Loan Amount Exceeds Conforming Loan Limit(1000454) FAIL

SCENARIO 1: ATR/QM Recommendation(s) are Locked Down

SCENARIO 2: Number of Units Missing
SCENARIO 3: Agency/GSE QM with DTI > 43%  for Jumbo Loan
SCENARIO 4: Missing Underwriting Decision
SCENARIO 5: Delivery Dates to Fannie Mae

NOTE: These are only examples and won’t apply to every file. Additional research may be required to remove the FAIL, WARNING, ALERT, and/or INFORMATION result.

Locking down Ability-to-Repay Loan Type (field ID QM.X23), Qualified Mortgage Loan Type (field ID QM.X24) and/or Is Loan Eligible for Safe Harbor? (field ID QM.X25) will result in Mavent forcing the loan to read as Agency/GSE QM.

RESOLUTION

Locking fields down alters the functionality of Encompass and Mavent. Unlocking Ability-to-Repay Loan Type (field ID QM.X23), Qualified Mortgage Loan Type (field ID QM.X24) and/or Is Loan Eligible for Safe Harbor? (field ID QM.X25) will allow the system to auto-populate fields based on current data input.

Re-running Mavent after unlocking Ability-to-Repay Loan Type (field ID QM.X23), Qualified Mortgage Loan Type (field ID QM.X24) and/or Is Loan Eligible for Safe Harbor? (field ID QM.X25) should alleviate the FAIL.

SCENARIO 2: Number of Units Missing

Leaving No Units (field ID 16) blank will result in Mavent forcing the loan to read as Agency/GSE QM.

Go to Page 1 of the 1003 > Subject Property section > ensure that No Units (field ID 16) is complete. Once filled in, re-running a Mavent review should alleviate the FAIL.

It is important to note that Consummation Date is not the only trigger date for what conforming loan limit may be used by ECS/Mavent. The conforming loan limit used by Encompass Compliance Service (ECS)/Mavent will depend on the specific rule that invokes the conforming loan limit. If the law or regulation associated with the rule references “Application Date” the system will use the new conforming loan limit with an Application Date on or after January 1 of that year.

Application Date is determined using the following waterfall effect: 

1. Doc Signing Date (field ID 1887), if [blank], then
2. Closing Date (field ID 748), if [blank], then
3. Estimated Closing Date (field ID 763), if [blank], then
4. The following Compliance Review Audit Results is returned:

Please refer to the Fannie Mae Loan Limit Table link (https://www.fanniemae.com/content/tool/loan-limit-table.xls) and find the specific conforming limit for “X” County & number of Units and compare to your loan amount to confirm if it is exceeding the conforming limit threshold.

SCENARIO 3: Agency/GSE QM with DTI > 43% for Jumbo Loan

Loans that exceed the Conforming Loan Limit will return a FAIL when Loan Limit (field ID 3331) is equal to Non-Conforming (Jumbo) and Total Debt Ratio (field ID QM.X376) is > (greater than) 43%, as found on the ATR/QM Management > ATR/QM Eligibility tab under ATR/QM Recommendation.

NOTE: Mavent reviews Total Debt Ratio (field ID QM.X376) for determining the DTI; whereas, ATR/QM reviews Total Debt Ratio (field ID QM.X119) for determining DTI.

REASON

Jumbo loans do not qualify for Agency/GSE QM.

RESOLUTION

Remove the AUS Recommendation (field ID 1544) located on ATR/QM Management  > Qualifications tab > under Risk Assessment to default to General ATR/QM.

NOTE: If Manual Underwriting is selected for the Risk Assessment type (Field ID 1543) and the box is checked for ‘Manually Underwritten according to Agency/GSE Guidelines’ it may be necessary to uncheck this box on the Underwriter Summary tool in order to obtain the appropriate ATR Recommendation.

SCENARIO 4: Missing Underwriting Decision

Underwriting Summary > Underwriting Decision section

■  Approved By (field ID 2984)
■  Date (field ID 2301)
■  Approval Expires (field ID 2302)
■  One of the following may also need to be completed:

□  Underwritten according to Contractual Agreement with Agency/GSE (field ID 3878)
□  Received Waiver for Agency/GSE Guidelines (field ID 3879)
□  Manually Underwritten according to Agency/GSE Guidelines (field ID 3880)

■  Underwriting Delegated (field ID TPO.X88) dropdown cannot be [blank]
■  Underwriting Summary > Underwriter has evaluated the following factors section (all must be checked):

□  Monthly Covered Loan Payment (field ID QM.X338)
□  Monthly Simultaneous Loan Payment (field ID QM.X339)
□  Monthly Mortgage Related Obligations (field ID QM.X340)
□  Debt Obligations (field ID QM.X341)
□  Child Support Obligations (field ID QM.X342)
□  Alimony Obligations (field ID QM.X343)
□  Current Employment Status (field ID QM.X344)
□  Current or Expected Income (field ID QM.X345)
□  Current or Expected Assets (field ID QM.X346)
□  Credit History (field ID QM.X347)
□  Debt to Income Ratio (field ID QM.X348)
□  Income (field ID QM.X349)

Your Encompass Administrator will need to complete the following:

From our Mavent Development team: The Mavent Compliance Review is mainly an Origination to Closing testing system. When we talk about delivery dates, this is a post-closing operation. For some GSE testing (specifically those involving Conforming Loan Limits) we do have tests that rely / use the Conforming Loan Limits. Today, we do not get seller/investor or delivery dates from Encompass. As a result, we mostly use the consummation date, as this is the date that is the closest to the seller/investor delivery date. (Please Note… When the 2021 Conforming Loan Limits apply (e.g., application date vs. consummation date) will depend upon the specific state statute, rule, or regulation).

So, if the loan has a consummation date (or if applicable, the application date) in 2020, the Mavent system will apply the Conforming Loan Limits from 2020. If clients would like, we can add this to the backlog as a future enhancement.

Application Date is determined using the following waterfall effect: 

1. Doc Signing Date (field ID 1887), if [blank], then
2. Closing Date (field ID 748), if [blank], then
3. Estimated Closing Date (field ID 763)