1. Can the e-Consent form be signed prior to the application date?
Yes.
2. Will Encompass be automatically updated to show as 10-01-15 or will it need to be manually changed by the
client?
The system has been updated now that the rule is final.
3. Will there be logic programmed such that Encompass will know that GFE applies to HELOC and HECM loans,
providing the correct version of the forms, or will the user need to manually select the correct forms?
The selecting of disclosure forms will not be automated. This is due to the fact that data may need to be adjusted
after the change. Business rules could be leveraged to automate this if users are trained that appropriately.
4. Why would you switch if there is a clear start date for TRID?
If you start as a 2015, and the loan is a HELOC, you would change to 2010 since HELOCS are not covered yet under
the regulations.
5. Will the system prevent issuing a revised LE once the first CD has been disclosed?
No, the system will not stop you from issuing a revised LE once the first CD has been issued.
6. Regarding 2015: What is the field ID number for the LE Application date? Is it still 3142?
Yes, field 3142 is used to capture the LE Application date.
7. Is the Intent to Proceed date a manual entry or is it automated?
It is manually entered.
8. Will Encompass support eDelivery to non-borrowing spouses or others with property rights?
Yes, Encompass will have functionality to allow non-borrowing spouses to eSign the CD.
9. How do you track HELOC’s in the application definition since they don’t apply?
With HELOC’s, the form version should be set to 2010 and the fields will be the same as before.
10. What field in the subject property fields section triggers the application date?
Completion of all address fields is necessary. You still have the ability to use TBD for the street address and
Encompass will not trigger the alert.
11. Is the LE Application Date automatically set, just as the GFE Application Date is now?
Yes, it is the same field and is automatically set based on the data being entered.
12. Is Encompass tracking receipt of Intent for each disclosure set or is it tracked only once per transaction?
The Intent to Proceed is tracked once for the loan file. Users will need to specify which LE the Intent to Proceed was
given.
13. For the SSPL requirement of listing “at least one provider,” does that refer to one provider per service or one
provider total? We will not be allowing our borrowers to shop. In our scenario, would we need to list multiple
providers under the “items you cannot shop for” or do we need to just list one provider?
If you do not allow shopping you are not required to disclose the SSPL. If you were to allow shopping, you would
need to provide a minimum of one provider per service for which shopping is allowed.
14. If the borrower can shop for services, does the system track the SSPL in the Disclosure Tracking tool?
If you allow the borrower to shop for settlement service, you are required to send the SSPL along with the LE. The
SSPL is tracked separately in the Disclosure Tracking tool.
15. Will there ever be logic written so that the Disclosure Tracking automatically tracks when the SSPL is printed?
After the SSPL is printed, a message will pop up to ask if you disclosed. If you indicate “yes,” it will be recorded in the
Disclosure Tracking tool.
16. We have noticed that the LE Delivery Date is counting the Application Date as Day 1. Our expectation is that Day 1 would be excluded. Is there a setting that we can leverage to change this?
Yes, the settings for this are within the Disclosure Tracking settings.
17. Are the days for delivery of the CD the same as the LE such that if the LE is sent on June 1st, the transaction can
close on June 4th?
Concerning the CD, the consumer must RECEIVE the CD no later than 3 specific business days before consummation.
18. Do you only need a zip code for the address to be considered as a full application when you have the other 5
pieces of information (no more TBD if the borrowers are just shopping and have not found a property)?
No, an actual street address, city, state and zip code are required. You can still use TBD and the alert will not fire.
There has been no change from 2010 in regards to the address itself.
19. Can TBD be used for the property address on a refinance or will the alert fire?
The system does not look at the Purpose of Loan to trigger the alert. TBD would work the same for both purchases
and refinances.
20. If the borrower is looking for a property in a specific are, they would likely have a zip code. However, the property
would likely still be a TBD. Because we have specified a potential zip code, would we be required to send an LE or
because they haven’t yet identified a specific address within that zip code would the LE NOT be required?
An LE can be issued without have an actual street address, but it is not required and the alert will not be triggered.
21. We have had issues with time zones. We are in the Eastern Time zone. Because EllieMae is in the Pacific Time
zone we have found some discrepancies within Encompass. Has this been addressed?
There is a setting where the admin can specify the time zone to use for the Closing Cost Expiration Date. It is located
on the Disclosure Tracking Settings screen. Another setting for the Loan Estimate Expiration Time zone is located on
the Lock Desk Setup screen.
22. How would one document “In Person” if the Disclosure Tracking tool is not allowing manual entry?
The system has an enumeration sent method of “In Person.”
23. If a disclosure is mailed on June 1st but the customer signs on June 2nd and brings to the office, which date meets the rules?
If you mailed the disclosures on June 1st and the customer brings them back on June 2nd, you would specify the
receipt was “In Person” and the June 2nd date would be used.
24. Is there a document such as an Acknowledgement of Receipt that will go with the CD or should we use the
optional signature lines? I am wondering about having the borrower sign the CD 3 days before closing and then
again at closing?
Yes, there is an Acknowledgement of Receipt for the CD in Encompass.
25. If we have a signature line and send using a method other than “face-to-face” and we have a signature to evidence
when they did indeed receive the LE, will that override the presumed three days?
No. However, the Actual Received Date can be recorded in the Disclosure Tracking tool.
26. What happens when the borrower doesn’t sign his eSign docs until 4 days after issuance? Is the presumed date
still 3 days?
Yes, the presumed date is calculated to three days.
27. What if the overnight mail receipt is not signed by the consumer? Is that deemed as received?
The commentary to the regulation says a creditor must have documentary evidence of early receipt. Would you
consider a non-consumer signature as evidence that the consumer received it?
This would be a question for your compliance expert or counsel.
28. What can serve as confirmation that the borrower received the disclosure that I MAILED to them?
We presume the disclosures are received in 3 business days – we use the mailbox rule.
29. Do we have to complete an Actual Received date or can it be left blank? Will the system use the Presumed date?
Encompass will use the Presumed Received date if there is no Actual Received date.
30. Going back to the default date to start using the 2015 forms…if a loan is started on 9.28.15, but the application is
fulfilled on 10.05.15, wouldn’t it fall under the 2015 forms? Is Encompass determining the default forms by the File
Start Date?
File Start date isn’t being used. It is based on when the file is CREATED. If the application is later, then the user will
need to switch to the 2015 forms. An alternative would be to utilize a business rule. This will only be a workflow
needed around the date change.
31. If disclosures are mailed and received, signed and dated before the 3 days (and prior to the presumed date) can
the actual signed date be leveraged or do they have to actually sign an acknowledgment that they received it?
If you have evidence you can retain in the file to show the consumer received the disclosure earlier, you can use the
actual date the consumer receives the disclosure. Again, a creditor needs to be able to prove receipt in order to
shorten the delivery timeframe.
32. Will the Intent to Proceed be checked automatically after disclosures are eSigned or received?
The Intent to Proceed must be manually selected. This is not automated.
33. Wouldn’t signing the LE indicate “Intent to Proceed?”
In the supplemental information from the Final Rule, the CFPB said that would not be acceptable.
34. Is there a changed circumstance document that actually documents which fees were changed with the redisclosure? This is an area that has been lacking with the GFE.
We do have a COC disclosure that is available also as a Print on Demand form. However, the form does not capture
which fees prompted the COC. We can take this back and evaluate if this is something we can address in a future
release.
35. If the loan is re-disclosed and it is signed, by wouldn’t the system just auto check that in Disclosure Tracking and
use that as the baseline?
To update the baseline, there must be a change of circumstance.
36. What happens if the users forget to click the Intent to Proceed; would this affect anything in the loan?
The LE Intent to Proceed will reset your baseline. If the user forgets, Encompass will use the initial LE as the baseline.
37. What is the process if there are changes after the CD is sent? For example, the borrower nets less than planned so
they need to increase their loan amount. Would a revised CD be issued and would there be a new 3 day waiting
period?
Once a CD is provided, if the APR becomes inaccurate (changes) or a prepayment penalty is added, 1026.19(f)
required disclosure of a corrected Closing Disclosure, and consumer must receive the corrected Closing Disclosure no later than 3 specific business days before consummation.
38. Is there a means to print the snapshot history of the LE?
Not at this time. This is something that we are currently working on and will have available in a future release.
39. Do you have to indicate Intent to Proceed on COC LE’s for the system to use as a baseline?
The baseline is updated on the LE if there is a variance and there is a COC. Intent to proceed updates the baseline as
well. But you don’t need intent to proceed to update the baseline if there is a COC.
40. Will there always be a revised Loan Estimate that has to go out to the borrower prior to putting a file in to closing?
The regulation does not require more than one Loan Estimate.
41. Regarding the CD received date- if there are multiple borrower pairs, do I calculate the CD received date as the
date the last person receives the CD?
This is a great question for a creditor’s compliance expert or attorney. If it is a rescindable transaction, all consumers
who have the right to rescind must receive the CD at least 3 specific business days prior to consummation. I would
treat non-rescindable transactions the same way.
42. If the APR is out of tolerance, a revised CD is required along with the waiting period. What if the APR is within
tolerance but the finance charge is out of tolerance ($100 tolerance) – is re-disclosure required and, if so, is the 3
day waiting period required as well?
An inaccurate finance charge is a statutory violation of RegZ. It is not, in and of itself, a trigger for re-disclosure and
an additional 3-day waiting period.
43. Will we be able to print the disclosure tracking history like we do today?
We will be adding an updated disclosure tracking form. The updated version will be generated by the Encompass
Docs Solution and will be available prior to the new forms being required.
44. Can the eConsent request be sent at the same time as the eDisclosures even if they cannot open the disclosures
until consent is given?
The eConsent Request can be sent independently before sending an eDisclosure package. If prior consent was not
obtained, you will still be able to send eDisclosures and consent will be presented to the borrowers before they
access the documents in that package. However, presumed receipt date is not calculated in this case.
45. Is it wrong to NOT obtain eSign consent before sending disclosures?
A creditor would have to have extremely tight controls in place if they attempted that. They would most likely miss
the delivery window if they follow that methodology.
46. If disclosures are sent via US mail and email without eConsent having been obtained and the disclosures are signed electronically, can we use the eSign date as the date received?
The Regulation requires evidence of consumer receipt (if shorter than presumed “mailbox rule”). Whether your
scenario is sufficient evidence or documentation of receipt is a question you should direct to your compliance expert
or attorney.
47. Can the consent not be done at the same time as eDisclosures?
Yes, consent can be obtained as part of the eDisclosures. Note that the presumed receipt date will not be calculated
for the eDisclosure package.
48. If EDS is not used for initial disclosures but rather the forms are taken from the Standard forms in the print menu, will those forms be updated for TRID?
No, the native forms will be transitioned to EDS over time to give more power and flexibility for us to generate forms.
The native engine is not able to handle all of the dynamic printing requirements that EDS can handle. You don’t need
to use EDS for your docs in order to use it for printing on-demand forms.
49. Are the standard fields going to be automatically added to the reporting database or will the admin need to add
them manually?
The admin will need to add fields they want to report on to the reporting database.
50. If we interpreted the ruling on the address to be street and town, are we incorrect? Is Encompass using zip code
only for the address?
Completion of all address fields is necessary. You still have the ability to use TBD for the street address and
Encompass will not trigger the alert.
51. Many of our zip codes cover multiple counties and the fees vary tremendously by county and township. Is there a
suggestion on how to manage this?
Completion of all address fields is necessary. You still have the ability to use TBD for the street address and
Encompass will not trigger the alert.
52. We are a mortgage lender affiliated with a builder. Our community templates for fees include a zip code and as a
prospect, a community is chosen but not a specific lot or street address. We have never triggered our 6 pieces of
information from the zip code only.
Completion of street, city and zip code are all necessary to trigger the alert. If no property has been identified, TBD
can be used in the address field and the alert will not trigger.
53. If you send multiple LE’s as TBD, will it be necessary to exclude those from Disclosure Tracking?
If the property address is listed as TBD, any LE’s sent will automatically be excluded from Disclosure Tracking.
54. Does the presence of a signature line change the presumed receipt? If disclosures are sent within 3 days, can we
still presume receipt on the third day without the signature(s)?
The presumed date would still be valid and calculated to 3 days.
55. Can disclosures be sent electronically and by mail at the same time? Will disclosure tracking be able to track both
methods simultaneously?
Yes. However, if printed and mailed after sent electronically, a second entry should be created. If consent was
received prior to sending disclosures electronically, there would be no need to mail as the system would use the
presumed receipt date as per the Mail Box rule.
56. Is the day the borrower receives the disclosures considered the first day or is it treated the same as a rescission –
sign, three full days, and close on the fourth?
There is a setting in Disclosure Tracking where this can be determined by your company.
57. EDisclosures are electronic, correct? Does that mean we have to wait three days and the same for email?
Our understanding is that if it is anything other than eSign, the Mailbox Rule comes into play.
58. Can users eDisclose if the consent hasn’t been received?
In Encompass, users can send the eConsent request independent of and prior to eDisclosure. If prior consent was not obtained, the user will be able to send eDisclosures and consent will be presented to the borrowers before they
access the documents in that package. However, presumed receipt date will not be calculated in this case.
59. Will Encompass have a form for accepting disclosures electronically?
Yes, there is an eSign consent form that must be completed in order for the customer to view/accept disclosures
electronically.
60. If the eSign consent is not obtained BEFORE sending disclosures electronically, should the presumed receipt date be populated on the Disclosure Tracking tool?
If eSign consent is sent simultaneously with the disclosures, Encompass will not calculate a presumed receipt date.
61. What if a package is sent via overnight delivery and the receipt is signed by a non-applicant?
The commentary to the regulation says a creditor must have documentary evidence of earlier receipt. Would you
consider a non-consumer signature as evidence that the consumer received it? This would be a question for your
compliance expert of counsel.
62. If the borrower consents through Ellie Mae’s eSign tool, will that auto-update the detail log?
The intent to proceed must be manually selected.
63. Do both the borrower and co-borrower have to receive the LE and have the received date populated in Encompass to be compliant?
Yes.
64. Can consent to delivery of email be verbal?
Consent comes into question for the eSigning of documents. If you are only asking about the ability to send via email,
consent would not be necessary.
65. With the requirement for eSign consent “prior to” delivery of the document set, will it necessary to send two
separate electronic communications for the LE, the first to obtain consent and the second with the actual
documents (waiting until after the borrower confirms consent)?
You will be able to send the eConsent request independently before sending an eDisclosure package. If prior consent
was not obtained, you will still be able to send eDisclosures and consent will be presented to the borrower(s) before
the documents are accessed. However, when the consent is sent simultaneously, the presumed receipt date will not
be calculated.
66. The Intent to Proceed is a manual process. What implications are there if the user forgets to select the Intent to
Proceed field?
The LE Intent to Proceed will resent your baseline. If the user forgets, Encompass will default to the initial LE as the
baseline.
67. Does an intent to proceed need to be re-executed on a re-disclosure?
The intent to proceed is tracked once for the loan file. The user will specify the LE that the intent to proceed was
granted.
68. Can a hardship letter work in a case where there was a valid change, but it came right before closing?
The consumer must give the creditor a written and dated statement that describes the emergency, specifically
modifies or waives the waiting period, and bears the signature of all consumers who are primarily liable on the legal
obligation.
69. What if a borrower did not want to wait the three days for closing. Could they possibly waive it by providing
something in writing? What about investment properties and second homes; does the three day rule apply to
them as well or could they waive it?
The consumer must give the creditor a dated written statement that describes the emergency, specifically modifies
or waives the waiting period, and bears the signature of all consumers who are primarily liable on the legal
obligation. Investment and second home properties are not excluded from the three day requirement for the Closing
Disclosure.
70. What if the rate is the same at lock as it was in the initial LE; is that considered a change of circumstance?
It would be considered a change if the pricing changed and it impacts the fees that cannot decrease.
71. If the Disclosed APR becomes inaccurate, does it matter if it is higher or lower?
TRID does not change this. If the disclosed APR is inaccurate (whether it increases or decreases), 12 CFR §
226.22(a)(2).
72. Because the closing date is impacted by the borrower’s receipt of the appraisal, does Encompass provide a way to
track the earliest closing date based on receipt of the appraisal?
The requirements for this have not changed (provided 3 days prior to closing or waived). There is a way to track both
dates, but no additional functionality that is interdependent.
73. Does the latest CD received date for multiple borrowers apply to rescindable transactions?
TRID has not changed this. It is the same requirements as the current TIL.
