Using the Encompass Product and Pricing Service Rule Managerhelp.elliemae.com/DocumentationLibrary/360/UsingEPPSRuleManager.pdfProperty tabs, clicking the Test button will qualify

Using the Encompass Product and Pricing Service (EPPS) Rule Manager


2

Copyright Statement

© 2019 Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®, DataTrac®, Ellie Mae Network™, Mavent®, Millennial Tracker™, Mortgage Returns®, Prospect Manager®, Total Quality Loan®, True CRM®, TQL® and the Ellie Mae logo are trademarks of Ellie Mae, Inc. or its subsidiaries. All rights reserved. Other company and product names may be trademarks or copyrights of their respective owners.

Rev. 9/9/2019

3

Table of Contents

Table of Contents ......................................................................................................................................................... 3

Introduction ......................................................................................................................................................................... 1

Introduction ....................................................................................................................................................................... 2

Getting Started .................................................................................................................................................................... 3

Getting Started ................................................................................................................................................................. 4

Creating Rules ............................................................................................................................................................. 4

Testing Rules ............................................................................................................................................................... 6

Promoting Rules (Going Live) ...................................................................................................................................... 7

Rule Manager ...................................................................................................................................................................... 8

Rule Manager ................................................................................................................................................................... 9

Rule Manager Listing Page .......................................................................................................................................... 9

Rule Versions Page.................................................................................................................................................... 11

Rule Definition Page................................................................................................................................................... 13

History Log ................................................................................................................................................................. 15

Rule Manager Tips and Tricks ......................................................................................................................................... 16

Rule Manager Tips and Tricks ........................................................................................................................................ 17

Select Meaningful Rule Names .................................................................................................................................. 17

Build Your Listing Page Using Columns ..................................................................................................................... 17

Consider Conflicting Conditions Carefully .................................................................................................................. 17

To Is or Is Not (That is the Question) ......................................................................................................................... 18

Testing with Program Notes ....................................................................................................................................... 18

Test Twice, Promote Once ......................................................................................................................................... 18

Take History Log Entries Seriously ............................................................................................................................ 19

Edit Production Rules Sparingly ................................................................................................................................. 19

Delete Obsolete Test Versions ................................................................................................................................... 19

Custom Loan Program Experience ................................................................................................................................. 20

Custom Loan Program Experience ................................................................................................................................. 21

System Generated Rules .................................................................................................................................................. 22

System Generated Rules ............................................................................................................................................... 23

Holdbacks Created Prior to EPPS 16.3 ...................................................................................................................... 23

Holdbacks Containing Custom Logic.......................................................................................................................... 23

Next Reprice Rules Created from the Dashboard ...................................................................................................... 24

Rule Tasks ......................................................................................................................................................................... 25

Rule Tasks...................................................................................................................................................................... 26

Adjust Final Price ....................................................................................................................................................... 26

Adjust Final Price and Maximum Purchase Price ....................................................................................................... 27

Adjust Final Price by Rate .......................................................................................................................................... 27


4

Adjust Maximum Purchase Price................................................................................................................................ 28

Adjust Rate ................................................................................................................................................................. 28

Adjust SRP ................................................................................................................................................................. 29

Adjust SRP by Rate.................................................................................................................................................... 29

Deduct a Profit Margin ................................................................................................................................................ 30

Deduct a Wholesale Compensation Margin ............................................................................................................... 31

Display a Program Note ............................................................................................................................................. 32

Disqualify a Loan ........................................................................................................................................................ 32

Disqualify a Loan and Hide Results............................................................................................................................ 33

Override All Profit Margins ......................................................................................................................................... 33

Set Maximum Back-End Ratio ................................................................................................................................... 34

Set Maximum Final Price Displayed ........................................................................................................................... 34

Set Maximum Rate Displayed .................................................................................................................................... 35

Set Minimum Final Price Displayed ............................................................................................................................ 35

Set Minimum Rate Displayed ..................................................................................................................................... 35

Skip Income and Assets Tests ................................................................................................................................... 36

Rule Conditions ................................................................................................................................................................ 37

Rule Conditions .............................................................................................................................................................. 38

Amortization Term ...................................................................................................................................................... 38

Annual Income ........................................................................................................................................................... 39

Base Loan Amount ..................................................................................................................................................... 39

Borrower Has Mortgage Lates (12) ............................................................................................................................ 40

Borrower Has Mortgage Lates (24) ............................................................................................................................ 40

Borrower Has Mortgage/Rental History ...................................................................................................................... 40

Borrower is a First Time Home Buyer ........................................................................................................................ 41

Borrower is Self Employed ......................................................................................................................................... 41

Buydown Contributor .................................................................................................................................................. 41

Buydown Type ........................................................................................................................................................... 42

Cash Out Amount ....................................................................................................................................................... 42

CLTV .......................................................................................................................................................................... 42

Community/Affordable Second ................................................................................................................................... 43

Compensation is Borrower-Paid ................................................................................................................................. 43

Compensation is Creditor-Paid .................................................................................................................................. 44

Condo is a Condotel ................................................................................................................................................... 44

Condo is Non-Warrantable ......................................................................................................................................... 44

Credit Score ............................................................................................................................................................... 45

Custom Fields ............................................................................................................................................................ 45

Escrows Waived ......................................................................................................................................................... 46

Financed MI Amount .................................................................................................................................................. 46

Geography ................................................................................................................................................................. 47

5

HCLTV ....................................................................................................................................................................... 47

Interest Only ............................................................................................................................................................... 48

Investor ...................................................................................................................................................................... 48

Lien Position ............................................................................................................................................................... 48

Loan Has Subordinate Financing ............................................................................................................................... 49

Loan Program ............................................................................................................................................................ 49

Loan Purpose ............................................................................................................................................................. 49

Loan Term .................................................................................................................................................................. 50

Lock Days .................................................................................................................................................................. 50

LTV............................................................................................................................................................................. 51

MI is Lender-Paid ....................................................................................................................................................... 51

MI is Not Required...................................................................................................................................................... 52

Months Since Last Bankruptcy ................................................................................................................................... 52

No Closing Costs........................................................................................................................................................ 52

No Lender Fee ........................................................................................................................................................... 53

Number of 30-Day Lates (12) ..................................................................................................................................... 53






Number of Financed Properties ................................................................................................................................. 56

Occupancy Type ........................................................................................................................................................ 56

Office .......................................................................................................................................................................... 57

Office Category .......................................................................................................................................................... 57

Product is an ARM ..................................................................................................................................................... 58

Product is Fixed Rate ................................................................................................................................................. 58

Product Type .............................................................................................................................................................. 58

Program is Virtual ....................................................................................................................................................... 59

Property is Rural/Unique ............................................................................................................................................ 59

Property Type ............................................................................................................................................................. 59

Qualification Loan Amount ......................................................................................................................................... 59

Special Product .......................................................................................................................................................... 60

State ........................................................................................................................................................................... 61

Target Investor ........................................................................................................................................................... 61

Total Loan Amount ..................................................................................................................................................... 62

Rule Task Desktop Reference ......................................................................................................................................... 63

Rule Task Desktop Reference ........................................................................................................................................ 64

Introduction


2 Introduction

Introduction

The Rule Manager enables Client Administrators (Client Admins) to build Rules that can be applied to any existing Investor relationship to set profit margins and loan-level price adjustments, display program notes, and disqualify loans conditionally based on an evaluation of a combination of up to ten (10) of the most commonly tested loan characteristics.

The Rules are created in the form of conditional statements that can affect the calculation of pricing and the determination of loan eligibility (qualification). The conditional statement is constructed of one Rule task (the “then” portion of the conditional statement) and up to 10 Rule conditions (the “if” portion of the conditional statement).

Note: Rule conditions are joined using AND statements and all Rule conditions must be met for a Rule to execute.

In conjunction with existing EPPS functionality, the Rule Manager will further enable Client Admins to customize and self-brand Investor loan programs by referring to an Investor’s existing programs and guidelines. This functionality is designed for clients who wish to add additional price adjustments or qualification criteria to existing Investor relationships, and for clients who wish to offer customized self-branded loan programs, but who also recognize the efficiency in not having to maintain their own product guidelines.

Getting Started

Section

1


4 Section 1: Getting Started

Getting Started

This section walks you through basic Rule Manager functionality, which will enable you to create, test, and maintain your own Rules.

To use the Rule Manager, you should be a Client Admin with the following rights:

Manage Investors

View Profit Margin

Manage Profit Margin

Creating Rules

To Create a Rule:

1. Log into EPPS as a Client Admin.

2. Click the Admin menu option, and then click the Rule Manager tab.

3. Click on the Create New Rule button in the upper left corner.

Note: The screen shot above is displayed with Help On, to display help text as you browse the web site. Click the My Profile link from the main menu to access the Help settings.


Section 1: Getting Started 5

4. The Rule Definition page is divided vertically into three sections: Rule Header, Rule Task, and Rule Condition.

5. In the Rule Header section, which contains general rule information, enter the following information.

Rule Name – This required field is a unique client-defined identifier for the rule. Defaults to “New

Rule”.

Note: It can be used to locate the Rule on the Listing page.

Effective Date – This required field is the date and time when the Rule will become active in EPPS.

Expiration Date – The date and time the Rule will expire in EPPS.

Profile – The version profile for this Rule version. Defaults to “Test”.

Note: Rule versions and version profiles are discussed in Section 2: Rule Manager.

Comments – Free form text that can be used to document the purpose and use of the Rule. The

comments can be up to 250 characters in length.

Note: Comments can be displayed on the Listing page.

6. In the Rule Task section, which contains details about the task the Rule will be performing, enter the following information.

Task Name – Select one of 15 tasks from the drop-down list. Most tasks will require additional data entry parameters.

Note: The additional data entry parameters are discussed in Appendix 1: Rule Tasks. A convenient page of all the 15 tasks, with brief descriptions, can be found in Appendix 3: Rule Task Desktop Reference.

Description – The line item pricing description displayed on the Qualify tab when clicking on the Details link and the Summary tab in EPPS, and the Secondary Lock Tool in Encompass. Descriptions can be up to 100 characters in length.

Note: The selected task determines whether the description is required, optional, or disabled.

Display Description Only to Users with View Profit Margin Rights – Select this check box if

you want the description and the itemized effect of the task on pricing to be displayed only to users with View Profit Margin rights. For users without View Profit Margin rights, the effect of the task on pricing will be reflected in the base price displayed to these users.

If the check box is not selected, the description and the itemized effect of the task on pricing will be displayed to all users.

Note: The selected task determines whether this check box is required, optional, or disabled.

Program Notes – These notes are displayed on the Qualify and Summary tabs in EPPS, and the Lock Request Form and Secondary Lock Tool in Encompass. Program notes can be up to 500 characters in length.

Note: The selected task determines whether the program notes are required or optional.

7. In the Rule Condition section, which contains the details of the conditions on which the rule execution will be based, select up to a maximum of 10 conditions.

Conditions are optional.

Each condition will be displayed in its own row in the Condition grid.

Each condition will require additional data entry parameters.

Note: The additional data entry parameters are discussed in Appendix 2: Rule Conditions.

To delete a condition, click the “X” to the left of the row.

8. Click Save to save the Rule.

Validation errors will be displayed at the top of the page and must be corrected before the Rule can be saved.

You will be prompted to enter a reason for this action to be recorded in the permanent History Log, which serves as an audit trail for each Rule version.

Note: The History Log is discussed in Section 2: Rule Manager.


6 Section 1: Getting Started

Testing Rules

You can test the Rule you created before going live from the updated Qualify tab (shown below). At the bottom of the page, there is a Test button. Similar in functionality to the Qualify button on the General, Finances, and Property tabs, clicking the Test button will qualify the loan using any effective test version Rules.

The easiest way to verify that your test version Rule is working as expected is to compare the qualification results before executing the test to the results from the test qualification with the test version Rule applied.

For our example, a test Rule is applied with the task “Display a Program Note” with the program note, “Test Fielder Profit Margin”. You can see a production version of this program note highlighted in the screen shot above. The application of the test version Rule by clicking the Test button is highlighted in the qualification results in the screen shot below.

Note: For more information on testing Rules, see Section 3: Rule Manager Tips and Tricks.


Section 1: Getting Started 7

Promoting Rules (Going Live)

Once you have created a Rule and successfully tested it, you can use it by promoting it to a production version.

To Promote a Rule:



3. Locate the Rule you want to promote on the Listing page.

4. Click on the Versions link under the Actions column.

5. Click on the Promote link under the Actions column to promote your test version Rule to a production

version Rule.

Note: A production version Rule is live in Production and is evaluated as part of the normal loan qualification.

6. When prompted, click OK.

7. Enter a reason for promoting the Rule, and then click OK.

Your reason is recorded in the permanent History Log, which serves as an audit trail for each Rule version.

Note: The History Log is discussed in Section 2: Rule Manager.

8. On the Rule Manager Versions page, your test version Rule has been replaced by a new production version Rule.

Rule Manager

Section

2


Section 2: Rule Manager 9

Rule Manager

Section 1 of this document provided a quick introduction to the Rule Manager for Client users. In this section, we discuss the Rule Manager functionality in specific detail.

Rule Manager Listing Page

The Rule Manager Listing page is the home page of the Rule Manager. It is the starting point for creating and maintaining all Client Rules.

To Access the Rule Manager Listing Page:



Note: Columns that can be sorted are displayed as a link.

Creating Rules

The Create New Rule button in the top left corner of the page enables you to create new Rules. For detailed instructions on creating a rule, see Section 1: Creating Rules.

Rule Filters

To easily locate Rules, the Rule Filters at the top of the page enables you to filter which Rules are displayed in the list. Up to 10 filters can be used at a time. Each filter has multiple selections. For example, to display Rules with a condition where the State is California, New York, or Florida, select the “State” filter and then select the three States from the drop-down list. The available filters are listed below:

Task (as selected in the Rule task section on the Rule Definition page)

Condition (as selected in the Rule conditions section on the Rule Definition page)

Lien Position

Special Product

Office Category

Investor

Loan Term

Product Type

Office

Property Type

Loan Purpose

Using the Encompass Product and Pricing (EPPS) Rule Manager

10 Section 2: Rule Manager

Occupancy Type

State

The method to select filters is similar to selecting conditions on the Rule Definition page. The filters appear in rows with each new filter appended to the bottom of the list. Filter selections are valid until you navigate away from the Listing page.

To delete a filter, click on the “X” displayed to the left of the filter.

Hidden

The Hidden check box to the left of the Columns button enables you to control which Rules are displayed on the Listing page.

Note: The Hide action is discussed in the Actions section

When Hidden is selected:

Only Rules marked as “Hidden” are displayed on the Listing page.

The Versions and Copy actions are not displayed.

The Hide action is replaced with the Unhide action, which marks a Rule as no longer hidden.

When Hidden is not selected, only Rules not marked as “hidden” are displayed on the Listing page.

Columns

The Columns button in the upper right hand corner of the page enables you to select which columns are

displayed on the Listing page. Your column selections are specific to you and will be retained until you change your selections.

Note: The Rule Name and Actions columns are always displayed.

To Select the Columns Displayed on the Rule Manager Listing Page:



3. Click on the Columns button.

4. In the pop-up window, select the boxes next to the Column Names you want displayed on the Listing page.

5. Click the Update button at the bottom of the page.

6. The Listing page will be updated with your selections.

The Default button returns the columns to the default selections as listed below.

Task (Sortable)

Effective Date (Sortable)

Expiration Date (Sortable)

Conditions

Comments

Lien Position

Special Product

Office Category

Investor

Loan Term

Product Type

Office

Property Type

Loan Purpose

Occupancy Type



State (Abbreviated)

Program Notes

Actions

The Actions column displays the actions that can be applied to each Rule listed.

Note: The grid rows alternate in color to make it easier to read.

The five available actions are:

View – Opens the Rule Definition page, in a new browser tab, to the current Production version of the

Rule in read-only mode.

Versions – Opens the Rule Versions page in a new browser tab. This action is not displayed for Rules

marked as “Hidden”.

Copy – Opens the Rule Definition page in a new browser tab. This action is not displayed for Rules

marked as “Hidden”.

The fields on the Rule Definition page are initialized with values from the current Production version.

The Rule Name is set to “Copy of” plus the name from the source Rule.

The effective and expiration date and time are blank.

The version profile is set to “Test”.

Hide – Available for Rules not marked as “Hidden” only.

Expires the current production version, if one exists.

Note: A History Log entry is created.

Retracts production versions with a future effective date, if one exists.

Note: A History Log entry is created.

The Rule is marked as “Hidden”.

The Listing page is refreshed.

Unhide – Available for Rules marked as “Hidden” only.

The Rule is no longer marked as “Hidden”.

The Listing page is refreshed.

Rule Versions Page

The concept of Rule versions is necessary for Historical Pricing and Rule testing. The Rule Versions page displays all versions of a given Rule and enables you to maintain them.

To Access the Rule Versions Page:



3. Click on a Rule’s Versions link.

OR

4. Click on the Rule Name.

Note: Columns that can be sorted are displayed as a link.



Creating New Rule Versions

The Create New Version button at the top of the page enables you to create new Rule versions. The Rule Name is defaulted to the previously selected Rule Name and the profile is set to “Test”. The remainder of the Rule Definition page will be blank.

Note: Rule Names must be unique, but versions of the same Rule must share the same name. Changing a Rule Name here will change it for all its versions.

Actions

The Actions column displays the actions that can be applied to each Rule version listed. The available actions are determined by the current state of the Rule version (see table below).

Note: The grid rows alternate in color to make it easier to read.

The available actions are:

Edit – Opens the Rule Definition page, in a new browser tab, populated with the corresponding data for the selected Rule version for the purpose of editing that Rule version.

Copy – Opens the Rule Definition page, in a new browser tab, populated with the source data for the selected Rule version (as qualified below) for the purpose of creating a new test version of the Rule.

The effective and expiration date and time are blank.

The version profile is set to “Test”.

The remaining data is populated from the source version data.

Promote – Available for test version Rules only.

The test version is promoted to a production version.

Product versions cannot overlap in time.

Only one production version with a future effective date/time can exist.


Note: The History Log is discussed in the History Log section.

Delete – Available for test version Rules only.

The Rule version is deleted.

Expire – Available for production version Rules only.

The expiration date/time is set to the current date/time.

You will be prompted to enter a reason for this action to be recorded in the permanent History Log.

Retract – Available for production version Rules only.

The Rule version is removed from the historical chain (as if it never existed).

You will be prompted to enter a reason for this action to be recorded in the permanent History Log.



History – Opens a pop-up window with a table containing the following data from the History Log:

Change date/time

User Name

User ID

Action performed

Change reason

You can print the History Log data or copy it to the clipboard.

View – Opens the Rule Definition page, in a new browser tab, to the Rule version in read-only mode.

Rule Definition Page

You can create and maintain Rule versions from the Rule Definition page.

To Access the Rule Definition Page:



3. Click on a Rule’s Versions link.

OR

4. Click on the Rule Name.

5. Click the Create New Version button.

OR

6. Click on a Rule’s Edit link.

The Rule Definition page is divided vertically into three sections: Rule Header, Rule Task, and Rule Condition.



The Rule Header section contains general rule information.

Rule Name – This required field is a unique client-defined identifier for the rule. Defaults

to “New Rule”.

Note: It can be used to locate the Rule on the Listing page.

Effective Date – This required field is the date and time when the Rule will become active in EPPS.

Expiration Date – The date and time the Rule will expire in EPPS.

Profile – The version profile for this Rule version. Defaults to “Test”.

Comments – Free form text that can be used to document the purpose and use of the Rule. The comments can be up to 250 characters in length.

Note: Comments can be displayed on the Listing page.

The Rule Task section contains details about the task the Rule will be performing.

Task Name – Select one of 15 tasks from the drop-down list. Most tasks will require additional data entry parameters.

Note: The additional data entry parameters are discussed in Appendix 1: Rule Tasks. A convenient one page list of all 15 tasks, with brief descriptions, can be found in Appendix 3: Rule Task Desktop Reference.

Description – The line item pricing description displayed on the Qualify tab when clicking on the Details link and the Summary tab in EPPS, and the Secondary Lock Tool in Encompass. Descriptions can be up to 100 characters in length.

Note: The selected task determines whether the description is required, optional, or disabled.

Display Description Only to Users with View Profit Margin Rights – Select this check box if you want the description and the itemized effect of the task on pricing to be displayed only to users with View Profit Margin rights. For users without View Profit Margin rights, the effect of the task on pricing will be reflected in the base price displayed to these users.


Note: The selected task determines whether this check box is required, optional, or disabled.

Program Notes – These notes are displayed on the Qualify and Summary tabs in EPPS,

and the Lock Request Form and Secondary Lock Tool in Encompass. Program notes can be up to 500 characters in length.

Note: The selected task determines whether the description is required or optional.

The Rule Condition section contains the details of the conditions on which the rule execution will be based. Select up to a maximum of 10 conditions.

Conditions are optional.

Each condition will be displayed in its own row in the Condition grid.

Each condition will require additional data entry parameters.

Note: The additional data entry parameters are discussed in Appendix 2: Rule Conditions.

Condition formats are classified into one of five categories:

Integer and Floating – Used to create Boolean tests of system variables against

user-specified numeric value. Integer and Floating conditions include “Lock Days”, “Amortization Term”, “Credit Score”, “LTV”, “CLTV”, ‘HCLTV”, “Number of Financed Properties”, and “Lien Position”.

Integer-Select – Similar to Integer conditions except in addition to entering a

specific value, you can select from pre-defined system values including Conforming Limit and Agency High Balance Limit. Integer-Select conditions include “Base Loan Amount”, “Total Loan Amount”, and “Qualification Loan Amount”.



Boolean – Pre-defined conditions against which a loan is tested. Boolean

conditions include “Product is an ARM”, “Product is Fixed Rate”, ”Loan Has Subordinate Financing”, ”Compensation is Borrower-Paid”, ”Compensation is Creditor-Paid”, and ”No Closing Costs”.

Multiselect – Pre-defined conditions against which a loan is tested. Multiselect

conditions include ”Special Product”, ”Office Category”, ”Investor”, ”Loan Term”, ”Product Type”, ”Office”, ”Property Type”, ”Loan Purpose”, ”Occupancy Type”, and ”State”.

To delete a condition, click the “X” to the left of the row.

7. Click Save to save the Rule.

Validation errors will be displayed at the top of the page and must be corrected before the Rule can be saved.


History Log

The History Log is an audit trail maintained for each Rule version. Log entries are also system generated for certain system-generated Rule versions. You must enter a reason to be recorded in the log for the following actions:

Promote

Edit (When saving, Production versions only)

Expire

Retract

The log can be displayed from the Rule Versions page using the History action.

Rule Manager Tips and Tricks

Section

3


Section 3: Rule Manager Tips and Tricks 17

Rule Manager Tips and Tricks

In this section, we focus on certain tips and tricks to assist you to make the most of the Rule Manager.

Select Meaningful Rule Names

As you create Rules, we recommend you use some form of meaningful naming convention. Taking this step from the beginning will deliver returns as the number of Rules you create grows. Although the Listing page can be configured to display specific Rule information, which will help you quickly locate certain types of Rules, the Rule Name remains important, especially in a multi-user environment, where Rules can be created and maintained by more than one user.

One recommended naming convention is to append or prepend the Rule Name with a user’s initials. For example, a Rule created by Bob Rogers called FHA Profit Margin might have a Rule Name of BR_FHA Profit Margin or FHA Profit Margin_BR. While the History Log will indicate Bob created the Rule, this naming convention will help to quickly identify who created a Rule if a question arises regarding that Rule.

The important point is that a naming convention that conveys relevant information to help you manage and maintain Rules will not only save you time, it will make you more effective in maintaining Rules.

Build Your Listing Page Using Columns

Locating specific Rules will become more difficult as the number of Rules you create grows. You can personalize the Listing page by selecting from 18 columns of Rule data to display the information most useful to you. You can also create up to 10 Rule Filters from a list of 13 to narrow the list of Rules displayed.

Note: Columns and rule filters are discussed in Section 2: Rule Manager.

Consider Conflicting Conditions Carefully

Rule conditions are powerful in defining precise circumstances under which a Rule task is executed. They are equally adept at defining circumstances under which a Rule task will never execute.

Note: Rule conditions are discussed in Appendix 2: Rule Conditions.

To avoid unintended results, we strongly recommend you carefully consider using a condition more than once in a single Rule. Using a condition more than once can be justified for Integer, Floating and Integer-Select conditions to establish ranges of eligible values (e.g., Credit Score >=X and Credit Score <Y).

Using Multiselect conditions more than once in a single Rule will almost certainly produce unintended results. With a Multiselect condition, you select multiple values from a list where the condition evaluates if any of the selections is true for a given loan. For example, a Rule containing the condition “Investor” with BB&T and Chase selected will execute for a loan where the Investor is Chase and for a loan where the Investor is BB&T.

Now consider a Rule where the “Investor” condition is tested twice. In the first instance, Chase is selected and in the second instance, BB&T is selected. All conditions are joined in an AND statement. This Rule will execute when the investor is Chase and when it is BB&T. However, a loan cannot be assigned to two investors. Therefore, this Rule will never execute.

Please consider your selection of Rule conditions carefully when constructing Rules, and test your Rules thoroughly before promoting them to Production.


18 Section 3: Rule Manager Tips and Tricks

To Is or Is Not (That is the Question)

Multiselect conditions enable you to choose to test if a loan’s value is among the values selected in the Rule or to test if it is not among the selected values.

Consider carefully which of these operators you wish to use in a Rule. The use of the is operator produces results that will not change as your environment changes. For example, a Rule with a condition “Office is HQ” will always fire for loans in the HQ office regardless of the offices added to or deleted from your company.

The results of a condition using the is not operator changes as your environment changes. For example, a Rule with a condition “Office is not HQ” will always fire for loans not in the HQ office. You will need to be aware that when you wish to treat any other office in the same way as the HQ office for the purposes of this Rule, that office, new or repurposed, must be added to this exclusionary list.

You can filter Rules displayed on the Listing page by condition to only see Rules using a certain condition, such as “Office”, but you will still need to identify and review the Rules using the is not operator when values are added to or deleted from the list of available values as in the example above.

Testing with Program Notes

Depending on the task selected, program notes are either required or optional.

Note: See Appendix 1: Rule Tasks.

One of the easiest ways to verify that a Rule is performing as expected is to compare the existing qualification results to the test qualification results with test Rule versions applied. The easiest way to conduct this comparison is through the “Display a Program Note” task.

Adding a program note to a test version Rule will display a note in the test qualification results that did not previously appear in the qualification. A good note is one that displays the name of the Rule being tested (e.g., “Test Fielder Profit Margin”). This program note can be changed after the testing is completed.

Test Twice, Promote Once

It is likely you will encounter some business event that will result in you creating or modifying several Rules in a short period of time, perhaps for a simultaneous implementation.

We strongly recommend creating and testing Rules one at a time in a sequential manner where only the test version being validated is effective for the test qualification. We further recommend that when you have more than one Rule to implement simultaneously that after you have individually tested the Rules, you run a test qualification with all test version Rules in effect.

The final test qualification will identify cases where one Rule conflicts with another Rule. This can take place when the individual tests pass, but fail to consider other scenarios. Consider the following example:

You intend to create two Rules. The first is to “Deduct a Profit Margin” of 0.25% when the condition “Office is HQ” is true. The second is to “Deduct a Profit Margin” of 0.375% when the condition “Office is not HQ” is true.

You ask one of your team members to create the first Rule.

She does,but fails to include the condition “Office is HQ”.

You run a test using a loan in the Office HQ and it passes.

You create the second Rule to “Deduct a Profit Margin” of 0.375% when the condition “Office is not HQ” is true.

You run a test using a loan in the Office Sales and it passes.

You test the two Rules simultaneously. The 0.25% margin is being correctly applied to the HQ Office, but the margin being applied to the Sales Office is 0.625%.

The simultaneous test identifies the error in the first Rule that would have been overlooked if you had promoted those Rules after only running the individual tests. This final test is even more important when the is not operator is used with a Multiselect condition. The effect of the is not operator can change over time as values are added or deleted from the Multiselect list.


Section 3: Rule Manager Tips and Tricks 19

Test Rules prior to promotion individually, both with loans known to be subject to the Rule and with loans known to not be subject to the Rule. After individually testing Rules, test them in combination prior to promoting them as a group.

Take History Log Entries Seriously

The Rule Manager maintains a History Log to track events throughout the life of a Rule version. You will be prompted to enter reasons for events including Promote, Edit, Expire, and Retract. The log is intended to provide an audit trail of changes to Rule versions that capture the who, what, when, how, and why of any material changes. It is a useful tool for managers trying to understand what has taken place in the system and for auditors and regulators interested in reviewing changes in pricing and qualification rules over time.

Note: The log can be viewed in the system or printed.

You should enter meaningful and well written comments when prompted to make an entry in the History Log. These entries cannot be edited once they are saved and become part of the permanent record for a Rule version.

Edit Production Rules Sparingly

Rule versions exist at the very core of Historical Pricing. This system of Rule versioning and the selection of actions available to different Rule versions are designed to preserve the integrity of the historical chain. This means a loan priced today will, all other things being equal on a historical basis, price identically tomorrow or on any other date based on the effective date in the loan record.

Test versions are for the creation and testing of Rules before they are introduced into Production.

Production versions are applied in the regular qualification of loans in EPPS.

Production versions can be retracted, typically as a mistake, in which case for historical purposes the result is as if the Rule version never existed.

Production versions can be expired, which ends their life but maintains their link in the chain of historical versions.

The Edit action is available on the Versions page for test and unexpired production versions. Edit is necessary for

test versions to support the iterative process of creating and refining a Rule until it behaves as expected, prior to promoting it to Production.

Note: The primary reason for editing production versions is to correct minor mistakes identified soon after a Rule is promoted.

We strongly recommend that you carefully consider any decision to edit a production version. It is important to understand that edits to a production Rule version after it is effective (whether one hour, one week, or six months) are for historical purposes and active as of the original effective date of the Rule version. Loans subject to this Rule priced prior to these edits will, all other things being equal, not return the same results as when the loans were originally priced.

Most edits to an existing production version Rule should be handled by creating a new production version using either the Copy or Create New Version actions.

Delete Obsolete Test Versions

Creating test versions is a good way to explore new ideas for pricing and qualifying loans. However, it is not good to create hypothetical test Rules and then abandon them without promoting or deleting them. These test version Rules can accumulate, complicating the efficient and effective testing of other test versions you intend to promote to Production.

Custom Loan Program Experience

Section

4


Section 4: Custom Loan Program Experience 21

Custom Loan Program Experience

You may want to present a self-branded custom loan program experience to your loan officers and prevent them from seeing with which Investors you are approved to sell loans. The Rule Manager can work in conjunction with other EPPS functionality to provide your loan officers with a self-branded custom loan program experience.

To Set Up a Custom Loan Program Experience:

1. Identify an Investor on which to base your guidelines or one you sell most of your loans to.

2. Create Rules in the Rule Manager to build profit margins into the Investor’s pricing and/or to limit which loans will quality in the Investor loan programs (e.g., select not to do FHA loans on manufactured housing).

3. From the Client Admin Programs tab (located next to the Rule Manager tab), select the Investor from the

Investor drop-down list. In the Program Alias column, enter you names for the Investor programs.

4. If the Investor provides client-specific pricing and you can modify this pricing in the exact same file format as it is provided to you by the Investor, you can upload your custom version of the Investor’s pricing from the Client Dashboard (Dashboard).

Note: For information on the Dashboard, see the Using the Encompass Product and Pricing (EPPS) Client Dashboard document

5. Disable the View True Investor Names user rights for your loan officers.

While these steps will not create your own custom programs, they will enable you to present your loan officers with a self-branded custom loan program experience. In addition, the guidelines associated with these programs will be automatically updated when they are updated by the Investor.

System Generated Rules

Section

5


Section 5: System Generated Rules 23

System Generated Rules

Certain Rules are generated by EPPS including:

Rules to support the continued use of holdbacks created prior to EPPS 16.3

Next Reprice Rules created from the Dashboard.

Holdbacks Created Prior to EPPS 16.3

Most holdbacks created in EPPS prior to 16.3 will be migrated to Rules of the same name as part of the 16.3 implementation. Standard holdbacks will be migrated into the new Rule structure. Holdbacks with custom logic, created and maintained by the EPPS staff, will be migrated to the new Rule structure, unless their complexity prevents them from being migrated.

Holdbacks Containing Custom Logic

Holdbacks with custom logic are easily identified on the Listing page by the asterisk appended to the end of the Rule Name. The actions displayed for these Rules are limited to View, Versions, and Hide.

Active holdbacks with custom logic that are not migrated into the new Rule structure will display the custom logic when edited to assist you in converting it into the Rule Manager framework. The custom logic will be displayed in the Rule Header section of the Rule Definition page.

Note: When a Rule with custom logic is first edited and saved, the custom logic is permanently removed from the Rule version.


24 Section 5: System Generated Rules

Next Reprice Rules Created from the Dashboard

The Dashboard is another feature introduced in EPPS 16.3. It enables you to disable or worsen Investor pricing by using the Disable Until Next Reprice or Worsen Until Next Reprice features. These features are implemented using a system generated Rule “EPPSNEXTREPRICE–[Investor Name]”. A new Rule version is created each time an Investor’s pricing is disabled or worsened.

Note: For information on the Dashboard, see the Using the Encompass Product and Pricing (EPPS) Client Dashboard document.

For these Rules, the actions displayed on the Listing page are limited to View and Versions.

On the Versions page, the actions displayed are limited to View, Retract, Expire, and History.

Rule Tasks

Appendix

1


26 Appendix 1: Rule Tasks

Rule Tasks

A Rule is a conditional statement constructed of one Rule task (the “then” portion of the conditional statement) and up to 10 Rule conditions (the “if” portion of the conditional statement).


A task is required for all Rules while conditions are optional.

Rule tasks are defined in the following format:

Task Name – The name of the Rule task.

Task Definition – Describes the outcome of the Rule task.

Description – The alphanumeric pricing line item description displayed on the Qualify tab when clicking on the Details link and the Summary tab in EPPS, and the Secondary Lock Tool in Encompass. Descriptions can be up to 100 characters in length.

Note: The task determines whether the description is required, optional, or disabled.

Display Description Only to Users with View Profit Margin Rights – If the check box is selected, the

description and the itemized effect of the task on pricing will be displayed only to users with View Profit Margin rights.


Note: The task determines whether this check box is required, optional, or disabled.

Program Notes – The alphanumeric notes are displayed on the Qualify and Summary tabs in EPPS, and

the Lock Request Form and Secondary Lock Tool in Encompass. Program notes can be up to 500 characters in length.

Note: The task determines whether the program notes are required or optional.

Parameters – Additional data entry parameters for the task.

Example parameter:

o Parameter Definition – Explains the proper use of the parameter.

o Usage – Required or Optional.

o Format – Integer or Floating

o Validations – Validation 1, Validation 2, Validation n.

Adjust Final Price Rule Task Definition – Adjusts the final price displayed to the user by a client-specified amount. The

adjustment can be either positive or negative.

Description – Required.

Display Description Only to Users with View Profit Margin Rights – Optional

Program Note – Optional

Parameters

Percent

Parameter Definition – Amount of adjustment applied to the final price, expressed as a

percent to no more than three decimal positions (e.g., 0.375%).

Usage – Required

Format – Floating to no more than three decimal positions.

Validations

o Numeric only

o Maximum three decimal positions

o -25.000%<=Percent<=25.000%


Appendix 1: Rule Tasks 27

Adjust Final Price and Maximum Purchase Price Task Definition – Adjusts the final price and maximum purchase price by the same client-specified

amount. The adjustment can be either positive or negative.

Description – Required



Parameters

o Percent

Parameter Definition – Amount of adjustment applied to the final price and maximum purchase price, expressed as a percent to no more than three decimal positions (e.g., 0.375%).

Usage – Required


Validations

o Numeric only


o -25.000%<=Percent<=25.000%

Adjust Final Price by Rate Task Definition – Adjusts the final price displayed to the user by a client-specified amount based on the

rate. The adjustment can be either positive or negative.

Description – Required.



Parameters

Percent

Parameter Definition – Amount of adjustment applied to the final price, expressed as a

percent to no more than six decimal positions (e.g., 0.421875%).

Usage – Required.

Format – Floating to no more than six decimal positions.

Validations

o Numeric only

o Maximum six decimal positions.

o -25.000000%<=Percent<=25.000000%.

Low Rate

Parameter Definition – Low Rate boundary, expressed as a percent to no more than

three decimal positions (e.g., 0.375%).

Usage – Required.


Validations

o Numeric only.

o Maximum three decimal positions.

o -25.000%<=Percent<=25.000%.



High Rate

Parameter Definition – High Rate boundary, expressed as a percent to no more than


Usage – Required.


Validations

o Numeric only.

o Maximum three decimal positions.

o -25.000%<=Percent<=25.000%.

Adjust Maximum Purchase Price Task Definition – Adjusts the maximum purchase price by a client-specified amount. The adjustment can

be either positive or negative.

Description – Disabled

Display Description Only to Users with View Profit Margin Rights – Disabled


Parameters

Percent

o Parameter Definition – Amount of adjustment applied to the maximum purchase price, expressed as a percent to no more than three decimal positions (e.g., 0.375%).

Usage – Required


Validations

o Numeric only


o -25.000%<=Percent<=25.000%

Adjust Rate Task Definition – Adjusts the final rate displayed to the user by a client-specified amount. The

adjustment can be either positive or negative.

Description – Required



Parameters

Percent

o Parameter Definition – Amount of adjustment applied to the final rate, expressed as a percent to no more than three decimal positions (e.g., 0.375%).

Usage – Required


Validations

o Numeric only


o -25.000%<=Percent<=25.000%



Adjust SRP Task Definition – Adjusts the SRP used to determine the base price displayed to the user by a client-

specified amount. The adjustment can be either positive or negative.

Description – This required field is visible only to users with View Profit Margin rights.

Display Description Only to Users with View Profit Margin Rights – This required check box is already selected and cannot be cleared.


Parameters

Percent

Parameter Definition – Amount of adjustment applied to the SRP, expressed as a


Usage – Required


Validations

o Numeric only


o -25.000%<=Percent<=25.000%

Adjust SRP by Rate Task Definition – Adjusts the SRP used to determine the base price displayed to the user by a client-

specified amount based on the rate. The adjustment can be either positive or negative.




Parameters

Percent

Parameter Definition – Amount of adjustment applied to the SRP, expressed as a

percent to no more than six decimal positions (e.g., 0.421875%).

Usage – Required.

Format – Floating to no more than six decimal positions.

Validations

o Numeric only.

o Maximum six decimal positions

o -25.000000%<=Percent<=25.000000%

Low Rate

Parameter Definition – Low Rate boundary, expressed as a percent to no more than


Usage – Required.


Validations

o Numeric only.


o -25.000%<=Percent<=25.000%



High Rate

Parameter Definition – High Rate boundary, expressed as a percent to no more than


Usage – Required.


Validations

o Numeric only.


o -25.000%<=Percent<=25.000%

Deduct a Profit Margin Task Definition – Deducts a client-specified profit margin from the base price. The profit margin can be

positive or negative. A negative profit margin increases the final price.

Note: This task is not applicable to broker client-lender relationships.


Display Description Only to Users with View Profit Margin Rights – This required check box is

already selected and cannot be cleared.


Parameters

Percent

Parameter Definition – Amount of profit margin to be deducted from the base price,

expressed as a percent to no more than three decimal positions (e.g., 1.375%). A negative value adds to the base price (increases the final price).

Usage – Optional


Validations

o Numeric only


o -25.000%<=Percent<=25.000%

o Percent or dollars must be provided

o Both percent and dollars can be provided

Dollars


expressed in whole dollars (e.g., $1,000). A negative value results adds to the base price (increases the final price).

Usage – Optional

Format – Integer

Validations

o Integer only to five digits

o -$99,999<=Dollars<=$99,999





Minimum

Parameter Definition – Minimum amount of profit margin to be deducted from the base

price, expressed in whole dollars (e.g., $1,000).

Usage – Optional

Format – Integer

Validations


o -$99,999<=Minimum<=$99,999, if specified

o Must be less than the Maximum, if the Maximum is specified

Maximum

Parameter Definition – Maximum amount of profit margin to be deducted from the base


Usage – Optional

Format – Integer

Validations


o -$99,999<=Maximum<=$99,999, if specified

o Must be greater than the Minimum, if the Minimum is specified

Deduct a Wholesale Compensation Margin Task Definition – Deducts a client-specified profit margin from the base price for broker client-lender

relationships only.




Parameters

Percent


expressed as a percent to no more than three decimal positions (e.g., 1.375%).

Usage – Optional


Validations

o Numeric only


o 0%<=Percent<=25.000%



Dollars


expressed in whole dollars (e.g., $1,000).

Usage – Optional

Format – Integer



Validations


o $0<=Dollars<=$99,999



Minimum



Usage – Optional

Format – Integer

Validations


o $0<=Minimum<=$99,999, if specified


Maximum



Usage – Optional

Format – Integer

Validations


o $0<=Maximum<=$99,999, if specified


Display a Program Note Task Definition – Displays a client-specified alphanumeric program note at the top of the list of program

notes displayed on the Qualify and Summary tabs in EPPS and on the Lock Request Form and the Secondary Lock Tool in Encompass. Program notes can be up to 500 characters in length.



Program Note – Required.

Parameters – None

Disqualify a Loan Task Definition – Causes a loan to fail qualification. The program note specified with this task is the only

program note displayed to the user.



Program Note – This required program note is only displayed to the user.

Parameters – None



Disqualify a Loan and Hide Results Task Definition – Causes a loan to fail qualification with no results displayed.



Program Note – Disabled.

Parameters – None

Override All Profit Margins Task Definition – Deducts a client-specified profit margin from the base price and prohibits any additional

profit margin deductions. The profit margin specified in this task is the only profit margin applied to the loan.





Parameters

Percent



Usage – Optional


Validations

o Numeric only


o 0%<=Percent<=25.000%



Dollars


expressed in whole dollars (e.g., $1,000).

Usage – Optional

Format – Integer

Validations


o $0<=Dollars<=$99,999



Minimum



Usage – Optional

Format – Integer

Validations


o $0<=Minimum<=$99,999, if specified




Maximum



Usage – Optional

Format – Integer

Validations


o $0<=Maximum<=$99,999, if specified


Set Maximum Back-End Ratio Task Definition – Sets the client-specified maximum back-end debt-to-income ratio applied in

qualification. This task is applied only when it reduces the existing maximum back-end ratio and cannot increase it.




Parameters

Percent

Parameter Definition – Maximum back-end debt-to-income ratio applied in qualification,


Usage – Required


Validations

o Numeric only


o 0.000%<= Percent<=999.999%

Set Maximum Final Price Displayed Task Definition – Sets the client-specified maximum final price displayed to the user after applying all

loan-level price adjustments, price adjustment caps, and margins.




Parameters

Percent

Parameter Definition – Maximum final price displayed to the user, expressed as a

floating number to no more than three decimal positions (e.g., 106.375%).

Usage – Required


Validations

o Numeric only


o 75.000%<=Percent<=125.000%



Set Maximum Rate Displayed Task Definition – Sets the client-specified maximum final rate displayed to the user.




Parameters

Percent

Parameter Definition – Maximum final rate displayed to the user, expressed as a


Usage – Required


Validations

o Numeric only


o 0%<=Percent<=25.000%

Set Minimum Final Price Displayed Task Definition – Sets the client-specified minimum final price displayed to the user after applying all

loan-level price adjustments, price adjustment caps, and margins.




Parameters

Percent

Parameter Definition – Minimum final price displayed to the user, expressed as a

floating number to no more than three decimal positions (e.g., 96.375%).

Usage – Required


Validations

o Numeric only


o 75.000%<=Percent<=125.000%

Set Minimum Rate Displayed Task Definition – Sets the client-specified minimum final rate displayed to the user.




Parameters

Percent

Parameter Definition – Maximum final rate displayed to the user, expressed as a


Usage – Required




Validations

o Numeric only


o 0%<=Percent<=25.000%

Skip Income and Assets Tests Task Definition – Ignores all Income and Assets tests otherwise applied during qualification, including

maximum debt-to-income ratios (DTIs), cash required to close, and income reserve requirements.




Parameters – None

Rule Conditions

Appendix

2


38 Appendix 2: Rule Conditions

Rule Conditions

A Rule is a conditional statement constructed of one Rule task (the “then” portion of the conditional statement) and up to 10 Rule conditions (the “if” portion of the conditional statement).


A task is required for all Rules while conditions are optional.

Rule conditions are defined in the following format:

Condition Name – The client-facing name of the Rule condition.

Condition Definition – Explains the meaning of the Rule condition.

Format – Integer, Floating, Integer-Select, Boolean, or Multiselect.

Integer and Floating conditions can be evaluated against client-specified values using standard Boolean operators.

Boolean conditions automatically evaluate to either true or false.

Integer-Select conditions can be evaluated against client-specified values and system variables including Conforming Limit and Agency High Balance Limit using standard Boolean operators.

Multiselect conditions enable users to select multiple values from a drop-down list.

Parameters – Additional data entry parameters for the condition.

Example parameter:

Parameter Definition – Explains the proper use of the parameter.

Usage – Required or Optional.

Format – Integer, Floating, or Drop-down List

Validations – Validation 1, Validation 2, Validation n.

Amortization Term Condition Definition – Amortization term of the mortgage program in months.

Format – Integer

Parameters

Boolean Operator

Parameter Definition – Drop-down list including the selections =, <>, >, >=, <, <=.

Usage – The required parameter initializes to =.

Format – Drop-down list

Validations

o None

o Parameter initializes to =

Amortization Term

Parameter Definition – Enter the amortization term of the mortgage program, in months, here.

Usage – Required

Format – Integer

Validations

o Integer only

o 0<=Amortization Term<=600


Appendix 2: Rule Conditions 39

Annual Income Condition Definition – The annual income.

Format – Integer

Parameters

Boolean Operator




Validations

o None


Annual Income

Parameter Definition – User enters comparison amount here.

Usage – Required

Format – Integer

Validations

o Integer only. Error message “Please enter an integer in the range of $0 to $999,999,999”

o $0<=Annual Income<=$999,999,999. Error message “Please enter an integer in the range of $0 to $999,999,999”

Base Loan Amount Condition Definition – Principal amount of the subject loan.

Format – Integer-Select

Parameters

Boolean Operator




Validations

o None


Comparison Value

Parameter Definition – Drop-down list including the selections Conforming Limit, Agency High

Balance Limit, and Specific Amount.

Usage – The required parameter initializes to “Select a Comparison Value”.


Validations

o None

o Parameter initializes to “Select a Comparison Value”

o Selection of Specific Amount displays input parameter Base Loan Amount



Base Loan Amount

Parameter Definition – Displayed only when Comparison Value is Specific Amount. Enter a

comparison amount here.

Usage – Required when Comparison Value is Specific Amount.

Format – Integer

Validations

o Integer only

o $0<=Base Loan Amount<=$999,999,999

Borrower Has Mortgage Lates (12) Condition Definition – True if the number of mortgage lates in the last 12 months is greater than zero.

Format – Boolean

Parameters

True/False

Parameter Definition – Drop-down list including the selections True and False.

Usage – The required parameter initializes to True.


Validations

o None

o Parameter initializes to True

Borrower Has Mortgage Lates (24) Condition Definition – True if the number of mortgage lates in the last 24 months is greater than zero.

Format – Boolean

Parameters

True/False




Validations

o None


Borrower Has Mortgage/Rental History Condition Definition – True if the borrower can demonstrate a mortgage/rental history.

Format – Boolean

Parameters

True/False




Validations

o None




Borrower is a First Time Home Buyer Condition Definition – True if the borrower is a first time home buyer.

Format – Boolean

Parameters

True/False




Validations

o None


Borrower is Self Employed Condition Definition – True if the borrower is self employed.

Format – Boolean

Parameters

True/False




Validations

o None


Buydown Contributor Condition Definition – Party providing the temporary buydown.

Format – Multiselect

Parameters

Selection Operator

Parameter Definition – Drop-down list including the selections is, is not.

Usage – The required parameter initializes to is.


Validations

o None

o Parameter initializes to is.

Buydown Contributor

Parameter Definition – List of buydown contributors.

Usage – The required parameter initializes to “Select Buydown Contributor”.


Validations

o No less than one selection

o Any combination of available buydown contributors



Buydown Type Condition Definition – Type of temporary buydown.


Parameters

Selection Operator




Validations

o None

o Parameter initializes to is.

Buydown Type

Parameter Definition – List of buydown types.

Usage – The required parameter initializes to “Select Buydown Type”.


Validations


o Any combination of available buydown types

Cash Out Amount Condition Definition – Dollar amount of cash out requested by the borrower.

Format – Integer

Parameters

Boolean Operator




Validations

o None


Cash Out Amount

Parameter Definition – Enter dollar amount of cash out here.

Usage – Required

Format – Integer

Validations

o Integer only

o 1<=Cash Out<=999,999,999

CLTV Condition Definition

Conventional Loans

Combined loan-to-value ratio of the subject mortgage loan including any existing subordinated liens and any open HELOC draw amounts.

Government (FHA, VA, or USDA)



Combined loan-to-value ratio of the subject mortgage loan including any existing subordinated liens and any open HELOC credit limit.

Format – Floating

Parameters

Boolean Operator




Validations

o None


CLTV

Parameter Definition – Enter the combined loan-to-value ratio of the subject mortgage loan

here.

Usage – Required

Format – Floating to no more than three decimal positions (e.g., 75.126%).

Validations

o Numeric only


o 0.000%<=CLTV<=999.999%

Community/Affordable Second Condition Definition – True if the loan officer compensation is being paid by the borrower.

Format – Boolean

Parameters

True/False




Validations

o None


Compensation is Borrower-Paid Condition Definition – True if the loan officer compensation is being paid by the borrower.

Format – Boolean

Parameters

True/False




Validations

o None




Compensation is Creditor-Paid Condition Definition – True if the loan officer compensation is being paid by the creditor.

Format – Boolean

Parameters

True/False




Validations

o None


Condo is a Condotel Condition Definition – True if the loan has a condo property type that is also a Condotel.

Format – Boolean

Parameters

True/False




Validations

o None


Condo is Non-Warrantable Condition Definition – True if the loan has a condo property type that is also non-warrantable.

Format – Boolean

Parameters

True/False




Validations

o None




Credit Score Condition Definition – Credit score used in qualification.

Format – Integer

Parameters

Boolean Operator




Validations

o None


Credit Score

Parameter Definition – Enter the credit score used in qualification here.

Usage – Required

Format – Integer

Validations

o Integer only

o 0<=Credit Score<=999

Custom Fields Condition Definition – An Encompass field imported into EPPS from the Additional Fields tab of the Encompass

Lock Request Form.

Note: This condition is not available in the Condition drop-down list if no current Production version of a custom field definition is active.

Format – Determined by the data type of the custom field.

Parameters

Original Field ID & Description

Parameter Definition – Drop-down list of the original field IDs and descriptions of the custom

fields from the current Production version of custom fields.

Note: Any custom field with a data type that is not supported is omitted when the custom field definitions are retrieved.

Usage – The required parameter initializes to “Select a Custom Field”.


Validations

o None

o Required. Error message is “Please select a Custom Field.”

Operator

Parameter Definition – Operator is displayed based on the data type of the custom field.

o String is a new condition type. String can be up to 250 characters with 100 characters displayed with a vertical scroll bar. Boolean operators include =,< >. The default value is =.

o The number of positions after the decimal for the floating Encompass data types decimal_X is determined by the value of X.

For example, decimal_7 is 7 positions after the decimal.



Usage – Required. The default values are consistent with the operator displayed.


Validations

o None

Comparison Value

Parameter Definition – User enters comparison value.

Usage – Required

Format – The format is based on the data type of the custom field.

Validations

o Required: Error message is “Please enter a Custom Field Comparison Value.”

o Must be consistent with the custom field data type. Error message is “Invalid Custom Field Comparison Value.”

Escrows Waived Condition Definition – True if escrows are waived for the loan.

Format – Boolean

Parameters

True/False




Validations

o None


Financed MI Amount Condition Definition – Dollar amount of any financed MIP, PMI, or Government Funding Fee.

Format – Integer

Parameters

Boolean Operator




Validations

o None


Finance MI Amount

Parameter Definition – Enter dollar amount of Financed MIP here.

Usage – Required

Format – Integer

Validations

o Integer only

o 1<=Cash Out<=999,999,999



Geography Condition Definition – A client defined geography assigned to the current subject property.

Format – Select

Parameters

Is/Is Not

Parameter Definition – Subject property is in selected Geography or subject property is not in

selected Geography.



Validations

o Available choices are “is” and “is not”

Geography

Parameter Definition – List of Geographies only available to client.

Usage – This required parameter initializes to “Select a Geography”.


Validations

o No less and no more than one selection. An error message “Please select at least one value from the list.” will be displayed.

o Any one Geography

HCLTV Condition Definition – High combined loan-to-value ratio of the subject mortgage loan including any existing

subordinated liens and any open HELOC credit limit.

Format – Floating

Parameters

Boolean Operator




Validations

o None


HCLTV

Parameter Definition – Enter the high combined loan-to-value ratio of the subject mortgage loan

here.

Usage – Required


Validations

o Numeric only


o 0.000%<=HCLTV<=999.999%



Interest Only Condition Definition – True if the loan payment is interest only.

Format – Boolean

Parameters

True/False




Validations

o None


Investor Condition Definition – Investor (lender) for the current loan program.


Parameters

Selection Operator




Validations

o None

o Parameter initializes to is

Investor

Parameter Definition – List of available Investors.

Usage – The required parameter initializes to “Select Investors”.


Validations


o Any combination of available Investors

Lien Position Condition Definition – Position of the lien placed by the lender on the property securing the note in order of

priority of claim.

Format – Integer

Parameters

Lien Position

Parameter Definition – Select the position of the lien placed by the lender on the property

securing the note in order of priority of claim here. Drop-down list includes 1 and 2.

Usage – Required


Validations

o None

o Parameter initializes to 1



Loan Has Subordinate Financing Condition Definition – True if subordinate financing exists for the subject property.

Format – Boolean

Parameters

True/False




Validations

o None


Loan Program Condition Definition – Type of loan and the investor providing the loan program.


Parameters

Selection Operator


Usage – The required parameter initializes to is. Format – Drop-down list Validations

o None


Investor

Parameter Definition – List of investors.

Usage – The required parameter initializes to “Select Investor”.


Validations

o No less and no more than one selection. An error message “Please select an Investor.” will be displayed.

Loan Program

o Parameter Definition – List of loan programs.

o Usage – The required parameter initializes to “Select Loan Programs”.

o Format – Drop-down list

o Validations


o Any combination of available loan programs

Loan Purpose Condition Definition – Purpose of the loan (e.g., purchase or rate/term refinance).


Parameters

Selection Operator






Validations

o None


Loan Purpose

Parameter Definition – List of available loan purposes.

Usage – The required parameter initializes to “Select Loan Purposes”.


Validations


o Any combination of available loan purposes

Loan Term Condition Definition – Amortization type and term of the current loan program (e.g., 30 Year Fixed, 5 Year, or

ARM).


Parameters

Selection Operator




Validations

o None


Loan Term

Parameter Definition – List of available loan terms.

Usage – The required parameter initializes to “Select Loan Terms”.


Validations


o Any combination of available loan terms

Lock Days Condition Definition – Actual, not aliased, number of lock days associated with the given program.

Format – Integer

Parameters

Boolean Operator




Validations

o None




Lock Days

Parameter Definition – Enter actual, not aliased, number of lock days here.

Usage – Required

Format – Integer

Validations

o Integer only

o 1<=Lock Days<=999

LTV Condition Definition – Loan-to-value ratio of the subject mortgage loan or HELOC initial draw.

Format – Floating

Parameters

Boolean Operator




Validations

o None


LTV

Parameter Definition – Enter the loan-to-value ratio of the subject mortgage loan here.

Usage – Required


Validations

o Numeric only


o 0.000%<=LTV<=999.999%

MI is Lender-Paid Condition Definition – True if the mortgage insurance is paid by the Investor (Lender).

Format – Boolean

Parameters

True/False




Validations

o None




MI is Not Required Condition Definition – True if MI is not required for this loan.

Format – Boolean

Parameters

True/False




Validations

o None


Months Since Last Bankruptcy Condition Definition – Number of months since the borrower’s last bankruptcy filing.

Format – Integer

Parameters

Boolean Operator




Validations

o None


Months

Parameter Definition – Enter number of months here.

Usage – Required

Format – Integer

Validations

o Integer only

o 1<=Months<=999

No Closing Costs Condition Definition – True if the borrower is not paying any closing costs.

Format – Boolean

Parameters

True/False




Validations

o None



No Lender Fee Condition Definition – True if the loan originator is not paying any Investor fees.

Format – Boolean

Parameters

Operator

Parameter Definition – Operator is True/False.



Validations

o None

Number of 30-Day Lates (12) Condition Definition – Number of 30-day late mortgage payments in the last 12 months.

Format – Integer

Parameters

Boolean Operator




Validations

o None


30-Day Lates (12)

Parameter Definition – Enter number of 30-Day late mortgage payments in the last 12 months

here.

Usage – Required

Format – Integer

Validations

o Integer only

o 1<=Number of Lates<=12


Format – Integer

Parameters

Boolean Operator




Validations

o None




30-Day Lates (24)


here.

Usage – Required

Format – Integer

Validations

o Integer only



Format – Integer

Parameters

Boolean Operator




Validations

o None


60-Day Lates (12)


here.

Usage – Required

Format – Integer

Validations

o Integer only



Format – Integer

Parameters

Boolean Operator




Validations

o None




60-Day Lates (24)


here.

Usage – Required

Format – Integer

Validations

o Integer only



Format – Integer

Parameters

Boolean Operator




Validations

o None


90-Day Lates (12)


here.

Usage – Required

Format – Integer

Validations

o Integer only



Format – Integer

Parameters

Boolean Operator




Validations

o None




90-Day Lates (24)


here.

Usage – Required

Format – Integer

Validations

o Integer only


Number of Financed Properties Condition Definition – Number of other properties financed by the borrower excluding the pending subject loan.

Format – Integer

Parameters

Boolean Operator




Validations

o None


Number of Properties

Parameter Definition – Enter the number of other properties financed by the borrower, excluding

the pending subject loan, here.

Usage – Required

Format – Integer

Validations

o Integer only

o 0<=Number of Financed Properties<=10

Occupancy Type Condition Definition – Subject property usage (e.g., primary residence or investment)


Parameters

Selection Operator




Validations

o None




Occupancy Type

Parameter Definition – List of available occupancy types.

Usage – The required parameter initializes to “Select Occupancy Types”.


Validations


o Any combination of available occupancy types

Office Condition Definition – Client-defined office assigned to the current user.


Parameters

Selection Operator




Validations

o None


Office

Parameter Definition – List of available offices.

Usage – The required parameter initializes to “Select Offices”.


Validations


o Any combination of available offices

Office Category Condition Definition – Client-defined office category assigned to the current user.


Parameters

Selection Operator




Validations

o None


Office Category

Parameter Definition – List of available office categories.

Usage – The required parameter initializes to “Select Office Categories”.


Validations


o Any combination of available office categories



Product is an ARM Condition Definition – True if the loan program is an adjustable rate loan program.

Format – Boolean

Parameters

True/False




Validations

o None

Product is Fixed Rate Condition Definition – True if the loan program is a fixed rate loan program.

Format – Boolean

Parameters

True/False




Validations

o None

Product Type Condition Definition – Product classification for standard products (e.g., FHA, VA, or Agency).


Parameters

Selection Operator




Validations

o None


Product Type

Parameter Definition – List of available product types.

Usage – The required parameter initializes to “Select Product Types”.


Validations


o Any combination of available product types (standard products)



Program is Virtual Condition Definition – True if the loan program is Virtual Program.

Format – Boolean

Parameters

None

Property is Rural/Unique Condition Definition – True if the subject property is rural/unique.

Format – Boolean

Parameters

True/False




Validations

o None

Property Type Condition Definition – Subject property type (e.g., 1-family or townhouse).


Parameters

Selection Operator




Validations

o None


Property Type

Parameter Definition – List of available property types.

Usage – The required parameter initializes to “Select Property Types”.


Validations


o Any combination of available property types

Qualification Loan Amount Condition Definition – Loan amount used in qualification as defined by the Investor.


Parameters

Boolean Operator






Validations

o None


Comparison Value





Validations

o None


o Selection of Specific Amount displays input parameter Qualification Loan Amount

Qualification Loan Amount

Parameter Definition – Displayed only when Comparison Value is Specific Amount. Enter a


Usage – Required when Comparison Value is Specific Amount.

Format – Integer

Validations

o Integer only

o $0<=Total Loan Amount<=$999,999,999

Special Product Condition Definition – Product identifier assigned to products with characteristics inconsistent with those of

products in standard product categories (e.g., HUD Section 184, FHA 203K Rehab, HomePath, or VA IRRRL).


Parameters

Selection Operator




Validations

o None


Special Product

Parameter Definition – List of available special products.

Usage – The required parameter initializes to “Select Special Products”.


Validations


o Any combination of available special products.



State

Condition Definition – Subject property state. Format – Multiselect Parameters

Selection Operator


Usage – The required parameter initializes to is. Format – Drop-down list Validations

o None o Parameter initializes to is

State

Parameter Definition – List of available states.

Usage – The required parameter initializes to “Select States”. Format – Drop-down list Validations

o No less than one selection o Any combination of available states

Target Investor Condition Definition – Target Investor for the current loan program.


Parameters

Selection Operator




Validations

o None


Target Investor

Parameter Definition – List of available investors.

Usage - The required parameter initializes to “Select Target Investor”.


Validations


o Any combination of available Investors



Total Loan Amount Condition Definition – Principal amount of the subject loan plus any financed MIP, MI, or funding fees.


Parameters

Boolean Operator




Validations

o None


Comparison Value





Validations

o None


o Selection of Specific Amount displays input parameter Total Loan Amount

Total Loan Amount

o Parameter Definition – Displayed only when Comparison Value is Specific Amount. Enter a


o Usage – Required when Comparison Value is Specific Amount.

o Format – Integer

o Validations

o Integer only

o $0<=Total Loan Amount<=$999,999,999

Rule Task Desktop Reference

Appendix

3


64 Appendix 3: Rule Task Desktop Reference

Rule Task Desktop Reference

Task Name Description

Adjust Final Price Adjusts the final price displayed to the user by a Client-specified amount. The adjustment can be either positive or negative.

Adjust Final Price and Maximum Purchase Price Adjusts the final price and maximum purchase price by the same client-specified amount. The adjustment can be either positive or negative.

Adjust Final Price by Rate Adjusts the final price displayed to the user by a client-specified amount based on the rate. The adjustment can be either positive or negative.

Adjust Maximum Purchase Price Adjusts the maximum purchase price by a client-specified amount. The adjustment can be either positive or negative.

Adjust Rate Adjusts the final rate displayed to the user by a client-specified amount. The adjustment can be either positive or negative.

Adjust SRP Adjusts the SRP used to determine the base price displayed to the user by a client-specified amount. The adjustment can be either positive or negative.

Adjusts SRP by Rate Adjusts the SRP used to determine the base price displayed to the user by a client-specified amount based on the rate. The adjustment can be either positive or negative.

Deduct a Profit Margin

Deducts a client-specified profit margin from the base price. The profit margin can be positive or negative. A negative profit margin increases the final price.


Deduct a Wholesale Compensation Margin Deducts a client-specified profit margin from the base price for broker client-lender relationships only.

Display a Program Note Displays a client-specified alphanumeric program note at the top of the list of program notes displayed on the Qualify and Summary tabs in EPPS and the Lock Request Form and Secondary Lock Tool in Encompass.

Disqualify a Loan Causes a loan to fail qualification. The program note specified with this task is the only program note displayed to the user.

Disqualify a Loan and Hide Results Causes a loan to fail qualification with no results displayed.

Override All Profit Margins

Deducts a client-specified profit margin from the base price and prohibits any additional profit margin deductions. The profit margin specified in this Task is the only profit margin applied to the loan.


Set Maximum Back-End Ratio Sets the client-specified maximum back-end debt-to-income ratio applied in qualification. This task is applied only when it reduces the existing maximum back-end ratio.

Set Maximum Final Price Displayed Sets the client-specified maximum final price displayed to the user after applying all loan-level price adjustments, price adjustment caps, and margins.

Set Maximum Rate Displayed Sets the client-specified maximum final rate displayed to the user.

Set Minimum Final Price Displayed Sets the client-specified minimum final price displayed to the user after applying all loan-level price adjustments, price adjustment caps, and margins.

Set Minimum Rate Displayed Sets the client-specified minimum final rate displayed to the user.

Skip Income and Assets Tests Ignores all Income and Assets tests otherwise applied during qualification, including maximum debt-to-income ratios (DTIs), cash required to close, and income reserve requirements.

Documents

Using the Encompass Product and Pricing Service Rule Managerhelp.elliemae.com/DocumentationLibrary/360/UsingEPPSRuleManager.pdfProperty tabs, clicking the Test button will qualify