LOAN PROCESSING LOAN DATABASE

Mortgage Computer Ogden, Utah

Loan Database Contents - Updated November 13, 2013

Loan Database . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Modify Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Additional Borrowers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Good Faith Estimate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Master Record . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

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Loan Database

Loan Database

Within this option, the operator can modify or add to data previously entered in the 1003 and HELOC loan applications or Master Record; request and receive approval for loans from Desktop Underwriter and Loan Prospector; add additional borrower sets; and prepare the Good Faith Estimate.

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Modify Application Data entered in the loan application is stored in the database and can be recalled and modified with this option. Modification of data is simple, quick, and flexible.

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Prior to closing and funding, the final closing costs and other data can be modified and updated by clicking on any of the following sections at the top of the screen: Type of Mortgage and Term of Loan Property Information and Purpose of Loan Borrower Information Employment Information Monthly Income and Combined Housing Expense Information Assets, Liabilities, Schedule of Real Estate Owned, Credit/Recommendation Details of Transaction Declarations Acknowledgment and Agreement Information for Government Monitoring Purposes Information Required for Desktop Underwriter Approval Information Required for Loan Prospector Approval Good Faith Fields Home Mortgage Disclosure Act (HMDA) Reporting Fields Supplemental Information for FHA/VA Underwriting Worksheet, 1008 Underwriting Transmittal, and FHA Underwriting Transmittal Fields Display Print the 1003 loan application.

I II III IV V VI VII VIII IX X DU LP GF HMDA FHA/VA UT

Notes:

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Additional Borrowers The information necessary for additional borrowers can be entered and modified in this selection. On the main MC Software menu, select Loan Processing > Loan Database > Additional Borrowers:

Click Add to enter additional borrower information.

Enter the necessary information and click Submit. The program automatically displays the 1003 loan application sections to begin entering the loan information.

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Modify Data To modify the additional borrower information, select Loan Processing > Loan Database > Additional Borrowers and the following screen displays:

The program displays the 1003 loan application to modify or add to data previously entered.

Allows the operator to delete a borrower set.

Notes:

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Good Faith Estimate The Good Faith Estimate (GFE) fields are displayed and totaled as a preview of information to be printed. The Good Faith fields can be modified without entering the 1003 loan application. On the main MC Software menu, select Loan Processing > Loan Database > Good Faith Estimate:

For the program to automatically pull in and display the data set up in Costs & Escrow Reserves in the Good Faith Estimate, the Update Costs & Escrow Reserves box on the Property Information section of the 1003 and/or Master Record must be checked. 800 Fields In order to disclose an itemization of Our Origination Charges, checkboxes for Fields 808 – 810 and 812 – 813 allow the operator to select the fields to be included in the total of Field 801. Enter the dollar amount and then check the box to include that amount in Field 801. If the box is checked, the dollar amount will print outside the column on HUD-1 page 2. MC Software

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The amount in Field 801 should not be modified if any of the boxes in Fields 808 – 810 and 812 – 813 are checked. The program performs a calculation in Funding and Funding will be out of balance if Field 801 is modified. Field 804 – Appraiser In order for the appraiser to be included in the Vendor File and qualify for IRS reporting, the appraiser must be selected using ScrolEx. Field 1206 A radio button in Field 1206 allows the operator to indicate if the amount is to be included in the total of Field 1201 or Field 1203. The default is Field 1203. The amount in Field 1206 will print outside the column on HUD-1 page 2.

Within each section of the Good Faith Estimate, click Details to view and/or modify the information for that particular field.

Use this button to access the 900-1500 fields or click the field numbers at the top of the screen. Update Selecting Update restores the default settings from Costs & Escrow Reserves for the Good Faith Estimate and the HUD Settlement Statement fields according to what is indicated on the Property Information section of the 1003 loan application and the Master Record (State & County, Master, or None). On original entry, None means no Costs & Escrow Reserves will be applied to the loan. On subsequent entries, None indicates the values will remain and no updating will take place. Fields 1002-1009 Master Record Fields 1002 – 1009 will update the 1003 Application Fields in Section V Combined Monthly Housing Expense Proposed column to reflect the expected monthly payment amount. Once the operator has entered the 1000 fields from either the Good Faith or HUD Settlement Statement within the database, entry to the Application Fields in Proposed Monthly Housing Expense will no longer be available from the 1003 application. When Update 1003 Application Proposed Amounts is checked (the default), the program will update the Proposed Monthly Housing Expense fields when the Master Record fields are updated. When unchecked, the Application fields will remain as entered and will not be updated as the Master Record fields are updated and will allow modification.

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1100 and 1300 Fields Field 1101 will always include Fields 1101A – 1101F. For more flexibility, checkboxes allow the operator to indicate if the amount is to be included in the Total (Fields 1101 and 1301). For the program to update the Total, the dollar amount must be entered before the box is checked. Fields 1107 and 1108 always print outside the column on the HUD Settlement Statement and will not be included in the total of any field. They will not be used in the total of Field 1400 or included in the closing costs on the 1003 loan application. They only list a portion of other fields.

1500 Fields If using the 1500 fields for disbursement to others, HUD-1A Optional Form for Transactions Without Sellers (VMP504BA) must be used or the loan will not balance when funding. MC Software

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Prepare Form Clicking Prepare Form displays screens which allow the operator to populate the various fields in preparation of printing the Good Faith Estimate. The screens and fields follow the form. The data set up in Maintenance > Processing > GFE Default Fields pulls in automatically. Modification is permitted. Any changes made on the Prepare Form option will not be reflected in the GFE/HUD Master Record fields.

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Print Form

Indicate if the letter or legal size Good Faith Estimate form is to be printed. Important Dates

This section states important deadlines for which the loan terms will be available to the applicant. The operator will need to enter the date for which the interest rate and all other settlement charges will be available. This date must be open for at least 10 business days from the date the GFE is issued. If lines 1, 3, or 4 are left blank, NA will print on the form. The remainder of the data comes from the GFE Default Fields setup. Modification is permitted. 1. The interest rate for this GFE is available through . "The lender cannot put N/A if the rate is floating. The only time the loan originator can put N/A is when the loan originator does not offer a rate lock at any time." – HUD RESPA Office

Summary of Your Loan

This information is entered automatically from the loan data. Modification is permitted on the questions. Note the $1,049.46 represents the P&I and MIP monthly constant. MC Software

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Can your interest rate rise? Indicate yes or no. The program automatically indicates yes if an ARM loan and the following displays:

The program automatically enters the maximum rate to which it can rise over the life of the loan and the period of time after which the interest rate can first change. Even if you make payments on time, can your balance rise? Indicate yes or no.

If yes, enter the maximum amount to which it can rise over the life of the loan. Even if you make payments on time, can your monthly amount owed for principal, interest, and any mortgage insurance rise? Indicate yes or no. The program automatically indicates yes if an ARM loan and the following displays:

The program automatically enters the period of time after which the monthly amount owed can change, the amount to which the monthly payment will actually rise on the first adjustment (compare to the first payment change on the TIL plus MIP), and the maximum amount to which the payment can rise over the life of the loan (compare to the highest payment on the Worst Case Scenario). Remember, monthly payment means principal, interest, and mortgage insurance. A new feature has been added to the Payment Schedule for ARM loans. The Worst Case Scenario is available for the maximum increases in interest rate, payment amount, and mortgage insurance. (Loan Processing > Approve - Closing > Payment Schedule)

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Does your loan have a prepayment penalty? Indicate yes or no.

If yes, enter the maximum amount of the penalty. Does your loan have a balloon payment? Indicate yes or no. The program automatically indicates yes if a balloon loan and the following displays:

The program automatically enters the amount of the balloon payment and in how many years it will be due. Escrow Account Information

The yes/no will be checked indicating whether the loan includes an escrow account for property taxes and other property-related charges. Note the $1,049.46 represents the P&I and MIP monthly constant.

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Good Faith Estimate Page 2

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Your Adjusted Origination Charges

1. Our origination charge The origination charge = Field 801. Modification is permitted. 2. Your credit or charge (points) for the specific interest rate chosen The credit or charge (points) = Field 802. Modification is permitted. Only one box can be selected. The program auto populates the appropriate selection with the following conditions: C The first radio button would be selected if there is no amount in Field 802. C The second radio button would be selected and the amount displayed would be the negative amount in Field 802. C The third radio button would be selected and the amount displayed would be the positive amount in Field 802.

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Your Charges for All Other Settlement Services

3. Required services that we select The data set up in GFE Default Fields will pull in Block 3 automatically. Or you can select on an individual loan basis from the drop-down list. The Good Faith Master Record fields are used to populate the dollar amounts. 4. Title services and lender’s title insurance Block 4 = Field 1101 Total amount. 5. Owner’s title insurance Block 5 = Field 1103.

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6. Required services that you can shop for The data set up in GFE Default Fields will pull in Block 6 automatically. Or you can select on an individual loan basis from the drop-down list. The Good Faith Master Record fields are used to populate the dollar amounts. 7. Government recording charges Block 7 = Field 1201. 8. Transfer taxes Block 8 = Field 1203. 9. Initial deposit for your escrow account The initial deposit to the escrow account = Fields 1002 thru 1009 minus 1010. The only verbiage to default will be Mortgage Insurance if the loan has MIP. Modification is permitted to enter additional verbiage.

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10. Daily interest charges Block 10 = Field 901. 11. Homeowner’s insurance The data set up in GFE Default Fields will pull in Block 11 automatically. Or you can select on an individual loan basis from the drop-down list. The Good Faith Master Record fields are used to populate the dollar amounts. This contains the annual charge for any insurance the lender requires to protect the property, i.e., homeowner’s insurance (Field 903) and flood insurance (Field 904). Total Estimated Settlement Charges Blocks 3 – 11 are totaled in Block B. Blocks A and B are added together resulting in the total estimated charges associated with getting the loan. The red asterisk (*) next to the dollar amount portion of the field in blocks 3, 6, and 11 indicates data entered on that line will require the legal size GFE. Make sure you have Legal indicated on the top of page 1 prior to printing. If there are more lines entered in any of these blocks than will print on the letter size GFE, the addition will not be correct on the form. The program will not automatically select the correct size. The operator is completely in charge of which form to print for accurate disclosure.

Blocks 5, 6, 8, and 11 permit keyins on the Good Faith Estate form if blank. There is some setup required by the operator for this to happen. The first time an actual loan has been prepared to print either GFE form with these blocks ("total" column portion) blank, when on the document print option with the form displayed, access the block and enter the zero or N/A (or whatever you prefer to print when blank) in each field. Next, place the cursor outside the field and click, then go to the Select drop-down list at the bottom of the screen and choose Save Keyins prior to printing. Then print the document for the loan. From now on, your system is set up to print the keyin you identified and saved on the form. If the field is filled in with actual data (dollar amounts), the data will print rather than the keyin. MC Software

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Good Faith Estimate Page 3

The program pulls in the loan data automatically. Note the initial monthly amount is the P&I plus MIP constant. Only the initial loan amount is automated on the optional additional loan information columns.

Print Form The originator name, address, phone number, and e-mail address (loan officer) default from the Lender Information section of the Master Record. The borrower name and address default from the Borrower Information section of the Master Record. The Date of GFE is the date the form was originally printed and locked rather than the system date. The GFE form will not print with data if the option Prepare Form has not been previously reviewed and the form selected to view/print. Selecting the form to view/print locks the form. When the form is locked, no modifications may be made. Only those operators set up in Protected Fields have the ability to unlock the Good Faith Estimate. Once the form has been selected to Print Form from the Prepare Form option on the GFE toolbar, it can be printed as an individual document or as part of a packet. The program will print the field label from Costs & Escrow Reserves for blank labels.

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Start Over If modifications are made directly to the GFE fields data base, Start Over resets the information in the GFE/HUD Prepare Form options using the current values from the GFE/HUD Master Record fields as if you are entering the option for the first time.

(Aggregate) Trial Balance

This option displays on the bottom portion of the 1000 fields. The following screen displays when View Trial Balance is pressed:

Starting Balance Balance pre-collected from Fields 1002-1009. Month Twelve months listed for this cycle.

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Received Money received as a total constant from Fields 1002-1009. Disbursed Amount to be disbursed during the month/year indicated. Description Description of the type(s) of disbursements. Balance Remaining balance after money received and money disbursed for the month. Lowest Point Lowest amount in the Balance column resulting from money deposited/disbursed during the 12-month cycle. Cushion The amount of the cushion. Target Balance Adjustment Field 1010 is an adjustment to make sure lenders are only collecting the maximum amount allowed by law. If Field 1010 is used as an adjustment field, this is the amount to enter in the field. This amount will always be negative.

An option to update Field 1010 with the Target Balance Adjustment. If the amount of the Aggregate Adjustment in Field 1010 would cause the amount in Field 1001 to be negative, the Adjust 1010 button will be “grayed out” and not allow updating.

An option to calculate the optimal number of months for each reserve record (1002-1009) to be pre-collected at closing to cause the least Target Balance Adjustment. The program will display suggested fields and the number of months to prepay. To automatically update the pre-collect fields, select Update Prepay Fields.

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Escrow Overview

This option displays on the bottom portion of the 1000 fields and allows the operator to view all of the Escrow Records at once without having to access each one separately. This will let the operator know if the records are complete and the Trial Balance is ready to be processed.

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Master Record This is the first of 18 screens that make up the Master Record. The Master Record contains the borrower data necessary to process, close, and fund the loan. There is not sufficient information on a 1003 loan application to grant a loan and comply with the regulations. The different sections of the Master Record can be accessed from the drop-down list. The sections of the Master Record include: C C C C C C C C C C C C C C C C C C C C C

Borrower Information Loan Information Lender Information Seller-Grantor Information Property Information Property & Legal Title/Escrow Information Closing Information Construction-Notary-Escrow Secondary Market - Loan Sales Warehousing Insurance Worksheet Custom Fields HUD Settlement Statement Legal Descriptions Portfolio Cash Analysis Supplemental Information HMDA MC Underwriting Worksheet 1008 Underwriting Transmittal FHA Underwriting Transmittal

Press Save after modifying or adding information in any of the Master Record sections.

Pressing Previous will save data and return to the previous screen.

Pressing Continue will save data and advance to the next Master Record section.

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Borrower Information

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Loan Information

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Lender Information

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Seller-Grantor Information

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Property Information

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Property & Legal

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Title/Escrow Information

ScrolEx The program automatically defaults the entries set up in Maintenance > ScrolEx Setup and indicated in Maintenance > Processing > Standard Fields. This eliminates the task of keying in the same data for every loan entered on the system.

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Closing Information

When a product is used, the Late Charge Percent, Late Charge Code, Not Less Than, Not Greater Than, Payment Day, and Late Charge Assessed After default from the Products Offered setup (Maintenance > Processing > Products Offered). The Closing City, Closing County, and Closing State default from what is set up in Maintenance > Processing > Settlement Fields. If no product is used, Payment Day, Late Charge Assessed After, and Late Charge Percent default from the Settlement Fields setup. MC Software

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Construction-Notary-Escrow

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Secondary Market - Loan Sales

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Warehousing

Insurance Worksheet

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Custom Fields

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HUD Settlement Statement

Portfolio Cash Analysis

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Supplemental Information

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HMDA

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MC Underwriting Worksheet

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1008 Underwriting Transmittal

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FHA Underwriting Transmittal

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