urla q&a

© ICE Mortgage Technology. All rights reserved. 3/18/2021

URLA Q&A

With ICE Mortgage Technology Experts


This presentation may contain forward-looking statements under the safe harbor provisions under

The Private Securities Litigation Reform Act of 1995. These forward-looking statements may include the

company’s ability and timing to enhance the features and functionality of Encompass software and services

and of new product launches. Additional risks and uncertainties related to the company’s business are

discussed in the company’s Securities and Exchange Commission filings, including but not limited to the

company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Unless

otherwise required by applicable laws, the company undertakes no obligation to update or revise any

forward-looking statements, whether as a result of new information, future events or otherwise.

Forward looking statements safe harbor

2

© ICE Mortgage Technology. All rights reserved. 3/18/2021 3

Amy

Cross

Principal Product

Manager,

ICE Mortgage

Technology

Karen

Whitcomb

Sr. Staff Technical

Support Engineer,

ICE Mortgage

Technology

Han

Park

Associate Product

Manager,

ICE Mortgage

Technology

Panelists


Topics

• DU/LPA

• General Workflow

• Construction Loans

• HELOC

4


DU/LPA

URLA Q&A


DU/LPAData Entry with New URLA


DU/LPA Common Data Entry Issues

• Refinance Data Entry in the New URLA

• Purpose of Loan

• How to enter Refinance transactions of Non-Primary Residences

• KA #39359 How to include the Net Rent /Loss into the Encompass DTI calculations when Subject property is Investment being Refinanced.

• Data entry for Self-Employment

• Data entry in the Verification of Other Income section (VOOI)

• Both DU and LPA accept one occurrence of each Income Type.

• Certain enumerations are only supported by DU and should not be sent for FHA or VA. Encompass handles this in the export.

• Blank Verifications

• Closing Costs

https://resourcecenter.elliemae.com/resourcecenter/knowledgebasearticle.aspx?n=39359


Refinance - Purpose of Loan


Refinance transactions of Non-Primary Residences


GSE Known Issues


Fannie Mae Related Issues

• DU does not accept "NA" as a valid MSA Identifier (from field 699) although it is a valid value in the

HMDA fig (filing instructions guide).

• Workaround would be to update to clear field 699 before submitting to DU. If the field is cleared, then the datapoint will not be

exported in the XML and will not be picked up if the same file is imported.

• Fannie Mae is currently reviewing this issue with their Product Team.

• EarlyCheck does not accept a HMDARateSpreadPercent (from field HMDA.X15) with 3 decimal places.

• Workaround would be to update field HMDA.X15 with a value of 2 decimal places prior to running AUS

• Fannie Mae is currently reviewing this issue with their Product Team.

Lender-reported issues with DU and EarlyCheck - In discussion with Fannie Mae:


Freddie Mac Related Issues

• LPA reflects a Household size of 0 when there are no dependents on a VA loan

• E.g. Code: FGM0051 "This VA loan was submitted with $X in residual income for a household size of 0 in CA."

• Freddie Mac is currently looking into timing to address this issue.

• LPA Full Feedback Report "Property Type" incorrectly reflects "Construction Method Type" value.

• E.g. "Site Built" or "Manufactured"

• Freddie Mac is currently looking into timing to address this issue.

• LPA Down Payment container error messages for FHA and Affordable product types.

• Freddie Mac expects a Down Payment container to be passed in the XML for loans with Gifts or Grants for FHA and Loan

Affordable Product types. However, LPA is firing message codes (DQC0586 and DQC0664) when there are no Gifts or Grants and

a Down Payment container is not sent.

• Actively working with Freddie Mac to address these messages.

Lender-reported issues with LPA - In discussion with Freddie Mac:


Construction Loans

URLA Q&A


Construction Loan Purpose

• URLA only has Purchase / Refinance / Other

• Encompass retains field 19

• Construction to Permanent loans will be identified as Purchase or Refinance

based on the status of the Lot

• Initial Acquisition = Purchase

• Not identified or Refinance= Refinance

• Construction Loans will be identified as Other, with Other Description as

Construction Only


Construction Loan Cost To Build

URLA

• Lender has the option to document purchase price on the URLA

with either

• Option 1: All In – Lot Acquisition + Cost to build

• Option 2: Purchase Price = Cost to build, Land = Lot Cost

LE/CD

• Disclosed Purchase Price is always Lot Cost

• Add Non VOL in Payoffs and Payments to document Cost to

Build – will be added to K-4.


Construction Loan LTV

• Loan will be evaluated with Estimated As Completed values based on

Construction Purpose (Purchase / Lot Acquisition vs Lot Refinance)

• Purchase = Lower of

• As Completed Purchase Price (Original Cost + Cost of

Improvements)

• As Completed Appraised Value (Present Lot Value + Cost of

Improvements until 356 (Appraised Value) received)

• Refinance =

• As Completed Appraised Value


HELOC

URLA Q&A


URLA Package

Borrower

Information

Additional

Borrower

Information

ContinuationUnmarried

AddendumLender

Required

If Relevant

Lender’s Choice


URLA Package w/Custom Output

Borrower

Information

Additional

Borrower

Information

ContinuationUnmarried

AddendumLender

HELOC

Lender

(Custom)

Required

If Relevant

Lender’s Choice

Questions?



URLA Resources


https://resourcecenter.elliemae.com/resourcecenter/URLAResources.aspx

URLA Resource Center



Popular URLA Topics

Knowledge Base Article TitleKnowledge Base

Article Number

Resource

Center Link

Why am I getting an error when running DU/LPA? 37294 Click here

Top Questions around Desktop Underwriter 37870 Click here

2020 URLA - LPA is not picking up the VA Household Size 37966 Click here

How to Toggle or Access the new URLA 2020 Input Forms in Encompass 37349 Click here

URLA 2020 "FORM FAILURE" Errors -- **How To Resolve Them** 35832 Click here

Entering a Construction or Construction - Perm Loan: Land Owned Free and Clear, being

Acquired or being Refinanced34427 Click here

HELOC Best Practices using the new URLA 39175 Click here

URLA Known Issues List n/a Click here








https://help.elliemae.com/documentation/encompass/documents/guides-and-manuals/URLA2020/URLA-Known-Issues.xlsx


• More URLA questions? Check out the

Living with the new URLA Virtual

Experience community

36

Next steps

• Visit the Virtual Experience HUB

over the course of the conference to

engage with product experts

• Please Complete the Session Survey 1

2

3

• Visit the URLA Resource Center to

access helpful resources for

Users and Admins

https://experience.icemortgagetechnology.com/community/living-with-the-new-urla


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