For non-USDA loans, when an amount is entered on line 819 (field ID NEWHUD.X1301) on the 2015 Itemization input form, the amount is no longer included in the Total points and fees applicable under section 32 (field ID S32DISC.X48) when the option selected in the Paid to drop-down list (field ID NEWHUD.X1306) is S (seller) or O (other). Previously, when line 819 was used for a non-USDA loan, the amount was included in the Total points and fees applicable under section 32 no matter what was selected in the Paid To field NEWHUD.X1306. This adjustment brings the Encompass calculation into alignment with the calculations used by the Encompass Compliance Service (ECS), which excludes the amount.

Workaround Description

The following workaround was provided for this production issue and is no longer required for Encompass 23.3 and later:

• Utilize a different Line in the 800 Section

• Or lock down (field ID NEWHUD2.X1611) and manually adjust the Points and Fees.

Prior to Encompass 23.3, Encompass automatically included the MI cushion from the Aggregate Escrow Account input form in the Section 32 Points and Fees Total (field ID S32DISC.X48). However, per the CFBP, periodic MI premiums, including any initial payment due at closing, should not be included in the Section 32 Points and Fees Total calculation. Starting in Encompass 23.3, the MI cushion from the Aggregate Setup Account is not included in field ID S32DISC.X48.

An update has been made to the logic used for VA IRRRL loans when populating Yes or No in the Is Loan Eligible for Safe Harbor? drop-down list (field ID QM.X25) on the ATR/QM Eligibility tab on the ATR/QM Management input form.

Previously, the calculation used the Recoup Closing Costs months (field ID VASSUM.X27) from the Closing Cost Recoupment section of the Cash-Out Refinance tab on the VA Management input form. The Closing Cost Recoupment section can include items excluded from the Statutory Recoupment section for IRRRL loans, such as the VA funding fee, taxes, and amounts held in escrow, potentially causing an incorrect safe harbor recommendation on the ATR/QM Management input form. Beginning with the Encompass 23.3 release, the VA IRRRL safe harbor calculation uses the calculated Recoupment Months (field ID VASUMM.X130) from the Statutory Closing Cost Recoupment section which excludes these items.

In previous versions of Encompass, when a loan using the 2015 RESPA-TILA forms included a buydown (field ID 4645) and origination points, the calculation in the ATR/QM Management input form > Qualification tab > Discount Points field (field ID QM.X111) was cleared. This caused the Total section 32 Points and fees in this loan (field ID S32DISC.X48) on the Section 32 HOEPA form to not calculate accurately. This issue has been resolved. The Discount Points are no longer cleared and the Total section 32 Points and fees in this loan field now calculates accurately.

This fix applies only to loans created in Encompass 23.3 and later. For existing loans, this issue with field QM.X111 being cleared and causing incorrect calculations for field S32DISC.X48 will persist. To trigger the correct calculation in existing loans, select the Buydown checkbox (field ID 425), and then clear the Buydown checkbox. This will trigger the recalculation and Encompass will not clear Bona Fide Discount points % (field ID 1061) and dollar amount (field ID 436) fields if there are no buydown points.

Workaround Information:

The following workaround was provided for this production issue and is no longer required for Encompass 23.3 and later:

• Clear the Seller Paid Buydown already included in 2015 Itemization Section 32 Points & Fees checkbox (field ID S32Disc.X181), select the checkbox again, and then save the loan to trigger a recalculation of field S32DISC.X48.

Prior to Encompass 23.3, when a user changed the Note Rate (field ID 3) on the URLA Lender input form, and then ran a compliance review on the loan prior to saving the changes, the QM Annual Percentage Rate (field ID QM.X381) on the ATR/QM Management input form was not being automatically updated in Encompass like it should have. This resulted in the APR (field ID 799) and the QM APR (QM.X381) values being different. This issue has been resolved and the QM APR field is now automatically updated when the Note Rate changes as expected.

Workaround Information:

The following workaround was provided for this production issue and is no longer required for the Encompass 23.3 release and later:

• Save the latest changes to the loan prior to running the compliance review.

An issue was resolved that affected the Request for Transcript of Tax input form when the Use IRS 4506-C checkbox (field ID IRS4506.X67) was selected and Sep 2020 was selected in the drop-down list (field ID IRS4506.X92).

When these options were selected, users were able to click the Address Book icon in Section 5 (third-party recipients) to open the Business Contacts tool, but the contact information was not populating back to the Request for Transcript of Tax. This issue has been resolved and the contact information is now populating as expected.

Workaround Description:

The following workaround was provided for this production issue and is no longer required for Encompass 23.3 and later:

• Manually update the fields or add the information to a Data Template.

The field that tracks the number of borrower pairs for a loan (field ID 4460) now recalculates immediately when a borrower pair is added to a loan. Previously, the field was not recalculating when a borrower pair was added to a loan unless the loan was saved or unless data entered in another field triggered a recalculation of loan values. However, when a borrower pair was deleted from a loan, the field was updated immediately without having to take any additional action. This issue has been resolved and the value in field 4460 now updates as soon as a borrower pair is added to a loan.

Workaround Description:

The following workaround was provided for this production issue and is no longer required for Encompass 23.3 and later:

• Save the loan after adding a new borrower pair.

An Ineligible option has been added to the Underwriting Decision drop-down list (field ID USDA.X152) on the Tracking tab on the USDA Management input form.

Previously, the drop-down list included only options for Accept, Refer, and Refer with Caution. This prevented users from selecting the Ineligible option as an Underwriting Decision when appropriate prior to uploading the information to the USDA’s Guaranteed Underwriting System (GUS).

(Updated on 9/6/2023)

On the Statement of Denial input form, the Unacceptable Payment Record on Previous Mortgage checkbox (field ID DENIAL.X37) was indented below the Excessive Obligations checkbox (field ID DENIAL.X35), giving the incorrect impression that Unacceptable Payment Record… was a sub-option of the Excessive Obligations checkbox. Similarly, the Length of Residence checkbox (field ID DENIAL.X48) was indented incorrectly in the Residency section of the input form.

Please note, on the Statement of Denial printed output form, the Unacceptable Payment Record on Previous Mortgage checkbox and Length of Residence checkbox display correctly (i.e., as its own option and not indented under the checkbox above it).

Input form prior to Encompass 23.3:

This issue has been resolved. The location of the Unacceptable Payment Record on Previous Mortgage and Length of Residence checkboxes are now correct and consistent on the Statement of Denial input and printed output forms.

Input form and output form in Encompass 23.3:

An issue occurred with the Balloon Payment field (field HMDA.X114) on the HMDA Information input. When loan team members set the Loan Type (field ID 1172) to Conventional and the Loan Purpose (field 19) to Construction, the Ballon Payment fields (field ID 1659 and field ID HMDA.X114 on the HMDA Information input form) would both automatically populate to Yes as expected. (For input forms where field 1659 is a checkbox, the checkbox would be automatically selected.) But after applying a HELOC loan template to the loan which changed the Loan Type to HELOC and the Loan Purpose to Cash-Out Refi or No Cash-Out Refi, the Balloon Payment field (HMDA.X114) on the HMDA Information input form would remain as Yes instead of automatically populating to No like it should have. (The other Balloon Payment field (1659) auto-populated to No correctly.) This issue has been resolved and HMDA.X114 is now auto-populated correctly based on the values in the assigned template.

Note that this issue with field HMDA.X114 did not occur when loan team members manually updated the Loan Type and Loan Purpose fields. It only occurred when these fields were updated by applying a loan template.

As part of this fix, the balloon payment logic in Encompass has been updated to apply to all loan types (including HELOC, Construction, Construction-to-Perm, etc.) instead of only specific loan types. If the Due in value (field 325) is less than the Loan Term (field ID 4), the loan is considered a balloon loan and the Balloon / Balloon Term checkbox (field ID 1659) will be selected automatically. When field 1659 is selected, the Balloon Payment field (field ID HMDA.X114) field is set to Yes automatically.

Workaround Information:

The following workaround was provided for this production issue and is no longer required for the Encompass 23.3 release and later:

• Go to Field 1172, manually select Conventional, and then re-select HELOC. Or lock field HDMA.X114, and then manually update to No.

When a Post Consummation fee is added to a Closing Cost template, and then the Closing Cost template is applied to a Construction or Construction-Perm loan, the fee is now included in the Finance Charge calculations (field ID 1206). Previously, the Finance Charge did not include the Post Consummation fee for Construction and Construction-Perm loans unless the fee was added manually.

For Construction loans where the lot is owned free and clear with no seller, the Estimated Closing Costs Financed field (field ID LE2.X1) was not calculated correctly unless the Use Actual Down Payment & Closing Costs Financed checkbox (field ID LE2.X30) was selected. Starting in Encompass 23.3, if the Use Alternate checkbox (LE2.X28) is selected and the Refinance value (field ID1092) is null or empty, then the Estimated Total Payoffs and Payments field (LE2.X31) is now used instead of field 1092 for the calculation of the Estimated Closing Costs Financed field (field ID LE2.X1)

Data Migration:

Field LE2.X1 values in existing loans will not be recalculated automatically. The field will recalculate with the new calculation if the user makes a change to the loan that triggers the Calc All function where Encompass refreshes loan data (assuming the field lock is not locked and is using Encompass system calculations).

Workaround Information:

The following workaround was provided for this production issue and is no longer required for the Encompass 23.3 release and later:

• Select Checkbox (LE2.X30): Use Actual Down Payment & Closing Costs Financed.

The following updates have been made to the verbiage in the eConsent Agreement borrowers and non-borrowers are required to acknowledge before receiving electronic copies of loan documents.

• A sentence in the eConsent Agreement was updated to clarify that fees may be charged if paper copies of documents are required.

“You will also be required to pay a reasonable fee to complete your transaction...”

has been changed to

“You may also be required to pay a reasonable fee to complete your transaction...”

• In the How to Withdraw Consent portion of the eConsent Agreement, the name of the Don’t Agree button was incorrectly indicated as “Don?t Agree”. This has been corrected so that the eConsent Agreement now indicates “Don’t Agree”.

DOCP-55218, DOCP-55070

An issue was introduced Encompass 23.2 where Encompass was including the lender’s or the assigned loan officer’s phone number (field ID 1823) on the Request eConsent screen along with the borrower's home and work phone number. This number was incorrectly indicated as a home phone number for the borrower. Since this field on the eConsent screen is intended only for the borrower’s contact information, the company’s or loan officer’s information should not have been included as an option there. This issue has been resolved and only the borrower’s home, work, and cell phone numbers are provided here (based on the phone numbers entered in Encompass fields 66, FE0117, 1490).

When the first attachment uploaded to a new loan file was a text (.TXT) file, the following message was automatically added to the text file:

"Evaluation Only. Created with Aspose.Words. Copyright 2003-2011 Aspose Pty Ltd".

The cause of this issue was identified, and the required updates have been made to resolve this issue. This message is no longer added to the uploaded text file, even if it is the first file attached to the loan.

Workaround Information:

The following workaround was provided for this production issue and is no longer required for Encompass 23.3 and later:

• Upload a PDF file to the loan before uploading a TXT file.

An issue was resolved that prevented some users from opening the pop-up windows that are accessed by clicking the following Edit icons for Closing Cost Templates and Data Templates used to populate data to the 2015 Itemization:

• Line 902 - Mtg Ins. Premium

• Line 903 - Homeowner's Ins

• Line 1003 - Mortgage Ins.

• Line 1004 - Property Taxes

• Line 1010 - USDA Annual Fee

• This issue also affected the Edit icon for I. Financed Mortgage Insurance in the TOTAL MORTGAGE LOANS section in Data Templates.

Users assigned the Administrator and Super Administrator persona were able to access the pop-up windows, but users with other personas were not able to access the pop-up windows, even though they had the required permission to access the templates. This issue has been resolved and non-administrator personas can now access the Closing Cost Template or Data Template pop-windows listed above.

An issue was resolved that affected loans that had been disclosed with the Intent to Proceed checkbox (field ID 3164) selected. When a Data Template with a Loan Type (field ID 1172) selected was applied to these loans, the following intent to proceed fields were incorrectly cleared on the Loan Estimate Page 1:

• Intent to Proceed checkbox (field ID 3164)

• Loan Estimate sent on (field ID 3972)

• Received Date (field ID 3197)

This issue has been resolved and the fields listed above are no longer cleared when applying a Data Template with a Loan Type (field ID 1172) selected.