OPERATIONS – PROCESSING PROCEDURE – ORDERING CTI SERVICES AFN-R-Proc_OrderingCTIServices • 10/08/2018 PNP SPECIFICATIONS PNP Name/ History Procedure: Ordering CTI Services Date Issued: 10/08/2018 Date Effective: 10/08/2018 Date Revised: Production Channels Retail Wholesale Correspondent Accountable Personnel/ Department Loan Processors Underwriters Issuing Personnel/ Department EVP, Operations Subject Matter Expert (SME) Branch Account Managers Compliance & Branch Relations Manager Director of Credit Risk Director of Processing Director of Underwriting Underwriting Managers Purpose The purpose of this procedure is to relay AFN protocol and offer instructions for ordering services from the credit vendor Credit Technology Inc. (CTI). RELATED DOCUMENTATION Guide Branch Loan Processing Manual URL None
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Procedure: Ordering CTI Services Date Issued: 10/08/2018 Date Effective: 10/08/2018 Date Revised:
Production Channels
Retail Wholesale
Correspondent
Accountable Personnel/ Department
Loan Processors Underwriters
Issuing Personnel/ Department
EVP, Operations
Subject Matter Expert (SME)
Branch Account Managers Compliance & Branch Relations Manager Director of Credit Risk Director of Processing Director of Underwriting Underwriting Managers
Purpose The purpose of this procedure is to relay AFN protocol and offer instructions for ordering services from the credit vendor Credit Technology Inc. (CTI).
RELATED DOCUMENTATION Guide Branch Loan Processing Manual
IMPORTANT: Credit providers offer bundled services, whereby several products/services are offered at a reduced fee if bundled. AFN personnel must take care to use the same provider (either CTI or IR) throughout the file to avoid being charged the bundled service fee by both providers.
Credit Technology, Inc. (CTI)
Credit Technology, Inc. (CTI) is a full service credit reporting agency that AFN uses for credit reports and services. Most of CTI’s services are available via Encompass integration, and offered as bundled services to reduce cost, and others must be accessed online.
a. Contact the AFN Help Desk for login credentials. • The same CTI credentials are used online and
through the Encompass integration. • Separate login credentials are needed for SSA-89
and Tax Transcripts, which are pulled through Encompass from Pitchpoint.com.
• As with all AFN software and online applications, protect and do not share your personal login credentials.
b. When ordering a Credit Supplement, Letter of Explanation, or Rapid Rescore (Repository Update), login to CTI from your web browser using the following web address: https://ctinetwork.meridianlink.com/custom/login.aspx
c. For all other products/services, click the [Services] tab while in an Encompass loan file to order.
NOTE: Instructions for ordering all services follow.
B. Ordering Credit
Loan Processor
1. If credit was not previously pulled by the Loan Officer or Loan Officer Assistant, the Loan Processor must order credit directly through Encompass. a. Access the file for which you will order credit.
b. Review information on the Encompass AFN - Borrower Summary Information Form (screen) for accuracy and completeness, with particular attention to the following: • Name(s) displayed as they should appear at closing • SSN listed for each borrower is correct • Date of birth listed for each borrower is correct • Current address listed for each borrower is correct
c. Click the Encompass Services tab, then select Order Credit Report (or from the 1003 Page 2, in the Liabilities section, click the [Order Credit] button).
d. Select CTI, Credit Technology Inc. as the provider, and then click the [Submit] button.
e. The Credit Report Request dialog box will appear.
1) Enter your login credentials (Branch ID not required).
2) Confirm information on the request screen is correct:
o Report Type: Select Consumer Credit for full credit report or Mortgage Only for streamline refinance/IRRRL. (The Refresh and UDN options are not used for the initial credit report; their function will be discussed later in this procedure.)
o Order Method: If credit previously ran through Encompass, but a new report is needed, select New Report (otherwise the previous report will be re-issued).
o Report On: Select Borrower for a single borrower or Joint for married borrower pair.
o Credit Bureaus: Ensure all three bureaus are marked.
o Confirm Borrower information is correct.
3) Click [Finish]; CTI will upload the credit report to the Encompass eFolder under Credit Report.
2. Access the credit report (in the Encompass eFolder under Credit Report.).
NOTE: If the borrower’s Experian score is <580, CTI will only do a single bureau pull. See Upgrading a Single-bureau Pull to Tri-merge for upgrade instructions.
C. Ordering Credit for Non-Borrowing Spouse
Loan Processor
1. Order a credit report for a non-borrowing spouse if both of the following are true:
• The property is in a community property state; and
• The loan type is FHA, USDA or VA.
2. Open the borrower’s loan in Encompass and enter the non-borrowing spouse’s information as follows: a. Be sure not to enter the non-borrowing spouse’s
information on the same screens as the borrowing spouse; although they are married, the non-borrowing spouse will be entered separately.
b. Click the Loan menu on the Encompass toolbar and
select the Add Borrower Pair option; Encompass will present a new set of screens with clear fields in which to enter the non-borrowing spouse’s information.
c. Alternatively (instead of “b.”), click the Manage Borrowers edit icon next to the Borrowers field; the Manage Borrowers window will appear.
C. Ordering Credit for Non-Borrowing Spouse (Continued)
Loan Processor
2. (Cont’d)
1) Click the Add icon ( ) to Add Borrower Pair (which will present fields for adding the spouse).
2) Enter the non-borrowing spouse’s information in the
Borrower side of the fields at the bottom of the Manage Borrowers screen, and then click the [Close] button.
d. The Borrowers dropdown will now contain the existing
borrower name and a new record for the non-borrowing spouse; ensure the new record is selected.
e. Complete a minimum of the following information for
the non-borrowing spouse:
• Full name (minimum of first and last) • Date of Birth • SSN (if no SSN or ITIN provided, enter all nines) • Present Address • Phone Number (required for Form SSA-89)
f. Ensure a signed Borrower Authorization has been obtained from the non-borrowing spouse prior to ordering his/her credit report.
g. Order a credit report for the non-borrowing spouse.
C. Ordering Credit for Non-Borrowing Spouse (Continued)
Loan Processor
3. Upload the non-borrowing spouse credit report and signed form(s) to the eFolder under Credit - Credit Report – Spouse.
4. Return to the Manage Borrowers screen and delete the non-borrowing spouse record.
D. Importing Liabilities
Loan Processor
1. Access the Encompass 1003 Page 2 Form (screen) and do the following:
a. Scroll down to Liabilities; click [Import Liabilities].
b. Encompass will populate liabilities based on the debts
that appear on the credit report.
1) Check the Paid Off box next to any debt to be paid off through closing; note that balances may need to be updated to match the payoff amount so cash to close is accurate.
2) If Mortgage Liabilities appear, prior to running an
AUS go to 1003 Page 3, Schedule of Real Estate Owned section and associate each liability with its corresponding REO entry.
a) Click the [Show All (VOM) button.
b) Select the property record to be updated, and then click Attach/Show Liens to associate the mortgage with the credit report liability.
2. Add non-borrowing spouse liabilities if both the following apply:
• Property is in a community property state; and
• Loan is FHA, USDA, or VA.
Include account name, account number, balance, and payment amount for each separate debt.
E. Importing an Existing Credit Report to Encompass
Loan Processor
1. a. Click the Encompass Services tab, then select Order Credit Report (or from the 1003 Page 2, in the Liabilities section, click the [Order Credit] button).
b. Select CTI, Credit Technology Inc. as the provider,
and then click the [Submit] button.
c. The Credit Report Request dialog box will appear.
1) Change Order Method to Import from website.
2) Complete the File Number field.
3) Click the [Finish] button.
d. Follow steps under D. Importing Liabilities above to import liabilities.
1. While viewing a loan in Encompass, go to the Services tab and select Request Underwriting option: a. Select the Fannie Mae DU for ePASS option and click
the [Submit] button; the DU via Ellie Mae Network dialog box will appear.
b. Enter your individual CTI login ID and Password to re-issue credit for DU.
c. See AFN Ordering an AUS procedure for more information about running DU.
G. Ordering Credit Supplement
Loan Processor
1. a. Login to CTI and click the Find ordered products link.
b. When Find Ordered Products page appears, under
the Credit tab, enter the credit reference number (File #), borrower’s last name, or SSN as search criteria.
c. Ensure the Start Date field is at least as early as the
credit report date so the file appears in search results, and click the [Search] button.
1) Supplements appear as TRADE LINE VERIFICATION. 2) Click the View hyperlink to open and save the
supplement. 3) Upload to the Encompass eFolder under Credit -
Credit Supplement.
H. Upgrading a Single-bureau Pull to a Tri-merge
Loan Processor
1. a. Click the Encompass Services tab, then select Order Credit Report (or from the 1003 Page 2, in the Liabilities section, click the [Order Credit] button).
b. Select CTI, Credit Technology Inc. as the provider,
and then click the [Submit] button.
c. The Credit Report Request dialog box will appear.
H. Upgrading a Sing-bureau Pull to a Tri-Merge (Cont’d)
Loan Processor
1. (Cont’d)
1) Enter your login credentials (Branch ID not required).
2) Change Order Method to Upgrade.
3) Ensure all three Credit Bureaus are marked.
4) Click [Finish]; CTI will upload the credit report to the Encompass eFolder under Credit Report.
2. Follow the steps under section D. Importing Liabilities in this procedure to import liabilities from the tri-merge report.
I. Ordering a Flood Certification
Loan Processor
1. Ensure the file is ready to submit to Underwriting prior to ordering the flood certification.
2. To order a Flood Cert: a. Click the Encompass Services tab and select the Order
Flood Certification option.
b. On the Flood Certification menu, select ServiceLink
National Flood as the provider, and then click the [Submit] button. NOTE: If ServiceLink is not listed under My Providers: click the All Providers tab, select ServiceLink National Flood, and then click the [Add to My List] button.
1. Before ordering transcripts, review signed 4506-T:
a. Confirm the correct entity is listed in item 5. (this should be TaxReturnVerifications.com if the credit Report is from CTI); if incorrect, go to the Encompass Request for Transcript of Tax Form (screen) to edit. It may be necessary to delete and re-enter the correct company to refresh company information.
b. Confirm the required order type for the loan program is
marked (i.e. qualifying with W-2 only or tax returns).
c. Ensure the correct filing form number is entered and the appropriate checkbox is marked on the 4506-T:
• For 1040 Transcripts: Line 6 must state 1040; box 6C must be marked to indicate Record of Account (this will provide 1040 transcripts and balance info).
• For Business Transcripts: Line 6 must state the correct filing form number (1065 or 1120); box 6A must be marked to obtain business return transcripts.
• For W2/1099 Transcripts: Box 8 must be marked.
d. Confirm the correct years are listed on Line 9.
e. Ensure the form 4506-T is fully executed.
• All parties listed on the form must have signed and dated the form (either electronically or wet-signed).
• The Signatory attestation box must be marked. (Continued)
f. If tax returns present in the file, compare all borrowers’ information (i.e. name, address, SSN) listed on the 4506T to see how the borrower filed taxes. (A mismatch of information may result in rejection of the form.)
g. If any item (1.a—1.f above) is incorrect, go to the Encompass Request for Transcript of Tax Form (screen) and correct the information.
1) After information is corrected, generate a new form.
2) Obtain borrower signatures on the corrected form before proceeding with ordering IRS transcripts.
h. Temporarily save an electronic copy (i.e. PDF) of the 4506-T to your computer (desktop or local folder) so it can be uploaded when ordering.
1) Ensure there is also a copy of this 4506-T in the Encompass eFolder under Disclosures - Misc Initial Disclosures.
i. After ordering: Delete the copy that was saved to your computer (desktop or local folder).
2. To order IRS Transcripts:
a. Click the Encompass Services tab and select the Order Fraud/Audit Services option.
b. On the Fraud/Audit Services menu, select
Pointservices.com as the provider, and then click the [Submit] button. NOTE: If Pointservices.com is not listed under My Providers: click the All Providers tab, select Pointservices.com, and then click the [Add to My List] button.
b. Select Pointservices.com as the provider, and then click the [Submit] button.
c. The Services View tab will appear; expand Product
Results to view all ordered items.
1) See available actions listed in the Status column.
2) For pending orders, there are View Order Details and Chat options.
3) If an ordered product status is Complete or Ready the user can View the report or Upload (preferred) directly to the eFolder.
d. When Upload Report is selected for a completed order:
1) The system will upload a copy of the Transcripts to the Encompass eFolder under Fraud Audit_report.
2) Rename placeholder Income - Tax Transcripts.
K. Ordering SSA-89 Verification
Loan Processor
Note Only place an order for SSA-89 results if conditioned for it by underwriting; an Underwriter may condition for SSA-89 if: • There are multiple SSNs for a borrower; or • There are alerts for the SSN appearing on the Credit
1. Before ordering verification, review signed SSA-89:
a. Ensure all information on the form is complete/correct.
1) The borrower name, date of birth, and SSN are correctly listed.
2) The “I want this information released because…” text box contains a reason (Seeking a mortgage) and the Mortgage Service checkbox is marked.
3) AFN is listed as “the Company” (Company Name and Company Address fields).
4) PitchPoint Solutions Corp. is listed as Company’s Agent.
5) Borrower signed and dated the form, and borrower’s contact information is complete and accurate.
b. If information is incorrect, go to the AFN - Borrower Summary Origination and correct it.
1) If PitchPoint Solutions Corp. is not listed as the Company’s Agent, scroll down to the Social Security Number Verification section and correct it by clicking the Update SSA-89 checkbox.
c. If corrections were made in Encompass, generate a new
IRS SSA-89 form for the borrower(s) to execute; proceed only when a correct SSA-89, signed and dated by the borrower(s), is obtained.
d. Temporarily save an electronic copy (i.e. PDF) of the executed SSA-89 form to your computer (desktop or local folder) so it can be uploaded when ordering.
1) Ensure there is also a copy of this SSA-89 form in the Encompass eFolder under Disclosures - Misc Initial Disclosures.
e. After ordering: Delete the copy that was saved to your computer (desktop or local folder).
2. To order SSA-89 SSN verification: a. Click the Encompass Services tab and select the Order
Fraud/Audit option.
b. Select Pointservices.com as the provider, and then click the [Submit] button.
NOTE: If Pointservices.com is not listed under My Providers: click the All Providers tab, select Pointservices.com, and then click the [Add to My List] button.
c. Complete login information fields (this is not the same as CTI credentials; contact the AFN Help Desk for Pointservices.com login credentials).
d. In the Application Details window, select the Person-SSN Verification (form 89) product.
e. On the ordering screen that appears:
1) The Reference Number should be the loan number.
2) Select the Borrower for the order (if needed for more than one borrower on the file, each verification must be ordered separately).
2) The letter can be edited by removing sections that are not applicable or are duplicative.
f. Click the [Share] button; a Share Document menu with options to Print or Save PDF will appear.
g. Save the PDF to the Encompass eFolder under Credit –
Letter of Explanation so it can be sent to the borrower for his/her signature.
h. Replace the saved PDF with the executed Letter of Explanation upon receipt.
M. Using Undisclosed Debt Notification
Loan Processor
1. Use Undisclosed Debt Notification (UDN) to track borrower credit activity [FHA/VA/USDA programs do not require UDN unless using DPA funds and sold to a master servicer or for renovation loan products (i.e. 203K)]:
• UDN is automatically activated at the Submittal milestone for programs that require it (by default, it will look back from the original credit report pulled date).
• UDN continually monitors credit activity through Funding.
NOTE: It is possible the automated UDN will not activate if any required data is missing or if there is a freeze on the borrower’s credit file at the bureau.
M. Using Undisclosed Debt Notification (Continued)
Loan Processor
1. (Cont’d)
• UDN activation can be confirmed on the CTI website (this is recommended).
• UDN can be ordered manually on the CTI website if necessary (see Step 2 below.).
• If there was a freeze on the borrower’s credit at the bureau, a Refresh Report can be ordered (as a last resort; this is not included in bundled pricing). [See Ordering a Refresh Report.]
2. a. To manually order UDN (only if automation failed due to missing information) click the Encompass Services tab, then select Order Credit Report (or from the 1003 Page 2, in the Liabilities section, click the [Order Credit] button).
b. Select CTI, Credit Technology Inc. as the provider,
and then click the [Submit] button.
c. The Credit Report Request dialog box will appear.
1) Enter your login credentials (Branch ID not required).
2) For Report Type select UDN.
3) For Order Method select Activate.
4) For Report On select Borrower for a single borrower, or Joint for a joint borrower pair.
5) Enter the credit report date as the Start Date.
M. Using Undisclosed Debt Notification (Continued)
Underwriter 2. (Cont’d)
6) For Notification Email ensure the email address is entered correctly so notifications regarding credit activity will be received in Encompass. (Manually ordered UDNs will not receive alerts in Encompass as indicated in Step 3 below.)
7) Ensure all three Credit Bureaus are marked.
8) Click [Finish] to submit the request; the following message will appear (Click [OK] to clear message).
3. For automated UDNs (only), if a change is made to existing borrower debts, as reported on credit, UDN will transmit the data to Encompass and fire an alert the Underwriter must clear.
a. Receive notification of the alert from the Loan Processor
(if file in Submitted milestone) or through Encompass (after the PTD Review milestone has been cleared).
b. Each time the alert fires (it could possibly occur more than once), go to the Encompass Pre-Close Monitoring Form (screen) to review new debt information.
M. Using Undisclosed Debt Notification (Continued)
Underwriter 4. (Cont’d)
e. The system will present a PDF of the UDN report; upload it to the Encompass eFolder under QC - Credit Refresh (Funding).
N. Ordering a Refresh Report
Underwriter Note Refresh Reports are traditional (one-time) credit refreshes. These are not included in bundled pricing and are not required since UDN is utilized for loan programs that have the Loan Quality Initiative (LQI) requirement
Only order a Refresh Report as a last resort on files where UDN was not activated (e.g. due to a freeze on the borrower’s credit file by the bureau).
1. After all PTD conditions (except the credit refresh condition) have been satisfied and reviewed, and prior to clearing the PTD Review milestone, pull a credit refresh (results are valid for seven calendar days).
a. Click the Encompass “Services” tab, select the “Order Credit Report” option (or from the 1003 Page 2, in the “Liabilities” section, click the [Order Credit] button).
b. Select “CTI, Credit Technology, Inc.” and click the
Underwriter 3. Review the report for new debts and inquiries; if applicable, do the following:
a. Update trade lines in Encompass if new debt is present, and update the AUS accordingly.
b. Add conditions to the file requesting any needed documentation or explanation of items found on the comparison report (if any).
• Dry States – May add as prior to funding (PTF) conditions, at the Underwriter’s discretion.
• Wet States – Must add as PTD conditions and the PTD Review milestone cannot be cleared until met.
• New Inquiries – Address any material non-AFN inquiries to confirm no new installment or revolving accounts have been opened.
o Condition for documentation, depending on the nature and type (for example, a utility company inquiry can be resolved with a LOE, whereas a bank or auto loan inquiry needs stronger documentation—such as a credit supplement).
o Review any new trade lines resulting from new inquiries; re-run the AUS to account for the new trade line and change in DTI.
c. Clear the “Credit Refresh required” condition.
d. After all PTD conditions are satisfied, complete the Encompass PTD Review milestone.
O. Retrieving a Credit Invoice
Loan Processor
1. A credit invoice is required on all closed loans; retrieve a closed loan invoice after the loan funds.
f. The following message will appear; click [OK] to
continue.
g. After the Closed Loan Adjustment is applied, scroll up to
view the Credit File menu and click the View Invoice hyperlink.
1) The system will present a PDF of the invoice.
2) Upload the invoice to the Encompass eFolder under Acctg - Credit & Misc Invoices.
P. Ordering a Repository Update (Rapid Rescore)
Underwriter Note CTI offers Repository Update service, whereby AFN may submit proof of recent updates to account information that are not reflected on the credit report. Once the credit report is updated, a new credit score can be requested. The process typically takes 3-4 days for the bureaus to update the credit file.
i. A confirmation box will appear; click [Submit Request] to complete the order.
2. a. CTI will notify the requestor when updates are complete and a new credit report can be pulled (using the contact information provided in Step 1.g. above).