagor Forms: The Borrowers field at the upper-left of the Loan tab indicates the borrower with whom the currently displayed loan forms are associated.

1 To work with the loan forms for a different borrower pair, change the selection on the Borrowers list.

2 To open the Co-Mortgagors tool, click the Edit icon to the right of the Borrowers field.



Send Initial Disclosures

Once you have entered sufficient information on the Borrower Summary, you will see a Send Initial Disclosure alert on the Alerts and Messages tab. Click on the alert to display additional details including the Initial Disclosure Due Date and the Required Disclosures.

Clearing the Alert

There are several ways to clear the Send Initial Disclosure alert.

IMPORTANT: Check with your compliance officer for your company procedures in clearing compliance alerts.

To clear the Send Initial Disclosure alert, complete one of the following:

Click the eFolder link (in the upper right-hand corner) and then click on the eDisclosures button to generate and send an electronic disclosure package to the borrower. The GFE must be included.

Or, click the Send Initial Disclosures entry on the Alerts & Messages tab in the Log. In the Send Initial Disclosures alert summary, click the Send eDisclosures button.

After you send the disclosures, an entry is automatically added to the Disclosure Tracking tool and the alert is cleared.

NOTE: Generating and sending an eDisclosure package is the preferred method of clearing the alert.

Print the required disclosures and send the disclosures (via fax or mail) to the borrower. The GFE must be included in this disclosure package.

Reference: To learn how to generate and send eDisclosure packages, attend the eFolder Essentials class. Also, refer to the Sending eDisclosures Quick Reference Guide.



Disclosure Tracking Tool The Disclosure Tracking tool provides disclosure timelines and tracking dates, the disclosure history, and the latest disclosure details. Use this tool to log GFE, REGZ-TIL, and other disclosures. Follow the timelines and tracking dates to stay compliant with Real Estate Settlement Procedures Act (RESPA) regulations that went into effect on January 1, 2010, as well as new provisions to the Mortgage Disclosure Improvement Act (MDIA) that went into effect on July 30, 2009.

To Open the Disclosure Tracking Tool:

1 Open a loan and then click the Tools tab.

2 Click Disclosure Tracking.

Compliance Timeline (1) The Compliance Timeline calculates important time periods and dates according to MDIA regulations. All fields, with the exception of the TIL Application Date and Estimated Closing Date are Read Only and calculated automatically. For details about how each field is calculated, view the Disclosure Tracking Compliance Timeline and Tracking Calculations help topic.

TIL Tracking (2) The TIL Tracking section is used to track when the initial and revised REGZ-TIL is sent and received by the borrower. All fields are Read Only.

GFE Tracking (3) The GFE Tracking section is used to track when the initial and revised GFE is sent and received by the borrower. All fields are Read Only.

Disclosure History (4) Entries in the Disclosure History section can be added automatically, manually, or by clicking Yes when a Disclosure Tracking prompt displays, asking if you want to create a disclosure history entry.



Disclosure Details To view the details for a specific disclosure, double-click to open the associated Disclosure History entry.

Details Tab The Details tab provides key information about the disclosure or disclosure package currently

selected in the Disclosure History list. The Disclosure Information (1) section provides the disclosure or disclosure package's Sent

Date, by whom it was sent, the sending method, and the date the borrower received the disclosure or disclosure package.

The Loan Snapshot (2) section provides the key loan fields that were disclosed to the borrower. If the GFE was sent, click the GFE Snapshot button to view a Read Only copy of the disclosed GFE.

The Documents Sent (3) section lists the disclosure documents that were sent to the borrower. For documents that were sent electronically in an eDisclosure package, click the View Document button to view a Read Only copy of the documents.

eDisclosure Tracking Tab

The eDisclosure Tracking tab provides the dates when the borrower and co-borrower take action on the selected eDisclosure package and details about the latest eDisclosure Fulfillment Service package that was printed and sent to the borrower (if applicable).

NOTE: This tab displays only when you have selected an eDisclosure package entry in the Disclosure History list.

The read-only fields in the Status (1) section are auto-populated with the date on which the borrower and co-borrower (if applicable) accesses, accepts, rejects, or electronically signs the eDisclosure package.

Click View Details (2) to open the original email message (including the From: and To: email addresses) that was sent to the borrower when sending the eDisclosure package.

The read-only fields in the Fulfillment (3) section are auto-populated with the date on which the latest eDisclosure Fulfillment Service package was created and sent to the borrower and by whom the package was ordered.

If your administrator has given you permission, you can click Print Documents and Manually Fulfill (4) to print and manually send the documents. After you print the documents, the Manually Fulfill window displays. Select a fulfillment method, enter comments as needed, and then click Submit.



Reference: Disclosure Tracking Tool Quick Reference Guide



Ordering Services Services can be ordered from the Services tab, from forms such as the Borrower Summary, and from the eFolder.

Request Underwriting By requesting underwriting, you can also request preliminary findings before submitting the loan to determine the borrower's ability to qualify.

NOTE: For an AUS submission, Fannie Mae requires a credit report with a Fannie Mae reference number. You can order credit from the submission window or provide information from a previously received credit report.

To Request Preliminary Findings:

1 On the Services tab, click the Request Underwriting button.

2 On the Underwriting window, click a provider and then click Submit. In this example, we selected Fannie Mae DO for ePASS.

3 On the Fannie Mae DO for ePASS page, click Submit to DO for ePASS on the upper-left of the page.

NOTE: If your company has configured the user credentials, you will be asked to provide an account number and password and to choose a Product Description option. Select the Standard LCOR option to opt out of using DU Refi Plus and instruct DU to underwrite the case file as a limited cash-out refinance transaction.

4 On the Submit Loan: Select Submission Options page, click Preliminary Findings for the submission option.

To View the Returned Findings:

From the eFolder 1 On the eFolder, click the Preliminary Conditions tab, and then click the New icon.

2 Select the Add Conditions from AUS findings option, and then click OK.

From the Loan Tab 1 On the Services tab, click the Document icon to the right of the Request Underwriting button.

2 On the View Document window, click the View button.



Other Services Order other services when appropriate such as appraisal or title.

Reference: To learn more about ordering services, refer to the following resources: Video Tutorials

Ordering Credit

Ordering Appraisals

Ordering Title and Closing

Encompass Title Center

Quick Reference Guides

Connecting to Partners Electronically

Encompass Title Center

Ordering Appraisals from Encompass360

Introduction to Encompass360 Student Guide

Lesson 1, Services Tab section



Product and Pricing

Banker Edition Loan officers can search for products and prices by clicking the Get Pricing button on the Lock Request Form tool. Your administrator sets up the default product and pricing provider. This course uses the Encompass Product and Pricing Service.

To Search for Products and Prices from the Lock Request Form Tool:

1 Open a loan file, click the Tools tab in the lower left panel, and then click Lock Request Form.

2 Complete the top portion of the lock request form and then scroll down to the Rate Lock Request section of the form.

3 When finished, click the Get Pricing button.

NOTE: The Get Pricing button is similar to the Product and Pricing button on page 26, except that the Get Pricing button can be configured to display your companies preferred product and pricing provider.

4 On the Product and Pricing Request window, enter login credentials for the Encompass Product and Pricing Service, and then click Continue. If you need login credentials, ask your Encompass360 administrator.



5 The Services View tab opens in Encompass360 and displays the Encompass Product and Pricing Service page. If the loan contains all the required information, the page opens to the Qualify tab, which displays a list of eligible products, rates, and prices. The product with the best pricing at the selected rate displays in expanded mode at the top of the list. Click any program name to open an expanded view of the program.

6 If required information is missing from the loan, the Please address the following section lists the information. Resolve the issues, and then click Qualify.

7 Click the details link to view adjustment details for each rate and price combination.

8 If a program view is expanded, click Show all rates to view all available rates for the program.

9 To adjust your search criteria, enter values in the Target Price and Target Rate fields, and then click Go.

10 To search for rates offered by a specific lender, select a lender from the drop-down list.

11 To search for agency or non-agency products, select or clear the Agency and Non-Agency check boxes as needed.

12 To select a product, click an entry in the Rate column.

13 When the summary page displays, review the content and then click Submit or Float to import the pricing into Encompass.

The pricing information is imported into the Lock Request Form tool in Encompass360.

NOTE: If you click Submit, you will be unable to run additional scenarios against the loan. If you click Float, you can continue to run product and pricing scenarios on the loan file. Typically, users click Submit when they have decided to move forward with a specific option and intend to place a lock request in Encompass. If you wish to return to the loan file, but intend to search for a product and price scenario for the loan at a later time, click Float.



14 To submit the request to the lock desk, click the Request (Re)Lock button.

15 After you submit a Lock Request, you will be prompted to exit the loan to allow the Lock Desk to access the loan file.



Broker Edition With Encompass360 Broker Edition, you can use the Services tab in a loan file to access the Encompass Product and Pricing Service, search for products and prices, and then import the product and pricing information into the loan file.

To Search for Products and Prices from the Services Tab:

1 Open a loan file, click the Services tab in the lower left panel, and then click Search Product and Pricing.

2 On the Product and Pricing window, click the All Providers tab, select Encompass Product and Pricing Service, and then click Submit.

3 On the Product and Pricing Request window, enter login credentials for the Encompass Product and Pricing Service, and then click Continue. If you need login credentials, ask your Encompass360 administrator.



4 The Services View tab opens in Encompass360 and displays the Encompass Product and Pricing Service page. If the loan contains all the required information, the page opens to the Qualify tab, which displays a list of eligible products, rates, and prices. The product with the best pricing at the selected rate displays in expanded mode at the top of the list. Click any program name to open an expanded view of the program.

5 If required information is missing from the loan, the Please address the following section lists the information. Resolve the issues, and then click Qualify.

6 Click the details link to view adjustment details for each rate and price combination.

7 If a program view is expanded, click Show all rates to view all available rates for the program.

8 To adjust your search criteria, enter values in the Target Price and Target Rate fields, and then click Go.

9 To search for rates offered by a specific lender, select a lender from the drop-down list.

10 To search for agency or non-agency products, select or clear the Agency and Non-Agency check boxes as needed.

11 To select a product, click an entry in the Rate column.

12 When the summary page displays, review the content and then click Submit or Float to import the pricing into Encompass.

Note: If you click Submit, you will be unable to run additional scenarios against the loan. If you click Float, you can continue to run product and pricing scenarios on the loan file. Typically, users click Submit when they have decided to move forward with a specific option and intend to place a lock request in Encompass. If you wish to return to the loan file, but intend to search for a product and price scenario for the loan at a later time, click Float.

Reference: For additional information see the Using the Encompass Product and Pricing Service document located in the Documentation Library.



Locking the Loan

Banker After completing the preliminary borrower, property, and transaction information on the Borrower Summary and 1003 forms, you are ready to lock the loan using the Lock Request Form. When submitting a rate lock request to the lock desk:

A Lock Request entry is added to the Loan Log.

The request is sent to the lock desk.

The lock request icon displays in the Pipeline for the loan.

Lock Request Form Tool The Lock Request Form is used for submitting a rate lock request to the lock desk. You can adjust values on the Lock Request Form and submit requests without affecting the associated fields in the main loan file. Changes to the Lock Request Form are not incorporated into the loan file until the lock request is confirmed.

Submitting a Lock Request

Request Information

Most of the information in the Request Information section will already be completed, using borrower, property, and transaction information entered on other forms, such as the Borrower Summary and the 1003. Review the current information, making adjustments and completing any missing data as necessary. Changes made in this section (except for borrower information) are NOT reflected in the main loan file until the request is locked and confirmed by the lock desk.

IMPORTANT: Check with your secondary department for your company lock procedures.



Rate Lock Request

If pricing information is imported from a product and pricing provider, the appropriate fields in the Rate Lock Request section are populated.

1 In the Base Rate field, enter the requested base rate (as a percentage) for the loan.

2 In the Base Price field, enter the requested base price (number of points) for the loan using 100 as par.

Example 1: If the base price is .25 above par, enter 100.25. A loan amount of $100,000 with pricing of 100.25 would result in $100,250 being received.

Example 2: If the base price is .25 below par, enter 99.75. A loan amount of $100,000 with pricing of 99.75 would result in $99,750 being received.

3 If you’re requesting a lock for an adjustable rate loan, use the Base Margin field to enter the requested base margin (as a percentage) for the loan. The margin is the spread between the index and the mortgage interest rate.

NOTE: The Base Margin is only applicable to the margin associated with an adjustable rate loan.

4 Enter the investor's Rate Sheet ID.

5 Enter the requested Lock Date and the number of days you want to lock the loan. The Lock Expiration Date will be calculated.

6 Type Comments to include with the request to the lock desk.

7 If needed, click Detailed Lock Request Form to adjust the base rate, base price, and base margin before submitting the request (see instructions on the next page).

8 Click Request (Re)Lock to submit the request.

A Lock Request entry is added to the Loan Log.


The lock request icon displays in the Pipeline for the loan.

Save and exit the loan so that it can be accessed by the lock desk.

Detailed Lock Request Form

Use the Detailed Lock Request Form to enter adjustments to the base rate, base price, and base margin of the lock request.

NOTE: Base Margin adjustments are only applicable to the margin associated with an adjustable rate loan.

1 On the Lock Request Form, click Detailed Lock Request Form.

2 If there is a current lock, the Current Lock column contains the lock details.

You can click the Copy from Current Lock button to copy these details to the fields for the new request.



3 For each of the three categories, select (or type) adjustment descriptions, and then enter values for the adjustments.

Enter a percentage for rate and margin adjustments. Enter the number of points for price adjustments.

You can enter up to 20 adjustments in each category.

4 When you are finished entering adjustments, click Close to exit the worksheet, and then submit the lock request.

The Net Rate Expected, Net Price Expected, and Net Margin Expected values are calculated by adding (or subtracting) the total adjustments to (or from) the Base Rate, Base Price, and Base Margin fields.

Resubmit a Lock Request

You can resubmit rate locks as needed, using the same procedure as described on the previous for the initial request. Always use the Lock Request Form to resubmit a lock request rather than submitting the request verbally or via email. This ensures that the lock desk will pull in the correct lock data. When resubmitting a lock request, click the Lock icon (if available) to edit a read-only field on the Lock Request Form.

Request a Rate Lock Extension

If a rate lock is about to expire, the loan officer can request an extension from the lock desk.

1. Click the Request Extension button.

2. On the Extension Request window, enter the Days to Extend, Price Adjustment, and Comments as needed, and then click the Request Extension button.

A lock request entry is added to the loan log.


The lock request icon shows on the Pipeline.

The price adjustment is added as an entry in the Adj. Buy Price section on the Secondary Lock Tool.

Note: If a lock extension expires on a Saturday, Sunday, or holiday, the expiration date is automatically adjusted to the next business day as determined on the Company Calendar in the Compliance Calendar setting under Loan Setup in the Encompass settings.



Lock Desk

The lock desk has several options including:

Lock and Confirm

The loan rate is locked and the requester (loan officer) is notified.

An entry is added to the Loan Log.

Data in the loan file is updated.

The request icon is changed to indicate that the request is locked.

Deny a Lock Request

The status of the request is changed to Denied.

The lock desk can enter comments.

A log entry is created in the logs of both the requester and the lock desk user.

An alert is created for both the requester and the lock desk, and the lock request icon is removed.

Pipeline Display by Rate Lock Request

The pipeline contains an option to search for and display only those loans with a lock request.

1 From the Pipeline, locate the Lock & Request Status column.

2 Select an option from the Lock & Request Status drop-down list. Only loans containing the specified lock are displayed.

Icon Lock Description

Click the icon to view all pending lock requests for this loan.

The rate is unlocked and a lock request has not been submitted to the lock desk.

The rate is unlocked and a lock request has been submitted to the lock desk.

The loan’s rate is locked.

The rate is locked, but a new lock request has been submitted to the lock desk.

The rate was locked, but the lock has expired.

The rate was locked, but the lock has expired, and a new lock request has been submitted to the lock desk.

3 Click a Lock icon to view lock details, including the date the loan was locked, and the number of days until the lock expires.

Forms and activities related to the lock are listed in the lower section of the details window. Click an item in the list to view the form or perform the activity.



Reference: To learn more about locking the loan, refer to the following resources: Video Tutorials Rate Lock

Quick Reference Guide Manage Lock Requests

Document Working with Rate Lock Requests



Broker and Banker - Track Rate Lock To track the rate lock information for a loan, complete the fields at the bottom of the Transaction section of the Borrower Summary form.

To Track a Rate Lock: 1 On the forms tab, click Borrower Summary. 2 At the bottom of the Transaction Details section: Enter a Rate Lock Description. Enter a Lock Date. Enter the # of Days. The Lock Expires date auto-populates.

Enter the date when the interest rate was last set or revised.

3 When the loan is locked, check Rate is Locked.

Pipeline Display by Rate Lock Status The pipeline contains an option to search for and display only those loans by lock status.

1 From the Pipeline, locate the Lock Status column.

2 Select an option from the Lock Status drop-down list. Only loans containing the specified lock are displayed.

Icon Lock Description

The rate is unlocked.

The loan’s rate is locked.

The rate was locked, but the lock has expired.

3 Click a Lock icon to view lock details, including the date the loan was locked, and the number of days until the lock expires. Forms and activities related to the lock are listed in the lower section of the details window. Click an

item in the list to view the form or perform the activity.



File Contacts

The File Contacts tool contains the contacts and service providers associated with a loan. The tool provides a convenient means of viewing, maintaining, and printing all of the file contacts for a loan from one location.

Adding File Contacts There are several ways that file contacts are added to a loan.

Default File Contacts - If you have created default file contacts (using the Default File Contacts tool on the Settings screen), they are automatically added as file contacts when you originate a loan.

Business Contacts - You can click the Address Book icon (from a loan form, the Default File Contacts tool, or the File Contacts tool) and select existing business contacts to add to the file contacts for a loan.

Automatic Entry - File contacts such as borrowers, co-borrowers, and roles are automatically added to the File Contacts tool during the processing of a loan.

Manual Entry - You can enter file contact information in the File Contacts tool or on a loan form. Manually entered contacts are specific to the loan you are working on. They are not automatically added to your business contacts.

NOTE: If a file contact is a settlement service provider, you can add the contact to the Settlement Services Providers List by selecting the provider and then clicking the Copy to Settlement Service Provider List button.

To Add a Contact Using the Address Book: The Address Book accesses information from the Business Contacts tool, which includes contact information only for service providers (business contacts).

1 Open the File Contacts tool and select a category from the list on the upper portion of the screen, for example, Buyer’s Agent.



2 On the lower portion of the screen, right-click a contact field, or click the Address Book icon.

The Business Contacts window opens and displays business contacts associated with the selected contact category. In the example below, the window will display a list of real estate agents.

3 Select a contact from the list and click Select.

The contact information is added to the File Contacts list.

4 As needed, make changes or additions to the data copied from your business contacts. These changes will not affect the source information in the business contacts.

To Add or Update a File Contact Manually:

1 Open the File Contacts tool and select a category from the list on the upper portion of the screen.

2 On the lower portion of the screen, add or update the contact information.

The new information is added to the loan and overrides any previously-entered data. For example, if you change the borrower's home phone, the number is changed wherever it occurs in the loan.

To Add a File Contact from a Loan Form:

1 Click an Address Book icon associated with a service provider, such as the icon next to the Homeowner’s Ins field on the Good Faith Estimate.

The Business Contacts window opens, displaying contacts associated with the selected category of service provider.

2 Select a contact from the list and click Select.

The contact information is added to the loan form and the File Contacts list.

NOTE: You can also type the name of the service provider on the form. The name will be added to the File Contacts list.



Address Book

Use the Address Book to select a contact from your business contacts, and then add the contact to a form. The Address Book allows you to access the same business contact information that is accessible from the Contacts tab or the Business Contacts tool.

You can also manually add a business contact to a form, and then open the Address Book to add the contact to your business contacts.

NOTE: When you use the Address Book to select and add business contacts to your loans, you ensure consistent, complete, and accurate contact information in the loan file. This improves the accuracy of data on the Dashboard and in Reports.

Access to the Address Book is indicated by the Address Book icon.

To Add a Business Contact to a Form:

1 Open the Address Book in one of two ways:

Click an Address Book icon on a form. For example: the icon next to the Homeowner's Ins field on the Good Faith Estimate. The Business Contacts window opens, displaying contacts for the category that corresponds to the field.

Right-click in a field associated with an Address Book icon. The Business Contacts window opens, displaying contacts for the category that corresponds to the field. If there is no category associated with the field, all contacts are displayed.

2 Click a contact from the list and click Select.

The contact is placed on the form.

To Add a Business Contact to the Business Contacts:

1 Type the contact information on a loan form.

2 Right-click the contact field or click the Address Book icon.

3 When the Business Contacts window opens, click Create New and Select to add the contact information as a new business contact.



Conversation Log

Use the Conversation Log to track interactions with the borrower, service providers, and other contacts related to the loan. You can also send alerts to yourself or other loan team members to request follow-up actions.

To Create a Conversation Log Entry:

1 On the Log, click the New icon, select Conversation Log, and then click OK.

2 On the Conversation Log worksheet, add or change the Name and Company with whom the conversation took place, or click the Address Book icon to select a name from the file contacts for the loan.

3 Type or change the phone number or email address as needed, and then select Phone or Email to indicate the type of conversation.

If you select Email, a new Microsoft Outlook email message window opens with the contact's email address already populated. If you want the content of the email message to become part of the loan file, simply copy and paste the message from Outlook to the Conversation Log worksheet.

To copy, highlight the text to be copied in the email message and press CTRL-C on your keyboard. To paste, click in the Comments area of the Conversation Log and press CTRL-V on your keyboard.

4 In the Comments section, type information related to the conversation.

The Previous Comments section displays any comments entered by users who previously accessed the file.

5 If you do not want the Conversation Log entry to display in the Log, clear the Show entry in the loan Log check box.

The entry will still be accessible from the Conversation Log list. To access the Conversation Log list on the Tools tab click Conversation Log.

6 To request follow-up by a loan team member or from yourself, in the Follow Up section, select a role, and then set the due date.

A separate follow-up entry is created in the Log.

The alert displays on your or the selected loan team member's Pipeline and Log.



Additional Add Entries Methods There are several ways to create a Conversation Log entry:

On the Tools tab, click Conversation Log, and then click the New icon.

Click a Borrower Contact or Business Contact icon for a contact (found in the Default Providers tool, File Contacts tool, Pipeline, and Loan Workspace). After you click an icon, click a phone number or email address. A Conversation Log worksheet opens that corresponds to the contact.

Click a Phone or Email icon. A Conversation Log worksheet opens that corresponds to the contact and the open loan.

NOTE: If you select Email, a new Microsoft Outlook email message window opens with the contact's email address already populated. If you want the content of the email message to become part of the loan file, simply copy and paste the message from Outlook to the Conversation Log worksheet.



Document Management

A document is an entry in the eFolder that allows you to track the status of a loan document as the loan moves through the Pipeline. When you access a document on the eFolder, you can also access a file that has been attached to the document.

eFolder The eFolder provides a central location for accessing and managing the electronic files, documents, and conditions associated with a loan. The eFolder tracks document-related activities wherever they take place. For example, if you order a credit report from the Borrower Summary form, the request is recorded on the Documents tab on the eFolder.

To access the eFolder, click on the eFolder link in the upper right-hand corner of the Loan tab, or click on the eFolder button on any milestone worksheet.

The Documents tab is used to track and manage documents.

Reference: For more information about documents and the eFolder, refer to the following resources:

Online Training Classes

eFolder Essentials

eFolder - Going Paperless

Video Tutorials

Encompass360 eFolder Part 1 - eFolder Basics Tutorial

Encompass360 eFolder Part 2 – Managing Documents Tutorial

Quick Reference Guide

Managing Documents Electronically



Milestones

The loan processing workflow is divided into stages called milestones. A milestone is a step in the workflow that contains loan tasks carried out by an assigned loan team member. As tasks are completed, the milestone is marked as Finished, and work begins toward the next milestone.

The Pipeline can include milestone columns.

On the Loan tab, the Log displays all completed and future milestones.

Loan team members are responsible for completing tasks for each milestone. When tasks are completed, the loan is assigned to the loan team member who will complete the next set of tasks for the next milestone.



Milestone Worksheet The Milestone Worksheet is used to record activities and completion of tasks associated with each milestone. The figure below depicts the areas of a worksheet. The options the user sees and the tasks they are permitted or required to complete are based on the configuration of each milestone, personas, individual user settings and business rules (Banker Only).

1 Assigned Loan Team Members

The assigned team members for the preceding, current, and next milestone.

2 Accept File (Clear Alert) Used by the assigned loan team member to accept the loan file and clear the associated alert.

3 Return File to Sender Used by the assigned loan team member to return the loan to the previous milestone.

4 Days to Finish The number of days before the expected completion of the milestone.

5 Finished check box Used to indicate completion of the milestone.

6 Documents The list of documents required for the milestone. The eFolder button is used to view tracking details. Banker Only - A red asterisk to the left of a document's name indicates that the document must be received before the milestone can be completed. A paper clip with a red asterisk to the left of a document name indicates that an attachment is required.

7 Tasks List of items or reminders of actions to complete before you finish a milestone. The Task List button displays all the tasks for the loan file. Banker Only - A red asterisk to the left of a task's name indicates that completion of the task is required.

8 Required Fields Banker Only

Lists the loan fields that must be completed before the milestone is finished. Required fields are set up by the administrator using the Milestone Completion Business Rules. The Field Summary button is used to open a separate form that summarizes the loan fields to be reviewed before completing the milestone.

9 Milestone Comments Information related to the milestone. Click the Date Stamp button to add the current date and time to the next blank line in the Milestone Comments section. Click Show All to display all milestone comments related to the loan. Comments are grouped according to milestone.

NOTE: Comments are not connected to the log and only display on this milestone worksheet.

BANKER ONLY



Sending a Loan to Processing

After completing preliminary activities and submissions, you are ready to assign a loan processor to the loan and send it to processing. Several actions take place when you send a loan to processing:

Encompass calculates the expected completion date of the Sent to Processing milestone and of all subsequent milestones in the loan’s pipeline.

The assigned processor becomes the owner of the loan, with authority to view and modify loan data.

To Send the Loan to Processing:

1 Click the Send to processing milestone in the Log.

2 Click the Find icon, select a loan team member from the list, and then click OK.

3 Select the Finished check box. The milestone entry in the Log is updated and the expected completion dates of future milestones are adjusted as needed.

4 Click the Save Loan icon and then click the Exit Loan File icon.

Loan File Access

Once a loan is sent to processing, the loan officer is no longer the active team member for the loan file. If the Loan Officer opens the file, based on administrator settings, they may be limited to making changes to certain areas of the loan file. However, they can always view the loan file to track the progress. In the example below, the Loan Officer can only make changes to the eFolder Documents, Conversation Log and Tasks.



Learning Lab 1

Your borrower’s name is Jim Adams and he is purchasing a home. In this practice, you will start Jim’s loan and order credit. You will also add a conversation log entry and send the loan to your processor.

NOTE: Your instructor will provide logins and instructions to access the Encompass Learning Lab.

User ID Log into Encompass as Luke, the loan officer. User ID: luke Password: password

Task 1: Originate Loan

1 Originate a new loan from your pipeline using a template located in the Companywide folder called: 30 Year Fixed – LO Lab

2 On the Borrower Summary, enter in the following loan data: Borrower Name: Jim Adams SSN: 333-22-4444 DOB: Feb. 21, 1965 Home Phone: 408 248-1234 Cell Phone: 408 248-5678 Marital Status: Unmarried E-mail: [email protected] Present Address: 123 Easy St.

San Jose, CA 95129 Owned for 2 years

Task 2: Order Credit Order Credit from the Borrower Summary using the Ellie Mae Credit Company provider.

Task 3: Continue Borrower Summary Starting in the Subject Property Information section, enter the following: Subject Property: 95 Beach Ave.

Monterey, CA 93940 Property Type: Detached Estimated Value: 400,000 Purpose of Loan: Purchase Property Will Be: Primary Loan Type: Conventional Lien Position: First Amortization Type: Fixed Rate Purchase Price: 400,000 Down Payment: 20% Note Rate: 5.5% Qual Rate: 5.5% Monthly Income: 7000

The information you entered is reflected in the Loan Header at the top of your borrower file.



Task 4: View Alert

When you completed key fields on the Borrower Summary, the Send Initial Disclosure alert was triggered. View the alert details.

The preferred method of clearing the alert is to generate and send an eDisclosure package which is covered in the eFolder Essentials class. Therefore, for the purposes of this lab only, the alert will not be cleared.

Task 5: Create Conversation Log Entry

1 Create a conversation log entry with a follow-up alert for the next business day. Add Jim’s contact information to the entry. Use the following information for the comments:

Called Jim to go over the items still needed for his loan. He didn’t answer so I left a message and will call again tomorrow.

2 View the log entry you added in step 1.

Task 6: Complete Milestones

1 You have completed everything that is needed for the Jim Adams loan. Complete the Qualification milestone, selecting Luke for the Loan Opener. Then complete the Send to processing milestone selecting Penny Smith for the Processor. Save and exit the loan file.

2 There is something you need to check in the loan file. Open the Jim Adams file. What message did you get? Based on your company settings, your access to the loan file may be limited. However, you can always view the loan file and see what the processor has done.



Learning Lab 1 - Details

Logging In

1 In the Encompass Learning Lab, click on the Encompass Banker 360 icon.

2 Click OK to the message.

3 Enter the following user ID and password and click Log In:

User ID: luke

Password: password

NOTE: Your instructor will provide logins and instructions to access the Encompass Learning Lab.

Task 1: Originate Loan

1 Logged in as Luke the loan officer, click the Pipeline tab.

2 Click the New Loan icon.

3 Double-click the Companywide folder, select 30 Year Fixed – LO Lab, and then click Select Template.

4 On the Borrower Summary, enter in the following loan data: Borrower Name: Jim Adams SSN: 333-22-4444 DOB: Feb. 21, 1965 Home Phone: 408 248-1234 Cell Phone: 408 248-5678 Marital Status: Unmarried E-mail: [email protected] Present Address: 123 Easy St.

San Jose, CA 95129 Owned for 2 years

Task 2: Order Credit

1 Click the Order Credit button on the Borrower Summary.

2 The Ellie Mae Credit Company will be highlighted. Click Submit and then click Finish.

The credit report opens on the Services View tab.

3 Click the Loan tab to return to the Borrower Summary.

Task 3: Continue Borrower Summary

1 Starting in the Subject Property Information section, enter the following: Subject Property: 95 Beach Ave.

Monterey, CA 93940 Property Type: Detached Estimated Value: $400,000 Purpose of Loan: Purchase Property Will Be: Primary Loan Type: Conventional Lien Position: First Amortization Type: Fixed Rate Purchase Price: 400,000 Down Payment: 20% Note Rate: 5.5%



Qual Rate: 5.5% Monthly Income: $7000

Click the Edit icon for the Income (monthly) field. Enter 7000 in the Base field for the Borrower, and then click Close.

Task 4: View Alert

1 Click the Alerts & Messages tab.

2 Click the Send Initial Disclosures alert.

Task 5: Create Conversation Log Entry

1 Click the Add Log Entry icon in the Log.

2 Click Conversation Log and click OK.

3 Click the Address Book icon.

4 Highlight Jim Adams and click Select.

5 Enter the following in the Comments section:

Called Jim to go over the items still needed for his loan. He didn’t answer so I left a message and will call again tomorrow.

6 Select Loan Officer from the Alert drop down in the Follow Up section.

7 Select the next business day in the date field and then click OK.

8 On the Log tab, click the Follow up (Jim Adams) entry and then click Close.

Or, on the Tools tab, click Conversation Log.

Task 6: Complete Milestones

1 In the Log, click the Qualification milestone.

2 Click the Find icon for the Loan Opener.

3 Select Luke Matthews and click OK.

4 Select the Finished check box.

5 In the Log, click the Send to processing milestone.

6 Click the Find icon for the Loan Processor.

7 Select Penny Smith and click OK.

8 Select the Finished check box.

9 Select the Save icon.

10 Click Close to close the compliance alert message and then click the Exit icon.

11 Double-click the Adams loan file in your pipeline. You will see a popup message regarding your access level to the loan file.

12 Click No to the prompt.



Knowledge Check

Which form is typically filled out first when originating a loan?

1 1003

2 GFE

3 REGZ - TIL

4 Borrower Summary

Services such as Credit can be ordered from the Borrower Summary and the Services tab.

1 True

2 False

In a loan file, where can you access the Co-Mortgagor tool?

1 Forms tab

2 Services tab

3 Tools tab

4 Log

Match the icon to the definition.

1. a. Print

2. b. New (log entry, loan, etc.)

3. c. Address Book.



Lesson Summary

In this lesson you learned how to:

Originate a new loan

Complete the Borrower Summary

Order a credit report and import the liabilities

Use the Product and Pricing feature

Lock the loan

Use the Co-Mortgagors tool

Complete the Send to processing milestone



Course Summary

This concludes the Loan Origination Essentials course where you learned the basics of originating a loan.

Address Book - Icon used to select a contact from your business contacts, and then add the contact to a form.

Borrower Summary - Use the Borrower Summary form to record basic borrower and loan information, and to order services such as credit reports. Typically the first form filled out in the loan process, the data entered on the Borrower Summary populates to other forms such as the 1003 and REGZ.

Co-Mortgagors - Tool used to manage the co-mortgagors associated with a loan.

Conversation Log - Tool used to track interactions with the borrower, service providers, and other contacts related to the loan. Alerts can be sent to yourself or other loan team members to request follow-up actions.

Documents - An entry in the eFolder that allows you to track the status of a loan document as the loan moves through the Pipeline.

Originate - Loans can be originated from the Pipeline or the Contacts tab. Selecting a template saves time and improves the accuracy of loan information.

Request Underwriting - Request preliminary findings before submitting the loan to determine the borrower's ability to qualify.

Send Initial Disclosures - Once you have entered sufficient information on the Borrower Summary, you will see a Send Initial Disclosure alert.

Send to Processing - On the Send to processing worksheet, assign a loan processor and check the Finished check box.

Tasks - Tool used to create, manage, and track the tasks to be completed at each milestone. Alerts can be sent to yourself or other loan team members to request follow-up actions.