Encompass Consumer Direct Release NotesUpdates and Enhancements, April 16, 2016

Last revised:4/15/2016

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Encompass Consumer Direct Release NotesLast Revised: 4/15/2016

Encompass Consumer Direct Release Notes

Updates and Enhancements, April 16, 2016The April 16, 2016 Encompass Consumer Direct release includes the key features and updates described below. Refer to the Encompass Consumer Direct online help and the Documentation Library for additional details and related procedures.

Overview of Key Encompass Consumer Direct FeaturesThe table below provides brief descriptions of key features and options available in the Encompass Consumer Direct April 16, 2016 release.

Description of Feature Additional Details

Updates and Enhancements to Consumer Direct Website

Validate Applicant’s Date of BirthIn accordance with the Children’s Online Privacy Protection Act (COPPA)—which sets forth rules and procedures governing the ways in which websites may collect, use and disclose any personal information for children under the age of 13—Consumer Direct now validates the date of birth entered by the applicant (borrower and/or co-borrower) while filling out the application. When an applicant enters their date of birth on the Personal Details tab in a web application and clicks Next or Save & Exit, Consumer Direct validates the date of birth to ensure they are at least 13 years and 1 day old. If the applicant is under 13 years and 1 day old, Consumer Direct returns the following message:“You must be 13 years or older to proceed. If you entered your date of birth incorrectly, click Try Again to change it. If you click Exit, your information will not be saved and you will leave the application process.”If the applicant clicks Exit, Consumer Direct terminates the application process and discards all information entered. For more information about COPPA regulations, see www.coppa.org.

RED-8262

None

eSigning Technology Now Provided by DocuSign (Scheduled to be available May 14, 2016)Ellie Mae is now partnering with DocuSign to provide electronic signing (eSigning) technology. With this change, the borrower will not experience a noticeable difference in the eSigning workflow. When a borrower clicks the eSign button on the My Tasks page, they are now seamlessly redirected to a DocuSign URL where they can view and eSign documents.Once you upgrade to Encompass 16.1.0.3, DocuSign eSigning technology will be used for all new loans. The previous eSigning technology will continue to be used for all loan files created prior to upgrading to Encompass 16.1.

RED-8598, RED-8597, RED-8596, RED-8051, RED-8049

None

Last revised: April 15, 2016 1Encompass Consumer Direct Release Notes

New Resource Modules Added to Consumer DirectThe following new Resource modules are now available in Consumer Direct Administration and can be added to Consumer Direct websites: • Printable Forms - This page lists all of the online forms available on a website.

• Types of Loans - This page lists and describe various types of loans.

• Mortgage Calculators - This page offers the following types of calculators to borrowers for calculating payments and costs:

- Annual Percentage Rate (APR) - Calculates the APR for fixed-rate or adjustable-rate loans.

- Debt Consolidation - Calculates consolidated debt and combines it with a home mortgage.

- Early Payoff - Helps borrowers determine the additional monthly payment amount needed to pay off the loan sooner.

- Payment/Amortization - Calculates monthly payment and shows how the principal is paid over time.

- Prepayment Savings - Helps borrowers determine how soon they can pay off a mortgage by making a prepayment.

- Refinance Break-Even Point - Helps borrowers determine how long it will take to "break-even" on a refinanced loan.

- Rent vs. Own - Calculates the difference between renting and buying a home.

- Tax Savings - Helps borrowers determine the estimated tax savings with a new loan.

Administrators can configure and enable the modules in the Resources section on the Navigation and Pages setting in Consumer Direct Administration. Borrowers can access the modules from the Resources drop-down list on the Consumer Direct website.

RED-7230, RED-7070, RED-7069

To View Resource Modules1 In Consumer Direct Administration, click the Site

Management tab.

2 Click Navigation and Pages.

3 In the Resources section, click the View/Edit link next to the module.

Apply for a Loan Now Button on Free Consultation PageThe Apply for a Loan Now button now appears on the Free Consultation page on the Consumer Direct website. Previously, site visitors would see the Apply for a Loan button only on the Home page and Resource menu.

RED-8260

None

Description of Feature Additional Details

Updates and Enhancements to Consumer Direct Website

Last revised: April 15, 2016 2Encompass Consumer Direct Release Notes

New Fields in the Loan Application The following new fields have been added to the Encompass Consumer Direct application:• Have you identified the property? - Appears on the Property Details page when the loan purpose is Purchase.

Options are Yes and No. The default is Yes. When the applicant selects No, the Subject Property Address field is pre-populated with TBD and dimmed.

• This is my current address - Appears next to Subject Property Address on the Property Details page when loan purpose is Cash-Out Refinance or No Cash-Out Refinance.

• Down Payment (%) - Appears on the Loan Details page. Displays the default down payment amount. The applicant can edit the field to recalculate the down payment percentage and dollar amount. If this field is populated, the value is sent to the DU service when the application is submitted.

• Down Payment Explanation - Appears on the Loan Details page for FHA loans when Gift Funds is selected from the Source of Down Payment drop-down list. The applicant uses this field to provide a brief explanation of the gifted funds.

RED-8261, RED-8027, RED-8257, RED-9034

None

Personal Information Fields Remain Enabled on Declarations TabIn accordance with the Home Mortgage Disclosure Act (HMDA)—which requires many financial institutions to report data regarding the ethnicity, race, sex, and annual income of applicants for applications and originated loans—the behavior of the Declarations tab in the Consumer Direct application has changed.When an applicant (borrower and/or co-borrower) selects the I do not wish to furnish this information check box on the Personal Information > Declarations tab, all fields related to ethnicity, race, and gender now remain enabled. If an applicant provides this information, even if the I do not wish to furnish this information check box is selected, Consumer Direct will save it to Encompass. Previously, when an applicant selected the check box, all fields on the tab would become unavailable and no information would be saved to Encompass.

RED-8994

None

Subject Property Address Fields Are Pre-Populated The Subject Property Address fields are now pre-populated with the current address for the applicant when applying for a loan to refinance their primary home. In addition, the Subject Property Address fields are pre-populated with TBD and dimmed when a borrower sets the Have you identified the property field to No.

RED-8027, RED-8261

None

Description of Feature Additional Details

Updates and Enhancements to Consumer Direct Website

Last revised: April 15, 2016 3Encompass Consumer Direct Release Notes

Previous Address Fields are Dynamically Displayed The Previous Address fields now only appear when an applicant has lived at their current address for less than two years. Only the past two years of residence history is required; however, if the applicant wants to provide additional history, they can add another address by clicking the Add previous address link on the Borrower/Co-Borrower Current Address page.

RED-8258

None

VA and FHA Loan Data Mapped to Encompass and Sent to Desktop Underwriter (DU)When an applicant applies for a VA loan to purchase a home or applies for an FHA loan and the source of the down payment is a gift, the following fields are mapped to Encompass and their values are sent to the DU service:

• Down Payment is mapped to Encompass field ID 1335, Down Payment.• Source of Down Payment is mapped to Encompass field ID 34, Source of Down Payment.• Down Payment Explanation is mapped to Encompass ID field 191, Explanation of Down Payment.

RED-9034

Section of the Act Codes Mapped to Encompass and Sent to DU page 9For FHA loans, Consumer Direct now maps a Section of the Act code to Encompass. The code in which Consumer Direct maps to Encompass is based on the Loan Purpose, Loan Type, Amortization Type, and Property Type specified in the loan application. For example, if the Loan Purpose is Purchase, Loan Type is FHA, Amortization Type is Fixed Rate, and Property Type is Detached, then Consumer Direct maps the Act code 203B to the Section of the Act field (field ID 1039) in Encompass. To determine the correct Act code, Consumer Direct requires, at minimum, the Loan Purpose and Amortization Type from the application. Consumer Direct also sends the Act code to DU if the underwriting service is enabled and all DU requirements are met.

RED-9028

None

Description of Feature Additional Details

Updates and Enhancements to Consumer Direct Website

Last revised: April 15, 2016 4Encompass Consumer Direct Release Notes

New Page Descriptions and Help Text Instructional text and page descriptions have been added to pages on the Consumer Direct website. Updates are described below:• Current Address and Previous Address pages for both borrower and co-borrower now display the following text:

“Please enter your residence history for the past two years starting with your current address. If you’ve lived at yourcurrent address for less than two years, click “Add another previous address” for each residence to account for thepast 2 years.”

• Gross Monthly Income - Other page now displays the following text:

“Please enter any other gross monthly income not related to employment below. Include only the income that youwant to use toward qualifying for a loan.”

Help text is now available for the following fields on the Consumer Direct website:• Years and Months fields on the Current and Previous Address pages.

• Down Payment field on the Loan Details tab.

• Down Payment Explanation field on the Loan Details tab.

RED-8259, RED-9123, RED-9139

None

Description of Feature Additional Details

Updates and Enhancements to Consumer Direct Administration

New Internet Privacy Policy TemplateTo address Federal Financial Institutions Examination Council (FFIEC) and state Internet privacy regulations, the default privacy policy in Consumer Direct Administration has been replaced with a privacy policy template that Consumer Direct administrators can adapt to their own company’s requirements.The new website privacy policy template is available on the Edit Page: Internet Privacy Policy page for newly created sites. For existing sites, a Consumer Direct administrator can click the Reset to Encompass default button on the Edit Page: Privacy Policy page to load the new privacy policy template into the content container.

NOTE: Administrators should save any custom text before clicking the Reset to Encompass default button; clicking the button will overwrite all text in the content container.

In addition to this update, the default name of the page has changed from Privacy Policy to Internet Privacy Policy for new sites. The page name can be edited by a Consumer Direct administrator.

RED-7441

To View the Internet Privacy Policy Settings:1 In Consumer Direct Administration, click Site

Management, and then click Navigation and Pages.

2 In the Additional Pages section, click the View/Edit link for Internet Privacy Policy.

For existing sites, click the View/Edit link for Privacy Policy.

Description of Feature Additional Details

Updates and Enhancements to Consumer Direct Website

Last revised: April 15, 2016 5Encompass Consumer Direct Release Notes

Control Whether Borrower Consent is Part of the Application WorkflowThe Loan Settings page in Consumer Direct Administration has a new Consent option available that administrators can use to control whether borrower consent is part of the full application and draft application workflow.The Consent option is located in the new Form Fields - Consent Tab section on the Loan Settings page. Administrators can select Show and Hide. When Hide is selected, borrowers do not see the Consent tab when filling out the application.

RED-9116, RED-9117

To Show or Hide Borrower Consent Tab:1 In Consumer Direct Administration, click the Site

Management tab, and then click Loan Settings.

2 Click the Edit Loan Settings button.

3 Navigate to the Form Fields - Consent Tab under Field Settings.

4 Select Show or Hide. When Hide is selected, borrowers do not see the Consent tab when filling out the application.

New Image Option Available on Apply for a Loan Now ModuleThe Apply for a Loan Now module now has a new image option available. Consumer Direct administrators can now choose from two images for each loan template to appear on their site’s Home page. Settings for the Apply for a Loan Now image are available in the Apply for a Loan Now module listed in the Navigation and Pages > Home > Additional Pages section.

RED-8082

To Access the Apply for a Loan Now Module:1 In Consumer Direct Administration, click Site

Management, and then click Navigation and Pages.

2 In the Additional Pages section, click the View/Edit link for the Home page.

3 In the Modules section, click the Edit link for Apply for a Loan Now.

Allowed Domains Section Added to Domain Management PageA new Allowed Domains section has been added to the Domain Management page that enables administrators to specify how their Consumer Direct sites are accessed. The Available for use with setting is used to control access to Consumer Direct sites. Administrators can make Consumer Direct sites available for all sites, restrict them to specific sites, or not allow them to be accessed by any sites. The default selection for this setting is All sites (no restrictions).For additional security, change this setting to Specific sites and specify the domains that you use Consumer Direct sites with. This will help to ensure that no other sites can use Consumer Direct sites without being designated as an allowed site. If you do not want any of your site users to access the Consumer Direct sites, change this setting to No sites (fully restricted). The Available for use with setting helps protect your Consumer Direct sites from potential security risks such as Clickjacking.

RED-9025

To View the Allowed Domains Settings:1 In Consumer Direct Administration, click Toolbox,

and then click Domain Management.2 In the Allowed Domains section, click the

Change Allowed Domains button.

Description of Feature Additional Details

Updates and Enhancements to Consumer Direct Administration

Last revised: April 15, 2016 6Encompass Consumer Direct Release Notes

Assign Additional Webmasters to a Site page 9Consumer Direct now supports up to 10 webmasters for a Consumer Direct site. All webmasters assigned to a site have the same rights and privileges as the original corporate site webmaster.A super administrator or corporate site webmaster can add webmasters to sites they have purchased or sites where they are the current webmaster.

RED-8563

To Add Additional Webmasters to a Site1 On the Manage Sites page in Consumer Direct

Administration, click the Reassign Sites button.

2 In the Webmaster text box, enter the Encompass ID of the person you are assigning to the webmaster role.

3 To assign additional webmasters to the site, enter their Encompass ID in the Additional Webmasters text box. Use a semicolon to separate each user ID. For example:

webmaster1;webmaster2;webmaster3

Set the Default Down Payment Percentage for All Loan TypesIn Consumer Direct Administration, there is a new Down Payment (%) option in the Limit Loan Types to table of the Loan Settings page. Use this option to specify a default down payment percentage for conventional, FHA, VA, and USDA-RHS loan types. On the Loan Details page of the Consumer Direct site, the new Down Payment field shows the applicant the default down payment percentage and dollar amount based on the loan amount and type. The applicant can enter a new percentage in the Down Payment field to auto-calculate the dollar amount of the down payment. Conversely, the applicant can enter a new dollar amount of the down payment to auto-calculate the percentage.Consumer Direct administrators should keep the following points in mind when setting the Down Payment field:• The down payment amount will display for FHA loans only when the loans are for a home purchase or refinance.

• The down payment amount will display for USDA, VA, Conventional loans only when the loans are for a home purchase.

• If no default value is specified in Consumer Direct Administration, the Down Payment field on the Consumer Direct site will be blank until the applicant enters a down payment amount.

RED-8257, RED-9134

To Set the Default Down Payment Percentage on a Site:1 In Consumer Direct Administration, click the Site

Management tab, and then click Loan Settings.

2 Click the Edit Loan Settings button.

3 Navigate to the Limit Loans Types table under Field Settings.

4 Enter a default down payment percentage for each loan type offered on the site.

Preview More Information on Submitted and Non-Submitted ApplicationsThe Preview option available on the Applications page in Consumer Direct Administration now displays all the pages and fields in submitted and non-submitted applications. You can now use the Preview option to show the information the applicant has submitted and to easily identify the fields the applicant has not completed.

RED-7031, RED-9084

To Preview Applications:1 In Consumer Direct Administration, click the

Toolbox tab.

2 Click either Applications Not Submitted or Submitted Applications.

3 In the Applications list, click the Preview link.

Description of Feature Additional Details

Updates and Enhancements to Consumer Direct Administration

Last revised: April 15, 2016 7Encompass Consumer Direct Release Notes

New Status and Filter for Imported ApplicationsWhen an application is imported from Consumer Direct Administration into Encompass, the application’s status now changes to Imported. Previously, the status changed to or remained Submitted, making it difficult to distinguish between imported and submitted applications.In addition, there is a new filter on the Applications page for sorting Submitted applications. The Imported filter option is available in the Status drop-down list on the Applications page.

RED-8032, RED-8481

None

Search Applications by Borrower NameNew search feature on the Applications page allows lenders to search for applications by Borrower Name. Previously, lenders could only search by Loan Recipient Name.

RED-8584

None

Description of Feature Additional Details

Updates and Enhancements to Consumer Direct Administration

Last revised: April 15, 2016 8Encompass Consumer Direct Release Notes

Detailed Procedures

Add Webmasters to a Consumer Direct SiteA super administrator or corporate site webmaster can add additional webmasters to sites they have purchased or sites where they are the current webmaster.

To Add Additional Webmasters:

1 On the Manage Sites page in Consumer Direct Administration, click the Reassign Sites button.

2 In the Webmaster text box, enter the Encompass ID of the person you are assigning to the webmaster role.

3 To assign additional webmasters to the site, enter their Encompass user ID in the Additional Webmasters text box.

If adding more than one additional webmaster, use a semicolon to separate each user ID. For example:

webmaster1;webmaster2;webmaster3

Last revised: April 15, 2016 Detailed P

Section of the Act Codes for FHA LoansThe table below lists the Section of the Act codes Consumer Direct will map to Encompass and send to DU (when applicable) based on the given loan conditions.

NOTE: For Consumer Direct to determine the correct Section of the Act code, the Loan Purpose and Amortization Type must be provided in the application. If either of these fields are blank, Consumer Direct will not provide the Section of the Act code to Encompass.

Act Code Loan Purpose(required)

Loan Type Amortization Type(required)

Property Type

203B Purchase FHA Fixed Rate Any except condominium

203B Refinance FHA Fixed Rate Any except condominium

203B251 Purchase FHA ARM Any except condominium

203B251 Refinance FHA ARM Any except condominium

234C Purchase FHA Fixed Rate Condominium

234C Refinance FHA Fixed Rate Condominium

234C251 Purchase FHA ARM Condominium

234C251 Refinance FHA ARM Condominium

9rocedures

Encompass Consumer Direct Release Notes Change LogThis Change Log lists each release notes entry that has been added, deleted, or modified since the initial pre-release version of this document was published.

Affected Entry Date Change was MadeChange Type: Updated entryDetails: The following entry on page 1 has been updated with a new availability date.Updated Entry:eSigning Technology Now Provided by DocuSign (Scheduled to be available May 15, 2016)Ellie Mae is now partnering with DocuSign to provide electronic signing (eSigning) technology. With this change, the borrower will not experience a noticeable difference in the eSigning workflow. When a borrower clicks the eSign button on the My Tasks page, they are now seamlessly redirected to a DocuSign URL where they can view and eSign documents.Once you upgrade to Encompass 16.1.0.3, DocuSign eSigning technology will be used for all new loans. The previous eSigning technology will continue to be used for all loan files created prior to upgrading to Encompass 16.1.

Previous Entry:eSigning Technology Now Provided by DocuSign Ellie Mae is now partnering with DocuSign to provide electronic signing (eSigning) technology. With this change, the borrower will not experience a noticeable difference in the eSigning workflow. When a borrower clicks the eSign button on the My Tasks page, they are now seamlessly redirected to a DocuSign URL where they can view and eSign documents.Once you upgrade to Encompass 16.1, DocuSign eSigning technology will be used for all new loans. The previous eSigning technology will continue to be used for all loan files created prior to upgrading to Encompass 16.1.

4/12/2016

Last revised: April 15, 2016 10Encompass Consumer Direct Release Notes Change Log