Corrected Closing Disclosure - Encompass Experience
Transcription
Corrected Closing Disclosure - Encompass Experience
Click to edit Master title style Closing, Shipping & Funding with Ease THE MORTGAGE PROCESS Pam Faulkner – Manager, Advisory Consultants – Ellie Mae Patrick Kenny – VP Business Operations & Services Manager – EverBank Karen Whitcomb – Technical Support Manager – Ellie Mae Juliet Overton – Sr. Compliance Analyst – Ellie Mae Rebecca Frisbie – Product Manager – Ellie Mae ©2015 Ellie Mae. All rights reserved. Safe Harbor 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 to enhance the features and functionality of the Encompass software, the timing of the introduction and acceptance of additional services and the timing 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 to the final prospectus relating to its initial public offering [and the company’s most recent 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. ©2015 Ellie Mae. All rights reserved. Agenda • Overview – Pam Faulkner – Ellie Mae • Client Perspective – Patrick Kenny - EverBank • Tips for Efficient Closing, Shipping & Funding– Karen Whitcomb – Ellie Mae • Closing How-To – Pam Faulkner – Ellie Mae • More on RESPA-TILA Requirements– Juliet Overton • Compliant Closing Docs– Rebecca Frisbie – Ellie Mae ©2015 Ellie Mae. All rights reserved. EverBank Pat Kenny VP – Business Operations Support & Services Director ©2015 Ellie Mae. All rights reserved. About My Company – use for guest presenters • EverBank • Banking & Financial Services • Headquarter in Jacksonville, FL • Ellie Mae client since 2011 ©2015 Ellie Mae. All rights reserved. Best Practices • EverBank’s Experience & Best Practices with Encompass > Implemented ULDD changes in phased approach > Identified & analyzed data deficiencies in loan delivery > > EverBank CMO process allowed us to implement 50+ Encompass data enhancements in 2014 Utilization of UAT testing and Automation testing of Encompass to ensure accurate delivery of changes ©2015 Ellie Mae. All rights reserved. Recent Enhancements • Home Ownership Counseling Provider > Enhanced the quality of the data provided > Significantly reduced the application time by several minutes ©2015 Ellie Mae. All rights reserved. Recent Enhancements • Transmittal Summary > Enhanced the required fields for completion of Approval milestone to align with ULDD > Implemented a hardstop to ensure required data is complete > Limited field characters to a max of 60 in order to meet Fannie Mae guidelines for Condos ©2015 Ellie Mae. All rights reserved. Recent Enhancements • Appraisal Delivery Alert > Enhanced process to determine the Appraisal Delivery Date on loans prior to closing in Encompass > Implemented an alert in Encompass for the “Appraisal Sent to Customer” field > Ensured the most efficient and accurate record of the “Appraisal Sent to Customer” data for loan delivery and compliance ©2015 Ellie Mae. All rights reserved. Recent Enhancements • Plan Code and Loan Program Persona Access > Convert specific fields i.e. (Last Rate Set Date, Lock Plan Code, Lender’s Loan Product Code) to “Read Only” and restrict the access of the Loan program field through the lock request screen on all loans that are floating an interest rate > Implementation of this process has increased efficiency and reduced financial risk ©2015 Ellie Mae. All rights reserved. Recent Enhancements • GMI Mapping to 1003 Application > Enhancement to allow each individual choice of “information not provided” for race, sex, and ethnicity to map to the 1003 ©2015 Ellie Mae. All rights reserved. Recent Enhancements • Encompass Test Automation > Efficient end to end testing of loan origination process > Reduced our testing time by 55% vs manual tester > We were able to receive instant feedback on data errors found through functional testing > Provided us with more time for defect analysis and data quality review ©2015 Ellie Mae. All rights reserved. Tips for Efficient Closing, Shipping & Funding Karen Whitcomb Technical Support Manager Docs & Compliance ©2015 Ellie Mae. All rights reserved. Closing Efficiencies • Use a “Closing” Input Form Template > > > > > > > > > > > > > > > > Borrower Info Vesting Closing Vendor Info Closing RegZ Property Information 2010 HUD-1 Page 1 2010 HUD-1 Page 2 2010 HUD-1 Page 3 Aggregate Escrow Account Closing Conditions State Specific Disclosure Info 1003 Page 1 1003 Page 2 1003 Page 3 FHA Management* VA Management* USDA Management* ©2015 Ellie Mae. All rights reserved. *As applicable Funding Worksheet • Math done easy > Net Funding – Use your Template ©2015 Ellie Mae. All rights reserved. Funding Worksheet ©2015 Ellie Mae. All rights reserved. Funding Worksheet ©2015 Ellie Mae. All rights reserved. Funding Worksheet • Credits Due Borrower > HUD-1 Page 1 Button ©2015 Ellie Mae. All rights reserved. Funding Worksheet ©2015 Ellie Mae. All rights reserved. Funding Worksheet ©2015 Ellie Mae. All rights reserved. Shipping Details • Information at your fingertips ©2015 Ellie Mae. All rights reserved. Closing How-To Pamela Faulkner Manager, Advisory Consultants Ellie Mae ©2015 Ellie Mae. All rights reserved. Input Form Sets • To create a list of input forms that will apply with your loan type or simply with your loan template, you will simply follow the example below: ©2015 Ellie Mae. All rights reserved. Shipping Details • Next proceed to the section for Loan Templates and select Input Form Sets • You may create new sets by clicking the New icon, creating a name for your new set and then move your Input forms from the Left to the Right to place them in the order you wish to use. ©2015 Ellie Mae. All rights reserved. Funding Templates • To create your own funding template, you would access settings and click on Secondary Setup ©2015 Ellie Mae. All rights reserved. Funding Templates • Click on Funding Templates. • Click on the new icon and provide a name for your template. • Next proceed to the check boxes and check those that you will deduct from your funds at the time of disbursement. • **Hint….remember the seller can pay fees too so you want to check both if it’s possible there may be a seller paid fee on the HUD-1 Page 2 Screen.** ©2015 Ellie Mae. All rights reserved. More on RESPA-TILA Requirements Juliet Overton Sr. Compliance Analyst Ellie Mae ©2015 Ellie Mae. All rights reserved. Closing in the New World of RESPA/TILA • Significant changes from RESPA-TILA will impact your Closing Process. Including: 1. Advance Review of the Closing Disclosure 2. Last Minute material changes that can delay the closing; e.g. increase in closing cost or Loan amount. 3. Lender representatives attending more Closings. ©2015 Ellie Mae. All rights reserved. Closing in the New World of RESPA/TILA • Creditors are now responsible for generating and delivering the Closing Disclosure to the buyer/consumer. In purchase transactions Settlement agents still retain the responsibility to provide the closing disclosure to the Seller. ©2015 Ellie Mae. All rights reserved. Closing in the New World of RESPA/TILA • Closing Disclosure must be received by each consumer no later than 3 specific Business Days before consummation. Business Days related to the closing disclosure are federal specific calendar days except Sunday and actual federal Holidays. ©2015 Ellie Mae. All rights reserved. Closing in the New World of RESPA/TILA • If a Creditor or Settlement Agent does not provide the Closing Disclosure in person, the consumer is considered to have received it 3 Business days after delivered or placed in mail. ©2015 Ellie Mae. All rights reserved. 3 Closing in the New World of RESPA/TILA • If the APR or the Loan Product becomes inaccurate or a Prepayment Penalty gets added after a Closing Disclosure is provided to a consumer: > A corrected Closing Disclosure must be received by a consumer at least 3 business days prior to consummation. > If a corrected Closing Disclosure is provided to a consumer other than “In Person” it is presumed to be received 3 business days after it is provided. > The earliest closing date would be six days after the corrected Closing Disclosure is provided to a consumer ©2015 Ellie Mae. All rights reserved. Closing in the New World of RESPA/TILA • In rescindable transactions, the Closing Disclosure MUST be delivered separately to each consumer who has the right to rescind. ©2015 Ellie Mae. All rights reserved. Closing Disclosure Timing Requirements – Non Material Change Circumstances • Issue: Waiting Period for Consummation after Corrected Closing Disclosure based • Reg:1026.19(f)(2)(i) • TIME PERIOD / TYPE OF DAYS: No Waiting Period. Closing can occur any time after Corrected Closing Disclosure are received by the consumer. • Method for Counting Days: Waiting period may be required if Corrected Closing Disclosure is not provided in person. • Background: If Closing Disclosure becomes inaccurate before consummation, creditor shall provide Corrected Closing Disclosure reflecting any changed terms to consumer so consumer receives Corrected Closing Disclosure at or before consummation. Creditor shall permit consumer to inspect Corrected Closing Disclosure, completed to set forth those items that are known to creditor at time of inspection, during business day immediately preceding consummation, but creditor may omit from inspection items related only to seller’s transaction. on Non-Material Change Circumstances ©2015 Ellie Mae. All rights reserved. Closing Disclosure Timing Requirements – Changes After Consummation • Issue: Delivery of Corrected Closing Disclosure based upon Changes After Consummation • Reg:1026.19(f)(2)(iii) • TIME PERIOD / TYPE OF DAYS: Within 30 calendar days after consummation, deliver Corrected Closing Disclosure no later than 30 calendar days after receiving information. • Method for Counting Days: Count the day the information regarding inaccuracy received as Day 1. Deliver or mail Corrected Closing Disclosure before the end of the thirty calendar days after. • Background: If during 30-day period following consummation, an event in connection with settlement occurs that causes Closing Disclosure to become inaccurate, and inaccuracy results in change to an amount actually paid by consumer, Creditor shall deliver or place in mail Corrected Closing Disclosure not later than 30 calendar days after receiving information sufficient to establish event. ©2015 Ellie Mae. All rights reserved. Closing Disclosure Timing Requirements – Clerical Errors • Issue: Delivery of Corrected Closing Disclosure After Consummation due to Clerical Errors • Reg:1026.19(f)(2)(iv) • TIME PERIOD / TYPE OF DAYS: Within 60 calendar days after consummation. Deliver Corrected Closing Disclosure • Method for Counting Days: Count the day the information regarding the changed circumstance is received as Day 1. Deliver or mail revised Loan Estimate before the end of the sixtieth day after consummation. • Background: If Closing Disclosure contains non-numeric clerical errors, Creditor must deliver or place Corrected Disclosure in mail no later than 60 calendar days after consummation. An error is considered clerical if it does not affect a numerical disclosure, LE or CD requirements. If Closing Disclosure identifies incorrect settlement service provider as payment recipient, Creditor to deliver or place in the mail corrected disclosures reflecting corrected non-numeric disclosure no later than 60 days after consummation. If disclosure lists wrong property address, error is not clerical. ©2015 Ellie Mae. All rights reserved. Closing Disclosure Timing Requirements – Variance • Issue: Refund and Deliver Corrected Closing Disclosure if Variance found After Consummation • Reg:1026.19(f)(2)(v); 1026.19(f)(1); 1026.19(e)(3)(i); 1029.19(e)(3)(ii) and 1026.19(e)(1)(i) • TIME PERIOD / TYPE OF DAYS: Within 60 calendar days after consummation. Refund to customer and Deliver Corrected Closing Disclosure • Method for Counting Days: Deliver or mail the refund and Corrected Closing Disclosure before the end of the sixtieth day after consummation. • Background: If amounts paid by consumer exceed variance, Creditor must refund excess to consumer no later than 60 days after consummation. Creditor must deliver or place in mail Corrected Closing Disclosure reflecting refund no later than 60 days after consummation ©2015 Ellie Mae. All rights reserved. Compliant Closing Docs Rebecca Frisbie Product Manager Ellie Mae ©2015 Ellie Mae. All rights reserved. RESPA/TILA – Pre-Closing • Coming in 15.1 > EDS customers will be able to “eDisclose” the Closing Disclosure to fulfill 3 day prior to consummation requirement via new Pre-Closing order type. • Pre-Closing > > > > Closing Disclosure will be the only form Can add additional forms via Encompass or within EDS form selection EDS Settings Closing EDS/ECS Audits ©2015 Ellie Mae. All rights reserved. RESPA/TILA – Pre-Closing • Pre-Closing > > Add existing standard forms to the Pre-Closing package Track in Disclosure Tracking Tool ©2015 Ellie Mae. All rights reserved. RESPA/TILA – Pre-Closing, con’t. • Via the Order Docs icon > > Select Order type Select applicable borrower pair ©2015 Ellie Mae. All rights reserved. RESPA/TILA – Forms • Doc Engine generating the new forms > > > Print Menu eDisclosure (LE only) Closing Docs (CD only) • 2015 Migrating all Standard Forms > > > Faster Document Updates Encompass hot update not required Increase speed of package delivery ©2015 Ellie Mae. All rights reserved. RESPA/TILA – New LE/CD Ripple Effect • Other Form Impact > > > Generic (ex. Right to Cancel) Disclosure (state & federal) Include references to: o o o o o > GFE TIL Good Faith Estimate Itemization Settlement Statement …within the body of the forms • Disclosures made obsolete with the new rule We’re on it! ©2015 Ellie Mae. All rights reserved. Highlight Changes on Redraw • Investor Selection will highlight all forms required to prepare for sale to that Investor > Feature Introduced in 14.2 Client was looking for a way to quickly find all Investor required forms for loan that they were selling after closing. ©2015 Ellie Mae. All rights reserved. ©2015 Ellie Mae. All rights reserved.