Mortgage disclosure revisions drive Ellie Mae Encompass update

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Revisions to the TILA/RESPA integrated disclosure that go into effect this fall drove the changes Ellie Mae made in its latest update to the Encompass loan origination system.

"With the 18.3 major release of Encompass we're ensuring compliance with the upcoming know before you owe guidelines and offering enhancements to our Connect solutions to help our lenders be more productive while growing their businesses," Ellie Mae President and CEO Jonathan Corr said in a press release.

The second and final round of KBYO2 updates to Encompass includes support for tolerance cures using principal reduction and an improved workflow for disclosing to nonborrowing property owners. In April, the Consumer Financial Protection Bureau issued an update to the KBYO borrower disclosure guidelines to fix the black hole. A previous update issued in October last year made changes which are mandatory for lenders starting in this October.

Ellie Mae has also updated TPO Connect, which is used by wholesale and correspondent lenders to allow users to customize third-party originators website workflows, along with loan pipeline and reporting views. In its Correspondent Lender Connect module it added streamlined closed loan integrations with four lenders — Caliber Home Loans, Flagstar Bank, Pacific Union Financial and Wells Fargo — with more to come in the future.

In the Webhooks API, a change event type has been added to allow users to be notified of changes in the loan file, such as borrower information, loan milestones, loan assignments and more.

For the product and pricing engine, lenders will be able to offer uniquely priced version of an investor's program while still being able to offer the existing program.

There were 721,000 loans closed on Encompass during the second quarter, compared with 553,000 in the first quarter and 682,000 in the second quarter last year, Ellie Mae said in its second-quarter results.

Separately, Plaza Home Mortgage put in a new functionality to its Breeze loan origination system that will give mortgage brokers the option of creating, previewing and delivering the loan estimate disclosure at the point of sale.

This new capability lets users quickly search for and select a closing agent and title company in their specific markets. Provider information and settlement costs, as well as applicable real estate and transfer taxes, are delivered by ClosingCorp and auto-populated into Breeze. In addition, originators can enter specific closing cost fees.

"Plaza's goal in developing this functionality was to give originators more choices, so they are not just locked into the first platform they learn," Jeff Leinan, senior vice president, national wholesale production, said in a press release.

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LOS TRID Digital mortgages Compliance Underwriting Wholesale lenders Correspondent Ellie Mae CFPB