*The Strong Will Survive*
**By Tony Garritano**
***I talk frequently about the trials and tribulations of being an LOS these days. They are the system of record and with all these new rules, they are being forced to spend a lot of money just to keep their clients compliant. Well, as with most things in life, the strong will survive. The strong will continue to update their solution and stay ahead of this curve. To this end, I heard that the Encompass360 Spring Release contains more than 200 updates and enhancements and introduces significantly greater control and oversight of loan originator (LO) compensation plans.
****Major enhancements include:
****Improved LO Compensation Management: Helping mortgage lenders prepare for the January 2014 deadline for new Consumer Finance Protection Bureau (CFPB) rules by providing them with greater management, tracking and reporting capabilities over their compensation programs. With this upgrade, lenders can now establish and manage multiple compensation plans for both brokers and LOs. Encompass360 automatically applies the correct broker compensation plan to loans imported through Ellie Mae’s Encompass TPO Web Center, a secure web portal for lenders to work and interact with their third-party originator partners. This upgrade helps eliminate errors that can occur with manual calculations by automatically populating the information into the Good Faith Estimate for proper disclosure. In addition, the upgrade also maintains a financial history log for audit purposes.
****4506-T IRS Form eSignature Support: Giving loan originators the ability to accept e-signed 4506-T tax return income verification forms from the IRS when ordered through Encompass360’s integrated Encompass 4506-T Service powered by CoreLogic. Using Encompass 4506-T Service, originators can electronically order, send and receive e-signed forms. When the borrower returns an e-signed form, it can go directly into Encompass360’s secure electronic loan folder without first going through a third-party document service.
****Loan Quality Enhancements: Offering Ellie Mae Total Quality Loan (TQL) program participants greater and immediate visibility into the loan process by allowing the ability to track the status of ordered income, compliance, fraud and valuation services inside Encompass360. These enhancements also provide both lenders and investors better visibility into loan status.
****Investor Guidelines and Eligibility Rules: Providing lenders updated links to current major investor guidelines and eligibility rules inside Encompass360 via the integrated Encompass Product & Pricing Service. Additional functionality helps prevent Encompass360 users from offering invalid or stale pricing to loan originators when investors are re-pricing rate sheets.
****New Encompass Flood Service: Giving originators the ability to order flood determinations and certifications as well as Life-of-Loan services directly from the Encompass360 loan file. This new service helps originators save time by returning flood certifications directly into the borrower’s electronic loan file within Encompass360.
****Expanded TPO WebCenter Capabilities: Furthering Ellie Mae’s commitment to provide additional channel support for wholesale and correspondent clients, the Encompass360 Spring Release also expands the capabilities of the TPO WebCenter by providing online status messaging to improve communications and visibility between lenders and their third-party originators.
****“Loan originator compensation continues to be a huge concern for both retail and wholesale lenders, and it looms even larger now with the June 1, 2013 effective date and January 2014 deadline for the new CFPB rules,” said Jonathan Corr, president and chief operating officer of Ellie Mae. “Ellie Mae’s Encompass360 Spring Release includes sophisticated functionality to test for compliance, drive and monitor compensation plans and provide an audit trail for regulators, as well as many additional enhancements to help lenders improve loan quality and efficiency.”
****As I said when I started this column, the strong will survive. To this end, Ellie Mae will most certainly be one of those survivors.