Inputting a prospect into Encompass
New file creation: From the Prospects screen, click to add a prospect in the top right (you must be in the
prospect, Whiteville pipeline or prospect view (or whatever your loan officer or office pipeline is called),
and not pipeline view to add a new file
Program template: Choose the correct Loan Template (Must be a 2015 template, must be the correct
property state, and choose the program type you will more than likely use (if you change later, this will
need to be corrected) & choose “select template”
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Templates are organized by property state
Templates are under “Public Loan Templates”, “Companywide”, & choose subject property
state, then choose the loan template for your loan
Choose Loan Officer: Under “Log”, click on “Send to Processing” and choose the appropriate loan
officer by clicking on the magnifying glass
Under “Forms”, click on “Marketing Leads Form” and choose if the lead came from marketing or leads
Inputting a prospect into Encompass 10/29/16
ALL CAPS: Type everything in Encompass as CAPITAL LETTERS & Save the file often so you don’t lose
your work
For the subject property, make sure you put “TBD” in all caps in the “address” field, city, state, & zip
until you have an actual property and are ready to disclose. Do not put any numbers in the subject
property address line or you will be required to disclose. Just put “TBD”.
Borrower Summary-Origination
Borrower / Co-borrower Information:
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If no co-applicant, check the box at the top for this. Co-applicant is a separate borrower
Make sure that you choose “individual” for single or joint borrowers. Choose “co-signor” if a cosignor (like a non-occupying co-borrower)
Make sure that the legal full name is used. If borrower has a suffix like Jr, put it separately in
“suffix”
Complete the rest of this whole section
For address, enter the full address and spell out the street. Ie. Avenue not Ave. If less than 2
years at current address, then complete previous address. If a 2nd previous address, enter on
page 1 of 1003
Use separate email addresses for each borrower
Social Security Number Verification: Check the “Mortgage Service” box and make sure it says “60” days
Company’s Information & Company’s Agent Information: It must show the FIRST AMERICAN
MORTGAGE SOLUTIONS & INFORMATION BELOW or we have to get additional documentation signed.
Present & Previous Address: Complete to cover 2 years history
Credit Information:
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Check the box showing you had authorization to pull, date authorized, & method
Borrower can demonstrate a 12-month mortgage/rental history: Check if we can prove this history
Subject Property Information:
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Subject Property: On a purchase, put “TBD” in the address line and any city or state in an area
that they could be purchasing if a property is not known yet. Put both values in to match the
price you are using
Choose the appropriate property type – if has HOA dues or in an HOA, choose PUD, PUD
detached, etc
Inputting a prospect into Encompass 10/29/16
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Input both estimated and appraisal value as the same. On a purchase it should match the price
Transaction Details:
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Make sure the correct “Loan Program” and “Closing Cost” options are chosen up-front – Make
sure that you use only 2015 forms & choose the correct state for the subject property so the
correct templates are used. Ie. 2015 NC FHA Fixed Rate. If not, your e-disclosures will be wrong
& if you have to correct it later, you will lose all of your information in the Itemization
Make sure the correct purpose, property will be, loan type, lien position, amortization type are
chosen
If a purchase, enter an approximate price & down payment
Choose “estimated closing date” as the date of the purchase contract or a refi, choose
estimated closing date
Source: Make sure that the Referral Source is accurate. Try to spell the referral source’s name the same
always so reporting can track the amount of referrals accurately
Loan Application
Page 1: If a joint application, check the top box. Don’t check the 2nd box
I.
II.
III.
Types of Mortgage and Terms of Loan: Make sure the Loan Type, Lien Position,
Amortization Type, Purchase Price, Loan Amount, Interest Rate, Qualifying Rate (you can
leave this blank to avoid issues of changing the actual rate somewhere but the debt ratio is
being figured off the lower rate), term and due in
Subject Property: Use “TBD” initially when a property is not known
 Input correct # of units (1 for single family residences, 2 for duplex, etc)
 Look up and input the actual year built of subject property. Use tax card, Zillow, etc. If
not known yet, you can leave blank
 Make sure “purpose of loan” is completed accurately
 “Property will be” – complete correctly. It is important to choose this to make dti right
since a conventional loan could be a primary, 2nd, or investment
 Title to be held & manner: Make sure that full names for everyone to be on title is
shown and for married choose “Tenancy by entirety” initially. Add non-borrowing
spouses for instance
 Source of down payment
 On 100% LTV, select “other type of down payment” because there is no down
payment
 Otherwise make sure you choose the actual source of down money
 If a gift, make sure to choose the appropriate gift choice
Borrower Information
 Fully complete including school, number of dependents, and ages (must complete for
both borrowers)
Inputting a prospect into Encompass 10/29/16
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IV.
Spell out the addresses and make sure the time in the property is accurate, must have a
phone for each borrower
 Enter mailing address (make sure you ask for the mailing address so docs are mailed to
the correct place
 If in current residence less than 2 years, input addresses until you have 2 years total
Employment Information:
 Make sure that the full employer name is input as well as the physical address
 You can click on the address book to see if the employer is in the database. If not,
follow the tutorial “How to edit or add records to Encompass database”
 Enter current time on job and years in line of work
 If the borrower has worked at this employer for less than a year, add former employers
by the following steps:
 Click on “show all VOE”
 Review all other employers input
 If you need to input another employer, click on the + in the top right, choose
“borrower” or “co-borrower” and whether “current” or “prior” employer, and
enter all information. For prior jobs, enter dates employed rather than just
years and months
 If borrower is retired, disabled, or something else without an employer, you must still
complete this section. Enter “Retired”, etc for Employer and Position and the
borrower’s home address & phone so that Encompass won’t give you an error
Page 2 of the Loan Application (1003)
V.
Monthly Income and Combined Housing Expense Information
 Make sure that the income is broken down accurately for both borrowers
 Input the current housing expense
 For rent, input the correct amount. If rent free, put “1” to save from errors later
 If the borrower has a first mortgage, enter the PITI payment (P&I if doesn’t
escrow)
 If the borrower has a 2nd mortgage, enter the payment
 If the first mortgage does not include escrows or the home is free and clear,
enter the actual insurance and property taxes
 If the current home has HOA dues, enter monthly amount
 Make sure the Proposed housing expenses are correct
 The first mortgage payment amount will be there already as a calculated. Don’t
manually change this!
 Put the actual insurance monthly figure if known and if not known, put a good
guess
 Put the actual property taxes if known or use a good guess - find a similar
property’s taxes to use
 PMI/Funding Fees – use PMI instructions in the appropriate “creating
disclosures” tutorial
 If the property has HOA dues, input the monthly amount
Inputting a prospect into Encompass 10/29/16
VI.
 “other” would be flood insurance or other insurances carried over from the fees
entered on the Loan Estimate
 PMI Warning!!! When you lock the loan, the system often will change the
PMI calculation or cancellation. So correct this back if it happens!
 Other income:
 Make sure that B or C is chosen correctly, you must choose an appropriate
category for each other income, and put the calculated amount.
 If you are grossing up nontaxable income, you can follow the tutorial “How to
gross up income correctly in Encompass on a VA loan to flow from the 1003, to
VA Loan Analysis, and into DO/LP”
Assets and Liabilities:
 Check either “jointly” or “not jointly” for the assets used to the right side of the screen
 Assets:
 Cash Deposit: Do not enter an amount here. It will be entered on page 3 of the
“Details of Transaction” and should read as “cash deposit on sales contract”
 For checking, savings, money market accounts, click on “Show all VOD”
 For each asset, choose if the asset belongs to the borrower, co-borrower, or
both per the statement
 Type in the bank name and click on the address book button to see if you can
pull in the information. If the bank is not in the address book, follow the tutorial
“How to edit or add records to Encompass database”.
 Make sure that the type of account is chosen, the “account in the name of” is
complete, account numbers are entered if known, and the balances as well
Inputting a prospect into Encompass 10/29/16
 If an asset is a gift, make sure for the VOD section of the 1003 that you choose the
account type as “gifts total” like below so it flows through LP correctly.
LP – how gifts should be shown by doing the above step
 If you need to add more liquid assets in a different bank, click on the + and
repeat the above
 Input any stocks or bonds and/or cash value of life insurance where required
 For vested interest in a retirement fund, enter 60% of the vested amount unless
the program allows for 100%
Inputting a prospect into Encompass 10/29/16
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Liabilities
 Save the file
 Order credit
1. Go to the “Credit Information” Section and click on “order credit”
2. On the next screen, make sure that “Credit Technologies” is highlighted
and click “submit”
3. Make sure that your login information is completed, that all 3 bureaus
are checked for pulling (unless you are only pulling one or two for some
reason)
 Once credit is pulled, click on “import liabilities” to pull the debts from the
credit report into the application
 If the debt is a collection, etc, choose the dropdown “collections, judgments,
and liens”, so AUS know what these accounts are
 If you know that a debt is really a mortgage or Heloc when it is reporting as
installment or revolving, change it to “mortgage”.
 If a debt is going to be paid off at closing, click “paid off” to the right
 If a debt is required to pay off monthly (Amex), choose “paid off” & it will
reduce assets by this amount and not count it in the ratios
 Update any student loan payments if needed because of IBR or deferred status
 If a borrower pays child support or alimony, type which one it is, the payment
amount, and put 12 months for how many months it continues so it will be
counted in the debt ratio in AUS
Page 3 of the Loan Application (1003):
VII.
VIII.
Assets and Liabilities (cont)
 Schedule of Real Estate Owned – Must be fully completed accurately
 If no properties owned, leave blank
 If the borrowers own any real estate currently, click on “show all VOM”
 If you need to add new properties, click on the +, then
1. choose the mortgage(s) that should be linked to this property
2. enter the address, property is used as, present value
3. “Property status” R for rental, S for sold, PS for pending sale (meaning
will be sold & closed prior to the subject’s closing). If property is to just
be retained, leave blank. If you have a primary residence purchase and
need to count the PITI payment of the current residence in the debt
ratios, make sure you choose rental & investment property
4. Choose the property type
5. If will be a new rental property, follow the agency rules for how much
can be counted or you can put zero for “gross rental income” to
approve without. If you are using rental income from tax returns, use
the rental income worksheet and enter the calculated amount in the
“net income/loss” box
Details of Transactions
 Make sure that none of the boxes on the left are locked
Inputting a prospect into Encompass 10/29/16
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IX.
X.
Make sure that any earnest money deposit & due diligence are listed as “cash deposit
on sales contract”, DON’T type in due diligence
 Seller paid costs – use “seller credit” from dropdown & enter as a lump sum amount
 Make sure that none of the boxes on the right are locked unless you are breaking down
seller paid costs in two places (see instructions for seller paid costs)
Declarations - Enter completely for all borrowers
 If there is a non-occupying co-borrower, answer “No” for question about being a
primary residence
Information for Government Monitoring: Ask the borrower all information, don’t guess
 Make sure the correct loan officer’s name is input
 Input the “Application Date” in the “1003 signature date”
 “1003 signature date” should match the “LE application” date in Disclosure Tracking and
the top of the “Borrower Summary – Origination”
 Make sure that the office address and phone number are correct for the loan officer
** If you need to drop a borrower and split a credit report, refer to the “Remove borrower from
application & split a credit report” tutorial
Send the E-Consent Notification!
This is very important to send right after receiving the email address so that we don’t have a delay in
sending the e-disclosures later (because to e-disclose, we need to have the e-consent back)
Follow “instructions for sending and receiving E-Consent” in this book & use the email template to put in
the econsent email (this has been getting a higher completion rate compared to just sending the email
as is
Conversation Log
Under “Tools”, go to “Conversation Log”, click on the + in the top right to add notes
Name: Put “NOTES ON FILE – GOES BY BILL AND SALLY” – this lets everyone that opens the file
know what this file is about and what needs to be done, plus the names borrowers go by
Examples of a conversation may look like this:
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Buyer pays cash for rent to an individual – let’s get a vor and add to credit supplement
Can get a gift of $10k from father
Just paid credit card down to $20 and a rescore should make him qualify
Need a detailed VOE from current and prior employers so we can hopefully include OT
Buyer is interested in the MCC tax credit
Then as you learn more, this can be tweaked.
Inputting a prospect into Encompass 10/29/16
Completing forms, numbers, running AUS, Etc
Remember to use the appropriate tutorial for creating disclosures (even though you may not be
disclosing, but it has the *** items to complete for accurate DTI, LTV, & AUS
Complete 2015 Itemization as best you can so your numbers are accurate for AUS, cash to
close, seller paid costs needed if applicable
Run AUS that applies for the loan
Client Interaction:
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Follow up on econsent being completed
Once econsent completed, send 4506-T, borrower certification and authorization,
Request for COE (if applicable), and CTI explanation letter through Encompass for
completion
Send detailed items needed list to borrower
Send prequal letter to buyer and realtor if needed
Explain how important it is to provide all documentation up front for best success in
closing on time or early
Discuss file and plan with the buyer’s agent if applicable
Send 2016 Itemized Fee Worksheet to go over loan option(s)
Explain numbers and what to expect in the process
Have a consistent follow up system with the borrower
Follow the instructions for other sections in the reference book to have an accurate file
Inputting a prospect into Encompass 10/29/16