Mortgage Specialist Training Manual August 2016
Contents Office Structure, Employee List ‐ Newark Office ...................................................................................... 1 Organization Chart .................................................................................................................................... 2 Branch Offices ........................................................................................................................................... 3 Flow of a Loan ........................................................................................................................................... 7 Computer ................................................................................................................................................ 11
Architect ................................................................................................................................ 12 System Functionality ............................................................................................................................... 12 How to Upload to the Image Cabinet ..................................................................................................... 17 Basic User Concepts ................................................................................................................................ 18 Phase Codes ............................................................................................................................................ 20 FYI / TRICKS ............................................................................................................................................. 21 Signing into Architect/Mortgage Builder ................................................................................................ 22
Taking an application in Architect .......................................................................................... 22 Origination Summary .............................................................................................................................. 23 Loan Registration .................................................................................................................................... 23 Loan Detail .............................................................................................................................................. 23 Borrower Information ............................................................................................................................. 24 Employment and Income ........................................................................................................................ 26 Assets and Liabilities ............................................................................................................................... 27 Ordering Credit ....................................................................................................................................... 29 Next Action Date ..................................................................................................................................... 30 Architect ‐ DU LOAN SUBMISSION .......................................................................................................... 31 UNDERWRITING FINDINGS/ANALYSIS .................................................................................................... 32
RESPA/TD/CXL Compliance: .................................................................................................. 33 Explanation of RESPA ............................................................................................................ 34 RESPA ..................................................................................................................................................... 34 TILA ......................................................................................................................................................... 34 INTEGRATED MORTGAGE DISCLOSURES ........................................................................................... 34 Steps on how to send RESPA .................................................................................................................. 38 STEP 1: If the loan is a purchase, upload the purchase contract to the Image Cabinet and add Realtor Information ............................................................................................................................ 38 STEP 2: Edit in Architect to insure the program and fees are correct: ............................................... 38
Step 3 ‐ Email Disclosure Dept at
[email protected] to send RESPA – put in the subject line the name of customer – loan number & let them know how RESPA is to be sent. ........................... 49
Pricing a Loan in NYLX (Loan Decisions) ................................................................................. 50 Re‐accessing a loan in NYLX to re‐price to current day pricing (or to lock later) ................................... 54 Pricing Tips .............................................................................................................................................. 55 Pricing Tip #1: ...................................................................................................................................... 55 Pricing Tip #2 ....................................................................................................................................... 56 To Price a loan when not in Architect ..................................................................................................... 58 Reviewing Guidelines for investors ......................................................................................................... 59 Client Reprice System ............................................................................................................................. 60 To do a Rate Lock Extension ................................................................................................................... 60 General Rate Lock Re‐lock Information .................................................................................................. 61 Step 4 ‐ Generate your Calendar and email it to the Customer ......................................................... 63 Email the Calendar and the Realtor fee sheet to the Realtor ............................................................. 64 Calendar Timeline Explanation ........................................................................................................... 64 Changed Circumstance – re‐disclosing the LE ........................................................................................ 65 Valid reasons for re‐disclosures: ......................................................................................................... 66 Steps to get a revised LE out in all cases except when the rate is locked: ......................................... 68 Processing – Order All ............................................................................................................................. 69 Appraisal Waiver: .................................................................................................................................... 76 Marked Up Approval ............................................................................................................................... 77
Process to send the Closing Disclosure .................................................................................. 78 Step 1: Loan officer reviews the CD Queue ............................................................................................ 78 Step 2: Loan Officer requests the CD ...................................................................................................... 78 Step 3: Processor enters in the closing date to request the CD ............................................................. 78 Step 4: CD Prep will prepare the Closing Disclosure ............................................................................... 79 Step 5: Disclosure Dept sends the Closing Disclosure ............................................................................ 79 Step 6: Loan becomes Clear to Close and docs can go to the Title Company ........................................ 79
Loan Officer requests the CD ................................................................................................. 80 Review the CD ....................................................................................................................... 81 CD Changes ............................................................................................................................................. 81 How do I know it is the last CD? ............................................................................................................. 81 Phases is Architect: ................................................................................................................................. 81
Loan amount changes after CD is sent.................................................................................................... 82 Payoffs on Refinances ............................................................................................................................. 82 Realtor Credits ........................................................................................................................................ 82 Closing Date Moving Forward ................................................................................................................. 82 Closing Date Moving Later ...................................................................................................................... 83
Loan becomes Clear To Close ................................................................................................. 83 1st Payment Information ........................................................................................................ 84 Online Customer Payment Process ......................................................................................................... 85
An Important Reminder About Follow Up Calls ..................................................................... 87 Automatic Emails .................................................................................................................................... 88
Miscellaneous Items .............................................................................................................. 90 Prequal time documentation regarding Tax Returns and Income verification ...................................... 90 Pre‐Approval Letters ............................................................................................................................... 91 Web Applications .................................................................................................................................... 93 Emailing from Architect .......................................................................................................................... 94 Updating Notes in Architect .................................................................................................................... 95 Rental Properties/Mortgages Owned ..................................................................................................... 95 To set up a new file from one already in Architect ................................................................................. 97 Turn Down/Withdraw Procedure for Loan Officers ............................................................................... 98 Keep In Touch.......................................................................................................................................... 99 How to enter Leads into Architect .......................................................................................................... 99 Escrow Waiver in Architect ................................................................................................................... 100 New File or Not? ................................................................................................................................... 101 How to run application/prequal reports in Architect ........................................................................... 102 Outlook ................................................................................................................................................. 103 Scheduling an Outlook Activity From the Customer’s File in Architect ................................................ 103 PMI Options – Conventional loans ........................................................................................................ 105 LENDER PAID MORTGAGE INSURANCE (LPMI) for Loan Officers ......................................................... 106 LO Toolbox on Our Website .................................................................................................................. 107 Closing Disclosure Facts ........................................................................................................................ 107 Adjustments and Other Credits ........................................................................................................ 108 Principal Reductions .......................................................................................................................... 108 Possible Turndown ............................................................................................................................ 109
Black Hole Explanation ...................................................................................................................... 109 Title Company Approval ........................................................................................................................ 109 Appraisal fee paid on a cancelled loan ................................................................................................. 112
DocuSign ............................................................................................................................. 113 Using Adolix to Split or Merge PDFs ..................................................................................... 114 Splitting PDF Files .................................................................................................................................. 114 Merging PDF Files .................................................................................................................................. 115
My CDA Scenario… .............................................................................................................. 116 Reminder… ............................................................................................................................................ 116
VIRPACK CHEAT SHEET FOR LOAN OFFICERS ........................................................................ 117 Equity Zone ......................................................................................................................... 118 ERMA Training ..................................................................................................................... 119 TIME BLOCKING IN PROCESSING .......................................................................................... 121 IT HELP DESK ....................................................................................................................... 122
Office Structure, Employee List ‐ Newark Office 25 ½ S Park Place ‐ Newark, OH 43055 ‐ PO Box 5177 ‐ Newark, Oh 43058‐5177 740‐349‐7082 / 740‐349‐7176 fax / 800‐270‐7082 toll free – customer’s only Brian Gilligan, Sr. Production Specialist Ed Rizor, President Tonya D’Amato, Sr. Production Specialist Tracy Rizor, Vice President Sarah Skeen, Sr. Production Specialist Kelly Welch, Executive Vice President Brach Fabbro, Production Specialist Derek Good, Mortgage Specialist & Sales Kevin Ball, Production Specialist Support Sarah Huffman, Production Specialist/LOA Bill Skerbetz, Mortgage Specialist & VP of Jennifer Ray, Production Specialist/LOA Development Jen Chapman, Vice President of Operations Brooke Gault, Production Specialist Melanie Lund, Operations Manager Crystal Newell, Production Specialist Kate Staggs, Director of Talent & Licensing (NC) Alex VanDine, Production Specialist/LOA Angel Fisher, HR Talent Specialist Brooke Meyers, Production Specialist Amanda Cottrell, Corporate Training, Project Brett Green, Production Specialist/LOA Implementation Specialist Elisabeth Bruffett, Production Specialist Judy Braunbeck, Project Manager Natasha Butler, Production Specialist Joey Hildreth, Intern Ryan Wahl, Production Specialist/LOA Emily Wall, Intern David Rowland, Production Specialist/LOA Roger Welch, Vice President of Underwriting Jennifer Elson, Production Specialist Dipan Desai, Production Specialist/LOA Kim Cochran, Senior Underwriter Lindsey Moriarty, Production Specialist Christina Reynard, Assistant UW Manager/CDA Manager Erin Gerber, Production Specialist/LOA Steve Spain, Underwriter DJ Comisford, Production Specialist Seth D’Amato, Underwriter Jessica Thomas, Production Specialist Paul Brezinski, Underwriter (Milford OH) Mandy Stoyle, Production Specialist Jenni Brown, Underwriter Janette Yerges, Production Specialist/LOA (Cary Kevin Yurkovich, Underwriter (Wexford PA) NC) Jennifer Birker, Underwriter Brandt Allio, Production Specialist/LOA Bill Dunn, Senior Underwriter (Raleigh NC) (Greensboro NC) Taylor VanDine, Underwriter Jamie Hedger, Production Specialist (Milford Heather Davis, Underwriter OH) Ashley Markley, Sr. Underwriter Susan Olson, Production Specialist/LOA (Carnegie PA) Mike Simpson, Underwriter (Dublin OH) Jason Stoyle, Production Specialist Dianna Burns, CDA Member Renzo Pena, Production Specialist (Dublin, OH) Andy Lohr, Vice President of Secondary Jennifer Lawrence, Rate Lock Desk Specialist Crystal Crall, Production Specialist/LOA (Dublin Ryon Light, Rate Lock Desk Specialist OH) Jamie Drayton, QC, Servicing & Appraisal Tracy Ellas, Production Specialist/LOA Manager Nancy Buchanan, Production Specialist/LOA Rob Bourdette, QC Analyst (Dublin OH) (Raleigh NC) Kim Labora, QC Analyst Sam Morris, Production Specialist Amanda Light, Vendor Relations Jennifer Skerbetz, Production Specialist/LOA Katie Kopp, Appraisal Ordering Specialist Lori Doremus, Production Specialist/LOA Kim Lieser, Production Specialist/LOA Brenda Wills, Appraisal Reviewer Harrison Culler, Production Specialist/LOA Kevin Bailey, Appraisal Coordination Specialist Nicole Scarpo, Production Specialist/LOA Caleb Clark, Processing Manager (Tampa, FL) Kelly Loewendick, Sr. Production Specialist
Sheri Hunt‐Fleming, Disclosure Specialist Ashley Sweeney, Disclosure Specialist Sallie Rashid, Loan Officer Assistant (Dublin OH) Cathy Zeno, Marketing Director Tiffany Good, Marketing Assistant Angie Caughenbaugh, Marketing Assistant Mallory Younger, Marketing Assistant Travis Kopp, Marketing Technology, ERMA Support Cindi Pratt, Information Systems Manager/Accounting Lindsay Wahl, Funder Pat Polen, IT Director Nick Aritonovich, IT Specialist Jared Swayne, IT Specialist Esther Black, Receptionist/Spirit Leader
Jessica Null, Processing Setup Specialist Matt Dawson, Processing Setup Specialist Kenzie Killworth, Processing Setup Specialist Kelli Davis, Processing Setup Specialist Joe Chapman, Department Manager Kim Foltz, Closer – Document Preparer Adam Romine, Shipper Abbi Workman, Shipper Zach Coffman, Shipper Shelbi Hall, Shipper Kelly Omen, Closing Administrative Clerk Megan Staiger, Sr. CD Prep Specialist Abbey Cooksey, CD Prep Chelsea Brewer, CD Prep Kassie Lanning, CD Prep Samantha Weeks, Sr. Disclosure Specialist Katie Coffman, Disclosure Specialist
Organization Chart
2 | P a g e
Branch Offices Chandler AZ Office 1490 S Price Road, Suite 115G Chandler, AZ 85286 Bob McKearin, District Manager
Colchester CT Office 122 Northern Boulevard Colchester, CT 06415‐2167 203‐982‐7581 Dana Ferris, District Manager Ed Lanzoni, Sales Manager Denise Peracchio, Mortgage Specialist
Bradenton FL Office 4426 Murfield Drive East Bradenton, FL 34203 941‐343‐7893 Peggy Fowler, Mortgage Specialist
Tampa FL Office 10150 Highland Manor Drive, Suite 200 Tampa, FL 33610 407‐342‐9195 Michelle Piccari, Branch Manager Cesar Zelaya, Mortgage Specialist Nicole Scarpo, Production Specialist/LOA
California MD Office 22894 Three Notch Road California, MD 20619 301‐866‐1801 / 301‐866‐1803 fax Dave Hall, Mortgage Specialist
Rockville MD North Office 15800 Crabbs Branch Way, Suite 220 Rockville, MD 20855 301‐623‐1470 / 240‐912‐9060 fax John Garofalo, Vice President Laura Fournier, Mortgage Specialist Amanda Jackson, Mortgage Specialist Ed Willis, Mortgage Specialist 3 | P a g e
KC Hemnani, Mortgage Specialist Homer Walton, Mortgage Specialist Rebecca Walton, Loan Officer Assistant Allison Rota, Administrative Assistant
Fairfax VA Office 8280 Willow Oaks Corp Dr Suite 608 & 610 Fairfax, VA 22031 301.623.1470 Sean Andrews, Virginia Sales Manager Alvaro Perez, Virginia Branch Manager Faruk Lopez, Virginia Mortgage Specialist
St. Leonard MD South Office 4821 St Leonard Road, Suite 101B St Leonard, MD 20685 202‐262‐1824 / 301‐774‐7398 fax Ralph Dawson, Mortgage Specialist Arlene Dean, Mortgage Specialist Lee Griffith, Mortgage Specialist
Towson MD Office 1 Olympic Place, Suite 914 Towson, MD 21204 203‐982‐7581 Dana Ferris, Regional Sales Manager Alex Roldan, Mortgage Specialist Bob Gullace, Mortgage Specialist Ken Miller, Mortgage Specialist Chris Hare, Mortgage Specialist Scott Lucas, Mortgage Specialist Eugenia Roldan, Loan Officer Assistant
ACS Team – Monroe MI Office 1206 S Telegraph Road, Suite D Monroe, MI 48161 419‐466‐2844 Nicki Smith, Mortgage Specialist
Cary NC Office 201 Shannon Oaks Circle, Suite 204 Cary, NC 27511 919‐377‐9700 Stacy French, NC and OH ACS Team Lead Eleanor Thorne, Mortgage Specialist Steve Thorne, Mortgage Specialist April Roberts, Mortgage Specialist Larry Dugger, Mortgage Specialist Thomas Rosciano, Mortgage Specialist Jane Hartsock, Mortgage Specialist Janette Yerges, Production specialist/LOA Alison Kudlak, Mortgage Specialist
Greensboro NC Office 2102 N Elm Street, Suite N‐2 Greensboro, NC 27405 336‐544‐4838 Dail Perry, Mortgage Specialist Penny Iddings, Mortgage Specialist Martha Cooper, Mortgage Specialist Brandt Allio, Production Specialist
Raleigh NC Office 1330 Saint Mary’s Street, Suite B050 Raleigh NC 27605‐1375 919‐345‐1902 Tony Anderson, SE Area Manager Jeff Forman, Mortgage Specialist Liz Drago, Mortgage Specialist Eric Routh, Mortgage Specialist Cathy Arsenault, Mortgage Specialist Martin Bonis, Mortgage Specialist Chris Long, Mortgage Specialist Elliot Weil, Mortgage Specialist Bill Dunn, Underwriter
Cincinnati OH Office 130 Tri‐County Parkway, Suite 108 Cincinnati, OH 45246 513‐518‐6318 Johnathan Barber, Mortgage Specialist
Dayton OH Office 3944 Indian Ripple Road Dayton, OH 45440 4 | P a g e
937‐438‐1262 Doug Sterling, Mortgage Specialist
ACS Team ‐ Delaware OH Office 15 West Central, Suite 101 Delaware, OH 43015 740‐363‐7300 / 740‐363‐7377 fax Art Violi, Mortgage Specialist
ACS Team ‐ Dublin OH Office 7251 Sawmill Road, Suite 100 Dublin, OH 43016 614‐389‐4462 Tom Piecenski, Vice President of Development Kelley Hall, Mortgage Specialist Julie Reynolds, Mortgage Specialist Cathy Ortega‐Contreras, Mortgage Specialist Sid Shah, Director – Mortgage Origination Robert Bourdette, QC Analyst Leena Chennamsetty, Loan Officer Assistant Sallie Rashid, Loan Officer Assistant
Greentree Mortgage Services Team 7555 Airport Highway, Suite A Holland, OH 43528 419‐861‐9008 / 419‐861‐9988 fax Shane Marzullo, Mortgage Specialist/Branch Vice President Janelle Marzullo, Mortgage Specialist Robin Russell, Administrative Assistant
Maineville OH Office 2775 W US HWY 22 & 3, Suite 2 Maineville, OH 45039 513‐239‐6602 Dick Engle, Mortgage Specialist Tonya Cornthwaite, Production Specialist
ACS Team ‐ Maumee OH Office 1715 Indian Wood Circle, Suite 200 Maumee, OH 43537 419‐823‐7354 Lisa Traxler, Senior Mortgage Specialist Holly Johnson, Mortgage Specialist Catherine Gee‐Robinson, Mortgage Specialist
1stBancorp Mortgage Team – Milford OH Office 200 Techne Center Drive, Suite 101 Milford, OH 45150 513‐965‐0015 / 513‐965‐0016 fax Rob McGeorge, Vice President – Mobile 513‐ 602‐1852 Kharon Palmer, Mortgage Specialist Howie Coleman, Mortgage Specialist Paul Brezinski, Underwriter Becky Stewart – Production Specialist Jamie Hedger, Production Specialist
ACS Team – Newark OH Office 25 ½ S. Park Place Newark, OH 43055 740‐349‐7082 / 740‐349‐7176 fax Trinda Detwiler, Mortgage Specialist Jeff Harris, Mortgage Specialist
Altoona PA Office Pennsylvania Equity Resources, Inc. 304 Frankstown Road Altoona, PA 16602 814‐943‐1900 Betty Heffner, Mortgage Specialist
Beaver PA Office Pennsylvania Equity Resources, Inc. 525 Third Street Beaver, PA 15009 412‐651‐6989 / 412‐774‐1302 fax Shawn Morrow, Mortgage Specialist
Carnegie PA Office Pennsylvania Equity Resources, Inc. 102 Broadway Street, Suite 101 Carnegie, PA 15106 412‐278‐9000 / 412‐278‐9009 fax / 800‐ 480‐9992 toll free – customer’s only Michael Skerbetz, Mortgage Specialist
5 | P a g e
Scott Trout, Mortgage Specialist Mike Kiss, Mortgage Specialist Shannon Williams, Mortgage Specialist Andrea Twardy, Mortgage Specialist Brad Sawhill, Mortgage Specialist Joe Barbieri, Mortgage Specialist Susan Olson, Production Specialist/Loan Officer Assistant Jennifer Kiss, Loan Officer Assistant Candy Hick, Loan Officer Assistant
CFL Team ‐ Irwin PA Office Pennsylvania Equity Resources, Inc. 9489 Route 30 Irwin, PA 15642 724‐493‐0673 Deborah Zatezalo, CFL Team Leader
Wexford PA Office 6021 Wallace Road Extension, Suite 203 Wexford, PA 15090 412‐337‐9537 Joanne Ralston, Mortgage Specialist Christine Ralston Bell, Mortgage Specialist Millie Murphy‐Mahon, Mortgage Specialist Kirk Sieg, Mortgage Specialist Vicki Winrader, Mortgage Specialist Kevin Yurkovich, Underwriter Derek Bayer, Mortgage Specialist
Hilton Head SC Office 7 Cypress Marsh Dr. Hilton Head Island, SC 29926 Buddy Ratchford, Sales Manager
Summerville SC Office 308 Verbena Avenue Summerville, SC 29483 843‐296‐8219 Lisa Barrett, Senior Mortgage Specialist
General Information States we are licensed in: Alabama, Arizona, Connecticut, Delaware, Florida, Indiana, Kentucky, Maryland, Michigan, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Virginia, Washington DC Loans we are currently licensed to do: Conventional – FNMA or FHLMC Non‐conforming loans FHA – Non supervised Mortgagee 203K (have to go through our 203k training) 203B – regular loans USDA VA – Automatic approved We do not do loans of the following types (this list is not exhaustive): Reverse Mortgages HECM – Reverse Mortgages Construction Loans (only for trained loan officers) Business loans Loans on properties over 4 units Manufactured Homes
Standard Hours of the Newark Office Monday 8:30 to 5:30 Tuesday 8:30 to 5:30 Wednesday 8:00 to 5 Thursday 8:30 to 5:30 Friday 8:30 to 5
6 | P a g e
Flow of a Loan
Loan Officer takes the application (address) or prequalification (no address) in Architect. Loan Officer pulls credit. Loan Officer can choose to run the loan through NYLX/www.loandecisions.com (pricing engine) at this point or at any point they choose Loan Officer can review the investor guideline documents in NYLX or the overlays in the LO Toolbox on the website at any time. Loan Officer contacts the borrower and reviews the loan programs available. Loan Officer updates Architect with the option that the borrower chooses and completes the LE and prepaids. Loan Officer is able to print a cash to close worksheet utilizing the printing option in Architect. The document can be saved and attached to an email. Loan officer pulls the calendar for the loan by entering in the closing date & application date and emails the calendar to the customer (only app date needed on a refi – it generates a closing date). Loan officer emails the calendar and Realtor Fee Sheet to both Realtors on the transaction (if a purchase with Realtors). Loan Officer emails the disclosure department at
[email protected] when they are ready to have RESPA (initial documents) sent to the borrower. Disclosure dept. sends the RESPA to the borrower using the method that the Loan Officer specified. If the Loan Officer specifies to send the RESPA via email, the Disclosure Dept. will send the RESPA to the borrower(s) and Loan Officer using DocuSign. Loan Officer meets with the borrower(s) or has a telephone conversation to review the documents. If DocuSign, once the borrower(s) and Loan Officer signs the RESPA package, the Disclosure Dept. and LO will receive an email that the documents are now complete and the Disclosure Dept. will then upload the signed RESPA package to VirPack (paperless file) If using any other method, the Disclosure dept. will upload the RESPA as in VirPack, once RESPA is returned. Once the RESPA is uploaded to VirPack, Disclosure Dept will email LO, saying RESPA has been uploaded and ready for review. To start an order all, the Loan Officer must complete the following steps: 1. Loan Officer completes Doc Tracking in Architect 2. Loan Officer or Loan Officer Assistant emails
[email protected] to request an Order All Subject line should have borrower’s last name and loan # Attached the following items: Supporting Docs Story of the Loan RESPA (application package) ‐ (only if it wasn’t DocuSigned) As soon as these items are complete, the processing of your loan will begin! If the signed RESPA and supporting docs are returned to the Loan Officer because it was a face to face meeting or they just printed out and signed, then the LO will forward to the order all email and the processing set up specialist will upload to VirPack.
7 | P a g e
Processor set up specialist will transfer the Credit, Purchase Contract (if applicable), signed RESPA if not already in VirPack, USPS confirmation, and reviewed and accepted initial supporting docs to VirPack. Processor set up specialist completes the Order All ‐ when Title Search is ordered, the Calendar of the loan is sent to the Title Company along with a request for the prelim CD Processor tasks the Appraisal order to the Appraisal Ordering Specialist Appraisal Ordering Specialist orders the appraisal and has all contact with the appraiser during the loan process. Processor set up specialist will transfer the additional following items received during the Order All process to VirPack: 1. FHA Case # Assignment and FHA Validation/Case Query 2. Tax Transcripts 3. VOEs 4. Title Commitment 5. HOI 6. Payoff (if applicable) 7. Condo/PUD Questionnaire 8. VOM 9. PMI Quote or Commitment (if commitment is obtained at this time) 10. Processor to make annotation on paystub calculating income Processor will submit the file to underwriting within 3 business days Processor to transfer the following docs to Virpack at submission time: 1. Completed story to the Underwriter template 2. Submission Checklist 3. Final AU 4. 1008 5. Updated 1003 6. Final submission forms for VA, USDA, and FHA Stmt of Appr Value (if applicable) 7. Flood Cert 8. UCDP (if conventional) Underwriter will email the Conditional Approval to VirPack, LOs, and Processors. (This will also apply for files designated clear‐to‐close.) Processor can review the Conditional Approval and communicate to the Loan Officer/Loan Officer Assistant what items they need to work on and what items they are working on. Turndowns or withdraws can be processed at any time during the loan process. As always, the Processor is to document the notepad and doc tracking in Architect every step of the loan process. Once the Appraisal is received, the Appraisal Coordination Specialist will email it directly to the Processor or the Appraisal Reviewer depending on the phase of the loan. The LO and borrower will receive a copy of the appraisal via Docusign when it is sent to the Appraisal Reviewer if the loan passes initial review.
8 | P a g e
The Appraisal Reviewer will review the appraisal within one business day of receipt and issue an approval of the appraisal or request that appraisal conditions are ordered from the appraiser internally. The Appraisal Ordering Specialist will order any appraisal conditions directly from the appraiser and follow up until received. Any updated appraisal will also be sent to the LO and borrower via Docusign once received. If loan terms change, a Change of Circumstance is required. A new LE will need to be sent to the borrower. Loan Officer should complete the change circumstance screen in Architect (if they want) or just send an e‐mail to
[email protected] to request the revised LE be sent to the borrower with the reason for the change. Disclosure Dept will complete the Change of Circumstance form in Architect and re‐disclose the LE to the borrower using DocuSign Disclosure Dept will upload the Change of Circumstance form and LE to Virpack when received back. Once conditions are received by the Processor, they can transfer the conditions to VirPack and name it appropriately (i.e. “Condition #1, Conditions #2, etc.). Underwriter to review the documents in Virpack that are named “Condition. . . “. The Underwriter can label the document appropriately so that the documents fall into the appropriate spot in the stack order. Processor submits the file once all conditions are in until the Underwriter issues a clear to close. Loan officer monitors their own Closing Disclosure Queue and notifies their Processor when the CD needs to be sent to meet the estimate closing date in Architect. Loan officer confirms the Realtor Fee sheet has been received and forwards to their processor. The processor completes the fees in the closing screens based on the Realtor fee sheet and prelim CD returned. The processor enters in the closing date to request the CD to be sent. CD prep prepares the closing disclosure and notifies Disclosure Dept when it is ready to go. The Disclosure Dept reviews the Closing Disclosure for accuracy and adherence to all guidelines and conditions. The Disclosure Dept sends the CD to the borrower and all parties on title through DocuSign if possible. CD is mailed if not sent through email. Once the file is Clear to Close, Loan Officer needs to communicate the actual closing date and time to the Processor and enter this information on the Loan Status screen. Processor can now update Architect with the closing date & change the CLOSER name to “READY FOR DOCS” Now that the closing date is in the system, the funding can be setup by accounting. If you have an early closing and need to request that funds are sent out a day early, the request must go to accounting. The closing assistant verifies employment and does other compliance checks on the loan. The closing assistant sends closing docs to the title company. These unsigned closing docs are saved in the image cabinet. The closing occurs.
9 | P a g e
Once the signed closing package is received electronically, the Shipper transfers the loan to Virpack and reviews the documents are all completed and all closing conditions are met. The shipper contacts the title company for all missing documents and ships the loan to the end Investor if allocated. QC department reviews closed loans for compliance. QC department handles any suspense issues with end investors or internally if QC discovers an issue. They may need your assistance with any missing borrower’s signatures or other items. The Investor will then purchase the loan. Post‐Closing insures the loans as necessary with FHA, VA or USDA. Servicing is transferred to our sub‐servicer on any loans with FNMA and GNMA.
10 | P a g e
Computer Your laptop must have a password on it.
Programs Used: 1. Outlook email – has a password to access email online. You must use call equity email for all correspondence ‐ Red Flag Rules. – YOU ARE NOT PERMITTED TO HAVE YOUR COMPUTER SAVE OR REMEMBER THE PASSWORD! 2. Lync Instant Messenger – has a password to access. You do not have to sign out of the Instant Messenger. 3. Architect – your main Loan Originator system 4. www.callequity.net – employee section to access LO toolbox 5. www.loandecisions.com – pricing engine (NYLX) TO COMPLY WITH RED FLAG REGULATIONS, ALL DEVICES MUST HAVE A PASSWORD ON THEM IF WORK EMAIL OR IM IS LOADED ON THE DEVICE!
11 | P a g e
Architect System Functionality Tool Bar: Each screen will have a tool bar at the top. Some of the tool bar’s functionality can also be accessed by selecting a Function Key on the keyboard.
Below are the icons in the tool bar and a description of their functions. Save – This icon is the Save button for saving or filing out of a screen. If accessing a screen and entering/changing data, hit this icon if you wish to save the changes and exit out of the screen back to the main menu. If you wish to move forward to another screen that this screen is tied to, use the Forward icon. This will save the changes and move you forward to the next screen. Lookup – This icon in the lookup button that is available on many fields. If no lookup is available on the field, this icon will be de‐emphasized. The lookup tables this option accesses may either be tables controlled by the system or tables created within your Administration. Many tables allow a user to multi‐tag two or more options. To do this, hold the Control key down on your keyboard while you click on each item with your mouse. Once all options are highlighted, hit the accept button. Many of the table lookups within the system will allow a user to enter just the first few letters of the name they are looking for in the field and then select the lookup icon. The system will then only display items in the table that start with those letters. Page Backward – This icon is used to save the data and move to the previous screen. If no previous screen is available, this icon will be de‐emphasized. Page Forward (AKA Next) – This icon is used to save the data and move to the next screen. If no screen is available to move forward to, this icon will be de‐emphasized. Print – This icon is used to when you wish to print, view or email a document/report. If no print option is available on the screen, this icon will be de‐ emphasized.
12 | P a g e
Print ‐ This option will print the document(s) to the printer the user is assigned to.
Email ‐ When the email button is selected the system will auto‐launch the user’s email client with the document already attached. If the “Display Email Addresses when Email is Launched” option is turned on in Administration, the system will display all email addresses entered on that loan. For example, the borrowers email, borrower's work email, appraiser email, title company email, etc. A user can select one of the email addresses and the system will auto‐launch their Outlook already addressed to that address. If they do not wish to use one of the addresses listed, they can escape or close out of the display and the system will still launch their email with the document attached, but they will have to address it themselves. This display will only occur if the email is used while in a loan. o The email module is programmed to have a password. The user will need to notify the end user of the password. The password we use is SMILE. When a document is emailed from the printing menus the system will display all email addresses entered for that loan on screen for a user to select from. For example, the borrower’s email address, work email, appraiser email, closing agent email, referral’s etc. The user can then select one
13 | P a g e
or more addresses from this list and the email will then launch with those addresses already in the send to field. If the user does not wish to use any email addresses within the loan, they can simply escape or X out of the display screen and the email will launch as before with just the document attached. The subject line of the email has also been modified to display the borrower’s last name as well as the loan number. Remember this display of emails within the loan will only occur if you are emailing a document on a loan. It does not apply to reports, etc. within the system. When a document is emailed from the printing menus the system will display all email addresses entered for that loan The user can then select one or more addresses from this list and the email will then launch with those addresses already in View – This option allows the user to view the document(s) in Adobe as a .pdf before printing.
When printing from Adobe, the default print option is set to print all documents on letter size paper. Legal documents will be condensed to fit on letter size paper. To prevent this from happening and to have Adobe print on the appropriate size paper there is a one‐time setting that has to be made within Adobe on the user’s PC who is printing the documents. Within the PDF file you are about to print, go to File (from the toolbar), then Print, and then select Advanced. There is a check box called “Choose Output Tray by PDF page size”. Select this option and the printing will then work properly. This setting only has to be done once and it will work that way from then on.
Change Printer – This option allows a user to print the document(s) to any printer setup on the network. When selected a list of printers available for them to select from will display. This will not affect the default printer assigned to the user. It will be for this print request only. Exit – This selection will exit the user out of the print job all together.
New Loan – This icon is used to select a new loan number. When selecting this option, the user will be prompted to enter the loan number or Borrower’s last name.
14 | P a g e
Loan Lookup: If you do not know the loan number and wish to search for the loan, select the lookup feature on the input screen. The following screen will display: The user will be able to enter in any of these fields to search for the loan by. Once the info is entered, select the “Save” icon or hit F2. If you don’t know the exact spelling of the last name, enter in just a few characters and the system will display any loan that has those characters in the last name for borrowers 1 and 2. If you enter in just one letter for the last name, the system will display all last names that begin with that letter. If you wish to see all loans in the system, select the “Save” icon and all loans in the system will display in loan number order, starting from the latest. Here is what information will display when a loan lookup is run:
The user can resort any of these columns by simply clicking on the column heading. If another user is already in the loan, a message will display allowing the user to choose to exit, view the loan (without being able to save any changes) or retry which will check the loan again for access. Copy – This icon can be used if you wish to “copy” text to later “paste” into another field. Paste – This icon can be used if you wish to “paste” copied text into a field. Check Loan ‐ This icon is used to run the “Check Loan” feature in our system. The Check Loan feature compares the loan data to the guidelines entered within the Loan Program as well as various other edits alerting the user to potential problems with the loan. The Check Loan screen can also be printed using the Printer icon ( ). The printout will be date and time stamped.
15 | P a g e
Note Pad – ( )This icon accesses the Note Pad option screen for entry of user notes. This is a general Note Pad available on all screens that can be used to communicate information on the loan to all parties. There are many other comment buttons available throughout the system, which are more specific to individual departments. When notes are entered in the Note Pad screen, they will be user ID and date/time stamped. On every screen within the system the field under the loan number will turn green and indicate the date of the most recent note entered. After typing your note, you must press enter before saving to format it as a paragraph instead of it staying on one line and having to scroll right to see the rest of the note. Only the user who entered the notes will be able to alter or delete their own notes. Special Paste ‐ If you wish to copy an email into the note pad screen right click and copy the information out of the email then access the Special Paste option on the note pad screen. (
)
Do not right click and paste. You must use the “Paste” option in the tool bar on this screen. This will paste the email into the special screen. Next select the Paste to Notepad option in the special screen. This will then paste the email into the main notepad screen on the loan. Print‐ The Note Pad screen can be printed by selecting the printer icon in the tool bar.
16 | P a g e
Images – This icon is used to attach/view images, PDFs, jpegs, scanned faxes, Word documents etc. on a loan. When the image is attached to the loan, it can be viewed by your users from any screen in the system.
How to Upload to the Image Cabinet When uploading a document to Architect, choose the Image Cabinet Symbol at the top of nearly any screen you are in. 1. Choose Upload, and then click Browse . 2. Find the document and double click on it or click once and click “Open” 3. Click on File Area and use your lookup ‐ Choose 01 – Processing. Click Accept. 4. Go to Document Code box & choose the look up. All of the options that you can upload your document as will appear. 5. Choose one and Accept 6. Then Click Upload. Email – If a user wishes to email an image that is stored on a loan, they simply check the image(s) they wish to email and select the F6 Email button. If the user’s security group (as set up in Image Document Codes Table) allows access to this document, the system will then display the document to the user on screen. The system will launch the user’s email client (only if using Microsoft Outlook) and automatically attach the image they selected. If you do not use Outlook as your email platform, the image will be stored in the PDF.DOCS folder.
17 | P a g e
Basic User Concepts Drop Down Tables ‐ Many fields in the system will have a drop down table lookup attached to them (see the Loan Program field in the sample screen shot above). To select an item from a drop down, scroll through the table and click on the item you wish. A quick way to find an item in a drop down table is to enter in the beginning letter. The table will scroll automatically to the first item that begins with that letter. To delete a field that has a drop down table attached to it, the user must select the option in the table. You will not be able to use the backslash key (\) on these fields. Note: do not arrow through fields that have drop down tables attached to them when trying to move through the screen. This will cause the entry of the drop down field to change. Radio Buttons‐ Many fields are shown as radio buttons instead of input fields (see the Loan Type and Occupancy Type fields in the screen shot below). Instead of entering a code or selecting from a table, the user can simply click on the option they wish. Note: do not arrow through fields that are radio buttons when trying to move through the screen. This will cause the entry of the field to change. Tables ‐When a user accesses a table using the Lookup Icon, the system will load the entire table. On some table lookups that have a lot of data, loan number for example, this load may take a minute. If the user does not wish to load the entire table, there is a Stop button at the bottom of the table that can be selected. This will stop the load of the table, and the user can use the scroll bar to move down through the table and the system will load the table as needed. Screen Grids ‐ Many screens in the system have a grid style display (see the LE Closing Costs screen shot below). This grid style allows a user to click on the heading of each column and widen or shorten the length of the column as needed to see the data entered. Note: on some screens where the user has the ability to enter additional items to the columns, the user will need to return through the last field on the row above or arrow down on the field above so the system will insert a new entry row.
18 | P a g e
Sub‐screens ‐Any sub‐screens that are buttons at the bottom of the screen will be highlighted in green if they apply to your loan and have data within them. All comments or notes sub‐screens will be highlighted in green if notes/comments are entered within them. Ellipsis buttons (
) will be highlighted in red if there is data within them.
Email Address Fields ‐When a user double‐clicks on any email address, the system will auto‐launch Outlook and open an email already addressed to that address. One thing to note on this, the focus has to be on the email address field first (field highlighted) before the user double‐clicks on it. P&I Calculator ‐When entering a P&I payment in the system a P&I Calculator is always available to the right of the P&I field. Simply indicate the loan amount, interest rate, term and if applicable whether or not the loan is an interest only. If the user saves out of the P&I Calculator the result will be returned to the P&I field. A user can access the P&I Calculator without being in a loan from the Tools menu. Field Displays ‐The system will display certain fields in colors to help draw the user’s attention to them.
The Pricing button(s) will display in green once a rate lock has been confirmed. Both the Pricing button(s) and the rate lock expiration field will display in yellow if the rate lock will expire in the next five days for all open loans. o Note: The button will not remain yellow once a declined/withdrawn or a closing date has been entered. Both the Pricing button(s) and the rate lock expiration field will display in red if the rate lock has expired for all open loans. Note: The button will not remain red once a declined/withdrawn or a closing date has been entered.
‐The appraiser’s name will display in red within the system if the company is currently on a watch list for all open loans.
‐The closing agent’s name will display in red within the system if the company is currently on a watch list for all open loans.
‐The referral’s name will display in red within the system if the company is currently on a watch list for all open loans.
19 | P a g e
Phase Codes The system has been programmed to assign a phase code to represent the current phase of a loan. Whenever the phase of a loan is changed, an internal code is set that represents that phase. For example, when the Closing Date is entered, the phase is updated to Closed.
Example of a Phase Change On a Prequal, address is received and the application date is added to the Registration screen. ‐The phase changes to Application Taken. 20 | P a g e
FYI / TRICKS •HIT ENTER AFTER TYPING IN ANY FIELD •Use ENTER to go field to field not TAB •To delete something – “\” ‐> “Enter” • “T” gives today’s date •Lender is us, Investors is who we sell loans to •To set up a new loan – enter NEW •Borrower joining – 1,2 for married borrowers – to split then put 1 then the borrower, then 2 then the second borrower •Can type the word “SAME” in the current address field if it is the same as the property address •Employment or Residence time ‐ Type in 18 MONTHS instead of 1 year 6 months •Don’t use any special characters or symbols – these will error out in DO/LP – examples are “&”()[]#* •Make sure you have no blank or incomplete lines. AU will think there is something there & will error out •Enter capital “I” next to present mortgage payment to show TI included in mortgage payment •Lookup function – start by typing the first few letters and then hit the lookup and only those starting with those letters will appear •Lookup function – type [30] and will only show items with 30 in the title •Make sure to hit ENTER after inputting any information into type fields. Then hit SAVE when you are finished inside a loan. •You can resize the font of the screen by using – or + buttons at the bottom right corner:
•To move the side menu out of the way simply click on the to open it back up. •When you update your password for Mortgage Builder/Architect it must be minimum of 10 characters in length and must contain 3 of 4 types of characters. (Uppercase, lowercase, numbers, non‐alphanumeric (@,*, #, for example.)
21 | P a g e
Signing into Architect/Mortgage Builder
Double click the Architect icon on your desktop. Enter your user name AND password and click Connect If you get an error because you accidentally typed in the wrong password, simply click OK. Simply type your Architect username again in the Windows User Name and your password in the Windows Password field and click Test Network. If you get a “test was successful” message then click ok and then click Save and you will be logged in. If you get a “failed”, please contact your administrator. Loan lookup by Loan Officer – Do the following steps to generate a list of only one loan officer’s loans. 1. Click the lookup icon ( ) from either the Loan number field or Borrower Last Name field. 2. Enter the Loan Officer’s initials in the Interviewer field 3. Click Save
Taking an application in Architect Required Application Fields in Architect before credit can be run: 1. Application date or Pre‐Qualification date must be completed ‐ Registration 2. Branch Code ‐ Registration (prefills in automatically) 3. Interviewer Name ‐ Registration (prefills in automatically) 4. Processor Name – Registration (prefills in automatically) 5. Loan Purpose – Loan Detail 6. Occupancy Type – Loan Detail 7. Borrower Home Phone – Borrower Info 8. Borrower Date of Birth – Borrower Info 9. # of Dependents – Borrower Info 10. Borrower Race – Borrower Info 11. Borrower Ethnicity – Borrower Info 12. Borrower Sex – Borrower Info 13. Borrower Marital Status – Borrower Info 14. Subject Property State ‐ Property 15. Income exists on the loan ‐ Employment
22 | P a g e
Origination Summary 1. Click on Origination‐>Origination Summary from the menu 2. Type NEW in the Loan Number field and hit Enter. The Origination Summary screen will appear
Loan Registration 3. Click the Registration button at the bottom of the screen. The loan registration screen, where you’ll start your application process, will appear. 4. If there is a property address: Click on Application Date, if not click Prequal Date, type “T” and hit enter. This will make today’s date automatically populate. 5. Complete Referral Type and type in the code, or look it up with the lookup button ( ) 6. Complete the Referral Name – if this is a Realtor, this would be the company name, if just a Referral then this would be the person’s name that referred the customer to you. If the Referral Partner is in Architect already, while on the field, choose the Look up ( ) find the referral name in the list & click Accept o If the Referral Partner is not in Architect as a contact, then simply type in Referral Name. Once you tab past a box will pop up, just X out of the box if it pops up. 7. Complete the Referral Indiv Name – If this is a RR, this should be the Realtor name, not the company o
If the Realtor name is in Architect already, while on the field, choose the Look up ( ) find the referral name in the list & click Accept o If the Referral Partner is not in Architect as a contact, then simply type in Referral Name. Once you tab past a box will pop up, just X out of the box if it pops up. 8. Once the referral name is entered choose NEXT o
Loan Detail 9. The Loan Detail Screen will appear. Choose the Loan Purpose from the drop down menu & a pop up will appear for you to enter the Needs or core values 10. Type them in & Save To review or edit the “Needs” click the Color Wheel button at the top of the loan detail 11. Enter the Reason & page. correct type of refinance (if refinance) 12. Click the correct Occupancy Type 13. Complete any additional information on this screen that you may know at this time 14. Click the next button When asking for an email address, please ask the borrower if it is ok to send them pertinent loan papers through email
23 | P a g e
Borrower Information 15. The Borrower Information Screen will appear 16. Type the Borrower’s Name, social security number, all applicable phone numbers, email address, date of birth, age will automatically populate based on birth date, years in school, number of dependents, race, ethnicity, sex, and marital status o Use the lookup for the last four fields until learning the codes. Once you’ve learned them it is easier to type the code then enter. (i.e. M for married and U for unmarried) o Once you choose the marital status, it automatically takes you to the Coborrower’s screen, if there is a Co‐borrower enter the co‐ If Unmarried Co‐Borrowers borrower’s information. 17. If you have Unmarried co‐borrowers ‐ go to the Unmarried Joins Borrower Joins screen o Change the screen to look like the picture labeled “Unmarried Joins” o If it shows as 1,2 like the picture labeled Married Joins “Married Joins” and you need to change to the above example, put the cursor after the “2” and hit backspace two times. Then click in the second Joins box, type “2” and hit enter. 18. Click on Title Only (bottom of screen) – ask the borrower if a spouse or other party not on the loan will be on title & complete their full name & email address 19. Once you are finished entering all borrowers click next, which brings you to the Subject Property screen 20. Enter the address or TBD if prequal – 21. If a prequal, enter a state ‐ use all capitals, i.e. OH or AL (so pricing & LE worksheet will work correctly later) 22. In the County Field – Use the look up, type the county name and hit enter. 23. If unsure of address, click on the hyperlink beside the zip code field to check the address before continuing
24 | P a g e
24. Complete # of units, Property type & Lien position 25. Click Save ( ) and you will return to the origination summary screen. 26. Click on Borrower Info under “Application Screens” – choose Current/Previous Address ‐ enter the current address of the borrower and any previous addresses. Tips for Filling in the Address Fields For the main Borrower or Borrower #1, enter 1 in the Borrower If the address applies to more than one borrower then type 1,2 In the Current/Previous field, Type C or P to indicate C – Current or P ‐ Previous To enter more than one previous address, use the lookup button to choose P2, P3, etc. If the subject property is the same as the current address, type “SAME” in the Street Number field and enter and it will populate. 27. “Enter” through Country & it will complete 28. Complete Own, Rent, Family, Rent Free – choose the look up & choose an option 29. Click next ( ) 30. The employment screen will appear and need to be completed
25 | P a g e
Employment and Income 31. Enter a 1 for the main Borrower or a 2 for the Coborrower and hit the Enter button to pull in their names 32. Type in C for current and P for previous and hit the Enter button – the employer detail box will pop up to complete 33. Type in the Employer name, title & years on job (at minimum) and click Save 34. The monthly income box will pop up 35. Complete the initial income. Use the look up ( ) on the field to calculate the income out. 36. Once you choose click Save. 37. Type in the beginning date only for current employment 38. Type in beginning and end date for previous employment. 39. Click Save 40. To enter another job, click on the line that was just created and hit Enter until a new line appears and follow the above steps 41. Once 2 jobs are entered for the same borrower, you need to put them in order.. In the example 2 jobs are entered, so change the previous job to a 2 so that current employer is 1st and previous employer 2nd. 42. Delete any blank lines so that DO or LP does not pick up any additional employment. (Use the \ and then the ENTER key to delete lines) 43. To enter other income put your cursor in the first box below “Borrower” in “other income” 44. Type 1 (for borrower 1) and 2 (for borrower 2) & hit enter 45. The cursor will move to description – use the look up to use the standard set of “other income” that will work best in DO and LP. If you free type in here, the income in the AU will not be specific. Use the drop down as much as possible. 46. Highlight the description and click “Accept” 47. Then type in the amount 48. Click next ( ) once you have completed the employment & income
26 | P a g e
28
Borrower Names
30
Employer Information
31‐36
Income Information
37‐39
Additional Employmen t
40‐41
Other Income
42‐44
Description and amount
Assets and Liabilities
If Prequal‐Enter in current rent and click next 47. The assets screen will appear 48. Click the first box under financial institution, type the bank’s name and hit Enter for the institutional assets box. a. You can also click look up ( ) for banks that you have already saved 49. In Account type, use the look up to choose the correct type. Hit enter once it’s selected. a. Or just type the proper code once you’ve memorized them. 50. Type in the Initial amount (account balance) and choose Y for Liquid so the amount will appear on the printed 1003. Hit Enter and then Save. 51. Enter Gifts as a bank account so the gift figure does not pull through to the LE as a credit (don’t add in Other Assets Section) 52. To enter another asset put your cursor at the end of the line and hit enter to make another line appear. When you are 53. 54. 55. 56. 57.
done, choose next ( ) to get to the Other Assets Screen Under joins – enter 1,2 if you have two borrowers for the asset listed, 1 for borrower only, 2 for co‐borrower only. Enter Click on the box under type and choose the lookup to see the available asset choices. Choose one and Accept Type in a description if you want to, and then enter a value. Hit Enter to create a new line if you have other assets to enter When you’re finished entering assets, hit save to go back to origination summary.
With “Gifts deposited”, the amount will not add to the assets listed since the asset has already been considered in the bank account; “Gifts undeposited” will add to the assets.
27 | P a g e
58. Click on Declarations under the Application Screen
59. Update any questions as applicable 60. Answer question m and press Enter a. If No, it will take you to the Coborrower’s automatically b. If Yes, it will keep you on the Borrower’s screen to finish the last two questions c. If you change an answer to YES a box will pop up so you can type in an explanation – this explanation prints on page 4 of the application and can help avoid any separate LOX’s Make sure to ask the child support/alimony question! If they answered yes to question G on the Declarations: o Go to Assets & Liabilities under the Application Screens again and choose Liabilities. o Choose Other Liability o The Other Liabilities screen appears, under Join(s) type 1,2 or 1 or 2 o Under type choose the look up, choose the correct description and Accept o Add a description to in the Description field and Monthly Amount o Save and Save to get out of the Liability Screen The application is now complete!
28 | P a g e
Ordering Credit
From the Origination Summary screen, click on Credit Interface. The Credit Interface screen will display Choose F4 – Request Credit Report Choose CREDITPLUS – Accept Confirm merge type is listing all 3 repositories
Once you have hit F8 to submit, the system will tell you that the download is complete and ask you if you wish to order another report.
From origination summary, click Credit Interface
The system will display the credit report as soon as it is received, and the report can then be printed. In addition, the liabilities from the credit report will automatically populate into the application. The credit report will also be available to view in the “filing cabinet” for future reference. To reissue a credit report, click on Application Info and enter the report reference #s for both borrowers. You must first be clicked in the field directly under Submission Option and then you can click in Application Info. Then you must make the Action “R” for reissue instead of “S” for submit. When you want to pull a Credit report on a loan that already has a credit report then you need to delete the reference numbers prior to pulling a new report. Credit scores are imported into the loan as follows: If a credit report is returned and only two scores are returned for a borrower, the system will use the lower score in determining the median score on the loan If a credit report is returned and only one score is returned for a borrower, the system will use that score in determining the median score on the loan To view the credit score imported into the system, go to origination and click on origination summary. You will then see the credit score.
29 | P a g e
Required Application Fields in Architect before credit can be run:
Application date or Pre‐Qualification date must be completed ‐ Registration Branch Code ‐ Registration (prefills in automatically) Interviewer Name ‐ Registration (prefills in automatically) Processor Name – Registration (prefills in automatically) Loan Purpose – Loan Detail Occupancy Type – Loan Detail Borrower Home Phone – Borrower Info Borrower Date of Birth – Borrower Info # of Dependents – Borrower Info Borrower Race – Borrower Info Borrower Ethnicity – Borrower Info Borrower Sex – Borrower Info Borrower Marital Status – Borrower Info Subject Property State ‐ Property Income exists on the loan – Employment
Next Action Date Completing the Next Action screen will prompt an email to the Loan Officer on the specified date. The email will include the last note entered in the notepad on that loan along with: Next Action Date Next Action Description Borrower 1’s Preferred # to Call Borrower 1 Home Phone Borrower 1 Work Phone Borrower 1 Cell Phone Borrower 1 Email Address 1. Click on the Notepad from any screen 2. Click on Next Action – complete the date & Next Action using the lookup or free typing and click Accept and Save
30 | P a g e
Architect ‐ DU LOAN SUBMISSION From the Origination Summary, click on FNMA DU Interface menu select DU Loan Submission. The screen on the right will appear. Entitlement Amount ‐ On VA loans, enter the Veteran’s Entitlement Amount. This amount will default over from the VA Loan Summary Screen if entered there. If the Entitlement Amount on the VA Loan Summary Screen is blank the amount entered here will default there. If blank, the system will submit the loan to DU with 0 entitlement. Choose the FNMA ARM Program, if applicable. Submit – When the submission screen is completed, the F8 Submit button will prompt the user to indicate if this is a new submission or a re‐submission. If “NEW” submission is selected and the loan was already submitted to DU prior, the system will warn the user of this and ask if they wish to continue. The system will then review the data of the loan you are submitting and will display a message box if any required fields have not been completed. You will have the option to complete these fields or exit from the submission process. If you choose to complete the fields, the system will display the items that have not been completed and take you directly to the screen where the field is located. Make sure the message box is read carefully as some screens may have more than one field that is missing. Once you have completed the field, save the screen, and the submission process will continue.
Credit Report Action: If a user is re‐submitting a loan, the system will need the DU case file number. This number should already exist in the system on the Underwriting Status screen when the previous response file was received from DU. If for any reason this number does not exist, the system will prompt the user to enter it. In addition, the user will be asked to select a credit report action. They will have 3 choices: 1. Use Existing: AWAYS USE THIS OPTION 2. Re‐Issue: New credit was pulled and we need to run with the new credit instead of the old credit 3. New: Don’t Use
31 | P a g e
When the response is received from DU on the loan the system will automatically display the Underwriting Findings and Analysis on screen to the user. The Findings and Analysis will open in your internet browser, and depending on version of your browser you may have two windows open or you may have to page backward/forward to switch between the Findings and Analysis. To print the Findings and Analysis, simply select the printer icon tool bar when viewing the reports on screen. If Fannie Mae did not return findings on the loan due to an error, an error report will appear to the user on screen.
UNDERWRITING FINDINGS/ANALYSIS If a user wishes to view the Fannie Mae DU Underwriting Findings and Analysis again on a loan, simply access these options from the DU Interface menu. VIEW/PRINT CREDIT REPORT If a user wishes to view the credit report that was returned by Fannie Mae (not the direct credit interfaces) they may do so from the DU menu as well. VIEW ERROR
32 | P a g e
Errors returned by DU can be viewed from the Underwriting Findings and Underwriting Analysis screens. This is useful if Fannie Mae or the Credit Bureau did not return any findings due to a problem with the loan. The screen will display a 6‐digit error code that can be entered in the View Error Code Sub‐screen. The system will then display to the user what the error code means. The following are areas in Architect that need special consideration in order for the field to download to Desktop Underwriter and Originator properly. 1. The property city, state and zip fields on the Real Estate Owned screen will be brought over properly to DU when a certain format is followed. This format requires the city name followed by a comma (,), then one space and the two‐digit state code, then one space and the 5 or 9 digit zip code. For example: Southfield, MI 48075. If additional spaces are entered, the information will not appear properly in DU/DO. 2. On the “Other Assets” screen, the description field will need to be entered in a certain format to bring over the model year for automobiles and the number of shares for Stocks & Bonds. The format for autos is; make of car followed by a space and then the year. For example: Ford Mustang 1999. For Stocks & Bonds the format is; name or description of the stock/bond followed by a space and then the number of shares. For example: Chrysler 500. 3. In order for one type of Other Credits to be transferred to DU properly, a user must enter it a certain way in the system on the Details of Transaction screen in Application. In the Other Credits description field, the user will need to enter their description exactly as LENDER CREDIT in order for the system to send it to DU the same way. Otherwise they can use the lookup on this field off Details of Transaction to see other credits allowed by DU. 4. Earnest Money Deposit is sent from the Details of Transaction (not the Other Assets screen). DU Note: Only liquid assets are listed in the available funds message, and "Cash Deposit on Sales" (EMD) is not considered a liquid asset. If the EMD is entered as an asset, then it is not included in the available funds calculation and not listed in the available funds message. If the EMD is entered as another credit, then the required funds are reduced by that amount. Even when the EMD is used to reduce the required funds, DU for government loans does not issue a verification message for it.
RESPA/TD/CXL Compliance: Refinance:
Always a New file since property address is identified. A credit report will be pulled for all files that are set up Compliance action is required RESPA is required within three business days unless the loan is WD or TD in first 3 days. o Withdrawal within 3 days: Customer decides not to go with the loan. Follow the Withdraw Instructions in this manual
33 | P a g e
o
Turn down within 3 days: We cannot do the loan for the borrower. Follow the Turn Down Instructions in this manual If not TD or WD within 3 business days, RESPA would have to be sent. Email
[email protected] “Send RESPA” before or on day 3.
Purchase: Set up the file in Architect: Prequal:
Make sure subject property is left blank or TBD Enter date in Prequal Date (NOT APPLICATION DATE)
Property Identified:
Upload complete Purchase Contract in the File Cabinet Enter Application Date on Registration Screen RESPA must be sent within three days of Contract date
Explanation of RESPA RESPA (Real Estate Settlement Procedure Act): federal law states we must disclose an estimation of closing costs & fees associated with the loan to the consumer. These forms must be sent within three business days from the date of the application – unless turned down or canceled prior to the third day. RESPA does not apply to pre‐qualifications
TILA (Truth in Lending Act): federal law requiring disclosures about the loans terms and cost to standardize the manner in which cost associated with borrowing are calculated and disclosed.
INTEGRATED MORTGAGE DISCLOSURES (TRID) under RESPA and TILA – The Dodd Frank Wall Street Reform and Consumer Protection Act (Dodd‐ Frank Act) combine certain disclosures that consumers received in connection with applying for a mortgage loan under TILA and RESPA. The Act combines initial disclosures including the GFE and TILA into one form – the Loan Estimate and combines two closing disclosures, the TILA and HUD1 into one form – the Closing Disclosure. 34 | P a g e
LE (Loan Estimate): Must be sent to a borrower that applies for a mortgage loan within 3 business days (not including Saturday, Sunday or holidays) following these rules for refinance and purchase: REFINANCE ‐ If the loan officer has enough information to pull credit, we will treat the loan as an APPLICATION and the LE must be sent within 3 business days. PURCHASE – If the loan officer has enough information to pull credit AND the property address is known, we will treat the loan as an APPLICATION and the LE must be sent within 3 business days. PURCHASE – If the loan officer has enough information to pull credit BUT the address is NOT known, the file is a prequal and the LE does not need sent until 3 days from when the purchase address is known. General We call sending all the initial disclosures to the borrower “SENDING RESPA”. We realize there are more forms that get sent but it is jargon utilized by our company. There are fees that CANNOT change once the LE is disclosed so the LE must be as accurate as possible. Clerical errors are NOT an acceptable reason to re‐disclose a LE. The LE can be re‐disclosed to a borrower if a change of circumstance occurs during the loan process that deems the original set of fees invalid. The LE must be re‐disclosed to the borrower within 3 business days of the change or circumstance or locking of the interest rate. Tolerance thresholds are for increases only, decreases beyond the threshold are fine. Responsibility: The Mortgage Specialist is responsible for closing costs to be accurately set up in Architect then will notify Disclosure Dept to send RESPA. The Mortgage Specialist emails
[email protected] to “send RESPA” The email will specify if the RESPA needs to be emailed, fed ex’d, mailed, or just checked (Printed for a meeting) The subject line of the email will include the Loan Number and the Borrower’s last Name followed by the word “RESPA”. If the loan is a purchase, the purchase contract should be attached. It is ACCEPTABLE to make exceptions to not have the purchase contract on a purchase but be very careful.
35 | P a g e
Make sure the Mortgage Specialist has all the parameters of the purchase contract including purchase price, seller concessions, purchase contract expiration date, property address, and who is paying transfer taxes. Make a note in Architect as to why the purchase contract was not available. Once RESPA is sent, the Disclosure Specialist will make sure the Compliance screen in Architect are accurately completed to ensure compliance with all timing laws. Loan officers received an automated email from mortgage builder when RESPA is on its last day – LO need to TAKE ACTION! The Disclosure Dept will review reports daily to ensure RESPA is sent timely and will reach out to loan officers if a loan is on the last day and not sent to them to send. This should be the last resort because the loan officer should have received the email notifying them the loan was on its last day. RESPA Forms Sent Welcome Letter 1003 Application (all pages) LE – Loan Estimate Written Provider List Appraisal/Valuation Timing Waiver 4506‐T Form Authorization to Release Information Privacy disclosure Patriot Act disclosure Debt Warning STOP Disclosure Housing Counselors Near You State Specific Required Forms FHA forms as necessary VA forms as necessary USDA forms as necessary Variable Rate Disclosure Notice (all Variable loans) ARM Booklet (for all ARM loans) or Settlement Booklet (for Purchases) or Interest Only Booklet (all Interest Only Loans) LPMI if applicable 36 | P a g e
State Specific Forms
37 | P a g e
Steps on how to send RESPA STEP 1: If the loan is a purchase, upload the purchase contract to the Image Cabinet and add Realtor Information If Loan is a Purchase – Enter the Realtors’ names so the email campaign can begin working Auto email triggers will be sent to both borrowers, the selling agent and the listing agent at the following stages of the loan. The email addresses will need to be in the loan before these dates are entered in order for the email to be sent. Don’t list the same email for both borrowers or they will receive it twice. 1. Application date is entered 2. Appraisal is requested 3. Appraisal is received 4. The loan is sent to Underwriting 5. Underwriting conditionally approves the loan 6. The loan becomes Clear to Close 7. The loan is Shipped To enter the realtors’ information: 1. Go to Origination summary and click “Loan Status”. 2. Click on “Addt’l Info” at the bottom left. 3. Add the Buyer Realtor information here, or hit the lookup to select realtors you’ve added in the past. a. If adding a new realtor, email
[email protected] so they can add the Realtor permanently (that way you can use this Realtor again on another loan) 4. Click Save and Save again to get back to the Origination Summary
STEP 2: Edit in Architect to insure the program and fees are correct: 1. Origination Summary Screen ‐ Change/Edit Loan Program if needed – use the lookup icon & choose from the drop down. 2. Registration Screen ‐ Enter application date – contract received date (if purchase), date must be entered for 10/3/15 or after to activate the LE closing cost pages correctly
38 | P a g e
3. Loan Detail Screen ‐ Update all items as necessary ‐ Base Loan Amt., Loan Type, Rate, Purchase Price, Appraised Value, Reason for Refi, and Mortgage Insurance Coverage (using the lookup except for Jumbo loans or Investment and 2nd homes – in these cases you need to choose CUSTOM & type in coverage) 4. Click on the “…” next to Closing Costs on the Origination Summary Screen 5. Choose the correct Fees ID (using the lookup) this will be specific to loan type, state & Title Company. On all HOUSING loans – choose the template with the housing name in the label so the fees come in accurately a. OH‐OHFA b. PA‐PHFA c. MD‐MDCDA d. NC‐NCFA e. Etc. If SC Loan, the LO must ask the borrower if they plan to select their own attorney or if they are choosing an attorney from our list. If they are choosing an attorney from our list, choose the correct attorney in the Closing Cost ID field.
DO NOT ENTER ANY DATES IN THE LE SENT TO BORROWER SECTION OR THE IMPORTANT DATES SECTION
6. Click on the last charge in the Origination Fees Section and ENTER to get a fresh line to add any additional charges. Otherwise the template chosen will fill in correct closing costs. 39 | P a g e
To enter in additional charges – use the look up and choose the fee that best corresponds to what you are adding then enter in across the line the fee you want to charg
Note that VA loans is a max 1% origination fee and no processing or underwriting fees can be charged. Any interest rate dependent origination charge gets entered as Loan Discount Points – you can enter as a percent or a flat fee amount. LE shows the fee as a Origination Charge and looks like
this: Enter in any Lump Sum Lender Credits here on the bottom of the screen. The maximum this lender credit can be is the maximum closing costs minus prepaids/escrow.
40 | P a g e
If you need additional credits for escrow on a “no closing cost” loan, enter in any escrow credit in the Details of Transaction – Other Credits Breakdown section:
41 | P a g e
Enter in any Seller assistances. This s right below the Lender Credit. (If seller assist ever changes, go to the Loan Estimate Closing Costs and edit the Lump Sum Seller Credits at the bottom of this page – don’t change directly on the DOT.
42 | P a g e
7. Click on the Services tab a. Appraisal – if paid upfront and you know it will be, type the 350 in the Borr PBC column, it will remove itself from the Borr At Clsg column.
b. Add any fee you need to Section B by clicking on the last column in the last line then entering. Use the Lookup to choose the fees. Only fees in the lookup can be chosen. i. Condo Questionnaire fees ii. Subordination Fees iii. Etc. c. Do not alter Lender’s Title Insurance to simultaneous premium rates. This MUST be disclosed as the full amount of Lenders Title Insurance. All Simultaneous credits will be applied to Owner’s Title Insurance. d. In Section C – enter any survey fee next to the fee already set up if you know there will be one
43 | P a g e
8. Click on the Taxes/Other Tab a. Enter in the Tax Stamps – YOU ARE RESPONSIBLE TO MAKE SURE THIS IS CORRECT!!! PLEASE CONTACT THE TITLE COMPANY IF YOU DON’T KNOW. Some States will fill in, Maryland will NOT. Read the contract as necessary to see if our borrower is responsible to pay this transfer tax. This is a $0 tolerance item so we need to be careful this is accurate. b. Confirm the Owners title insurance is completed – this amount will prefill in based on tables set up based on state. If you edit this number then it will NOT update again based on changes made to the purchase amount. This number should be the full amount of the owner’s title insurance plus any simultaneous issue cost minus the full amount of lender’s title insurance. You can leave this the full amount of owner’s title insurance if you wish.
44 | P a g e
9. Click the Next button (Right Arrow) 10. Enter Reserves ID – choose the State & county that the property is located in – use the lookup
45 | P a g e
11. Type in Estimate Close Date to calculate the correct days of interest (ODI) (or leave as is) 12. Enter the estimated Hazard Insurance Premium amount in Prem Amt column and enter 12 in the # of Mos. box if it is a purchase & paid by B (for borrower) / enter in whatever months are currently due on a refinance
13. Type in the amount of estimated or known property taxes – escrow will calculate based on the due dates in that State/County. Don’t change any of these numbers.
46 | P a g e
DO NOT CHANGE THE # of MONTHS! Change the Due date if it is incorrect to adjust months in escrow. The Tax dues dates are accurate so don’t change them.
14. If you have a tax proration that needs entered as a DEBIT (used in PA when taxes are paid in advance) – add a line after the Flood Insurance Premium, type in label of “proration taxes due” then put the full amount you want as a debit. Enter in 12 mos, paid by Borower (to add the line, click on the first field in the last row and using the down arrow)
15. Save to go back to the Origination Summary screen. 16. From your Origination Summary Page ‐ Click on Details of Transaction – Click on Other Credits Subscreen ‐ enter in any credits in these categories: Variable escrow credit – used for any lender credit in excess of closing costs
47 | P a g e
Seller credit for owners title – used whenever the seller is paying for the owners title insurance per the purchase contract Proration for taxes ‐ If you have a Tax Proration that needs to be CREDIT – used to offset total costs to closing figure on the LE and 1003 in order to show the borrower receiving a credit at closing from the seller for taxes not yet paid (this occurs in most states except PA and NC).
NEVER ENTER THIS DIRECTLY ON THE DOT, as the credit will not print to the Loan Estimate 17. Save to go back to the Origination Summary ‐ Choose Loan status at the bottom right corner. Enter in these two dates: Est Close Date – the estimated closing date o Every time you change this date, email
[email protected] with new date. The CD Queue will only update when the estimated closing date is change on the compliance screen. o Use accurate closing dates that are reasonable for all parties Funds/Docs Date – the purchase contract expiration date (only on a purchase, leave blank on a refinance). The calendar will run off these dates, so it is important that they are entered.
48 | P a g e
Step 3 ‐ Email Disclosure Dept at
[email protected] to send RESPA – put in the subject line the name of customer – loan number & let them know how RESPA is to be sent. (Lock Loan through Nylx/Loan Decisions, if ready prior to requesting RESPA to go out.) If SC Loan, the LO must use the below email template:
If B is chosen for #1, the Closing Cost ID must match – Architect must show the same Attorney as who is listed on the RESPA request.
49 | P a g e
Pricing a Loan in NYLX (Loan Decisions)
On the origination summary screen click on the pricing button:
You will then be brought to the Product and Pricing Engine where you will then click on Submit) to submit to NYLX This will take you to the customer in NYLX after it thinks…
50 | P a g e
This action will capture specific information from Architect and input the data into the primary data fields.
Product Category – choose FHA (choose this for USDA loans) or Conventional & AltA or VA Check Approve Eligible ‐ if approved AU o On some FHA with higher DTI’s must have approve/eligible to get pricing. o DO NOT CHOOSE APPROVE ELIGIBLE ON VA LOANS Type in the DTI Mark if you want to waive any escrows (conventional only under 80% LTV) Credit score should be there from the credit in Architect Choose the Product (i.e. 30 year fixed) & SAVE o Can choose up to 2 & compare the pricing on both products Choose Go Price
51 | P a g e
The Results will appear – on this page the best par rate for FHA and Conventional will appear for all products chosen (Conventional not shown in example):
The 30 is highlighted and raised up showing that the pricing on this page is for 30 day lock period. Click and choose 15 or 45 or 60 here if you want different term for the lock. It will give you what the closest to par pricing is for that term. This is nice because it compares FHA with Conventional financing. Once I click 15 it raises up and gives me pricing for a 15 day lock period. Choose the tab above that has the product term you want. I only chose a 30 year fixed so that is the only tab that appears. Click on the rate, pricing combination that you want by the pricing you want.
52 | P a g e
The information for that pricing combination will appear on the right hand side of the screen. You can lock this loan once you choose the pricing combination you want by choosing LOCK near the top middle of the screen.
If you choose to LOCK at this point then this screen will need to be completed to submit the lock.
Enter in estimated close date & application date then SUBMIT LOCK REQUEST. This will generate an email to the rate lock desk & to you. The loan is NOT locked until you receive a confirmation back from the rate lock desk.
53 | P a g e
Re‐accessing a loan in NYLX to re‐price to current day pricing (or to lock later) QUICK PRICER ‐ To get a quick quote without importing in a customer Go to www.loandecisions.com Enter Your User Name & Password This will take you directly to the Pricing Form Update all fields as applicable. Choose (My Files) and a list of all the files you have imported into NYLX will appear.
Choose the Sun Symbol next to the Action That will open back into the loan – make any changes as necessary & then choose GO PRICE You’ll be back where you can choose the tab of the product you want & choose the best rate/pricing combination then lock if you choose to.
54 | P a g e
Pricing Tips There are functions to the pricing engine that I want to make sure that everyone is aware of and are able to use. It seems like a lot of information here but it is really just me trying to explain each part in detail (and with visuals). And I realize for some of you, this may not be anything new, but is still a good reminder.
Pricing Tip #1: On the lock desk we get the question asked “What would be the pricing if I increased/lowered my rate?” This happens most often when we need to go back and build in for a lender credit to cover closing cost. The engine has built in historical pricing for prices on the day of lock, all you have to do is click a few times to see it. From the Eligibility & Pricing tab click My Files
Locate your locked loan and click on the icon in the Action column; wait for the loan to load. Then switch from the Payment tab to the Pricing tab Once loaded, you should see a chart which appears similar to the below. The pricing on the current loan will show up in bold type.
So instead of asking lock desk the ‘what if’ then waiting to her back then doing a change request and waiting again, you can move straight to requesting the change with certainty about what the new price will be.
55 | P a g e
Pricing Tip #2 Why doesn’t my loan scenario show any pricing? In most of these cases the reason will be that the scenario did not meet a certain investor’s guideline. So the better question to ask is, what investor guideline caused the scenario to be ineligible and fail to price. If no investor eligibility has been met you will see a screen that looks like the below. Click on the red box under the Eligibility column An ineligibility report should pop up like the below.
First, read the messages for clues.
Then look at the guideline data which might give you an idea of what the required threshold is. The top row reflects your scenario and each row below that gives all of the available product variances. Note that text in red will tell you the required threshold to meet the particular product eligibility. Black text
56 | P a g e
means that you met the threshold.
Occasionally, it happens that you will not see a reason why the loan scenario is ineligible because not all credit categories can be captured in the above. Notably missing is a minimum loan amount category and in cases such as these it is acceptable to reach out to the lock desk for assistance. If you receive pricing on a loan with a scenario where you were unsure would work and you are glad it priced but don’t like the pricing, then more than likely only a few investors had any interest in that loan because of eligibility. How can you tell? When the results are returned, click on the rate which should be a blue hyperlink. This popup should appear showing the ranking of the eligible investors.
If you wanted to know why FNMA did not price the loan Close out and click on the Eligibility tab Change the drop down in the Eligibility column to “Ineligible” and change the drop down in Investor to “FNMA” Click the red box and follow the same steps as above 57 | P a g e
To Price a loan when not in Architect To get a quick quote without importing in a customer from Architect 1. 2. 3. 4. 5.
6. 7. 8. 9. 10.
Go to www.loandecisions.com Enter Your User name & Password This will take you directly to the Pricing Form Update all fields as applicable. Product Category – choose one of the options below by checking the appropriate boxes on the left. a. FHA (Choose FHA for a USDA loan and check the USDA button under the county name) b. Conventional c. VA Check box next to Approve/Eligible if applies (DO NOT CHOOSE Approve/Eligible ON A VA LOAN) Enter a DTI (if the DTI is over 43% then you’ll need to choose approve/eligible to get all investor’s pricing) If USDA – check USDA box‐ and choose FHA as Product category Choose Product Selection & choose up to three choices to review Choose Go Price
I chose 3 products for this pricing – 30 year fixed, 15 year fixed and 5/1 ARM.
58 | P a g e
You can see FHA and conventional pricing compared on all three products. The 30 is raised so you are looking at 30 day pricing. See all three tabs? Click on the tab to see all the pricing combinations for each product type. If you want to run another scenario – go middle way up the screen to the right side & choose Pricing Form This will bring you back to the Quick Pricer screen. Change the information & Go Price again.
Reviewing Guidelines for investors To review the guidelines for all our investors – choose Rate & Guideline Updates in the menu bar. Click on any of the numbers under the program to review. In the example, if you want to review FHA guidelines for ERC then choose the 18.
The programs will appear in a list with PDF ( ) icons next to them. Double click the PDF icon for the program you want and it will open.
GNMA 1 loans are loans with rates on the ½ percents and GNMA 2 are loans with rates on the 1/8 percents. The products are the same. 59 | P a g e
Client Reprice System Users can set alerts based on a target rate and target price.
Price the loan then choose “Trigger”. The rate triggers screen will appear. Complete the rate the customer. The price you want and price variance. Enter the times for the pricing to run (up to 3 can be entered). When pricing is met, an email will be sent to the user indicated with the pricing for that day. On the last day of re‐pricing, NYLX will alert the user via an email that their client re‐ price will expire unless they “reactivate” the file.
To do a Rate Lock Extension Bring the borrower up in Architect and click on the pricing button from the origination summary screen. if the The pricing icon will be lock is expiring in the next 5 days. The pricing icon will be if the loan is locked. If the pricing button is red, that means the lock has expired. On the pricing screen you can see your Net Retail Price (fees back) and lock information. Enter Y in Relock Request and Enter 60 | P a g e
The Rate lock subscreen will appear, enter the next Request # then enter the amount of days for the extension & save. Any additional notes can be entered in the other section. If you type in the other section, be sure to press enter when you are done so the text wraps and becomes readable. Save – Save and the request will go in to the Pricing Desk Queue. They will extend and change pricing to reflect the extension in the Pricing screen. The cost of the lock extension will be passed onto the borrower. You must discuss the rate lock term with the borrower upfront and determine the actual term you need. *full rate lock extension policy is in the LO Toolbox *This is the same screen you would use to do a relock request to change something in the loan after the rate has been locked (i.e. change in loan amount, adding a fee if allowable, etc.). Certain fields are locked down once the rate is locked. You would use this screen to let the Rate Lock Desk know what you would like updated. The Rate Lock desk will update the system and the lock with the Investor. Once you have a new rate lock confirmation, you can email Disclosure at
[email protected] to request a new LE to go out to your borrower. Don’t worry, if you forget to email Disclosure Dept, your new LE will go out the next business day.
General Rate Lock Re‐lock Information Please EXTEND all locks rather than attempt to change investors. We will execute at the best possible price so there is not any need to let a lock expire and re‐lock in any situation. Please make sure when you lock your loan with your borrowers that you are clearly explaining the risks and rewards of locking that rate. Basically once a customer locks a rate they have committed to that rate and the rate should not increase or lower for them later. Question 1: How can I tell if my loan is in a mandatory lock? Look on the Pricing screen – If the Investor name begins with “M” or if the Investor name and loan number are blank but there is a lock confirm date then the loan is in a Mandatory. To the right is an example of a loan in a Mandatory.
61 | P a g e
Question 2: If my loan has no investor listed but it is a locked loan or the Investor starts with an “M”, can I let the lock expire and re‐lock at today’s pricing? The answer is NO, this is a loan going in a mandatory lock. Please extend the lock to cover the disbursement date. No extra days should be required for file delivery. Question 3: If my loan shows an investor without the “M”, can I let the lock expire and re‐lock at today’s pricing? The answer is NO, this is a best efforts lock. Please extend the lock per the Lock Extension and Delivery Policy attached. I understand that there are some cases when some customers have been re‐solicited by other investors and ask for a lower rate. When that occurs, make a decision to request a revised rate only after all your sales talents come to naught. When you do request to break a lock and lock elsewhere (or want to float down or renegotiate), please send the request to ANDY LOHR ONLY. Please don’t send to anyone but Andy Lohr, not Ed, not Derek, and not Kelly Welch. You, of course, can review your request with your manager if you are unsure if you should request, but the REAL LIVE request must come to ANDY LOHR. We are doing this so that one person can keep track of any locks that get broken. We must carefully monitor our fallout with each of our investors. In the long run, high fallout will give us higher rates with our investors or at worse, cut off from doing business with them. Trust me, fall out is monitored and I get a Score Card every month with how we are doing from each of our Investors. If you are changing investors then send an email to
[email protected] with the following: 1. Price on current locked loan and who locked with 2. Price on revised locked loan and who you want to lock with 3. Rate on both current and revised lock 4. Difference in pricing between the two locks (how much more money we will make in a dollar figure) 5. Reason for change We are very cautious on changing locks, if we break a lock during a lock period, then they monitor to watch if that loan closes elsewhere and have the option to discontinue doing business with us. That is why we personally review every lock we break to insure the risk is worth any reward gained. If you do not send all 5 items above, your rate lock change request will NOT BE granted and you will delay the decision. You are responsible for getting Andy all 5 items. Please let me know any questions. If Andy is not in, then I will make rate lock change requests (back up only!) Question 4: If I change terms from a rate term to a cash out, can I let the lock expire and re‐lock? The answer is NO. Please extend your lock, do not let the lock expire and re‐lock. It is not necessary. Please review the LLPA grid attached to determine pricing differences. Please print and keep this as a reference. DO NOT ASK THE RATE LOCK DESK TO CHECK THE PRICING FOR YOU. Question 5: My loan is changing from FHA to conventional, should I re‐ lock? The answer is YES, you should send the Rate lock Desk a message to release the lock because you are changing to a conventional loan from FHA. This would also apply if you are changing FHA to USDA, FHA to VA, Conventional to FHA, Conv to USDA, Conv to VA, or VA to USDA, VA to FHA, VA to Conv. 62 | P a g e
Step 4 ‐ Generate your Calendar and email it to the Customer To make your calendar you just click one of the programs on your taskbar at the bottom of your screen. TRID Calendar (the one without the pencil) requires you to have Architect open, and Architect needs to have a blank white background. The other doesn’t need any of that. Click on the TRID Calendar icon on your desktop or taskbar
Click OK when the prompt appears telling you that Architect must be open
Enter the loan number and click OK
Let the program run and be patient. Once the Outlook Email opens, you can double click on the PDF document
63 | P a g e
Email the Calendar and the Realtor fee sheet to the Realtor Calendar Timeline Explanation The calendar timeline on the loan is VERY IMPORTANT
We are using this in the Newark office as the flow chart for the loan The closing date is EXTREMELY IMPORTANT Every person in operations is working towards that estimated closing date We are working backwards on every single loan, not forward like we have done in the past
64 | P a g e
The closing date MUST be accurate and ACHIEVABLE A Calendar Timeline has to exist for EVERY LOAN This is first generated by the loan officer when they receive the purchase contract This is again generated by the processor doing the order all and input into Virpack The processor will use this calendar timeline to ensure the loan is progressing as planned The processor will notify the loan officer if an event is NOT reached on time The processor will let you know how important that missed event will be to the estimated closing date Communication is based on the Calendar Timeline NO FILE CAN BE MISSING A CALENDAR TIMELINE FOR OUR PROCESS TO RUN SMOOTHLY
Purchase
Purchase Calendar Timelines are based on a minimum 25 day timeline Enter in estimated closing date in Architect – minimum of 25 days from application date The loan officer needs to generate the personalized calendar once contract is received or application is taken EMAIL the calendar to the customer EMAIL the calendar timeline to the Realtors with the Realtor Fee Sheet Ask for the Realtor Fee Sheet to be returned based on the date in the calendar timeline The Order all Processor will generate the calendar timeline and add to Virpack. The calendar will be utilized to keep the loan on track to a SMOOTH, ON‐TIME closing
Refinance
Refinance Calendar Timelines are based on the application date and just flow out in a typical turn around fashion. Estimated closing date is not as important to a refinance loan Loan officer should generate the refinance calendar and email it to the borrower Use the calendar to keep the loan on track
Any timeline under 25 days needs your Sales Manager approval BEFORE you request your “Order All”.
Changed Circumstance – re‐disclosing the LE The general rule is that the creditor must deliver or place in the mail the revised Loan Estimate to the consumer no later than three business days after receiving the information sufficient to establish that one of the reasons for the revision has occurred.
A revised LE will only go out for changes in fees to bucket 1 (valid), bucket 2 over 10% cumulative, bucket 3 if the Loan officer wants it. A revised LE will only go out with a valid change of circumstance
65 | P a g e
Try to limit clerical issues so that complete RESPA packages need to go out a 2nd time after the first time Take a complete application the first time so as to not need to resend the RESPA when information is inaccurate on the 1003 and the borrower won’t sign it.
The creditor may not provide a revised Loan Estimate on or after the date it provides the Closing Disclosure.
Valid reasons for re‐disclosures: Rate LOCKs after original LE is sent If you sent the original LE out without the rate locked, the LE must be re‐disclosed when the rate is locked. This is automatically done the day after the lock by our Processing Disclosure Specialist (PDS). It will be emailed to the borrower and cc’d to the loan officer. It will also be saved to the image cabinet to be viewed later as needed. Fees change for valid change of circumstance reason An extraordinary event beyond the control of any interested party or unexpected event specific to the consumer or transaction. Examples include The area the property is in flooded recently and a re‐inspection of the property must be done to ensure no change in value and no damage to the property. Fire damage to the property causing work to be done to fix the damage. We would then require a re‐inspection of the property by the appraiser. Information specific to the consumer or transaction that we relied on when providing the LE and that was inaccurate or changed after the disclosures were provided. Examples include: Credit changed for the borrower, a judgment was discovered after original approval Market value of the security for the loan came in low and resulted in the borrower being ineligible for the loan term previously disclosed. Market value came in low and the borrower is not paying off the 2nd mortgage now so we need to add a subordination fee The creditor relied on the consumer’s representation to the creditor of a $90,000 annual income, but underwriting determines that the consumer’s annual income is only $80,000. There are two co‐applicants applying for a mortgage loan and the creditor relied on a combined income when providing the Loan Estimate, but one applicant subsequently becomes unemployed. New information specific to the consumer or transaction that we did not rely on when providing the LE. Examples include: “Subject to” Appraisal is received & the appraiser will need to re‐inspect & will charge a compliance inspection fee 2nd appraisal or field review is required & we are allowed to charge for the 2nd appraisal or field review
66 | P a g e
Email
[email protected] – explain the change and the amount of the fee change or increase & they will update and send the revised disclosures to the borrower. Borrower changes their mind Customer requests changes to the loan. Examples include: Waiver of escrow Decides not to pay off the 2nd mortgage and chooses to subordinate it instead (this can fall into two different categories depending on the reason) Decides to do a FHA loan with less down payment rather than a conventional loan Changing the loan amount Changing the term of the loan Email
[email protected] – explain the change and the amount of the fee change or increase & they will update and send the revised disclosures to the borrower. Intent to Proceed is after 10 business days Customer indicates an intent to proceed more than 10 business days after the LE was originally provided. No justification is required for the change to the original estimate of a charge other than the lapse of 10 business days. Date is calculated by counting the number of business days from the date the Loan Estimate was delivered or placed in the mail to the consumer, and use the definition of business day that applies for purposes of providing the Loan Estimate. Email
[email protected] – explain the change and the amount of the fee change or increase & Disclosure Dept will update and send the revised disclosures to the borrower. Construction Loan Loan is a construction loan and settlement is expected to occur more than 60 calendar days after the LE is delivered, if the original LE clearly states that at any time prior to 60 calendar days before consummation, the lender may issue revised disclosures Adding a Rate Dependent charge (Discount fee) The added fee that is being charged must be a result of the lower interest rate being charged.
If the loan has not been locked yet ‐ request your rate lock through NYLX. Within the next hour Email
[email protected] the following three items: o Loan number o Fee amount or percentage o Reason for fee change – Just submitted lock through NYLX to the Lock desk at a lower rate and borrower will pay points to get the rate lower If the loan has been locked and the locked LE has gone out – request the update to a lower interest rate through MB Pricing screen, then email
[email protected] the following three items: o Loan number
67 | P a g e
o o
Fee amount or percentage Reason for fee change – Just submitted lock change to the lock desk to lock at a lower rate, cost to borrower is fee noted above
Lowering a Lender Credit when the rate is locked. The lender credit could lower, if the loan is NOT locked and when you go to lock it the lender credit will decrease to make that rate work or If the loan was locked but expired and when you go to re‐lock the loan, the lender credit needs decreased to make the same rate work. o If your lender credit decreases, email
[email protected] the following: Loan number Amount of lender credit change Reason for lender credit fee change – Just submitted lock change to the lock desk to lock at a lower rate, thus lender credit needs to be lower to make this rate work in today’s rate environment
Steps to get a revised LE out in all cases except when the rate is locked: Email Disclosure Dept at
[email protected] and ask them to update the loan file with the changes & send the COC – make sure to email them the following: Loan # Amount of fee change Why the fee is changing – be very specific The processing disclosure specialist (PCS) will email the borrower the revised form and cc the loan officer so the loan officer will know it went. It will also be saved in the Image Cabinet and VirPack. Don’t edit the fees yourself – follow the above steps.
68 | P a g e
Processing – Order All When RESPA is returned with income and asset verification or you have met with the client, you are ready to schedule the “Order all”. You must have a complete 1003, signed RESPA (initial application package), supporting docs, and the Story of the Loan before an Order All can be requested. Steps to request an Order All: 1. Loan Officer or Loan Officer Assistant completes Doc Tracking in Architect and if in NC the LO should enter the Contingency Date (Due Diligence Date) on the Loan Status screen. 2. Loan Officer or Loan Officer Assistant emails
[email protected] to request an Order All a. Subject line should have borrower’s last name and loan # b. Attached the following items: i. Supporting Docs ii. Story of the Loan iii. RESPA (application package) ‐ (only if it wasn’t DocuSigned) Once you request the Order All, you DO NOT need to schedule anything else for the processing of the loan. The Production Specialist will follow up and gather all items until the file is ready to submit for Underwriting. Once the file is submitted to underwriting, the approval is emailed to the Production Specialist and Mortgage Specialist; stips are worked on until the file is clear to close (CTC). Once clear to close, the file goes into Doc Order status on the calendar and holds until you set the closing date. The Mortgage Specialist schedules follow up with the borrower on their calendar every 3 to 5 days (as necessary) until loan is clear. The Mortgage Specialist get updated information on the loan by reviewing the Document Tracking & the Notes/History in Architect.
69 | P a g e
Doc Tracking ‐ Go to Origination – Document Tracking (bottom right corner). Add any additional items that may be needed by clicking on the last line and hitting the Enter button to create a new line. You can now free type in this area. To delete unnecessary lines, click on the line that you want to delete and type in a back slash \and hit enter and that row will be deleted. (\ ‐ Enter) To add a comment about a particular item, click on that item and click the Comments button or add a document description by just clicking in the box. Type the comment and hit the Save button Now a “c” will appear and the Processor will know to check the notes about that item before ordering
Supporting Docs: Documents get scanned to the Architect File (image cabinet) or emailed with the Order All Request. Documents we need from the Borrower Signed RESPA – all pages signed by all borrowers Assets Verification ‐ There are three ways to verify assets for a borrower: 1. Borrower can enter their bank credentials in Account Chek 2. Borrower can give us 2 months bank statements – all pages 3. We can order a VOD (except for FHA files – see cheat sheet for what balance to use – current or average) Account Chek steps to get the assets without getting bank statements: 1. Loan officer asks the borrower what bank they use when taking the application and enters in that bank name as an Asset 2. Loan officer discusses with the borrower when asking for documentation the benefit of Account Chek. “By using our secure website for asset verification, it will make the process run much more smoothly with no requests from me for additional proof of assets. You will be sent a link to enter in your bank credentials for the bank accounts that you have and you are done!” (See attached documents answered common borrower questions and also to see what the screens look like to the borrower.) 3. When requested the Order All on a file – enter in request for Account Chek link sent to the borrower on Doc Tracking (enter in Code AC on the line asking for 2 months bank statements) 70 | P a g e
VOD steps for loan officer: 1. Loan officer has borrower refuse to do Account Chek 2. Loan officer reviews the VOD cheat sheet and sees that he can get a VOD in lieu of bank statements (FHA DOES NOT ACCEPT VOD’s) 3. Loan officer asks the borrower to sign the authorization to release – this must be a wet signature. The electronically signed authorization to release won’t work. Print this from the unsigned RESPA in the image cabinet. 4. Email the signed authorization to release with your Order All request 5. When completing the Order All on the file – enter in request for VOD on Doc Tracking (enter in Code VOD on the line asking for 2 months bank statements) Earnest Money Verification:
On Conventional, USDA and VA transactions, if the earnest money deposit is being used as part of the cash to close, then the earnest money must be verified and will show as a credit on the 1003 and CD. On FHA transactions, if the amount is under 1% of the purchase, you do not need any verification of the earnest money and the earnest money can appear on the 1003 and CD as a credit. If the amount is over 1% of the purchase price, you will need to verify the earnest money. Get copy of the cancelled check from our borrower’s bank account or Copy of front of check and updated bank statement showing the check cleared the account
Gift Money Verification:
Gift letter fully executed Proof the person gifting the money has that amount of money to give (current bank statement or printout) Copy of the check to our customer Copy of the deposit to our customer’s bank account and current balance.
Explanation from the borrower of Large Deposits and sourcing requirements:
Government loans – USDA, VA and FHA: LOX for all deposits exceeding $500 AND source any deposit greater than 1% of the purchase price (or market value if lower) of the loan. Conventional loans: LOX for all deposits exceeding $1,000 AND source any deposit greater than 50% of the gross qualifying income of the loan.
Income Verification: Wage Earner – 2 years same job, not a family run business, paystubs not handwritten, not a bond loan
Full VOE Current paystub
71 | P a g e
Snap a photo of page 1 of the 1040’s at prequal time and upload to the Image Cabinet so we can order tax transcripts accurately. Do NOT get full tax returns from Wage earners (unless some income is derived from other sources or over 25% of income is from commission)
Wage Earner – less than 2 years current job, or works for a family owned business or paystubs are handwritten or a bond loan
2 years W2’s 30 days worth of current paystubs VOE current job VVOE’s previous jobs Snap a photo of page 1 of the 1040’s at prequal time and upload to the Image Cabinet so we can order tax transcripts accurately. Do NOT get full tax returns from Wage earners
Specify on Doc Tracking when they want a full VOE ordered – simply note next to the VVOE line FULL VOE PLEASE and note next to the 2 YEARS W‐2’s – Not Required.
Self Employed, Rental Properties owned, W2 but over 25% of income from commissions:
2 years full tax returns will all schedules K1 and corporate returns as necessary
Social Security Income:
Award Letter Current proof of income – deposit going into bank accounts from bank statements or Account Chek will work
Retirement Income:
Pension award letter Current proof of income – deposit going into bank accounts from bank statement or Account Chek will work
72 | P a g e
HOI Agent Name & Phone number Mortgage Statement needed on a refinance transaction Child Support received or owed: Divorce Decree/Separation Agreement Copy of check paid or check received or number of child enforcement agency to get printout PUD or Condo: HOA decs and bylaws as necessary OPTIONAL: W2 transcripts can be requested instead of tax return transcripts on FHA Borrowers with a score over 660 if the loan officer requests them at Order All stage. FHA counts unreimbursed business expenses against the borrower’s income while Conventional and VA loans do not. Since the IRS transcripts are not a requirement for FHA, we don’t need to review the tax returns for unreimbursed business expenses if we don’t see them. Yes… this comes straight from FHA. Additional loan requirements that would need to be met: 1. 2 years on the same job 2. No self‐employment or income from other sources where tax returns are required 3. Not applicable to bond programs Loan officers need to specify on Doc Tracking when they want W2 Transcripts ordered instead of Tax Return Transcripts – simply note next to the 2 YEARS TAX TRANCRIPTS line W2 Transcripts Only.
****Side note – Unreimbursed business expenses are not reduced from income on Conventional or VA loans unless the borrower earns over 25% of their income from commissions or is self‐employed. Unreimbursed business expenses must be reduced from income on all USDA and FHA files. Once the Production Specialist receives the “order all”: The Production Set up Specialist will order all items on the doc tracking page & put notes and dates in there. The Production Specialist will follow up on all items ordered & continue to follow up until all items are in. Production Specialist will submit the file to Underwriting within 3 business days of the order all 73 | P a g e
Underwriting will review the file within 24 hours and email out an approval to the Production Specialist and Mortgage Specialist. If the file is Conditionally Approved ‐ The Production Specialist will work on stips that pertain to them and the Mortgage Specialist handles anything they need to handle. On a refinance, when the payoff comes in, the Production Specialist will update the balance in Architect so you can accurately calculate figures to confirm the loan amount is sufficient. If title comes in with any issues, you will be notified. The appraisal is emailed to both the Mortgage Specialist & Production Specialist when it is received.
Keeping you updated
Go to the Note Section & read what the Production Specialist has written about what has been ordered, what they are waiting on, etc. Go to the Doc Tracking tab and review dates ordered, dates items expected in
Underwriting Issues
If an Originator has a question on a loan file that has already been to underwriting then they should contact the underwriter prior to a complaint to your manager. EMail the underwriter that underwrote the file and ask them to call you to discuss during normal office hours. o Please Email first, if you are at your desk o If underwriting is not “slammed”: An underwriter will respond to the email after finishing the file he/she is currently working on (usually 1 hour). If they are pushing to underwrite all loans that that day: the return could be up to 3 hours o The goal: if you call in the morning then the underwriter will return your call by 12:00. If call and leave a message after 12:00 then a return call will happen by end of the day. Managers can call Roger Welch during normal work hours, if they dispute a condition.
Income Calculation Guideline – What Your Processor Uses Wage Earner – this is our most common calculation. The processor is instructed to calculate in this order starting with 1. first and moving through if the 1st one won’t work. 1. If you can find an annual income on the Paystub or VOE then use that and divide by 12 = monthly income. Basic and easy. 2. If you find an hourly wage & can see that the person works 40 hours weeks then use that figure x 40 x 4.33 = monthly income. 3. If you find a weekly amount (but no hourly) then take that figure x 4.33 = monthly income. 4. If you find a bi‐weekly amount (but no hourly) then take that figure x 2.167 = monthly income. 5. If you find a bi‐monthly amount (but no hourly) then take that figure x 2 = monthly income. 6. If you can't tell how many hours per week someone works nor can you see a base income, then take the income from the paystub and divide by the months and days so far into the year. Part time income, we get a VOE and average the last 2 years plus year to date.
74 | P a g e
Bonus or Overtime ‐ we get a VOE with these figures broken down and average the last 2 years plus year to date. Self‐employed would be a more complicated calculation but using this spreadsheet it the simplest method to use. http://www.freddiemac.com/learn/lo/forms/form_91.html Rental income is calculated based on the guidelines of the specific type of loan you are doing. Processors are also instructed not to use bonus or commission or additional income when it is not necessary in order to avoid additional stips. These income sources can be added back as you find necessary. Good clear communication to your processor is vital to make sure the income is added or subtracted as you expect it to be. Talk about this with your processor in your weekly meetings if removing income is something you don’t want done.
75 | P a g e
Appraisal Waiver: There are some borrowers that are not choosing to waive the right to receive a copy of the appraisal 3 days prior to closing. We think they are just whizzing by that page in the RESPA package sent to them or they don’t understand the two options. This has caused some delays in closing. The delays are occurring when the appraisal has clerical changes on it and we are required by law to send that to the borrower and then have to wait 3 more days to close the loan. It is up to you, but we are going to begin having the Processor let you know when the form has not been checked waiving their right. It will be up to you if you want to ask your borrower to resign the form with the boxes checked. Here are the step you will take: 1. Contact your borrower and explain what the waiver means. a. Make sure they understand that they will still get a copy of the appraisal b. Let them know that the form not being signed may delay their closing if the appraisal has clerical issues 2. Offer to have a new waiver form sent to them if they want to waive it after you speak. 3. Email
[email protected] and ask them to send the form via DocuSign. 4. Disclosure Dept will send the new form and forward to processing once it has been signed.
76 | P a g e
Marked Up Approval The LO will receive the marked up approval from Processor once the file has been underwritten. The marked up approval will continue to be updated throughout the loan until Clear To Close. The marked up approval will be located in VirPack in the UW Approval container. Key: X =Condition Satisfied Box around it = Processing condition that cannot be completed until something else comes in (example appraisal logging – must have appraisal first) Arrow = Condition Satisfied Yellow highlight = Loan Officers responsible Green highlight = Processor/LOA has requested this from the customer Notes beside condition =Processing condition that has been worked, notes on what was done to obtain the document
77 | P a g e
Process to send the Closing Disclosure Step 1: Loan officer reviews the CD Queue The Closing Disclosure Queue allows us to track when a Closing Disclosure must be sent in order to close the loan at the earliest possible date in accordance with the timing and delivery requirements of the Closing Disclosure. The loan officer should review the Closing Disclosure Queue daily to determine what Closing Disclosures are due within the next 2 days. The Queue will display any loan that has a Closing Disclosure Target Send Date and no Closing Disclosure Sent date. Go to Origination – Closing – Closing Disclosure Queue.
Step 2: Loan Officer requests the CD It is required that the CD steps are completed by both the Loan officer and Processor by 2 pm ‐ 1 day prior to the CD target send date. The loan officer should review the timeline of the loan, and make a decision if the CD needs sent or the closing delayed. If the loan is ready for the CD, the loan officer will email their processor to request the CD. The loan officer needs to make sure all of these items have occurred before requesting: 1. Title Only information is entered in Architect on the Borrower – Title Only screen – this information is needed because the CD must go to all parties that have an ownership interest in the property 2. The fee sheet from the Realtor is received & sent to their processor 3. The loan is locked 4. The final LE has been sent 5. All inspections and appraisal issues are resolved 6. No issues remain on the loan that could cause a delay 7. FYI ‐ Loan does NOT need to be Clear to Close IMPORTANT: If the closing is delayed, the loan officer enters in a new Estimate Close Date in MB and email Disclosure and all parties in the transaction to let them know.
Step 3: Processor enters in the closing date to request the CD The processor will make sure the following have occurred, then enter in a closing date in MB to prompt the CD be sent. Once the processor enters the closing date they need to enter “HOLD” in the Closer field so the closers don’t being working on the loan. 78 | P a g e
1. 2. 3. 4. 5. 6. 7.
Property Taxes and Title work are in file Homeowners insurance dec page is in file Prelim CD is received and uploaded to Virpack as Title Company Fee Sheet Realtor fee sheet is received and uploaded to Virpack as Realtor Fee Sheet The loan is locked and the lock goes through disbursement The final locked LE has been sent to the borrower No issues remain on the loan that could cause a delay a. Must have CTC on USDA, Bonds, and VA Purchases
Remove the Closer name of HOLD in the queue. The blank closer name and the closing date being entered will prompt the Closer to see the loan in the Closing Queue.
Step 4: CD Prep will prepare the Closing Disclosure The CD Prep Dept will work out of the Closing Queue and prepare the CD based on closing dates entered in MB. The queue will now have two things to watch – if blank then the CD needs sent. If the queue says READY FOR DOCS, then the CD has already been sent and the docs need sent to the title company. 1. Prepare the CD information steps are completed (Go through each screen up to Closing Instructions Page 2) 2. Notify Disclosure Dept that the CD is ready to be sent by emailing
[email protected]
Step 5: Disclosure Dept sends the Closing Disclosure 1. 2. 3. 4.
Review the CD using the CD Checklist Print the TIL Testing Page to Virpack (final APR and fee check) CD is docusigned to the borrower CD Sent date is documented and earliest consummation date will populate based on the 6 day rule. 5. The CD Received Date in Compliance tracking is entered once (or if) receipt of the CD occurs. 6. Disclosure Dept will update compliance tracking screen with the earliest consummation date based on any receipt of the CD.
Step 6: Loan becomes Clear to Close and docs can go to the Title Company The processor lets the closer know the file is ready by changing the CLOSER name to READY FOR DOCS (code is D if you don’t want to use the lookup). Closer completes the following: 1. Pre‐closing audit steps are completed a. Review the Audit Trail on the loan to confirm the closing date has not changed b. MERS c. Employment verified d. Title Company rating e. Upload Income and Debt Worksheet f. Extra docs to title from Virpack 2. Finish the Closing Instructions
79 | P a g e
3. Review the Closing Package and check all outstanding C conditions on the loan to the Closing Disclosure to confirm all conditions are met. 4. Send the Closing package to the Title Company 5. Enter Cls Pkg sent Dt and HUD Approved Date in MB 6. Upload Warehouse 7. Request PMI check (as applicable)
Loan Officer requests the CD Request the CD when you see the loan pop up in your Closing Disclosure Queue. Review the timeline of the loan to confirm all deadlines have been met and make a decision if the CD needs sent or the closing delayed. The loan officer needs to make sure all of these items have occurred before requesting: 1. Title Only information is entered in Architect on the Borrower – Title Only screen – this information is needed because the CD must go to all parties that have an ownership interest in the property 2. Determine how the CD is being sent to the borrower 3. The fee sheet from the Realtor is received & has been forwarded to the processor 4. The loan is locked & the final LE has been sent – confirm no more extensions will be needed because we cannot re‐disclose the LE after the CD is sent 5. All inspections and appraisal issues are resolved 6. No issues remain on the loan that could cause a delay Loan does NOT need to be Clear to Close, but should be Approved with Conditions, not approved with modification. Approved with modifications indicates a problem still exists in the file that could cause the file to be rejected. Loans that must be Clear to Close for a CD to go out:
Loans underwritten by HNB in the Doctor Program Loans underwritten by any investor – happens on Jumbo loans frequently
Loans that need approval from an agency for a CD to go out:
Bond loans must have the bond approval back USDA must have USDA approval back
If everything looks good, email your processor to request the CD – specify the following:
How you want the CD sent – DocuSign email, mail, for meeting, etc. Who needs to receive the CD and contact information on how they are receiving the CD – all parties on the deed and all spouses of all parties on the deed Lender credit amount, if more than what was on the LE (cannot be less than what was on the LE)
80 | P a g e
IMPORTANT: If the closing is delayed, make sure to enter a new Estimate Close Date in Architect and email Disclosure Dept and all parties in the transaction to let them know. Disclosure Dept must get this updated date in order to adjust the Closing Dates in Architect so that the loan falls back in to the CD Queue and this process can begin again.
Review the CD You will receive an email with the DRAFT CD. Please review it for accuracy
Make sure cash to close is in the bank account Make sure the cash out is allowed per program You know better than anyone if cash to close is right Make sure HOI collection is accurate Please contact the TITLE COMPANY before you email back
[email protected] with your issues Our fees are coming from the title company, I promise you we don’t make this stuff up! The prelim CD from the title company can be viewed in Virpack – 1st container Take the time and compare it to the LE as necessary to explain increased cash to close o HOI Increase o Title Company fees more o Variable escrow credit noted but no lender credit o Gift undeposited on LE, does not flow through to CD
All communication on CD’s go to
[email protected]
CD Changes
We don’t automatically send a new CD out to a borrower if there are changes. Request a CD go out to the borrower when you want one to go after original one is sent Email that request to
[email protected] and explain why you want a new CD to be sent
How do I know it is the last CD?
First CD sent has the word DRAFT on it – this is for you to check BEFORE your customer gets it Next CD send docusign to your borrower and you are cc’d on it. We hope this is the last CD – this has been approved by Disclosure Dept. If another CD goes it is because the title company added or changed a fee… big sigh. We can’t tell you when you will get the last and best and greatest CD. If title companies would give us all fees accurately upfront we would never have more than one
Phases is Architect:
The phase will NOT change to “In Closing” or “Closing Disclosure Sent” when the loan is not in the phase yet of “Clear to Close”.
So if a loan is “Approved with Conditions” the phase will stay that even if the closing date is entered or a CD sent date is entered.
81 | P a g e
Loan amount changes after CD is sent
If the loan amount needs to change AFTER the CD is sent, don’t PANIC The loan amount can be changed without opening up a new 3 day waiting period as long as the APR does not increase by 1/8 on a Fixed rate and ¼ on an ARM The change in loan amount needs communicated to processing so they can resend the file back through underwriting Processing needs to confirm the docs have not been sent to the title company so the changes can be made Once the new loan amount is approved in underwriting, email
[email protected] to prepare a new CD (it can be sent to the borrower as requested)
Payoffs on Refinances
We have asked underwriters to stip for payoffs good through commitment expiration date so that we can confirm an updated payoff is in file. We have also communicated this to the processors so they know to make sure the payoff is up to date and that the liability in the Mortgage Builder file is updated. That is the payoff that flows through to the CD. We cannot just wait and let the title company update the payoff as this would be AFTER the CD was sent to the borrower. Let’s all work together to make this happen!
Realtor Credits
The realtor credit would not typically be indicated on the Loan Estimate. The only way you could note it on the LE would be type that in the Other Credits Breakdown on the Details of Transaction Screen. Please let your Processor know and advise them to make a note to the Closer of the Realtor Credit (Selling or Listing) and the amount. The will show as a credit on the Closing Disclosure.
Closing Date Moving Forward
Generate a new calendar timeline – are all dates possible with the new timeline? Are all parties on board with the new closing date? Need to have a clear to close to move the closing date forward Remember you can send the CD later than what we have designated in our CD Target Send Date by asking the borrower to confirm receipt the date the CD is sent (buys you 3 more days) We still need the CD preparation done ONE DAY prior to the CD sent date by 2 pm Communicate closing date changes to
[email protected] Remember we need HOI updated to earlier close date!!! Let your processor know early to make this request – it can take days to get the updated dec page Communicate to your title company closing date changes. They get super annoyed with us when we call them and they did not even know the closing date changed
82 | P a g e
Closing Date Moving Later
You can change the estimated closing date on the Loan Status screen Email
[email protected] with the new closing date
Loan becomes Clear To Close Once you receive the clear to close, confirm the closing date is still the same with all parties and communicate that to the processor so they can request docs be sent to the Title Company. We require a 24 hour notice on all non bond loans (if an afternoon closing). We require a 2 day advance notice on bond loans. Example: Non Bond loan – your Processor must have changed to READY FOR DOCS at 2pm today for a 2pm closing next business day. Example: Bond loan ‐ your Processor must have changed to READY FOR DOCS at 2pm today to close at 2pm two business days from now. Example: Morning Closings ‐ your Processor must have changed to READY FOR DOCS at 10am today to close at 10am two business days from now. If you have a closing scheduled before 11am, accounting needs notified to send the wire out a day early so that your funds are there in time for the closing. The Loan officer should be emailing
[email protected] as soon as the closing is setup and you know it is scheduled before 11am. In the case of a morning closing, we need a 48 hour notice.
Step 1:
Contact the borrower & congratulate them on their loan approval. Confirm the closing date has not changed. Ask them if they have any questions on the Closing Disclosure they received. Ask the borrower to bring their driver’s license and other items indicated on the approval to closing.
Step 2:
Contact the title company & set the closing time.
Step 3:
Let your Processor know the exact date and time of closing so they can update the system. Let the Processor know of any credits or changes to fees.
Step 4:
Go to the Closing & Solicit a Referral!
Step 5:
Clear the closing from your calendar Schedule the 30 day follow up
83 | P a g e
1st Payment Information As a Mortgage Specialist, you are responsible for calling and collecting first payments that are due to us. Accounting only gets involved when there is a payment issue (i.e. getting our payment back from an Investor, payment research, etc.). Mortgage Specialists should use their 30 day follow up calls to be proactive and ask about payments. During the call, confirm the customer knows where to send the first payment and solicit a referral. It is very important to complete the 30 day follow up calls. ERMA shows the 30 day follow up call in the call log/daily tasks. Also, there is an automatic email that goes out ‐ this email is easy to identify because the subject line is “30 day follow up – 1000xxxxx”. Take action when these reminders occur! During your 30 day follow up call, please direct all 1st payments to Equity Resources, Inc. as we can forward to the Investor if needed. This holds true even if we retain servicing as we will forward the first payment to LenderLive. Even if the customer has received their payment coupon book from the Investor, their first payment may still be due to Equity Resources, Inc. The payment coupon book from the Investor may show the first due date for the Investor but they still may be due to pay us. The Investor’s coupon book sometimes makes the customer think that their first payment isn’t due and they skip paying us. Most of the time, the Investor subtracts the first payment from our funding fee; therefore, the first payment is due to us. If your borrower did make their first payment directly to the Investor and it should have come to us, please contact Cindi Pratt and she will assist with getting the payment back from the Investor. Have your borrower use the first payment coupon in their closing package. The first payment coupon shows to make the first payment to Equity Resources, Inc.
The first payment coupon can be found in the closing package that is sent to the Title Co. That package is saved to the Architect image cabinet – see the below example. You can usually find it around page 27. 84 | P a g e
Be proactive ‐ the 30 day follow up call is the Mortgage Specialist’s opportunity to avoid any first payment issues and it is the perfect time to ask for a referral!
Please direct questions to our Accounting Department.
Online Customer Payment Process 1. Mortgage payments can be made online via our website. We want to be sure the payment is really due to Equity before we give the borrower the link below or direct them to our website. https://callequity.net/product/mortgage‐payment/
85 | P a g e
2. Once they click on the link the screen will look like below. Please have them complete the requested information. 3. Once you click review and pay, the Checkout screen appears. Customer fills out all their information. Then click the checkbox to accept the terms and conditions and the clicks Place Order. 4. They will then receive the checkout page and their payment is completed. 5. They will be sent an email receipt for their payment that looks like the sample below. 6. Accounting will also receive an email that the payment was made and will apply it to the customer’s account.
86 | P a g e
An Important Reminder About Follow Up Calls There’s something that should be noted about the “30 day follow up call”. After the client has completed their closing and settled into their home it is probably the most ideal time for a follow up call to ask for a referral. This is the time to lay the groundwork to begin building a relationship. You can say how excited you are for them to begin “realizing their dreams” that were communicated to you when discussing the purchase of the home. You can remind them of the importance to understand their mortgage and how purchasing a home is great step towards building wealth. Inform them you will stay in touch to address any questions and periodically share information. Finally, you want to remind them to send their first payment to Equity Resources with the temporary coupon and layout the procedure for making future payments to the new investor. All of this is very positive news allowing you to lay a foundation for building a solid relationship leading to future referrals. All that being said, what is the typical behavior everyone follows? We get the 30 day follow up email to contact our client in plenty of time to accomplish the tasks above and ignore the message. Then accounting sends out the notice when 1st payments are due and we get this response: “Good morning. I spoke with William ________. He sent his payment directly to Chase, and they cashed the check about 10 days ago. Do you need me to get any additional information from him?” This tells us the 30 day follow up call was not completed and the loan officer ignored the reminder. When reaching out to our client it may not be a negative situation but we have now created a sense of doubt in their mind. “Why are you calling me about this, is something wrong? I already mailed my payment.” When the client’s confidence in our performance is shaken is it the best time to ask for a referral? I point this out because the response from the LO is not abnormal. It is actually the response from the majority of our LO’s along with, “it is not my job to chase down payments”. All businesses are changing and future business for more and more industries is dependent on obtaining referrals. There is so much written about this we certainly don’t have to go into it. How do we get referrals? Creating the raving fan experience! After earning their trust the referral comes by reminding them we are worthy of their trust by following up and letting them know we care about them. This call is one of the easiest things you can do and will lead to business that will compound over time. Taking advantage of the company’s reminder system and completing the calls to our past clients is by far the best program to generate referrals! It beats the newsletter, mailings, gifts to realtors, etc. Ask the top 20% of our LO’s who are completing these calls and doing almost 80% of the company’s volume. It is such a fundamental task that every new LO we hire makes the comment during training how fantastic it is we automate the reminders. Every originator in the business knows following up and staying in touch with past clients is the key to success. However, the majority fail to act on it. All of the reminders (30‐60‐90‐120‐1yr) should rank as your #1 TO DO TASK when they pop up on any given day.
87 | P a g e
Automatic Emails RESPA due Email Trigger: Auto Email will run when the first user logs into the system each morning. The system will select all loans that have an application date 3 business days ago that do not have a LE Sent date or a TIL Disclosed Date entered on the Compliance Tracking screen and that do not have a Denial Date entered. Recipient: The email will go to the Interviewer. Subject: RESPA due Body: The following loans will be out of compliance by end of today. RESPA has not been sent. Please insure these loans are within compliance guidelines and action is taken today. Have a great day! 25 day Inactive Email Trigger: Auto email that will run when the first user logs into the system each morning. The system will select all loans that have an application date but do not have a dead (cancel or turndown) or close date. It will then look to see if notes have been entered in the Note Pad screen. If the last note entered is dated more than 25 days ago, it sends the email. Recipient: The Interviewer. Subject: 25 day inactive report Body: The following loans have been inactive in Architect for over 25 days & are not in Closed, Rejected or Cancelled status. Please make sure these loans are within compliance guidelines and action is taken today. Have a great day! 30/90/Annual Email: Three batch auto emails that will run when the first user logs into the system each morning. The first one will select all loans that have closed 30 days ago and email the interviewer for a 30 day follow up call. The second one will select all loans that have closed 90 days ago and email the interviewer for a 90 day referral call. The third one will select all loans that have closed 360 days ago and email the interviewer for an annual client review. If the interviewer is no longer shown as “Active” in the interviewer table, the emails will be sent to the interviewer manager in the interviewer table. Subject: 30 day follow up Body: Please contact customer name for their 30 day follow up call. Please make sure you discuss the following: ‐Ask the borrower to make their first payment to the following address: Equity Resources, Inc PO Box 5177 Newark OH 43058‐5177 Attn: Cindi Pratt ‐Ask them how your service was during the loan process ‐Request a referral Please note all comments from this conversation in Architect – Notes. Have a great day! Subject: 90 day referral call 88 | P a g e
Body: Please contact customer’s name for their 90 day referral call. Please make sure you discuss the following: Ask them if everything is going well with their current servicer Ask them how your service was during the loan process If you sent a closing gift, insure they received it When they thank you, request a referral! Please note all comments from this conversation in Architect – Notes. Have a great day! Subject: Annual Client review Body: Please contact customer’s name for their annual client review. Please make sure you discuss the following: • Happy one‐year anniversary! It is hard to believe that a year has passed since we helped you with the financing of your home. Our entire team sends our best regards. We hope that you are enjoying your home and that all is well. • One of the promises I made when we began serving you over a year ago was: If you were happy with what we did for you I would help you avoid having to go through the whole mortgage process again in the future. This is the time when we provide that very valuable service. By updating a limited amount of information in your loan file each year, we can then be ready to assist you at any time in the future with a new purchase, refinance, second home, investment property, home equity loan or a home improvement loan. This information will also allow us to be certain that the structure of your present mortgage is appropriate for your current needs. • All you need to do is answer six questions with me and you are set! You do not need to provide us with any financial documentation at this time. I will review your answers to the questions below and provide you with suggestions or solutions as needed. I will also let you know how much home you could qualify for based on your current financial position. 1.Would you like to receive a complimentary copy of our in‐file credit report and your county tax appraised values each year when we perform this review? YES NO 2. Have there been any significant changes in your employment or income in the last 12‐months, or do you expect any in the near future? YES NO If yes, please explain: 3. Have there been any significant changes in your savings, checking, investment or other asset balances in the last 12 months, or do you expect any in the near future? YES NO 4. Have you incurred any new debt that will remain open for more than 10 months? YES NO If yes, please explain the amounts and types: 5. Have you paid off any existing debt in the last 12 months? YES NO If yes, please explain the amounts and types: 6. What are your real estate goals and dreams? In the next 3‐5 years: In the next 5‐10 years: Ten years plus: Is there anything I can help you with now? Is there anyone you know that would be interested in a free purchase or refinance analysis?
89 | P a g e
Miscellaneous Items Prequal time documentation regarding Tax Returns and Income verification We no longer want you to get full tax returns from borrowers unless you need the tax returns to verify income. Tax returns are needed for self‐employed borrowers, borrowers that own properties, borrower employed in a family business, borrowers with 25% or greater income is from commissions, or borrowers using other income sources to qualify. For all other borrowers, we just need your borrower to SNAP A PHOTO OF THE FIRST PAGE OF THEIR MOST RECENT 1040 TAX RETURNS and text/email it to you at Prequal time. This will do a few things: 1. We can order tax return transcripts accurately the first time. Everyone here has been plagued with rejects of the transcripts from the IRS causing us to go back to the borrower multiple times to get information on the borrower’s tax returns so we can then send another 4506T to the borrower. That is always two more bothers to our customer! By getting the photo, we can accurately request transcripts the first time! 2. We won’t have full tax returns in the file that need sorted, reviewed, or stipped on. This will save us time in processing AND in underwriting and will prevent pesky conditions where we have to bother the customer for more information or the missing page or even for signed tax returns at closing. 3. You can also quickly see if a schedule C is filed or anything that would indicate you do need full tax returns and you can request them upfront. Loan officers simply need to add the picture of the tax return to the image cabinet in Mortgage Builder/Architect. This photo will not get put in Virpack. Click on the Image Cabinet, choose Upload, Browse to find the photo you saved, then chose File Area 1 and Document Code as PHOTO, then choose Upload. The document will be in the Image Cabinet like this: The disclosure department will look here and make sure the 4506T goes out with other RESPA docs correctly to avoid the transcript reject from the IRS. We recommend the loan officer get the photo of the tax returns and the most recent paystub at Prequal time so that you can accurately calculate income and so the photo is uploaded by the time the 4506T goes out with RESPA documents. Remember the IRS can still reject our transcripts for “LIMITATION” reason which means there is some kind of fraud alert within the IRS for that borrower. The borrower may not even know! In these cases, the borrower must supply us with a transcript they obtain and 2 full year’s tax returns.
90 | P a g e
Pre‐Approval Letters Prequal – you do not look at any income or assets. Use the prequal that you currently use in MB for this. Not worth too much to Realtors but buyers like it so they know how much to shop for. Pre‐approval – meet with a prospective buyer and get their income and assets. Pull their credit and get a good idea of how much the borrower can afford. Issue the NEW Pre‐approval letter using the paper ICON. The system knows that the loan was not underwritten by underwriting and will show up a standard list of stips that can be edited by you depending on what you reviewed. Realtors like these because they know you actually really did verify the borrower can buy a home. You did not just believe what the prospective buyer told you. Commitment Letter – use this when you need to provide a commitment letter to the Realtor. Usually the loan has been underwritten already because there was some issue that you were unsure of when you prequalified. You can issue this as well when a loan is not underwritten by an underwriter and you have a DU or LP approval and you have no issues with the loan (slam dunk deal!). The Fees Worksheet or Estimated Cash to Close Worksheet can be used at any point, including at prequal stage There are a few Pre‐Approval letters in Architect, but before you can use them you should first enter the Realtor’s information into the system. To do so, go to Origination Summary, then Loan Status and then click on Addt’l Info. Enter the Selling and Listing Realtor along with any information you have on them and click on the Save button. Realtors can be saved in the Contact file by clicking the little square that says add after you enter in the realtor's information
91 | P a g e
1st Pre Approval Letter Option
Click on the Print icon from the Origination Summary screen Choose Group Use the Lookup to search for the Pre‐Approval Letters print group Click on Unselect All (F6) and then click the letter that you wish to use Click the Print icon and click View Your letter will open as a PDF After Clicking “Unselect All” Click the checkbox next to the letter you want, and click “P i ”
2nd Pre Approval Letter Option
Go to Origination, Processing, PreApproval Letter Enter Preapproval Date Enter your name & title Enter valid for number Enter any conditions that you would like to add Click Print Choose View or Email
Mortgage Loan Commitment OR Pre Approval Letter A custom commitment letter is available that will allow you to free type conditions and remove conditions. This lets you get the information your customer needs to move along the loan process without the messy details of things that need to be handled in office only. If the commitment letter is already installed you’ll see the icon on the left on your taskbar (the bar at the bottom of the screen) or on your desktop. If it isn’t installed yet get in touch with our IT department to have them get the latest version onto your computer.
92 | P a g e
Make sure you don’t have an Excel file open Make sure Architect/Mortgage Builder is open and you’re not in any loan files
Click on the mortgage commitment letter icon on your desktop’s taskbar ‐ Click OK when the message appears stating “For this to work, Architect has to be open” Enter the Loan Number and click OK – be patient – don’t touch the mouse or keyboard The Mortgage Loan Commitment will appear in a Word Doc o If the loan has been underwritten, you’ll see the underwriter’s conditions listed – you may edit or delete the conditions based on what you want the Realtor to see o If the loan hasn’t been underwritten, you’ll see a standard set of conditions – you may edit, delete or add conditions as you would like After you’re finished making edits print the document as a PDF and send that PDF as an attachment to the borrower in an email. You can now email the commitment letter out
Web Applications Our Online Application is a fast and easy way for your clients to apply online. The average application takes less than 10 minutes, and the instructions to download the app yourself are below. If you do not download the application, it will be downloaded for you by the receptionist. Download the 1003 from EZ Loan Docs 1. Login to EZ Loandocs by going to https://www.secureloandocs.com/login.php or click the link in the app completed email as it shows above. You can also click the “New Loan Application” from EquityZone. 2. Click “Completed” on the left to see your loans 3. Click the “3.2” button to the right of your client’s name a. If the “down arrow” beside the 3.2 is gray, then that file has already been downloaded. That means it’s either already in Architect, or someone is already doing it. 4. From here you’ll go to Architect to upload the file. Click the “3.2” button to down the 1003.
Click “Completed”
93 | P a g e
Uploading to Architect 1. 2. 3. 4.
At the top of the screen, click on Tools Click 1003 Import File Click 1003 Import Loan. Click Upload File and browse for the file on your computer. It will have the same name as the borrower. 5. Double click on that file 6. Click Upload. 7. Once the file is finished transferring, save out of the screen. Your file is in Mortgage builder.
Emailing from Architect
From any document in Architect click print Select the email option from the print menu Select your recipients o You can also select cancel to make an email without a recipient Architect will prompt for a description of the email. The description will help identify what emails contain when viewing the filing cabinet Click accept & then send the email like normal. If you only want to send an email without an attachment then just delete the attachment in the
email. Remember to let your recipient know the password is SMILE
94 | P a g e
Updating Notes in Architect
The notepad is available at the top of most screens, and you can just click the notepad icon ( access it .
) to
The note pad is used to document everything that is done the file and is used as a conversation log. When sending respa, document “Respa sent 3/15/11” After conversations with the borrower, document things like “TT customer – loves the program and wants me to call him tomorrow to set an appointment” When you are finished adding a note hit enter, and then hit save. If you do not hit enter first the line will not necessarily be entirely visible to the next person in the file.
Rental Properties/Mortgages Owned
On the Origination Summary Page in Architect choose Assets & Liabilities Choose Real Estate Owned The order of the properties does not matter in Architect. Enter all applicable information. Under Property indicator – choose the correct choice for the property being entered. You can use the lookup to find these options in the system, or just type the corresponding letter below. o B – Current Res/Subject Prop ‐ Choose this for Refinance Loans o C – Current Residence – For a purchase where current residence is being sold or retained as a rental o N – Not Current Res or Subject Prop ‐ For a refinance or purchase where the borrower owns other rentals choose this when entering the rental properties. o S – Subject Property ‐ For a refinance where the subject property is a rental When a borrower owns rental properties, complete a page for each property owned
95 | P a g e
Example of a Rental property when we are calculating rental income using 75% is below. You can override the Net Rental Income here if you are using tax returns to calculate the net rental income. Just type over the Net Rental income as calculated.
Now let’s see the example from above after we override the system calculation and use tax return income.
The Asterisk (*) indicates that the field was typed in manually and the system was overridden.
96 | P a g e
When matching the mortgage liability to the property, go to Assets & Liablities (from the origination summary screen) and choose Liabilities Highlight the mortgage that you want to match with a property and choose Detail The liability page will highlight & you can choose the address to match to. In this example this is a Rental Property and not the subject. To choose the address, click on Acct Type and hit enter until the address list shows up so that you can pick from the list. On a Rental Make sure to choose OP (Other Property) Make sure to put “NO” to ratio. The mortgage liability is accounted for in the “net rental income”.
To set up a new file from one already in Architect
Open the old loan in Architect You will see the Copy Loan option A message will appear asking what type of copy you wish to perform. Choose Application Only. Put the cursor in the Input New Loan Number box and type NEW Hit Enter The automated loan numbering system will generate the loan number. Click Continue
Save out of the loan and search for the newly created file by the Borrower’s last name 97 | P a g e
Turn Down/Withdraw Procedure for Loan Officers In your borrower’s loan file, Click on Origination ‐ Processing – Denial Letter Step 3: Use your lookup to choose an UW Decision R = Decline | W = Withdraw
Step 1: Check both boxes if the decision was based on the borrower’s credit report (usually is)
Step 2: Choose Denial Detail
Step 4: Enter the Denial Date. This is not always today, this is the date the borrower was notified of denial. **You must do these timely, you can’t backdate! If you backdate, the letter won’t get sent and we won’t be compliant. Step 5: Using the lookup, choose a denial code. Then Accept, and Save.
If you choose “Decline” this will now appear on Disclosure Dept’s Report and a Turn Down letter will be sent to the borrower within 30 days (this will be documented in the notepad when it is done). Step 6: You must document the notepad with the conversation you had with the borrower.
**If the borrower is not eligible for the loan = Turn Down** **If the borrower is not continuing with the loan but are eligible for the loan = Withdraw** You are NOT permitted to Withdraw a file if it is really a Turn Down – you must mark the file as Turn Down if the borrower is not eligible. Registration Screen: all files must contain the Loan Officer’s (interviewer) name and referral type.
98 | P a g e
Keep In Touch We have added a field in Architect for a KIT (keep in touch) date. The KIT date is when you want to contact the customer again if you have to turn them down or they cancel with you. By entering in the date in this field, two great things happen. 1. Marketing will send a “Remember Us” letter to the borrower in the month that you enter in here. It is a great marketing piece! I attached a sample remember us letter. 2. Marketing will send you the list of names that they sent the Remember Us letter to that month so you can follow up with a personal phone call. The KIT program is automatic and you don’t have to remember to do a thing! Marketing does it all for you. To make this work for you simply follow the next steps. 1. Enter the KIT date when you are completing the Denial letter page in Architect. 2. Go to the Color Wheel in the upper right corner & a box will appear. 3. Enter the Keep in Touch Date there. In my example I entered 7/10/2015 because I think I can help this borrower in July of next year. Doing this one extra step will let you leverage another one of our great systems set up to help you get more business in the future!
How to enter Leads into Architect If you have a prospect/lead (not an application), we suggest you enter them into Architect so you can document your conversations and emails. To enter a LEAD Choose LEAD in Architect as the Referral Type Do NOT enter an App date or Pre‐Qual date as this will trigger automatic emails. Leave these dates BLANK. Make sure you include email address and as much information as possible. Document all conversations/emails. Add your next follow up activity into your calendar to ensure you keep in touch with them. We have created a LEAD query in Architect that we can review with you if you are interested in this option.
99 | P a g e
Escrow Waiver in Architect Step 1: In origination summary ‐ check the box next to “Esc. Waiver” Step 2: Go to the Prepaids/Reserves– choose a Reserves ID
DELETE the Due Dates Leave in the annual amounts so the monthly figure of taxes and HOI flow to the Housing Expenses
100 | P a g e
New File or Not? There is currently one situation that require a new file set up – 1. When you are going to drop a borrower from a loan for bad credit and RESPA has already been sent, then send the reject on the file & set up a new file in the one person’s name. All other scenarios are below but you’ll see they all say the same thing. 2 Borrowers to 1 Borrower Dropping a borrower for bad credit: If RESPA has been sent then reject the file and restart (same example as listed above) If RESPA has not been sent then just drop the borrower If loan is locked, alert the Lock desk that a borrower was removed Dropping a borrower because they don’t want on the loan: Drop the borrower, do a COC (change of circumstance) with a full new RESPA, keep both RESPAs in the file for compliance If loan is locked, alert the Lock desk that a borrower was removed 1 Borrower to 2 Borrowers Add the borrower, do a COC with a full new RESPA, keep both RESPA’s in the file for compliance Program Change FHA to USDA ‐ do a COC with a full new RESPA, keep both RESPA’s in the file for compliance FHA to Conventional – do a COC with a full new RESPA, keep both RESPA’s in the file for compliance Conventional to FHA ‐ do a COC with a full new RESPA, keep both RESPA’s in the file for compliance Conventional to USDA ‐ do a COC with a full new RESPA, keep both RESPA’s in the file for compliance Example: If the credit score changes during the process and the customer no longer qualifies for a Conventional loan and we change to FHA – do a COC with a full new RESPA, keep both RESPA’s in the file for compliance Loan type change 30 year fixed to an ARM ‐ do a COC with a full new RESPA, keep both RESPA’s in the file for compliance ARM to a 30 year fixed ‐ do a COC with a full new RESPA, keep both RESPA’s in the file for compliance PQ to Refi If a true PQ and no application date, use same file Purchase to Refi If no application date, use same file 101 | P a g e
If application date, start new file if locked, alert the lock desk
Refi to Purchase Always start a new file File Withdrawn or Reject & Borrower(s) Change Their Mind(s)
If the file is withdrawn and it is within 3 business days, the file can be reactivated but RESPA must go out within 3 days of original application date If the file is withdrawn and it is AFTER 3 business days, the file can only be reactivated if RESPA was sent out If the file is withdrawn and it is AFTER 3 business days and no RESPA was sent, a new file must be set up If the file is rejected and it is within 3 business days, the file can be reactivated but RESPA must go out within 3 days of original application date If the file is rejected and it is AFTER 3 business days, the file can only be reactivated if RESPA was sent out If the file is rejected and it is AFTER 3 business days and no RESPA was sent, a new file must be set up
How to run application/prequal reports in Architect
From the main screen go to‐ TOOLS –> REPORT BUILDER –> RUN REPORTS Click “VIEW” Use the LOOKUP & choose A‐EQ‐APPLICATION‐REPORT‐LOANOFFICER Hit SAVE Enter your initials and click ACCEPT Enter APP START DATE, ACCEPT, then APP END DATE and Accept Enter your initials again and Accept Enter PREQUAL START DATE, Accept, then PREQUAL END DATE and Accept Your report will appear with all your prequal and applications in the time period specified.
Other reports are available What loans are prequalified to buy – PRE‐QUALIFICATIONS‐FOR‐ SPECIFIC‐LO Who is closed – A‐EQ‐CLOSINGS‐PER‐LO How many were referred in a month – A‐EQ‐APPLICATION‐ REPORT‐LOANOFFICER 102 | P a g e
Outlook Scheduling an Outlook Activity From the Customer’s File in Architect
Click on the color pie Outlook will open and an Appointment screen will appear The Subject defaults as the loan number and borrower's names and the contact information will appear in the body of the appointment Type in after the borrower’s name – First Call to Solicit Options Change time & date to the date and time you want The call will be on your Outlook calendar Once you choose Save & Close the Appointment, go back to Mortgage Builder and click the save button on the Launch Outlook Calendar and it will notate the Notepad that an event was scheduled and from which screen. The scheduled phone call will now appear on your calendar How to clear items from your calendar once completed Do this when there is no follow up necessary
Click on the item you wish to clear from your calendar Notice it will now be highlighted in bold Right click on the item you are clearing and select DELETE o The item will no longer be on your calendar and the only history of the activity will be in your deleted folder in your email Moving an item on your calendar Do this when you are scheduling follow ups for active customers
Double click on the event you would like to move Notice it will now be highlighted in bold Change the subject to what you will actually be doing with that customer Change the start time of the event to when you wish to complete it Click save/close and the event will now be rescheduled for the date you want The activity has now been moved to the date specified
103 | P a g e
Moving an email to your calendar From your inbox, right click on an email. You do not have to “open” the email Select move Select calendar You will now be at the calendar/appointment screen You may now modify the subject line, change the date, and type anything you want in message area Click save and close It will now be on your calendar
104 | P a g e
PMI Options – Conventional loans MI coverages in Architect for conventional PMI are based on rates from the best priced PMI company monthly. On every conventional loan with PMI, choose the MI coverage option that matches the borrower’s credit score with either monthly or single premium option chosen. Or you can choose LENDER‐PAID‐MI when needed. PMI is set up based on the lowest cost provider to the borrower. To that end, monthly and single premium PMI rates are based on an analysis that shows the lowest cost provider. This can only be analyzed based on rate cards, so rates from the lowest provider from the rate cards is entered. We have two providers that can offer lower rates based on the customer’s scenario – Arch and United Guaranty, so those cannot be built into Architect. Monthly PMI is based on Arch’s Rates. Processing will order monthly PMI with Arch because they have the best monthly PMI in all situations when last reviewed. Arch can be priced at https://ratestar.archmi.com/ratestar/index.html?cust=MI#/Login. Single Premium PMI is based on Genworth’s Rates. Processing will not order single premium PMI until they check both Arch and United Guaranty rates, then will determine which of the three have the best rate for the borrower and will order with that company. UG can be priced at https://www.ugmiguide.com/RateQuoteWeb/?bidId=equityresources1208. Arch priced at above link. Lender Paid PMI should be ordered with United Guaranty. Every scenario currently ran had the cheapest LPMI with United Guaranty. We will order all of our PMI as DELEGATED. Delegated means our underwriting will underwrite the file to the PMI company’s criteria when underwriting, rather than have the PMI company underwrite the PMI portion of the loan file. For those of you more interested in additional information on PMI… then keep reading.
Rates for Arch Rate Star vary based on state. Rates for United Guaranty do not vary based on state. We will review PMI rates monthly and update these instructions based on the lowest cost provider. Remember that investment and second homes and jumbo loans need priced manually and entered in as CUSTOM.
105 | P a g e
LENDER PAID MORTGAGE INSURANCE (LPMI) for Loan Officers Lender paid Mortgage Insurance is a great way to offer the borrower a loan without monthly or single premium costs involved to the borrower. The only cost is the increase in the interest rate to cover the cost of the insurance premium. Here are some general parameters: LPMI is private mortgage insurance paid by Equity Resources for the customer. We increase the RATE to cover the cost of the LPMI. LPMI does not show on the LE but does show as lender paid on the CD. We have three investors that we can do LPMI loans with–BBT, ERW & FNMA LPMI can be with any of our PMI insurers LPMI cannot be priced in NYLX. Price the LPMI with one of our PMI companies then go to NYLX and price the loan to cover the cost of the LPMI. o For example, if the policy is $1500 for LPMI then we will need to get an additional $1500 in premium through our Yield Spread to cover the policy price. We then pay the PMI at funding time to the PMI Company & provide that receipt with the PMI policy when we sell the loan. o Another example ‐ if the LPMI costs 2.17% and typically you price each loan at 2%, then you would want to sell a rate that would yield 4.17% in pricing. Loan Officer Steps: Price the loan with each PMI company to get the lowest cost. See instructions below. We recommend you price with United Guaranty and one other insurer. Remember Essent has 660 min score but all other PMI insurers go down to 620. In NYLX ‐ Price the loan like you normally would but add the cost of the PMI to the amount you would typically price the loan at. (If you need to make 2.3 on every loan then add 2.3 to the PMI premium to get the pricing) Choose “LENDER‐PAID‐MI” in Mortgage builder as the MI coverage option When you order RESPA – specify LENDER PAID MI (an additional disclosure must be sent to the borrower) When you LOCK THE LOAN – make sure YOUR Note: This should COMMENTS on the rate lock say the loan has LPMI never be “customer” or “single premium” LPMI in MB: Select [LENDER‐PAID‐MI] – this is VERY important Choose Vendor Change MI paid by – LENDER Remember, the LPMI amount will not show up on the LE or 1003 Anywhere
106 | P a g e
Closing Disclosure: There are some references in the final rule about lender paid mortgage insurance being disclosed on the closing disclosure and based on that, we will show LPMI on the Closing Disclosure as Paid by Other (us). This will not appear anywhere on the Loan Estimate.
LO Toolbox on Our Website
Go to www.callequity.net Scroll all the way down to the bottom and click on EMPLOYEE LOGIN Enter the current password for the site. (this will change every 30 days) Look for the heading labeled “Mortgage Specialists” then click on LO Toolbox View the different categories in the Toolbox and click on what you need!
Closing Disclosure Facts Equity Resources, Inc. will prepare the borrower’s initial Closing Disclosure, revised (if applicable), and final Closing Disclosure. We will deliver the Closing Disclosure the borrower only. Also, when a transaction is rescindable, Equity Resources will deliver the Closing Disclosure to each person (all people on title and all spouses in dower states) who has the right to rescind. Equity Resource will be using Docusign to electronically deliver both the Loan Estimate and Closing Disclosures to borrowers who chose to do business electronically to ensure the shortest possible receipt timeline. Confirmation of receipt can be by any of the following methods:
Docusign confirmation of receipt Signed Confirmation (wet signatures) Email from the borrower’s email address stating they have confirmed receipt
Seller side charges, payoffs, Realtor commissions are not something we need. We do still need the seller’s Realtor name, address & license information.
Use just the Joint Realtor Sheet & send to your Buyer’s agent. Remember you can just call them and complete it yourself over the phone if you want.
107 | P a g e
Realtor fees sheets for the Seller Realtor is no longer required.
The Title Company will be responsible for the preparation of some form of CD or settlement statement for the Seller. We require the borrower sign the CD at closing as the last and final CD. Minor changes should be communicated and changed PRIOR to closing so the final CD is at closing. Once a CD has been updated by Disclosure Dept, the CD will be in the Image Cabinet in Architect. Loan officers may access this CD and discuss new cash to close figures with their borrower. The final CD at the closing table must have wet signatures and cannot be electronically signed.
Adjustments and Other Credits
Payoffs on a Purchase go into the “Adjustments and Other Credits” Merged with tax proration’s… Debts to be paid off $623 and Tax proration credit is $2226.90 Difference is $1603.90
Principal Reductions These will be noted in Section H
108 | P a g e
Possible Turndown
We NEVER want to send a closing disclosure to a borrower that could possibly not get approved. This is misleading and possibly opens us up to legal action by the borrower. Please, please do NOT allow a CD be sent if you think there is even a chance that a loan could still be denied. Communicate clearly to all parties in the transaction of the issue and that the closing will be delayed or may not occur at all. Be honest. Honesty is always the best policy.
Black Hole Explanation
The black hole exists only after a CD has been sent. Unless closing would be within 3 days of the change and no more than 3 days before closing, we could charge the extension fee. Since closing will be moved to more than 3 days after 1/8, the loan falls into the black hole where no extension fee can be charged.
Title Company Approval Equity Resources, Inc. is requiring all vendors, including title companies and closing agents, to complete a Questionnaire and due diligence package and get approved with us. This email is sent to the title company when we ask them to get set up with us explaining our closing process: We appreciate that you have given us all the necessary information to continue to be on our approved list of vendors. We want to give you some information about how we will work with you of closings once the TILA RESPA Integrated Disclosure Rule goes into effect. 109 | P a g e
First, we will prepare the new Closing Disclosure at our office and deliver it to the borrower and all landowners or spouses that could have some right to the property. Since we need information from you prior to the delivery of the closing disclosure, we will be reaching out to you when we order title work asking for the preliminary closing disclosure upfront. We are not anticipating closing delay times based on clearly communicating expectations to all parties based on the timeline we are preparing on each loan. The closing disclosure and all closing documents will be sent to the title company much like it is today. Typically within 48 hours of the closing date and time. If changes occur once you review the closing disclosure, the updates will need to be communicated to us so we can update the necessary fields. There will be a person that you can contact by phone or a whole department by email that will make any last minute changes as necessary to ensure a smooth closing for our borrower. We do want the closing disclosure signed at the closing table to be the final closing disclosure. You will be responsible for distributing the closing disclosure to the seller and Realtor. You may use an alternative form such as ALTA has put out there or you can use our closing disclosure. We do not plan on restricting access to the closing disclosure for sellers or Realtors, at this time. We do expect when you complete the fee worksheet that you clearly communicate the premium for owner’s title insurance and lender title insurance along with any simultaneous issue fee. We have no problem correctly calculating the lenders and owner’s title insurance that needs to appear on our closing disclosure and realize this won’t typically match actual premium amounts. Lender title insurance will be in the full amount of the lenders title insurance policy and owner’s title insurance will be the owner’s policy amount plus the simultaneous issue amount minus the full lenders title insurance premium. We also realize you must prepare your own document explaining title insurance to the parties in order to comply with state insurance laws. Please include a copy of all additional forms that were signed at the closing table when you submit closed loan documents back to us. In the future, we do plan on using a closing portal to communicate through rather than the old fashion worksheet. Hopefully the portal will be ready by year end. It will not pose any cost to the title company and we will do the work to get you set up with a user name and password. Look for more information to follow later this year. Thank you again for sending the required documentation, and we look forward to all future business together. We will review their package and ensure compliance with our policies prior to approval. The title company/closing agent must be approved PRIOR to closing their first loan with our company. The Title Company is responsible for disclosing the Closing Disclosure to the seller and Realtors. 110 | P a g e
We do not have any restrictions on providing our borrowers CD to the seller and Realtors in the transaction. The title company can utilize their own forms as well. We do request back copies of all Closing Disclosures or alternative settlement cost sheets to be provided to us with the closed loan package. Equity Resources requires the title company to send us a preliminary CD based on the closing date – this is requested at title order time – here is the email sent: Attached is a title property request and purchase contract. The password is SMILE. We will be preparing the Buyers Closing Disclosure on all applications after October 3, 2015 and will need you to send us a prelim Closing Disclosure with the title work. Please base this on the closing date of ______________. When returning the title search, please make sure to also include the following: Wire Instructions Closing Protection Letter 24 Month Chain of Title Prelim CD *Please confirm receipt of this order* Here is some additional information about how we do business to comply with TRID (TILA‐RESPA Integrated Disclosure Rule): First, we will prepare the Buyers Closing Disclosure at our office and deliver it to the borrower and all landowners or spouses that could have some right to the property. Since we need information from you prior to the delivery of the closing disclosure, please return the preliminary CD to us with the title work. The closing disclosure and all closing documents will be sent to the title company much like it is today. Typically within 48 hours of the closing date and time. If changes occur once you review the closing disclosure, the updates will need to be communicated to us so we can update the necessary fields. You can contact
[email protected] to make any last minute changes as necessary to ensure a smooth closing for our borrower. We do want the closing disclosure signed at the closing table to be the final closing disclosure. You will be responsible for distributing the closing disclosure to the seller and Realtor. You may use an alternative form such as the one ALTA has put out there, your own version of the CD, or alternative form that meets your guidelines. We would like to have a copy of what you provide to the seller in the closing package returned to us. Only our Closing Disclosure can be given and signed by the buyer. We do expect when you complete the fee worksheet that you clearly communicate the premium for owner’s title insurance and lender title insurance along with any simultaneous issue fee. We have no problem correctly calculating the lenders and owner’s title insurance that needs to appear on our closing disclosure and realize this won’t typically match actual premium amounts. Lender title insurance will be 111 | P a g e
in the full amount of the lenders title insurance policy and owner’s title insurance will be the owner’s policy amount plus the simultaneous issue amount minus the full lenders title insurance premium. We also realize you must prepare your own document explaining title insurance to the parties in order to comply with state insurance laws. Please include a copy of all additional forms that were signed at the closing table when you submit closed loan documents back to us. In the future, we do plan on using a closing portal to communicate through rather that this old fashion method. Hopefully the portal will be ready by year end. It will not pose any cost to the title company and we will do the work to get you set up with a user name and password. Look for more information to follow later this year. We will calculate the lenders and owners title insurance that is required by the TILA RESPA Integrated Rule. We realize this won’t typically match actual insurance premium amounts. Lender title insurance will be in the full amount of the lenders title insurance policy and owner’s title insurance will be the owner’s policy amount plus the simultaneous issue amount minus the full lenders title insurance premium. We expect the title company to prepare their own document explaining title insurance to the parties in order to comply with state insurance laws. We expect a copy of all additional forms that were signed at the closing table when the title company returns the closed loan documents back to us.
Appraisal fee paid on a cancelled loan
The appraisal fee needs to be refunded on the first loan if no appraisal was done. You will need to recollect a new appraisal fee on the new loan. We have to follow the TRID Rule on the new loan and not collect an appraisal fee until the borrower receives the LE and gives us their intent to proceed.
112 | P a g e
DocuSign
Open up email from Docusign The borrower has to check “I agree to do business electronically with Equity Resources, INC. After they check they agree then click Review Document Click start on the upper left hand corner Click sign on the left hand side of the signature line Click the sign here tab Click adopt and sign the doucment Click confirm signing
The Borrower can skip this step by clicking the “X” in the top right hand corner.
113 | P a g e
Click Review Documents
Using Adolix to Split or Merge PDFs Adolix is a free tool we can use to split apart PDFs or merge them together. This helps us to keep documents together that should be that way, like when someone sends over three pages of a document in one email and the other two pages in another. By merging those files you make sure that they are received and handled in the right order.
Splitting PDF Files You might want to split a PDF for a variety of reasons, like splitting documents between co‐borrower and borrower, or to have separate types of documents (bank statements and w‐9s) stored separately. To split a PDF file, just click the “Split” tab at the top of the Adolix screen. Click the blue “PLUS” button on the right and select the PDF you want to split. If it is password protected, click the gold “Key” that shows up in the password section and type in the password.
Now choose how you want to split up the file below. The various methods are: “Into files of __ pages” – This creates a new pdf every time they are as long as the amount in the blank. o Example ‐if you have a 20 page PDF and you split it “Into files of 4 pages” you will end up with five 4 page pdfs. “By page Range” – This is the best option. It lets you select exactly what groups of pages you want. You can write a range of pages by putting a dash between them (e.x. “3‐6” selects pages 3 to 6), or specific pages by separating them with commas. For each PDF you want to make put a semicolon between. o Example – “1‐3,6,8;10‐15” will make 2 PDFS, one with Pages 3,4,5,6 and 8 in it, and the other with pages 10 through 15 in it. The other two options will almost never have a use in our industry. Once you’ve selected the split method take note of the destination folder, that’s where your PDFs will go. They will be named the “Base Filename” and then a number after the name to indicate what order they were in “Example1, Example2, Example3”. Click Split this PDF when you’re finished.
114 | P a g e
Merging PDF Files More often than not, you’ll be merging files from different sources instead of splitting. The merge process is simpler as well. Click the blue “PLUS” button on the right to select your first file. Once that appears select the other file you want to add to it by clicking the “PLUS” again and selecting another file. You can choose up to five PDFs to merge together. Once you have selected all of the PDFs you want to merge make sure they’re in the right order. The up and down arrows next to the list let you reorder them. Once they’re in the right order just check the file name. You’ll find it under “Output filename” and it will often be some long and complicated looking name. The only part you’re worried about is right at the end directly to the left of “.pdf”. By default this will say “output”. Change “output” to what you want to name the file, being careful that you don’t delete the “\” or “.pdf” before and after “output”. Once you’ve chosen the file name you’re ready to click “Merge Files!” and they will appear as one PDF in the name you typed.
115 | P a g e
My CDA Scenario… Are you prepared for your phone call to the CDA? Before you contact the CDA with a complex scenario, be sure you have all your ducks in a row! Compiling the details and getting the “full story” is the key to successful and efficient raving fan service. Consider the key pieces of information below… o o o o
PRODUCT ‐ Conv? FHA? VA? USDA? SCENARIO ‐ What’s my question? What is it I’m looking to have answered? DETAILS ‐ Do I have the facts? Do I need more of the story? Any extras? Credit score, LTV, occupancy type, items that can impact the outcome of my scenario.
Reminder… Do not call the hotline to discuss underwriting conditions! Always email the original underwriter to handle questions on conditions. Providing all the details upfront will give you fast, thorough responses. Half the story will give you half the answer… There aren’t any dumb questions. No, really! If you’ve searched and searched or if you’re put on the spot by a borrower or realtor, make the call! You can reach the CDA @ 740-349-9559, or if you would like to email a question use the email address:
[email protected]
116 | P a g e
VIRPACK CHEAT SHEET FOR LOAN OFFICERS Logging into VirPack Open Internet Explorer Go To: https://callequity.virpack.com
Enter your User Name and Password To View a Loan File 1. Click View in the top right corner 2. Type in the Loan Number a. (or if you want to Query by Borrower Last name, choose Borrower in the Query drop down – left side of screen) 3. Click Open beside the loan number 4. The electronic file will open, click on the name of any document you want to view and it will open in the large panel on the right.
To Print an Entire Container, right click on the document name and choose print
To Print a Single Page, right click on the thumbnail of the page and choose print 117 | P a g e
Equity Zone Equityzone.org is your one stop online to get updates on company goals, common links, and training. ERMA Training‐ This page will take you to some video series and PDF training guides for using ERMA. LO Toolbox – This is a handy set of forms and other tools which you may need at any point while you’re originating loans. The LO Toolbox is where you can find the most up to date version of this manual. FAQ‐ Go here before you ask a question of our support staff for a faster response. If the question is already answered there it will save everyone a lot of time! Marketing Shop – Looking for some promotional materials of almost any sort? Go to the Marketing Shop to easily preview and order materials without ever having to pick up the phone. Web Links – This section will give you some more commonly used links, just ones that might not come up in everyday business (like government program websites). Loan Tube – This is our video library and it has dozens of informational videos to help you learn about loan programs, originating tricks and everything in between. This section is always being updated and most of the videos in here are simple, short and to the point. The perfect way to learn a lot in a little bit of time with almost no effort.
Loan Tube
Click on any of
the education
118 | P a g e
series links to pull up the whole training series as one playlist.
Just click any of the thumbnails on the playlist to switch the active video
ERMA Training ERMA 101 – Clients This training focuses on the basics of ERMA, the relationship management system and how to use ERMA to get the most out of your client list. You will also learn what ERMA automatically sends for you and what triggers these events. ERMA 201 – Realtors This training focuses on Realtors. It teaches you how to send emails, email blasts, set up and maintain realtor contact information, send automatic weekly market updates and create flyers (co‐branded if you want). ERMA 301 – ERMA Comprehension This training will help you enhance your marketing efforts by further understanding the vast advantages ERMA can give you by diving into contact types and groups. ERMA 401 – Looking forward What is next in ERMA? Be on the cutting edge with the most recent ERMA advancements in social media, texting and ERMA 3.0. ERMA Trainings are available at EquityZone.org and should be watched in order of class level. These can be viewed at your leisure and are highly recommended to enhance your communication and relationship with your clients and affiliates.
ERMA 101 – Clients This training focuses on the basics of ERMA, the relationship management system and how to use ERMA to get the most out of your client list. You will also learn what ERMA automatically sends for you and what triggers these events. ERMA 201 – Realtors 119 | P a g e
This training focuses on Realtors. It teaches you how to send emails, email blasts, set up and maintain realtor contact information, send automatic weekly market updates and create flyers (co‐branded if you want). ERMA 301 – ERMA Comprehension This training will help you enhance your marketing efforts by further understanding the vast advantages ERMA can give you by diving into contact types and groups. ERMA 401 – Looking forward What is next in ERMA? Be on the cutting edge with the most recent ERMA advancements in social media, texting and ERMA 3.0. ERMA Trainings are available at EquityZone.org and should be watched in order of class level. These can be viewed at your leisure and are highly recommended to enhance your communication and relationship with your clients and affiliates.
120 | P a g e
TIME BLOCKING IN PROCESSING Time blocking in processing allows our Processors to have each morning to work on urgent items, plan for the day, and start working their files without interruptions. Unless there is an urgent item, Mortgage Specialists should not contact their Processor until after 10:00 each day. If there is an urgent item that arises before 10:00, please contact the Processing Manager. If the item is in fact urgent, he/she will get with the Processor to handle the item right away. However, if the item really isn’t urgent, he/she will ask that you wait. The receptionist won’t be passing calls to the Processors before 10:00. She will ask you to email your Processor if you are able to do so. If you are unable to email your Processor because you are on the road, she will email the message to them for you and put “PHONE MESSAGE” in the subject line. She’ll include the borrower’s name in the subject of the email along with your message. We truly believe that time blocking has helped both Processing and all our Mortgage Specialists. Urgent items are being completed in the mornings and Processors are able to take this time to concentrate and plan their day. Of course, this leads to better quality work. **This is only for our Processing Department, all other departments will run as normal.
121 | P a g e
IT HELP DESK To use our ticketing system, email
[email protected]. The subject line should include the source of the problem and the body of the email should include details. Example:
Please keep in mind that we want to provide excellent customer service but we don’t have a fulltime weekend IT Help Desk staff. During evening and weekends, we only respond to urgent items. What is an urgent item, you ask? An urgent item is if you are unable to work and need to do so. Here is a list of some example urgent items:
“I can’t log into Architect and I need to give my borrower and Realtor a preapproval letter” “my computer died and I can’t take an application” “I am locked out of my loan and my Team Leader isn’t at their computer to unlock it” “VirPack isn’t letting me send documents to my loan file and I’m trying to submit a file” “VirPack won’t load my loan and I can’t work on my file”
If for some reason you are unable to send an email and have an IT issue, you may call or IM me (Jared). Any questions or issues regarding our ticketing system should be directed to Jared at
[email protected]. 122 | P a g e
123 | P a g e
124 | P a g e
Student Loans Conventional Fannie Mae For all student loans, whether deferred, in forbearance, or in repayment, we must include a monthly payment in the DTI. We must use one of the options below to determine the repayment amount:
1% of the outstanding balance; the actual payment that will fully amortize the loan as documented in the credit report; a calculated payment that will fully amortize the loan based on the documented loan repayment terms; or if the repayment terms are unknown, a calculated payment will fully amortize the loan based on the current prevailing student loan interest rate and the allowable period in the table shown below.
The “current prevailing student loan interest rate” can be found in a variety of websites. For example, see U.S. Department of Education Federal Student Aid: https://studentaid.ed.gov/sa/types/loans/interest-rates. The following table specifies the repayment period to be used when calculating a fully amortizing payment.
Note: The lender is responsible for determining that the payment on the credit report, or other documentation provided by the student loan lender or borrower, are fully amortizing payments. 125 | P a g e
Example: Calculating an Amortizing Payment Balance: $17,500.00 Repayment period: 15 years Interest rate: 4.29% Monthly Amortizing Repayment: $132.00 Please note: The 4th option can only be used if the repayment terms are unknown. Freddie Mac For student loans in repayment – the borrower must qualify with the monthly payment obligation as reported to the credit report. If a monthly payment is not stated on the credit report and cannot be verified, 1% of the outstanding balance must be used as the qualifying monthly payment. Student loan debt that is in deferment or in forbearance must also be included as part of the borrower’s recurring monthly debt obligations. The lender must obtain documentation verifying the monthly payment amount by verifying what the monthly payment will be at the end of the deferment period. The lender may verify this information with documentation such as a credit report supplement or verification from the student loan servicer. If a monthly payment cannot be verified, 1% of the outstanding balance must be used as the monthly payment and included in qualifying ratios. FHA All student loans, whether deferred, in forbearance, or in repayment, must be included in the borrower’s liabilities regardless of the payment type or status of payments. For qualification, we must use:
the greater of: o 1% of the outstanding balance on the borrower’s credit report; or o the monthly payment reported on the borrower’s credit report
OR–
the actual documented payment, provided the payment will fully amortize the loan over its term…
*Estimated payment amounts provided by the servicer that are less than 2% of the outstanding balance are NOT acceptable.
126 | P a g e
USDA A borrower must qualify with a monthly payment for all student loan debts, regardless of whether or not the student loan is deferred, in forbearance, or in repayment. Fixed payment loans: A fixed payment may be used in the debt ratio when we obtain documentation to verify the payment is fixed, the interest rate is fixed, and the repayment term is fixed. There must be no future adjustments to the terms of the student loan payments. Non-fixed payment loans: Payments for Deferred loans, Income Based Repayment (IBR), Graduated, Adjustable, and other types of repayment agreements which are not fixed cannot be used in the total debt ratio calculation. We must utilize 1% of the outstanding balance reflected on the credit report to establish the monthly payment to be used in qualifying. Not additional documentation is required. VA Student loans in repayment will generally qualify with the monthly payment reporting on the credit report. If a student loan is currently in deferment and the payment will be deferred for a period of at least twelve months outside of the closing date, the student loan payment may be excluded from the qualifying ratios. For student loan repayments that are scheduled to begin within 12 months of the closing date, the lender must consider the anticipated monthly obligation for qualifying. For student loans in repayment based on an Income Based Repayment plan, VA requires that we use 5% of the outstanding balance divided by 12 to figure the monthly payment amount used in the DTI. NO EXCEPTIONS! *Keep in mind! FORBEARANCE is when the borrower has filed a hardship – at times high risk/low score borrowers may need to meet additional criteria in order to exclude these obligations.
127 | P a g e
