Open the Closing Command Center in Forms. You will need to complete Steps 1 through 12.
- You’ll want to make sure your name is selected in the Initial Closer box, and the CD expected send date is the date that you need to send the CD by (it should typically be 3 days before closing for the TRID 3 day period). This notes section is a great place for you to put notes to yourself about the file as you work on it, either things that you know will need to be done, special notes for approval of something non standard that you did on the file, etc. This will be helpful if someone else needs to check the file so they can see what you worked on, or why you did something a certain way.
You’ll also want to make sure that all of these boxes are filled out. If the property type is Detached, it is not necessary to fill in the Condo/PUD name, but it also doesn’t hurt to just fill it in anyway, as it is here.
- The borrower info. You want to make sure that the Type is ALWAYS individual. The only other acceptable type is Co-Signor, but this is EXTREMELY rare, DO NOT use Co-Signor unless first approved by a team lead or the closing manager.
Also check the marital status and ensure that it matches the vesting once you get to Step 10. If there are multiple 1003 borrowers (the drop down menu at the top left has multiple borrowers to select, make sure you do this step for each set of borrowers.
- Settlement agent. This part is typically completed by support, but you should know how it Check the 2015 SSPL to see what settlement agent was provided to the borrower, and compare to the settlement agent in this section. If They are the same, the check boxes should be left unchecked. If they do not match, that means the borrower is using their own settlement agent that they selected, and the boxes should then be checked. For West Coast files, you may only be able to check or uncheck the top box, that is fine.
- Plan Code. The Loan Program in this section will be provided by the lockdesk, our job is to select a matching plan code. 95% of the time this is extremely straight forward, such as in the example There will be tricky ones for very specific programs, or for DPA programs, if you aren’t sure if they are right, just reach out.
- Closing Vendor Information. Open this, and scroll all the way to the bottom to “Docs Prepared By”. You will want to input your info here. Click the little book icon, and then click “Clear” up at the top right.
Search for yourself and double click on your contact entry. This will add your information to the closing documents.
- Tax Transcripts. This section is typically filled out by closing support. You will only need to touch this section if you have a self employed borrower who needs a business 4506T signed at closing. There will be a separate guide for that.
- Closing Conditions. Add your own contact info, as well as all current closing conditions on the file to this screen. Your contact info can be added with a note like this:
To add closing conditions, select the paper plus icon on the right side
Select Add conditions from Underwriting Conditions and click OK
Sort by Name and highlight all conditions that start with *CL, then click Add at the bottom
You can then close this window.
- Make sure that all of the dates entered into the file are accurate. This section will need to be updated anytime the closing date changes, so make sure to be careful for that. Document Date, Closing Date, and Doc Signing Date should all be the same date (the date the file is going to close). Rescission Date is only filled in for Primary Refinance loans, and is 3 business days from the date of signing. Disbursement Date is typically the same day as closing for purchases, or the next business day for Refinances. For west coast, and some states (OH in particular) the disbursement date may be the day after closing for purchases, just make sure to ask your settlement agent if you have any reason to think they don’t want to disburse on the day of closing.
The CD Date Issued will usually default to the current date. You want to make sure that this date is set to the date that you are sending the CD (so if you are sending the CD on 10/9, the date in this box should be 10/9, regardless of the closing date).
First Payment is ALWAYS on the 1st of the month, and is almost always the 1st of the 2nd month after funding. So for the example below, the loan is funding on 10/13, the first payment will be on the 1st of December, or 2 months after funding. The only exception to this is if you are doing an interest credit, which is covered in Step 12.
- Loan Info. You shouldn’t need to do much here, just verify that the information looks correct. If the loan has MI (FHA loans, VA loans, USDA loans, conventional loans with greater than 80 LTV) the MIC# will need to be filled out. Reach out for help if you’re not sure where to get the MIC# for the type of loan you’re working with. Conventional Loans with 80 or less DTI should not have anything entered here. Double check the info on the left for Purpose, Type, and Occupancy. 9% of the time you will only be dealing with Fixed Amortization loans, as of the writing of this guide we are not currently locking ARM loans. If you do have an ARM loan, reach out to a team lead or closing manager for assistance.
- Click on the Borrower Information – Vesting button to open the vesting screen. Double click on the borrower’s name to bring up their individual info. They should have at least one AKA entered, and vesting type should be Individual for every person who is a borrower on the loan (again, you can very rarely have Co-Signor here, but please make sure you have approval before using this). Occupancy Status should Match Occupancy Intent.
The vesting should be attained from the 1003 for purchases, or from the title commitment for refinances. ALWAYS reach out to the settlement agent to verify that your vesting is correct at some point before you issue your final docs. This is the #1 thing that gets missed when balancing/file setup that can cause you to have to redo a closing package and it’s a huge bummer. We promise, if you do it when balancing, it will make your life WAY easier.
- You should only need to edit this section for Refinance loans. Always make sure your payoff statements are up to date and accurate before updating
- Escrow Waiver and Interest Credit. If the borrower is getting an escrow waiver, the loan will need to be locked to match, and escrows should not be entered into the itemization. Make sure that the loan is eligible for an escrow waiver (non government, 80 ltv or less, etc) and that the escrow waiver has been disclosed to the borrower at some point prior.
To check the lock, click the lock icon at the very top of encompass and select the Lock Confirmation Icon.
Scroll to the bottom and look for Impounds Waived. If you have an escrow waiver, the box will say ‘Waived.” If the borrower is escrowing, the box will say “Not Waived.” If this is incorrect, reach out to the lockdesk to update.
For interest credits, the loan MUST be FUNDING in the first 7 days of the month. If so, and the loan officer wants to do an interest credit, you may update the first payment date to the 1st of the month immediately following the month of funding.