Download PDF version – Anti-steering safe harbor disclosure
The Anti-Steering Safe Harbor Disclosure helps your company stay in compliance
with the new anti-steering requirements. This disclosure enables the loan
originator to provide the borrower with a variety of loans to choose from:
• The loan with the lowest interest rate
• The loan with the second-lowest interest rate
• The loan with the lowest settlement costs
• Another alternative loan
Use the Anti-Steering Safe Harbor Disclosure to enter information about the loan
choices you are offering. Once you have provided at least three loan options for
the borrower to choose from, you can send the disclosure to them. You can print
the disclosure and then send it to the borrower via fax or postal service, or you can
send it electronically. If you send the document electronically, the borrower will not
be able to make their selection and enter the reasons why on the form (unless
they print it out). Therefore, you may want to discuss the options with the borrower
beforehand and then select their desired Loan Option and enter their reasons why
before sending the disclosure electronically. If the borrower has decided to select
a different loan, the loan originator can update the current loan file with data from
the new loan using the Copy Selected Option to Loan button on the Anti-Steering
Safe Harbor Disclosure.
NOTE: To access the Anti-Steering Safe Harbor Disclosure, your system
administrator must make you a member of a user group and then grant permission
to the group to access the disclosure.
To Provide Loan Options to the Borrower:
1 Open a loan in Encompass.
2 Click the Tools tab, and then click Anti-Steering Safe Harbor Disclosure.
3 Enter the borrower, property, and current loan information in the Loan
Information section.
4 In the Loan Options section, enter the basic loan information for the loan with
the lowest interest rate in the Loan Option 1 column.
5 Enter the basic loan information for the loan with the second lowest-interest
rate in the Loan Option 2 column.
6 Enter the basic loan information for the loan with the lowest settlement costs in
the Loan Option 3 column.
7 Optionally, enter the basic loan information for another loan you want to offer
the borrower in the Loan Option 4 column.
NOTE: You may enter the borrower’s current loan as a loan option.
8 To copy the current loan data to one of the Loan Options, click the Copy from
Loan Data button.
• On the Copy from Loan Data window, select the Loan Option column to copy
the current loan data into.
• Click Yes to confirm that you want to overwrite data in the selected Loan
Option column with data from the current loan.
Send the Disclosure
• You can print the disclosure and then send it to the borrower via fax or postal
service, or you can send it electronically.
• If you send the document electronically, the borrower will not be able to make
their selection and enter the reasons why on the form (unless they print it out).
Therefore, you may want to discuss the options with the borrower beforehand
and then select their desired Loan Option and enter their reasons why before
sending the disclosure electronically.
• If you will be sending the Anti-Steering Disclosure form as part of an eDisclosure
package, your administrator must use the Encompass settings to add the Anti-
Steering Disclosure form to the eDisclosures packages.
To Add the Anti-Steering Disclosure Form to the eDisclosures Packages:
1 On the menu bar, click Encompass, and then click Settings.
2 On the left panel, click eFolder Setup, and then click Documents.
3 Click the New icon.
4 In the Name field, type a name for the document (such as Anti-Steering Safe
Harbor Disclosure or Loan Options Disclosure).
5 In the Type field, select Standard Form.
6 In the Source field, select Anti-Steering Safe Harbor Disclosure.
7 Type the default Days to Receive and Days to Expire.
8 In the Available section, select a check box to configure whether documents
are visible externally:
• WebCenter – The document or service will be visible to borrowers or partners
via the WebCenter or Loan Center. This option is used when documents are
sent by clicking the Send button in the eFolder, and then clicking Send Files.
• TPO WebCenter Portal – When a loan has been originated on the TPO
WebCenter, the document or service will be visible to the loan originator via
the TPO WebCenter. The document will become visible after the loan file is
saved in Encompass.
• EDM Lenders (Send Files to Lender) – The document or service will be
visible when files are sent to lenders. This option is used when documents
are sent by clicking the Send button in the eFolder, and then clicking Send
to Lender.
9 Select Add this document to eDisclosure packages.
10 Click the Criteria button to specify criteria for including the document in an
eDisclosure package. The document is included only when one or more of the
criteria are met.
11 Select a Signature Type from the list.
12 Click OK.
Retrieve the Borrower’s Decision
There are several ways the borrower can acknowledge receipt of the disclosure
and return their decision to the loan originator.
• The borrower can print the disclosure, select a check box for the Loan Option
they want, provide reasons for the selection, and then sign the disclosure and
return it via fax or postal service.
• If the borrower wants to continue with their current loan, they can select the
Loan Option that matches their loan (if provided by the loan originator) or they
can select the Other loan/not listed above check box and then enter a
description of their loan in the text box.
• If sent electronically, the borrower can electronically sign (eSign) the disclosure.
By electronically signing the disclosure, the borrower is acknowledging that they
received the disclosure and agree to the selected Loan Option and reasons why
entered by the loan originator. The loan originator is notified via email when the
disclosure is signed and they can retrieve the document in the Encompass
eFolder.
To Update the Loan File:
1 To overwrite the current loan data with data from the selected Loan Option,
click the Copy Selected Option to Loan button.
2 Click Yes to confirm you want to overwrite the current loan data with data from
the selected Loan Option.
NOTE: If the Loan Estimate has already been disclosed to the borrower, you
cannot update the loan file with the new loan data using this tool (due to
RESPA disclosure requirements). To proceed, select the Changed
Circumstance check box on the LE, manually update the loan file with the new
data, and then redisclose the LE to the borrower.
