AFN Branch Processing Manual© 2021. All Rights Reserved. American
Financial Network, Inc. | Rev. 01/03/2021
BRANCH LOAN PROCESSING
Welcome Message
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1
Helpful Links
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2
AFN Intranet
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2
Quick Links
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2
Human Resources
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2
Loan Programs
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5
Logging In to Encompass
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6
Procedure: Encompass Log In
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6
Pipeline
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7
Additional Pipeline Views
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10
Loan Folders
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13
Default File Contacts
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16
Channels of Business
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MILESTONES
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Loan Progress
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Milestone Templates
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Default Milestones
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Milestones Retail
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Retail Workflow
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Introduction
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22
Milestones DPA 2nd
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26
Procedure: DPA Milestone
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26
ENCOMPASS LOAN PROCESSING
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File Log
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28
Default Option for New Log Entries
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Procedure: Viewing Notes in the Conversation Log
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Alerts and Messages
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Access to Alerts and Messages
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OPERATIONS – CORPORATE
Worksheets
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Tasks
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Compliance Checks
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Fields Required to Run Mavent
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Initial Disclosures
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Branch: 1003
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Disclosures Sent via Encompass eFolder
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Procedure: Document Retrieval
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Disclosure Tracking Tool
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36
Disclosure Tracking: Multiple Entries
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Intent to Proceed
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37
Receiving Signed Disclosures
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App Received Milestone
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eFOLDER
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Guide to Sorting Documents
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eFolder: Initial Disclosures
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Placeholder: LE-Related Disclosures
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eFolder: Re-Disclosures
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Non-Payroll Deposits
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49
eFolder: Income
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49
Placeholder: Income
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49
Multiple Borrowers
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Review
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50
1003
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50
OPERATIONS – CORPORATE
AUS
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57
Appraisals
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57
Policy
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AVMs
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Verification Types
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Payoffs
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Policy
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File Contacts
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Fraud Guard
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Appraiser Information
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Buyer’s Agent
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Seller’s Agent
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Reg B Compliance
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Extending the Timeline
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64
Submittal
Milestone................................................................................
65
Processor Comparison
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Compliance Audits
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Procedure: Escrow/ Aggregate
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71
Re-Disclosing/Change of Circumstance
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Additional Items
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78
Wait Periods
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79
Policy
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Closing Disclosure
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Special Considerations
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TRID
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Handling a Denial
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89
Introduction
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Clearing for Docs
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PTD Review Milestone
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Ordering Closing Documents
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Funding
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WELCOME MESSAGE
Loan Processing for AFN
Welcome to American Financial Network (AFN)! AFN is a Direct Lender
with delegated authority to underwrite and close Conventional, FHA,
USDA, VA, and Alt-QM products in-house. The purpose of this manual
is to provide basic operating information that will support your
success as an AFN Loan Processor. If you have any questions about
the information contained herein or to schedule new processing
training, please contact the AFN processing management team (Branch
Account Managers) at
[email protected]. For general Encompass
questions, you may also reach out to the Branch Relations
Department as an additional resource (
[email protected]).
Loan Processors are responsible for maintaining a current file in
Encompass and keeping the status up-to-date within the system using
the tools made available. This manual will help Processors navigate
through Encompass, provide guidance on common screens used within
Encompass, and milestone management throughout the life of the
loan. Information on how to process loans (i.e., calculating
income, reviewing title reports and appraisals, etc.) is not
covered here. It is assumed that Processors responsible for an
active Pipeline already possess the skills required to process
loans. Rather, this manual is a guide to workflow expectations and
navigation through Encompass, and serves to educate Processors on
AFN’s policies and procedures for specific loan types, programs,
and third party services.
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HELPFUL LINKS
AFN Intranet AFN Policies and Procedures may be centrally accessed
from AFN's intranet site (on Command Center), where staff members
may view and download program guidelines, details for specific loan
products, Encompass procedures, compliance information, and
additional tools. See frequently accessed links below.
Quick Links • AFN Props • AFN Web Mail (AFN email for your web
browser)
• Bright Idea Suggestion Box • Underwriting Scenario Desk
Human Resources
• AFN Employee Handbook
Operations • AFN Operations o AFN Bulletins o Disaster Alerts o
Encompass Newsflashes o Forms
Brokered Out Check Cover Sheet Canceled/Denied Loans – QC Checklist
Check Request Compliance Review Checklist-TRID HOA Questionnaire
HOA Questionnaire – Limited Review Power of Attorney Checklist –
Funding/QC Power of Attorney Checklist - Underwriting Property
Inspection Waiver
o Handbooks/Manuals o Matrices
o Technology Email Setup – iPhone Email Setup – Samsung
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HELPFUL LINKS (CONTINUED)
Policies • Ops Policies Menu o Adding/Removing Applicants o
Appraisal Transfers - Conventional o CU Risk Assessment o Disaster
Alert Policy o Disputing Appraised Values o Employee Loans o FHA
Appraiser Independence o HPML Loans o Mortgage Disclosure
Improvement Act (MDIA) o Property Taxes o Real Estate Settlement
Procedures Act (RESPA) o TRID Policy Manual - AFN AllRegs o Wage
Earner Tax Transcripts
Procedures • Ops Procedures Menu o Adding Non-borrowing Spouse to
Title o Bond/DPA Programs o Canceling Loans in Encompass o
Conventional Condo Project Review o Denying Loans o FHA – Handling
FHA Loans o FHA – Using FHA Connection o FNMA Homestyle Loans o
HPMLs o Hybrid eClosing Process o LPMI Loans o Manufactured Home
Loans o NY Co-Op Project Transactions o NY General Transactions o
Ordering an AUS o Ordering Appraisals o Ordering CTI Services o
Ordering FraudGuard o Ordering IR Services o Preparing a
Post-consummation CD o Reg B – Handling Incomplete Files o Retail
Initial Audits o Submitting for Investor Approval o TBD Credit
Reviews o Tracking Brokered Out Loans o VA Certificate of
Eligibility o VA – Handling VA Loans
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HELPFUL LINKS (CONTINUED)
Compliance and Quality Control (QC)
• Compliance & QC o Compliance Matters Bulletins o AFN Ability
to Repay and Qualified Mortgage (ATR/QM) Policy o AFN Anti-Money
Laundering Policy Manual o AFN Anti-Predatory Lending Policy o AFN
Appraisal/Appraiser Independence Requirements (AIR) Policy o AFN
Change Management Policy o AFN Clean Desk Policy o AFN COVID-19
Pandemic Policies and Procedures o AFN Disaster Recovery Plan o AFN
Elder Abuse Prevention Policy o AFN Electronic Signatures (eSign)
Policy o AFN Equal Credit Opportunity Act (ECOA) Reg B Policy o AFN
Fair Credit Reporting Act (FCRA) Policy o AFN Fair Lending Policy o
AFN Fraud Awareness and Prevention Policy o AFN Home Mortgage
Disclosure Act (HMDA) Policy o AFN Loan Originator Compensation
Policy o AFN Office of Foreign Assets Control (OFAC) Policy o AFN
Pre-Qualification and Pre-Approval Policy o AFN Privacy Policy o
AFN QC Manual – Objectives, Policies & Procedures o AFN Real
Estate Settlement Procedures Act (RESPA) Policy o AFN Rules of
Behavior and Ethics Policy o AFN Safeguards Policy o AFN Secure and
Fair Enforcement of Mortgage Licensing (SAFE Act) o AFN Third Party
Vendor Risk Management Policy o AFN TILA-RESPA Integrated Rule
(TRID) Policy o AFN Truth in Lending Act (TILA) Policy o AFN
Unfair, Deceptive or Abusive Acts or Practices (UDAAP) Policy o AFN
AllRegs – TILA RESPA Integrate Disclosures (TRID) Policy
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HELPFUL LINKS (CONTINUED)
• Loan Programs Main Menu o AFN Investor Overlay Matrices:
~COVID-19 Interim Product Overlays Conventional FHA Standard FHA
Streamline Refinance VA IRRRL VA Standard
o AFN Approved Down Payment Assistance Programs o Agency
Underwriting Manuals
Fannie Mae Freddie Mac HUD VA Lenders Handbook
Educaton and Training
o Charts and Diagrams Encompass Milestone File Flow Mortgage
Insurance Workflow Tutorial Non-Borrowing Spouse Diagram – Purchase
Non-Borrowing Spouse Diagram – Refinance
o Quick Reference Guides AccountChek Guide Adding Borrowers to a
Loan Changing Loan Officers eSigning the 1003 HPML Workflow and FAQ
How to Lock a Loan How to Restart a Loan Lock Transfers Ordering
The Work Number VOE
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LOGGING IN TO ENCOMPASS
Procedure: Encompass Log In
An individual user name and password is required to access
Encompass. User names and login IDs should never be shared. If you
have not yet received login credentials, contact AFN's Help Desk
for assistance.
Logging in to Encompass: 1. Locate the Encompass icon on your
desktop:
or
2. Enter User ID and Password:
3. Once logged in, Encompass will open on the Home Page. A variety
of information is displayed, including AFN’s turn times and a link
to AFN's Underwriting Management teams with contact information for
Underwriting.
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4. Click the Pipeline tab to access loans:
PIPELINE
Default Pipeline Views
From the Pipeline tab, Processors will have different options to
set up a Pipeline view to see loans (typically, Processors will
want to see loans assigned specifically to their name or to their
branch).
Encompass has three default Pipeline views: 1. LP – Processing
Queue 2. LP – Lock/State Disc Due 3. LP – Order Tracking 4. LP –
NOIA Due 5. LP – Reg B Deadline 6. LP – Reg B Out of Compliance 7.
LP – Funded 8. LP – Cancelled/Denied
Loan Processor, Processing Queue
The main default view is LP – Processing Queue. This view displays
active loans not yet funded. Processors can manage their active
pipeline, sort loan files by status, and quickly identify file
progress without having to open individual loans.
OPERATIONS – CORPORATE LOAN PROCESSING MANUAL
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Encompass Pipeline: LOAN PROCESSOR − PROCESSING QUEUE
Field Description Alerts Total number of alerts on a loan; click
the number to view
specific alerts outstanding without having to open the file
Messages Number of messages on a loan (such as eDisclosures);
identify when items sent directly through Encompass have been
received
Last Finished Milestone Current loan status and milestone
Earliest Closing Date Earliest closing date for the loan based on
TRID requirements
Est. Closing Date Estimated closing date in Encompass; helps
identify past due closing dates that need updating
Original Closing Date from Purchase Contract
If purchase: original closing date from purchase contract (as
entered in Encompass)
Compliance Conditions Approve Date
Date Compliance approved/cleared all conditions (blank if not yet
cleared)
PTD Outstanding Date Date loan submitted to underwriting for review
(blank if not in line for review)
PTD Rcvd Count Number of PTD Conditions marked as received
(indicating ready for Underwriting review)
Final Approval Final Approval indicator marked to indicate to
Underwriting the loan should be ready for final
review/signoff
Milestone Date – Processing
Date processing milestone completed: within 24 hrs of receipt
borrower documentation/initial stip package
Milestone Date – Submittal
Date submittal milestone completed (date submitted to UW for
initial review; milestone triggers initial compliance review)
Milestone Date – Conditional Approval
Milestone Date – PTD Reviews
Date underwriting signed off on all PTD conditions and cleared the
loan for closing
Milestone Date – Cleared for Docs
• Date loan is cleared for closing (both underwriting and
compliance must sign off on the loan to be moved to this
milestone)
• Wet states: QC must also clear prior to completion of this
milestone
Milestone Date – Doc Request
Date Doc Request Milestone completed (indicates to the doc
department that the loan is in line for closing review)
Loan Number Loan number identifier; use to locate a loan or
identify the loan number without opening individual files
(Continued)
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Field Description Borrower Name Borrower identifier and additional
search method for specific
loans
Note Rate Current interest rate
Lock & Request Status Lock status and remaining days of lock
(if locked)
Loan Purpose Identifies loan type (Purchase, Rate/Term Refi, Cash
Out Refi, etc.)
Loan Program Displays selected program code (program code
identifies loan type Conventional, FHA, VA, USDA, or other program
type and loan term)
Occupancy Identifies primary residence, second home, or investment
property
Total Loan Amount Total loan amount including MIP, if
applicable
Subject Property Address
Useful when completing more than one loan for the same borrower
(distinguishes property addresses)
Loan Team Member Name – Loan Processor
Identifies the Processor on the file; enter your name here to
restrict the view to your loans only
Loan Team Member Name – Underwriter
Identifies the Underwriter, if assigned; quick access to
contacts
Funder Identifies the Funder, if assigned; quick access to
contacts
Loan Team Member Name – Loan Officer
Identifies the Loan Officer; quick access to contacts
Services Ordered Summary of Services Ordered (as marked on the
Processing screen)
Services Received Summary of Services Received (as marked on the
Processing screen)
(Continued)
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Additional Pipeline Views
Once funded, loans move from the Processing Queue to the Funded
View; note, each view contains a different set of fields than the
Processing Queue detailed above • LP – Funded - Funded and
Post-closing loans • LP – Cancelled/Denied - Cancelled/Denied loans
• LP – Lock/State Disc Due - Locked/Re-disclosure needed
loans o Use this view daily to track loans requiring a re-disclosed
LE
for rate lock or required state-specific approval or rate lock
disclosure
o Re-disclosure is required within 3 days of the applicable event
to remain in compliance
NOTE: Some branches may utilize the corporate office to send
certain state-specific disclosures on their behalf. Review the LP -
Corp - Disclosures Due pipeline to see if the corporate office is
handling a loan on behalf of the branch. Processors are still
responsible for sending any re-disclosed LEs timely, even if the
corporate office is sending state-specific disclosures on behalf of
the branch.
• LP – Order Tracking – Tracks third-party orders (i.e. appraisal
title, transcripts, verifications of employment, etc.). Order
status and dates that appear on the pipeline view are based on
entries on the Processing screen, so ensure the screen is updated
regularly so the pipeline view is accurate).
• LP – NOIA Due – Loans approaching 30 days from app date and not
yet decisioned (approved/denied) in Underwriting. The corporate
office will prepare the NOIA and the Loan Processor will send it to
the borrower.
• LP – Reg B Deadline – Loans approaching 60 days from app date and
not yet decisioned (approved/denied) in Underwriting. o Use this
view daily to ensure loans are moved forward and
either decisioned or canceled before the 61st day. • LP – Reg B Out
of Compliance – Loans past 30 days from app
date and no NOIA issued, or 60 days from app date and no decision
or cancellation. o Look at this pipeline daily to ensure it has NO
LOANS. o If loans appear on this view, handle them
immediately.
OPERATIONS – CORPORATE LOAN PROCESSING MANUAL
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PIPELINE (CONTINUED)
Custom Views Information and how it is displayed in a Pipeline view
can be customized to the user's preference.
To add or remove columns: 1. Right click any column header and
select Customize Columns
2. From Customize Columns > Selected Columns
• To remove a column, clear the corresponding check box • To add a
column, select the corresponding check box • Click [OK]
To change column order:
• Click and drag a column to the desired location or
• From Selected Columns (steps 1 and 2, above, "To add or remove
columns"), highlight the column header and use the arrows to change
the order
• Click [OK] To save a customized view:
3. After making changes, click the [Save] icon located next to the
dropdown options. (Note: The [Save] button will go "live" when
changes are made to the standard default view)
4. Select [Save as].
5. Enter a name for the customized view ("My Pipeline" in the
example below).
6. To make this your default view, check the box labeled Set as my
default view.
(Continued)
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Custom Views (Continued)
7. Click [Save].
Note: Once a customized view has been created, it will appear
in the Pipeline View dropdown menu.
Custom Field Width
Due to space restrictions on most computer monitors, the user may
wish to reduce the width of certain fields in order to make the
view fit on one screen.
To change the field/column width: 1. Point the cursor to the line
between two fields. 2. An icon will appear allowing the user to
adjust the field to the
desired width. 3. Follow the steps in "Saving a Customized View"
(above) to
save to an existing view or create a new view. 4. If changes are
not saved for a customized option, the default
settings will be reinstated when the user changes a view or
restarts Encompass.
Searching and Sorting Fields
The fields displayed in any view are searchable and may be filtered
to restrict criteria (For example, if you only want to view
purchase loans, you can do so by restricting the Loan Purpose field
to "purchase."). Loans may also be sorted by milestone, allowing
for easier pipeline management. Please keep in mind that if a
current filter is set on an existing field when the view is saved
with changes, that filter will be saved with any other changes
made. Use care in changing view settings to make sure filters have
not been added that should not be included in the general Pipeline
view.
OPERATIONS – CORPORATE LOAN PROCESSING MANUAL
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Accessing Loan Folders
In addition to the different Pipeline views available, there are
also different folders within Encompass where loans are housed. To
access available folders, select the appropriate folder from the
dropdown menu in the Pipeline tab in Encompass located underneath
the dropdown for the Pipeline views.
Frequently Used Folders
FOLDER PURPOSE
Prospects 1. Origination; loan files begin in the Prospects folder.
2. From here, check loans for messages (disclosures received
from
borrowers, loans that need to be moved to the Pipeline folder). 3.
The file moves from the Prospects folder to the Pipeline
folder
when the loan attains the App Received milestone (signed initial
disclosures).
Pipeline 4. Active loans with completed disclosures. 5. Loans from
App Received to Reconciled may appear here,
depending on the Pipeline view and filters used. 6. Main folder for
use in Pipeline management.
Canceled- Denied
7. AFN Corporate Staff moves cancelled or denied loans here once
all HMDA requirements have been confirmed for compliance.
OPERATIONS – CORPORATE LOAN PROCESSING MANUAL
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LOAN NUMBERS
Overview AFN loan numbers are assigned when a new loan is saved in
Encompass. Loan numbers are typically 10 digits long with the first
four digits being the branch ID. (For example, a loan officer
associated with the corporate office will have a loan number
beginning with 1001, identifying the loan as originated by
corporate.) The following six digits of the loan number are unique
to that loan. Note: If a loan number is tied to the wrong branch,
update the branch ID and loan number (see Bulletin 14-020).
ENCOMPASS ICONS
Encompass Icons
ICON NAME AND DESCRIPTION
Edit – Open the selected item for editing
Duplicate – Create a duplicate of the selected item
Save – Save the currently open item
Delete – Delete the selected item
Reset – Discard changes, restore to previous settings
Refresh – Update data (such as a Pipeline view)
Find – Search for stored information
Excel – Exports selected data to an Excel spreadsheet
Print – Print selected information (or go to the Encompass Print
Engine to generate forms)
(Continued)
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ENCOMPASS ICONS (CONTINUED)
ICON NAME AND DESCRIPTION (CONTINUED)
Copy – Copy the selected item
Cut – Remove an item (will place item on the Windows clipboard so
it can be pasted to another location)
Paste – Paste an item from the clipboard to the selected
location
Email Conversation Log – Open a conversation log dialog box and MS
Outlook for the associated contact
Phone Conversation Log – Open a conversation log for the associated
contact
Address Book – Open the Business Contacts address book to copy a
contact to the file
Calculation Field Unlocked – Value recalculated if field unlocked
and related fields changed
Calculation Field Locked – Value will not recalculate if field
locked and related fields changed
Rate Lock – No lock activity on the file
Rate Lock – File is locked (if red, rated lock is expired)
Rate Lock – Initial rate lock requested
Rate Lock – Rate lock extension requested
Rate Lock – Rate lock extension requested on an expired lock
Rate Lock – Rate lock extension pending
Rate Lock – Lock cancelation requested
Rate Lock – Rate lock canceled
OPERATIONS – CORPORATE LOAN PROCESSING MANUAL
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EMAIL SIGNATURES
Introduction For users who send information via email directly from
Encompass (such as eDisclosure notifications to borrowers), a
personal email signature can be set up similar in manner to setting
up signatures in Outlook.
Procedure: Setting Up an Email Signature
To set up an email signature: 1. From the Encompass menu (upper
left corner of Encompass
screen) select Settings… 2. Click the “+” next to Personal Settings
to expand the menu
and select My Profile. 3. Edit the Email Signature pane.
4. Click the icon [Save] (upper right corner of page). 5. Click the
[Close] button.
DEFAULT FILE CONTACTS
Introduction Encompass has a Default File Contacts feature that
allows individual users to enter commonly used service providers.
For instance, if a dedicated escrow company is going to be used on
most transactions for a branch processor, a default contact may be
set up to associate the escrow company with the Processor’s
Encompass information.
There is also a Line Item Number field for each default contact
where the corresponding line item number of the LE/CD can be
entered to ensure the contact is transferred to appropriate
forms.
Procedure: Adding Default File Contacts
To set up or add default file contacts: 1. From the Encompass menu
(upper left corner of Encompass
screen) select Settings. 2. On the left panel click the “+” next to
Personal Settings to
expand the menu, then select Default File Contacts. 3. Click the
Address Book icon next to the Company Name
field for the category of default file contact you want to add. •
Categories that may be set up as Default File Contacts:
o Appraiser o Credit Company o Escrow Company o Flood Insurance o
Hazard Insurance o Mortgage Insurance o Title Insurance Company o
Underwriter
(Continued)
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Procedure: Adding Default File Contacts (Continued)
4. Contacts associated with the selected category will be displayed
in a new window, Business Contacts.
5. Select a business contact and the contact information will be
copied to the Default File Contacts list.
6. Click the [Save] icon (upper right corner of page), then click
[Close].
CHANNELS OF BUSINESS
Commonly Used Channels of Business
Each channel of business has a set of unique milestones to be
completed by various loan team members. The channels of business
most commonly used in Encompass are:
• Banked – Retail • Banked – Wholesale (for use by Orion Lending
Wholesale
Division only) • Brokered
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PROCESSING WORKFLOW AND ENCOMPASS MILESTONES
Loan Progress Loans progress in Encompass by attaining a series of
milestones, one stage and one department to the next until
completion.
Milestone Templates
Milestone templates frequently used in Encompass are: • Retail •
Brokered Out • Reverse Mortgage • DPA 2nd
Default Milestones
New loans in Encompass default to the retail channel and follow the
milestones below. If for any reason, the loan falls in to one of
the other programs listed above, the milestone template must be
changed accordingly.
Changing the Milestone Template
Once the loan is coded with the correct channel (for Brokered Out
loans) or the correct program (for Reverse Mortgage or DPA 2nd) and
saved, the milestone template should change accordingly. If the
milestone template does not automatically change from within the
loan in Encompass 1. Click the Loan menu header at the top of the
page 2. Select the Manage Milestone Templates… option, then 3.
Click the Apply Automatic Mode… option
4. The following message will appear:
5. Click [OK], then click [Save].
(Continued)
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Changing the Milestone Template (Continued)
6. The Milestone Log Change dialog box will open displaying current
(default) and new (program/channel-specific) milestones.
7. Click [OK] to accept changes. 8. Click [OK] to confirm.
MILESTONES RETAIL
Retail Workflow
The Retail Channel is the most commonly used by AFN Loan
Processors. The following table outlines the retail workflow and
the Processor’s responsibilities in completing a loan. (Additional
details are provided in later sections of this manual.)
Milestone RETAIL
Milestone Details
File Started • Default milestone assigned to each new loan
originated • Initial Disclosures are prepared and sent
App Received
(24 Hours)
• Initial Disclosures returned [via eDisclosures in Encompass, or
with live signatures by the borrower(s)]
• Loan Officer or Processor completes the App Received milestone
within 24 hours of receipt of signed disclosures
• Upon completion of App Received milestone, loan is moved from the
Prospects to the Pipeline folder
• Disclosures are sorted into appropriate placeholders in the
eFolder
Processing
(24-72 Hours)
• Within 24 hours of receipt of borrower’s initial paperwork
(stips), the Processor completes the Processing milestone to
confirm receipt and start the initial review of the file
• Confirm minimum required items received for review for the
requested loan program (i.e. income for all listed jobs, credit
report, legible ID, disclosures, current property expenses, and
mortgage statements for all properties owned)
• Review documents received and organize all documentation into
appropriate placeholders in the eFolder
• Confirm correct program code in Encompass • Run preliminary AUS
(if program requires it) to confirm eligibility • Processor, or
Junior Processor at Processor’s direction, confirms
compliance with disclosure requirements and orders all applicable
third party items
• Complete the Processing screen in Encompass and track by marking
the items requested from the borrower and third parties
• Complete any necessary re-disclosures within 3 days of changed
circumstance
OPERATIONS – CORPORATE LOAN PROCESSING MANUAL
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MILESTONES – RETAIL (CONTINUED)
Milestone Details (Continued)
Submittal (48-72 Hours)
• Upon receipt of all needed items complete the Submittal milestone
to send the file to Underwriting for review
• Compliance department will complete preliminary audit of
disclosures and state-specific items needed prior to Underwriting
approval (Processor to review upon completion)
• Complete any necessary re-disclosures within 3 days of COC •
Underwriter to review the loan as submitted and issue
decision
(Suspended/Decisioned or Conditional Approval), and list conditions
needed in Encompass Underwriting Conditions tab (in eFolder)
Decisioned/ Conditional Approval (5-7 Business Days)
• If suspended, Underwriter shall complete the Decisioned milestone
and provide all conditions needed on loan (for both approval and
prior to docs and funding)
• If approved, Underwriter shall complete the Conditional Approval
milestone and provide all conditions needed on loan (for both prior
to docs and funding)
• Processor shall review underwriting and compliance audit
conditions and prepare list of items needed
• If there are any items the Processor does not understand, clarify
with the Underwriter or Compliance auditor
• Processor to complete any necessary re-disclosures within 3 days
of changed circumstance
• Processor shall upload conditions in Encompass eFolder and
attach/ mark as received to prompt Underwriter review
• Processor shall prepare the loan for closing, ensuring the
estimated closing date is accurate, an accurate fee sheet is
obtained from the settlement agent with the fees updated in
Encompass for the correct loan amount, correct impound dates (if an
escrow account is to be established), and a current payoff with the
payoff balance updated in Encompass (if refinance) – changes after
clearance in Underwriting will result in additional Underwriting
touches and delays
PTD Review (24-48 Hours)
• If all conditions are satisfactory, Underwriter to complete the
PTD Review milestone in Encompass (if Compliance is also approved,
the loan should auto-complete the Cleared for Docs milestone as
well, unless a wet state)
Cleared for Docs (24 Hours)
• Within 24 hours of submission into the Compliance Review queue,
the Compliance Auditor shall review all submitted compliance
conditions and clear in Encompass (if applicable)
• An automated email will be sent out by Encompass notifying the
Processor that the file has been cleared in Compliance or if there
are still outstanding conditions
• If all compliance conditions are cleared, the Compliance Auditor
will complete the compliance approval in Encompass and the loan
will automatically be moved to the Cleared for Docs milestone (if
PTD Review has been completed)
OPERATIONS – CORPORATE LOAN PROCESSING MANUAL
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MILESTONES – RETAIL (CONTINUED)
Docs Request (24 Hours)
• Once cleared for docs, the Processor shall complete the Doc Order
screen in Encompass and assign a Doc Drawer or Doc Drawer group for
the file
• Processor shall confirm the signing date/time with the settlement
agent when completing signing information on the Doc Order
screen
• The loan will automatically be moved to the Docs Request
milestone once the Doc Order screen is completed in full (including
the Doc Request Checklist) and a Doc Drawer is assigned to the
loan
• The Processor shall take care to confirm that all items addressed
on the Doc Request Checklist are in fact in the eFolder for the Doc
Drawer to review (otherwise the file may be kicked back to
Processing for completion of necessary items and delays in docs may
occur)
• Processor reviews the prior-to-funding conditions to confirm all
items are timely addressed so there are no funding delays
Docs Out (24 Hours)
• The Doc Drawer will complete this milestone upon validation of
all necessary items for docs (from the Doc Checklist) and
submission of the loan docs to the settlement agent
• Processor to confirm receipt of docs with the settlement agent
and verify that a signing appointment is set up for the proper
date/time (most states have date-sensitive closing documents)
Doc Signing (24 hours)
• Funding Team completes this milestone when docs are received back
and checked into the system for a Funder to review
Docs Review (24 Hours)
• The Funder will complete this milestone when they have completed
the pre-funding review of the loan
• The Processor shall review and request all necessary funding
conditions, then upload the items and notify the funder upon
receipt
Funding • The Funder will complete this milestone once the wire is
sent and funding confirmation has occurred
Shipping • The Shipper will complete this milestone when the loan
has been shipped to the investor
Purchased • The Post Closer may contact the Processor if there are
post-closing items needed by the investor in order to purchase the
loan
• The Post Closer will complete this milestone when the loan has
been purchased by the investor
Reconcile • Trailing Docs is assigned and will follow up on
trailing documents needed to complete the loan file
Completion • Trailing Docs will complete this milestone when all
trailing documents have been received and no more tasks are
required on the file
OPERATIONS – CORPORATE LOAN PROCESSING MANUAL
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MILESTONES BROKERED OUT LOANS
Introduction In the event a loan cannot be closed in-house (through
the retail channel), it may have to go through an exception process
to be approved to be brokered out. For details on how to request an
exception to broker out a loan, and procedures on handling brokered
out loans in Encompass, please refer to the AFN Procedure Tracking
Brokered Out Loans.
Brokered out approval requests should be submitted in Encompass and
approved by the corporate office prior to sending a loan package to
a lender for the purpose of brokering out.
Milestones – BROKERED OUT
Milestone Details
File Started • This is the default milestone assigned to each new
loan when originated in Encompass
• Initial Disclosures are prepared and sent at this milestone
App Received • Initial Disclosures are returned [either via
eDisclosures in Encompass or returned with live signatures by the
borrower(s)]
• The Loan Officer or Processor shall complete the App Received
milestone within 24 hours of receipt of the signed
disclosures
• The loan should be moved from the Prospects to the Pipeline
folder upon completion of this milestone
• Disclosures should be sorted into appropriate eFolder
placeholders
Processing • Within 24 hours of receipt of borrower’s initial
paperwork (stips), the Processor shall complete the Processing
milestone to confirm receipt and start the initial review of the
file
• Processor shall confirm the channel is reflected as Brokered in
Encompass
• Processor shall confirm the Brokered Out screen is completed and
exception to broker out is approved by corporate
• Processor shall confirm minimum items needed are received for
review for the requested loan program
• Processor shall review the documents received and organize all
documentation into their appropriate placeholders in the
eFolder
• Processor shall confirm the program code is correct in Encompass
• Processor shall run preliminary AUS (if program requires it)
to
confirm eligibility • Complete the Processing screen in Encompass
and for tracking
purposes, mark the items requested from the borrower and third
party items
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Milestones – BROKERED OUT
Milestone Details (Continued)
Submit to Lender
• Upon receipt of all needed items, Processor shall complete the
Submit to Lender milestone when the file is sent to the Lender for
Underwriting
Approved by Lender
• Upon receipt of the approval from the lender, the Processor shall
complete the Approved by Lender milestone and upload a copy of the
Lender’s approval to the eFolder in Encompass
Lender Docs Out • Processor shall complete this milestone when docs
are prepared and sent out by the Lender
• Any documentation received for conditions should be uploaded to
the eFolder by the Processor to ensure the file is completely
documented
Lender Funded • Processor shall access the Brokered Out screen in
Encompass and complete the Closing section of the screen once
confirmed that the Lender has funded the loan
• Processor shall enter the funded date and the anticipated broker
check information on the Brokered Out screen
• The Lender Funded milestone will automatically complete once this
information has been entered in the Brokered Out screen
Completion • Corporate will review and audit the file to ensure
completion and complete the audit review on the Brokered Out
screen
• Processor shall comply with any requests for documentation needed
to ensure the file is complete in Encompass
• Milestone will auto-complete once corporate has cleared the audit
on the Brokered Out screen
OPERATIONS – CORPORATE LOAN PROCESSING MANUAL
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MILESTONES REVERSE MORTGAGE
Procedure: Reverse Mortgage Milestones
When the loan program is a reverse mortgage the Processor must: 1.
Ensure the program code is entered correctly on the AFN
Borrower Summary – Origination screen for Encompass to recognize
the loan is a reverse mortgage
2. Confirm the loan program selection reflects HECM30 to indicate
the loan is a reverse mortgage
3. Milestone templates should then auto-update to the proper
milestones for reverse mortgages If Encompass does not
automatically change the milestone template, follow the steps for
Changing the Milestone Template (page 20, above) to update the
milestone template appropriately once the correct program code has
been selected. For training materials and access to the portal for
originating HECM loans, please contact Richard Fitzpatrick, CSA
(
[email protected]).
Milestones – REVERSE MORTGAGE
Milestone Details
File Started • This is the default milestone assigned to each new
loan when originated in Encompass
• Initial Disclosures are prepared and sent at this milestone (HECM
documents and disclosures must be sent)
App Received • Initial Disclosures are returned (HECM documents and
disclosures) • The Loan Officer or Processor shall complete the App
Received
milestone within 24 hours of receipt of the signed disclosures •
The loan should be moved from the Prospects to the Pipeline
folder
upon completion of this milestone • Disclosures should be sorted
into their appropriate placeholders in
the eFolder Processing • Within 24 hours of receipt of borrower’s
initial paperwork (stips), the
Processor shall complete the Processing milestone to confirm
receipt and start the initial review of the file
• Processor shall confirm minimum items needed are received for
review
• Processor shall review the documents received and organize all
documentation into their appropriate placeholders in the
eFolder
• Processor shall confirm the program code is correct in
Encompass
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Processing • Processor (or Junior Processor, at Processor’s
direction) shall confirm compliance with disclosure requirements
and order all applicable third party items
• Processor shall complete the Processing screen in Encompass
marking the third-party items requested
Submit to Lender
• Upon receipt of all needed items, Processor shall complete the
Submit to Lender milestone and send to the Lender for
Underwriting
Approved by Lender
• Upon receipt of the approval from the lender, the Processor shall
complete the Approved by Lender milestone and upload a copy of the
Lender’s approval to the eFolder in Encompass
Lender Docs Out • Processor shall complete this milestone when docs
are prepared and sent out by the Lender
• Any documentation received for conditions should be uploaded to
the eFolder by the Processor to ensure the file is completely
documented
Docs Signing • The Funding team will complete this milestone when
docs are received back and checked into the system for a funder to
review
Docs Review • The Funder will complete this milestone when they
have completed the pre-funding review of the loan; final prior to
funding conditions will be issued at this time
• The Processor shall review and request all necessary funding
conditions, then upload the items and notify the funder upon
receipt so that the funder can review
Funding • The Funder will complete this milestone once the wire is
sent and funding confirmation has occurred
Shipping • The Shipper will complete this milestone when the loan
has been shipped to the investor
Purchased • The Post Closer may contact the Processor if there are
post-closing items needed by the investor in order to purchase the
loan
• The Post Closer will complete this milestone when the loan has
been purchased by the investor
Reconcile • Trailing Docs is assigned and will follow up on
trailing documents needed to complete the loan file
Completion • Trailing Docs will complete this milestone when all
trailing documents are received and no more tasks are required on
the file
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MILESTONES DPA 2ND
Procedure: DPA Milestone
If the loan falls under a DPA program, the Processor must ensure
the program code is entered correctly on the AFN Borrower Summary –
Origination screen in order for Encompass to recognize the loan has
a Bond or DPA.
• Confirm the Loan Program selection includes DPA (i.e. FF30 DPA or
CF30 DPA)
• Loans with an accompanying DPA must have an additional loan for
the DPA funds generated in Encompass
• Refer to the AFN Procedure Bond/DPA Programs for details on
handling DPA loans in Encompass
• Once the additional loan has been generated in Encompass for the
DPA funds, ensure the program code is set to *Bond/DPA Subordinate
Lien correctly on the AFN Borrower Summary – Origination screen in
order for Encompass to recognize the loan is for DPA funds
Note: Once entered, the milestone templates should auto-update to
the proper milestones for DPAs. If the template does not update
automatically, follow the steps to Changing the Milestone Template
(page 20) to update the milestone template.
Milestones – DPA 2ND
Milestone Details
File Started • This is the default milestone assigned to each new
loan when originated in Encompass
• Initial Disclosures are prepared and sent at this milestone (if
the DPA program requires disclosures such as an initial LE and/or
1003, the Processor should confirm they are properly
generated)
App Received • The Loan Officer or Processor shall complete the App
Received milestone within 24 hours of receipt of the signed
disclosures
• The loan should be moved from the Prospects to the Pipeline
folder upon completion of this milestone
Processing • The Processor shall complete this milestone upon
initial review for the DPA
Doc Request • The Processor shall complete this milestone for both
the 1st and the DPA 2nd when ready to request docs
Docs Out • The Doc Drawer will complete this milestone upon
validation of all necessary items for docs (from the Doc Checklist)
and submission of loan docs to the settlement agent (for both the
1st and DPA 2nd)
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Milestones – DPA 2ND
Milestone Details (Continued)
Docs Signing • The Funding team will complete this milestone when
docs are received back and checked into the system for a funder to
review (for both the 1st and the DPA 2nd)
Docs Review • The Funder will complete this milestone when they
have completed the pre-funding review of the loan (for both the 1st
and the DPA 2nd); final prior to funding conditions will be issued
at this time (conditions issued on 1st only)
Funding • The Funder will complete this milestone (for both the 1st
and the DPA 2nd) once the wire is sent and funding confirmation has
occurred
Shipping • The Shipper will complete this milestone (for both the
1st and the DPA 2nd) when the loan has been shipped to the
investor
Purchased • The Post Closer will complete this milestone (for both
the 1st and the DPA 2nd) when the loan has been purchased by the
investor
Reconcile • Trailing Docs is assigned and will follow up on
trailing documents needed to complete the loan file
Completion • Trailing Docs will complete this milestone when all
trailing documents have been received and no more tasks are
required on the file
OPERATIONS – CORPORATE LOAN PROCESSING MANUAL
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ENCOMPASS LOAN PROCESSING
Procedure: Opening a Loan File for Review
To review in Encompass: 1. Open the loan by double clicking on the
loan from the Pipeline
view. 2. Once opened, a banner will display at the top of the loan
file
reflecting pertinent loan information [borrower(s) names, property
address, loan number and amount, LTV/CLTV/HCLTV, DTI, rate, lock
status, estimated closing date, and a dropdown of the assigned file
contacts, loan program and purpose, earliest closing date (TRID),
sales price/appraised value, occupancy/number of units, and
FICO].
3. Under the borrower section, there is a dropdown menu that
allows the user to toggle back and forth between applications when
there is more than one borrower pair listed.
FILE LOG
Introduction The File Log communicates historical, current, and
future loan- related activities and events. It includes milestones
with their anticipated completion dates and logged file activity.
Note: A milestone in bold font has been completed; the
corresponding date is the completion date. To view File Log
activity: • Click the “+” sign in front of a milestone to view file
activity
during that milestone. Note: When no “+” sign appears in front of a
milestone, no activity has been logged.
OPERATIONS – CORPORATE LOAN PROCESSING MANUAL
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Introduction and Policy
The Encompass Conversation Log is used to track interactions with
borrowers, service providers, and other contacts, and to leave
important notes to fellow AFN personnel who will access the file.
When instructed to “add a note” to the file, the Conversation Log
is where the note should be added.
Each time the user adds a note in the Conversation Log, the notes
are automatically dated and time stamped with the user’s
information.
• Every time a loan is opened and touched the user must enter notes
regarding actions and progress in the loan file.
• Notes must be in compliance with confidentiality requirements and
used primarily to update status and maintain a record of contact
that keeps all parties informed of work completed and items pending
on the loan.
• Notes must be current and precise; Conversation Log notes may
never be deleted and are a permanent internal record in the
Encompass system.
Procedure: Adding Notes to the Conversation Log
To add a note to the Conversation Log:
1. Click the [Add] icon next to the File Log tab
or
2. Click on the Tools tab 3. Select Conversation Log
4. Type a subject in the Name field
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CONVERSATION LOG (CONTINUED)
Default Option for New Log Entries
If a Conversation Log entry is marked [] "Show entry in the loan
log," a notation of the entry will be made in the file log once the
Processor adds the name and comments detailing the notes to add to
the file. This is the default option when adding a new entry.
Procedure: Viewing Notes in the Conversation Log
To view notes: 1. Click Tools 2. Select Conversation Log
Existing notes are listed from oldest to newest. Users are
encouraged to read and review the conversation log when opening a
file, particularly when the file is first assigned, as there may be
pertinent information useful in processing the loan (i.e.,
settlement agent information, structure/set up notes, etc.).
ALERTS AND MESSAGES
Timely Resolution of Alerts
An alert is notification of a pending, due, or overdue event (i.e.,
a re-disclosure is required). Processors must ensure the timely
resolution of all alerts. Failure to meet time requirements may
jeopardize the entire loan.
Note: A red flag next to an entry denotes a compliance alert.
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Access to Alerts and Messages
There are two methods to access alerts and messages: 1. LP –
Processing Queue
The Alerts & Messages tab will appear in the first two columns
of the Pipeline view when utilizing the Loan Processor. The number
of alerts is shown in red; messages are shown in green,
Or
2. When opening a loan The Alerts & Messages tab is located
next to the File Log on the upper left-hand side.
Note: A number appearing for either means an alert or message is
outstanding that requires immediate review/action.
Common Alerts
Alerts include (but are not limited to): • ATR/QM Notifications •
Compliance Review results (Alerts/Warnings/Did Not Pass) • Document
Expected or Document Expired • eFolder Updated • Good Faith Fee
Variance Violated • Changes to Loan Data After Lock • Lender Credit
Not Approved by Branch • Rate Lock Activity • Re-Disclose LE or CD
(APR/Fee Changes or Lock Activity) • Send Initial Disclosures •
NOIA Due • NOIA Follow-Up
Unread Messages
A number in a green box indicates a loan file contains unread
messages. To view a message listed on the Alerts & Messages
tab, click on the line item and the message will appear in the
right pane of the loan window. Messages will often indicate the
receipt of e-consent, disclosures, or faxes from a borrower:
checking messages regularly will help ensure the timely review of
all received documentation.
(Continued)
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Clearing Alerts and Messages
For more information on how to clear alerts, please refer to the
AFN Alerts/Messages Matrix.
MILESTONE WORKSHEET AND TASKS
Worksheets Every milestone has an associated Worksheet with areas
for Documents, Tasks, Required Fields, and Milestone
Comments.
To access the Worksheet go to the Log tab and click the milestone
(i.e., Send to Processing).
Tasks Tasks are either programmed by the Administrator (Corporate)
and must be completed prior to finishing the milestone, or can be
added individually by the user. Tasks can help the user (or others
with whom the user will interact while working the file) with
required follow-up and other important file activity.
Procedure: Adding a Task
To add a task: 1. Click the [Task List] button 2. Click the [Add]
icon 3. A Task dialog box will appear 4. Assign the task High,
Normal or Low priority 5. Select the milestone at which it should
be completed 6. Indicate the number of days to complete 7. Assign
follow-up alerts, and 8. Leave comments on the task
(Continued)
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MILESTONE WORKSHEET AND TASKS (CONTINUED)
Procedure: Adding a Task (Continued)
Note: Once created, the task may appear as an alert to be cleared
if it becomes past due based on the due date entered by the
user.
MAVENT COMPLIANCE REVIEW TOOL
Compliance Checks
The Encompass Compliance Review tool (Mavent) is used during the
loan process to run a compliance check of the file. This check
reviews file data for compliance with TILA, RESPA, HOEPA, NMLS
Licensing, High Cost Loans, Consumer Credit, and various other
industry regulations. Reviews run automatically at certain
milestones and can also be ordered manually. Note: When manually
ordering a Compliance Review, order a Preview Report because the
Preview Report is based on the loan’s current information, not the
last disclosed information.
Mavent To access Mavent: 1. Click the Tools tab 2. Select
Compliance Review
Compliance Review Audit Results
When Mavent is run, a Compliance Review Audit Results window may
open with a list of warnings, alerts, fail messages, or possible
fatal errors. If this occurs, review the results carefully and
determine a resolution.
(Continued)
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Compliance Review Audit (Continued)
Fields Required to Run Mavent
At a minimum, the following Encompass fields are required prior to
running a Mavent report:
• Loan Amount (Field ID 1109) • LE Date (Field ID 3972) or
Application Date (Field ID 745) • Appraised Value (Field ID 356) or
Estimated Appraised
Value (Field ID 1821) • Loan Term (Field ID 1347) • Note Rate
(Field ID 3) • First Payment Date (Field ID 682) • If ARM: Index
Value (Field ID 688) • ZIP Code (Field ID 15) Note: To go to a
field using the Field ID, press [Ctrl] + [G] > enter the Field
ID in the text box that opens > press [Enter].
INITIAL DISCLOSURES
Branch: 1003 The branch will start the loan in the Encompass
Prospects folder and will complete all required fields for the
1003, including but not limited to: basic loan criteria for
qualification, employment information, schedule of real estate for
all properties owned, fees on the 2015 Itemization screen, and
liabilities imported from the credit report.
(The credit report needs to be run at the time of application to
ensure a credit score disclosure is correctly populated).
Branch: RESPA and 4506-T
The branch will have three days to generate and send initial
disclosures once all six pieces of RESPA information are entered
(detailed in the following table).
In order to send out disclosures at this time, 4506-T information
must also be completed for all borrower pairs.
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INITIAL DISCLOSURES (CONTINUED)
RESPA Form (Screen) Field Name Field ID AFN Borrower Summary
Origination or 1003 Page 1
1. Borrower Name First name Middle name (optional) Last name
4000 4001 4002
1003 Page 2 2. Gross Monthly Income Borrower: Total Co-Borrower:
Total
910 911
65 97
4. Property Address Address City State Zip
11 12 14 15
AFN Borrower Summary Origination 5. Property Estimated Value 1821
AFN Borrower Summary Origination or 1003 Page 1
6. Mortgage Amount Sought Base Loan Amount or Loan Amount (on
1003)
1109
Disclosures Sent via Encompass eFolder
The preferred method to send disclosures is electronically through
the Encompass eFolder. With this method, both the LO and the
borrower(s) will sign disclosures electronically. Once signed by
all parties, the Loan Originator or Processor can retrieve the
disclosures via the eFolder.
Procedure: Document Retrieval
To retrieve disclosures and other documents sent via
Encompass:
1. Click on the message indicator to clear the message alert, then
go to the eFolder and click the [Retrieve] button.
2. The system will retrieve the documents and place them in the
document placeholders that were created when the disclosures were
generated.
3. Complete the App Received milestone to trigger auto-filing of
the disclosures into AFN’s preferred placeholders (or trigger auto-
filing by going to the AFN - Borrower Summary Origination form
(screen) and clicking the [Disclosure Organizer] button.
(Continued)
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INITIAL DISCLOSURES (CONTINUED)
Procedure: Document Retrieval (Continued)
4. If there is no placeholder present, the documents will be placed
in the File Manager and the user must move to the appropriate
placeholders.
5. For more information on managing Encompass documents and
attachments, see Encompass eFolder Quick Reference Guide.
Disclosure Tracking Tool
Encompass tracks what is disclosed to borrowers and when. The
Disclosure Tracking Tool tracks the method of delivery (eSignature
through Encompass, US Mail, In Person, or Email), APR at time of
disclosure, the disclosures that have been sent (i.e., whether an
LE or CD was sent out with the package), and stores copies of the
sent disclosures so the user can see exactly what the borrower
received.
Disclosures Sent via US Mail
When disclosures are not sent via Encompass eDisclosures, the
default method for delivery of disclosures becomes the US Mail. In
this case, the user must manually update the delivery method used
and track the received date (which should match the borrower's
signature date).
Note: Because this affects other closing dates in the loan file,
the delivery method and receipt date must be 100% accurate.
Disclosure Tracking: Multiple Entries
When multiple entries are made in Disclosure Tracking:
1. Avoid making multiple entries in Disclosure Tracking for the
same disclosure set (initial or re-disclosure); preview the
disclosures to be sent out prior to printing or sending (both
printing and sending will prompt the system to make an entry on the
Disclosure Tracking screen); errors are caught by previewing in
advance to avoid having to regenerate the disclosure(s).
2. Disclosures generated in error (with no intent to deliver to the
borrower), must be excluded from the timeline so as not to affect
tracking dates: click on the Disclosure History entry you wish to
exclude and click the [Exclude from Timeline] button.
3. Included entries should match what is actually uploaded for that
disclosure entry in the eFolder.
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INITIAL DISCLOSURES (CONTINUED)
Intent to Proceed
Completing the Intent to Proceed:
When initial disclosures are received, the Processor must complete
the Intent to Proceed information accurately in the Disclosure
Tracking tool.
Updating the Intent To Proceed date:
Click on the initial disclosure entry; enter the actual received
date of the disclosures for each borrower, then click the [Intent
to Proceed] box.
Once clicked, the user can then select the date of receipt and the
received method (as shown the example below).
COMPLETING THE APP RECEIVED AND PROCESSING MILESTONES
Receiving Signed Disclosures
If the borrower(s) completed disclosures via signature through
Encompass, a message will appear upon completion notifying the user
that the disclosures are ready to be retrieved.
The borrower is still responsible for sending in any accompanying
state-specific “wet signed” disclosures; forms such as the
borrower’s authorization and social security authorization form are
not required by compliance but may be required during the course of
processing the loan.
If the borrower elected to wet sign the entire package, the
recipient must manually upload the signed disclosures if not sent
back using an Encompass cover sheet or other method to upload
directly to Encompass.
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App Received Milestone
Within 24 hours of receipt of signed disclosures, the Loan
Originator or Processor must complete the App Received milestone.
The loan will now appear in the Loan Processor’s Pipeline
view.
The loan should automatically move from the Prospects to the
Pipeline folder once the App Received milestone is reached.
Send to Processing Milestone
Upon receiving the loan in the Pipeline view and receiving
preliminary items for review, the Processor will complete the Send
to Processing milestone.
Completion of this milestone will start the Loan Processing turn
time clock ticking. This is when initial review by the Processor
should take place as well as the ordering of all pertinent third
party items.
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Paperless System
The Encompass eFolder is a paperless system where electronic copies
of all file documents are retained within placeholders.
Uploading Documents
The Loan Processor must ensure all required documentation is
acceptable (completed properly, has required signatures, etc.) and
uploaded to the Encompass eFolder in appropriate placeholders.
Prior to submission to Underwriting, documents are to be rotated if
necessary to face the proper direction for viewing.
Guide to Sorting and Placeholders
The following table is a general guide for sorting items and
determining which placeholders should be used for the document
type.
GUIDE TO SORTING DOCUMENTS Document Name Description
***Compliance Conditions for Review***
***Loan Doc Attachments***
Any documents to be signed by the borrowers with the closing
documents
Acct - Appraisal & Payment Authorization
Appraisal Authorization form from the borrower to be used when
ordering appraisal (when required; move to TRASH after the order is
submitted)
Acctg - Appraisal Invoices
Credit invoices specific to vendor Informative Research
Acctg - Misc. Invoices Any third-party invoices other than
Appraisal or Credit Asset - Bank Statements and All Other Asset
Types
• One bucket per borrower pair per account (joint borrowers can be
combined if both are on the account) and uploaded in the following
order: o Bank statement #1 (most recent month) o Bank statement #1
(next consecutive month) o Source of funds/LOE for deposits #1 (if
applicable) o Access letter, etc. #1 o Bank statement #2 (most
recent month)
• Create an additional bucket for each separate account • Use
description to notate different accounts for each bucket
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Asset - Gift Documentation
Asset - Misc. Assets • Miscellaneous asset items Compliance Report
• Compliance report (Mavent)--most recent (the rest should be
removed to trash folder) Credit - Appraisals - Other
Properties
• Appraisal for other property (not subject), if required for
qualification
Credit - Bankruptcy Papers
Credit - Credit Report - Spouse
Credit - Credit Supplement
• Credit supplement(s) for any updated items on the credit
report
Credit - Current Mortgage Statement (subject)
• Mortgage statement(s) for all existing loans on subject
property
Credit - Divorce Decree/Marriage License
applicable Credit - Fraud Victim Cert
• Underwriting Assistant to complete and upload certification after
speaking with borrower when there is a fraud alert on credit
Credit - Letter of Explanation
• Borrower LOE's (inquiries, addresses, derog. credit, and any
other applicable letters)
Credit - Misc. Credit • Any other misc. credit items (credit card
statements, etc.) Credit - Note (copy) from original loan
• Note with all pages for existing loan on subject property
Credit - Payment History/Cancelled Checks
• Cancelled checks/bank statements showing 12-month history of
payments by party
Credit - Picture ID and SS Card
• Driver's license/passport • SS Cards and/or SS validation
results
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Credit - Proof of Mtg/Taxes/Insurance - Other Properties
• Mortgage statement(s) for other property (separate bucket for
each additional property, description should show property
address)
• Insurance (hazard and flood, if applicable) for other property •
HOA statement (if applicable) for other property • Tax bill for
other property • Property profile report for other property
Credit Report • Credit report Credit - Utility Bill • Recent
utility bill(s) if required for loan program or to support
occupancy Credit - Verification of Rent
• Completed Verification of Rent (VOR) form, canceled checks for
rent on existing residence, and/or lease agreement for current
residence when borrower is renting (as required)
Disclosures - LE/GFE (Initial)
• AFN Notice of Intent to Proceed • Initial LE • Settlement service
list of providers
Disclosures - LE/GFE Re-Disclosed #__
• Re-disclosed LE and COC (separate bucket for each time re-
disclosed)
Disclosures - Misc. Initial Disclosures
Disclosures - State Specific Disclosures
Escrow/Title - CD Fee Sheet Estimate
• Estimated settlement statement/CD from settlement agent-- most
recent only (old versions should be moved to trash)
Escrow/Title - CD Initial • Initial CD disclosed by AFN
Escrow/Title - CD Initial Re-disclosed #__
• Re-disclosed CD and COC (use a separate bucket each time the CD
is re-disclosed)
Escrow/Title - Condo Master Insurance Policy
• Master insurance policy (if subject property is a condo/attached
PUD)
Escrow/Title - CPL (Closing Protection Letter)
• CPL
• Settlement agent's E & O policy
Escrow/Title - EMD Receipts/Copy of Check
• EMD receipt from settlement agent and copy of check (front and
back)
Escrow/Title - Escrow Instructions
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Escrow/Title - Flood Insurance Policy
Escrow/Title - Hazard Insurance Policy
Escrow/Title - HO-6 Insurance Policy
Escrow/Title - Homestead/Community Property Deed
• Prepared Deed or previously executed Deed for waiver or homestead
or community property rights by spouse (if required per
Non-Borrowing Spouse requirements)
Escrow/Title - Misc. Escrow/Title
Escrow/Title - Pay off Demand
• Payoff demand(s) for subject property--most recent only (old
versions should be moved to trash)
Escrow/Title - POA - Authorized Signer List for PA
• Authorized signor list for purchase agreement (if
applicable)
Escrow/Title - Power of Attorney
Escrow/Title - Prelim or Survey
• Preliminary Title Report • Any applicable title supplements •
Survey or plat map, if applicable
Escrow/Title - Property Profile
Escrow/Title - Property Tax Rolls
Escrow/Title - Purchase Agreement/Addendums
Escrow/Title - Seller - LLC Documentation
• Seller LLC documentation (if applicable where seller is an
entity)
Escrow/Title - Termite Report and Clearance
• Termite Report (original report and clearance)
Escrow/Title - Trust Documentation
Escrow/Title - Vesting • Vesting amendment/confirmation (if
applicable) Escrow/Title - Wiring Instructions
• Wiring instructions for settlement agent
Flood Certificate • Flood Certificate (ordered through Encompass
services tab); move/rename to Property – Flood Certification once
completed
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Fraud/Audit Services • FraudGuard Reports Gen - 1003 (initial) •
Initial 1003 signed by all parties Gen - 203k 92700a Borrower’s
Acknowledgement
• 203k or HomeStyle Borrower Acknowledgement Disclosure Forms for
Renovation Loans
Gen - 203k Contractor Bids
• Contractor Licensing Documents & Insurance for Renovation
Loans
Gen - 203k Homeowner/Contractor Agreement
Gen - 203k HUD 92700 Maximum Mortgage Worksheet
• Maximum Mortgage Worksheet for Renovation Loans
Gen - 203k Misc. Documents
Gen - 92900 A or 26- 1802a (initial)
• Initial 92900A/VA 26-1802A signed by all parties
Gen - Bond/DPA Agency Final Approval Letter
• Bond/DPA agency notice of approval
Gen - Bond/DPA Misc. Disclosures
Gen - Bond/DPA Reservation Letter
• Reservation and rate lock letter
Gen - FHA Case Transfer Documentation
• Supporting Documentation (Case Query in previous lender’s name,
proof of transfer from previous lender) to support FHA case was
transferred from another lender
Gen - FHA /VA Case Number and CAIVRS
• FHA case (showing borrower validation cleared) or VA 26-
1805/LAPP appraisal order or VA IRRRL case
• CAIVRS for all borrowers • Refinance authorization (if FHA to FHA
loan)
Gen - HECM Counseling Certificate
Gen - Homebuyer Education Certification
Gen - Maximum Loan Amount Worksheet
• Maximum mortgage worksheet (depending on loan type)
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Gen - MCC Commitment Notice
• MCC commitment letter
Gen - MCC Documents • Any required MCC agency disclosures Gen - MCC
Reservation Letter
• MCC reservation letter
Gen - Misc Underwriting
Gen - Net Tangible Benefit Worksheet
• NTB form (depending on loan type)
Gen - Note and Deed for Subordinate Lien
• Note/credit line agreement w/all pages and deed of trust
Gen - NY CEMA Worksheet
Gen - Subordination Agreement
• GUS AUS Findings for USDA Loans
Gen - USDA Income/ Household Member Disclosure
• Completed Income/Household Member Disclosure required for USDA
loans
Gen - VA Certification of Eligibility
• Certificate of Eligibility from VA
Gen - VA DD-214 Discharge Papers
• VA DD214 discharge paperwork
• Initial disclosure for VA IRRRL and cash out refinances
Gen - VA Nearest Living Relative/Child Care Statement
• Initial disclosure required for all VA loans (if corrections are
required, they should be uploaded to this folder)
Income - Alive & Well Statement
Income - Income Calculation Sheets
Income - VOEs and Paystubs and W2's/1099's and Misc.
• One bucket per borrower (description should show borrower name to
identify each one):
• Written VOE(s) • Paystubs (most recent on top) • W-2's (most
recent on top) • Misc. Letters explaining job history, wage
discrepancy, LOE
from employer, etc.
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Income - P & L/Balance Sheet
Income - Tax Returns (personal)
• Federal tax returns and all schedules (most recent year on
top)
Income - Corp Tax Returns
• Federal Tax Returns and all Schedules (most recent year on
top)
Income - Partnership Returns
• Federal Tax Returns and all Schedules (most recent year on
top)
Income - Signed Tax Returns
Income - Tax Transcripts
• IRS transcripts for all applicable years (most recent on
top)
Income - Rental Agreement
• Rental/lease agreement with all pages (one bucket per property,
description should show property address)
Income - Misc. Income • Alternative income documentation (if
applicable) Income – VVOE's (Docs)
• VVOE performed by processor, to include: • AFN VVOE Form •
Employer Verification Form (if applicable) • Yellow Pages listing
or Internet printout showing contact
information Mortgage Insurance • MI quote (if MI is needed) to
verify amounts used for
disclosing Property - AIR Appraisal Delivery Certification
• AIR Delivery Certification & AIR Lender Acknowledgment
Forms
Property - AIR Appraisal Review (Desk/Field)
• Completed CDA or other Desk/Field Review (as required)
Property - Appraisals • First Generation Appraisal Report and
Independence Certification (E&O Policy for Appraiser if not
included in original report)
Property - 1004 D Inspection for Repairs
• 1004D/442, if applicable
Property - Condo Warranty and HOA Docs
• Completed HOA questionnaire form • By-laws, CC&Rs and any
other accompanying documents
Property - Flood Certification
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Property - Property Inspection Waiver
• Fully executed property inspection waiver form for conventional
loans exercising an appraisal waiver from DU/LPA
Property - Submission Summary Report (SSR's)
• FNM and FRE submission summary reports or FHA submission summary
report
Property - Misc. Property
• Miscellaneous Property Documentation
QC - AVM • AVM to support value (if required by
program/investor)
QC - Credit Refresh (Funding)
QC - NOIA Letters • Completed NOIA letter detailing outstanding
items needed
QC - Notice of Withdrawn Application
• Completed Notice of Withdrawal form for canceled loans
TRASH • Trash Folder--Items not to be used in underwriting
decision-- items should still be labeled for easy retrieval in the
event they need to be recovered
Underwriting • AUS findings--most recent only (the rest should be
moved to the Trash folder)
Verification of Assets VOA • Completed AccountChek electronic asset
validation report
EFOLDER: INITIAL DISCLOSURES
Document Organization
During the processing review, the Processor is required to ensure
all documents in the eFolder are organized in accordance with AFN’s
required placements (as above). Depending on the loan type, a
particular file will have at minimum three disclosure folders for
all initial signed disclosures (four if a government loan). All
other individual placeholders for specific disclosures should be
removed from the eFolder, with the exception of the initial 1003
(for all loans), and the initial 92900A/1802A (for government
loans), to be filed in the following placeholders:
• Gen – 1003 (initial) • Gen – 92900 A or 26-1802a (initial)
Examples of the different disclosure placeholders follow.
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Placeholder: FHA/VA Disclosures
Government loans: All FHA/VA disclosures are placed under the
Disclosures – FHA/VA Disclosures placeholder. Example:
Placeholder: State Specific Disclosures
All loans: Any State-specific disclosures are placed under the
Disclosures – State Specific Disclosures placeholder.
Example:
Placeholder: LE-Related Disclosures
All loans: All Initial LE-related disclosures are placed under the
Disclosures – LE/GFE (Initial) placeholder. Example:
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EFOLDER: INITIAL DISCLOSURES (CONTINUED)
Placeholder: Misc. Initial Disclosures
All loans: All other initial disclosures are placed in the
Disclosures – Misc. Initial Disclosures placeholder.
Example:
All loans: Re-disclosed LE-related documents are placed in the
Disclosures – LE/GFE Re-Disclosed #__ placeholder.
Example:
EFOLDER: ASSETS
Placeholder: Assets
All Asset documentation is placed under the Assets – Bank Stmts
& All Other Asset Types placeholder: 1. Itemize within that
placeholder for each borrower pair and
each separate account. 2. Combined statements can remain in one
folder, but separate
statements should be placed in separate folders with a description
detailing the account.
3. For separate borrower pairs, a new placeholder should be used if
the assets are not jointly owned.
(Continued)
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EFOLDER: ASSETS (CONTINUED)
Placeholder: Assets (Continued)
Letters of Explanation (LOEs)
When applicable, LOEs are to be placed in the same placeholder with
bank statements.
Example:
Non-Payroll Deposits
All large non-payroll deposits must be documented and explained as
part of the submission package to the Underwriter.
EFOLDER: INCOME
Placeholder: Income
All Income documentation is placed under the Income – VOEs &
Paystubs & W2s/1099s & Misc. placeholder, with a separate
entry for each borrower (even if borrowers are married); where
there are multiple documents, order most recent to oldest:
• WVOE – Place at the top of the folder • Paystubs – Place below
the WVOE • W-2s – Place below the Paystubs • Award Letter (if
applicable) – Place below the W-2s
Example:
Multiple Borrowers
If more than one borrower, type the borrower’s name in the
Description field. Entries for multiple borrowers will appear as
shown in the example below:
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LOAN PROCESSOR REVIEW
PROCESSING AND SUBMISSION REVIEW
Review Upon receipt of the loan file in the Processing milestone,
ensure that all required documentation is in the eFolder; review
thoroughly for accuracy and completeness.
Processing Checklist
Complete the steps in the Loan Processing checklist to ensure all
items are addressed properly prior to Submission to
Underwriting.
Updating Loan File Information
While reviewing and updating file documentation in the eFolder,
update Encompass itself to ensure accuracy of all documentation.
Resolve any discrepancies between the loan documentation and the
application.
AFN – BORROWER SUMMARY ORIGINATION
AFN – Borrower Summary Origination
The AFN – Borrower Summary Origination form (screen) is the main
screen in Encompass and includes an overview of the loan file from
the 1003.
This first section shows the loan channel (Banked – Retail,
Wholesale, or Brokered), the current loan status, branch ID and
information, and the application date of the loan.
1003 This section contains basic borrower information from the
1003.