ComplianceOne mortgage Feature Guide

ComplianceOne mortgage Feature Guide

ComplianceOne mortgage Vision... 3 1. ComplianceOne mortgage Supported Products... 3 2. ComplianceOne mortgage Supported Features... 5 3. ComplianceOne mortgage Prioritized Feature List... 9 4. ComplianceOne mortgage Future Supported Features... 9 5. ComplianceOne mortgage Unsupported Features... 10 2 P a g e V 1 0 302 0 1 5

ComplianceOne mortgage Vision ComplianceOne mortgage assists in the end-to-end management of your retail mortgage business and allows you to originate, document, and service consumer single-family real property dwellings, first or second lien, closed-end loans retained in portfolio or sold to the secondary market. You are able to sign on, initiate mortgage loan applications, manage workflow tasks, interface with Core systems and Business to Business workflow service providers, and fulfill loan document packages. 1. ComplianceOne mortgage Supported Products The following ComplianceOne mortgage In-House and Secondary Market Products are supported or planned for future support. Product & Index Note/Rider Product Description In-House Lending - Supported by Wolters Kluwer Financial Services Proprietary Content Product = Standard Fixed Rate Mortgage Product = Standard Adjustable Rate Mortgage Single Family, 1st or 2 nd Lien, Closed-end Purchase Money Mortgage Single Family, 1st or 2 nd Lien, Closed-end Non-Purchase Money Mortgage Single Family, 1 st Lien, Closedend Refinance* Single Family, 1st Lien, Purchase Money, Construction Only Phase Mortgage [Interest Only, Fixed Rate] Single Family, 1st Lien, Purchase Money, Construction/Perm Mortgage, single closing Single Family, 1st or 2 nd Lien, Closed-end Purchase Money Mortgage Single Family, 1st Lien, Closedend Refinance* Single Family, 1st Lien, Purchase Money, Construction/Perm Mortgage VMP BSI Reference for 10/3/15 Production Use Target Phase 1: Fixed, Phase 2: Variable Phase 1 & Phase 2: Single Variable Reference Section 3 for Product = Texas Home Equity Single Family, 1st Lien, Closedend Purchase Money Mortgage Single Family, 1st Lien, Closedend Refinance* GSE [Fannie Mae/Freddie Mac] Conventional Conforming Lending - Supported by Wolters Kluwer Financial Services Non-Proprietary Content Product = Standard Fixed Rate Mortgage Fannie Mae 3200 Single Family, 1st Lien, Purchase 5N Money Mortgage Fannie Mae 3200 Single Family, 1st Lien, 5N Refinance* Mortgage Freddie Mac 3200 Single Family, 1st Lien, Purchase 5N Money Mortgage Freddie Mac 3200 Single Family, 1st Lien, 5N Refinance* Mortgage Product = Standard Fixed/Adjustable Rate Mortgage 3 P a g e V 1 0 302 0 1 5

Product & Index Treasury Bill (CMT) Wall Street Journal LIBOR Treasury Bill (CMT) Note/Rider Product Description Fannie Mae 3522/3182 Single Family, 1st Lien, Non- Convertible, (5/1, 7/1, 10/1 Adjust Type), 2% Cap, Assumable After Initial Period Fannie Mae 3528/3187 Single Family, 1st Lien, Non- Convertible, (5/1, 7/1, 10/1 Adjust Type), 2% Cap, Assumable After Initial Period Product = Standard Adjustable Rate Mortgage Fannie Mae Freddie Mac Wall Street Journal LIBOR 3502/3111 Single Family, 1st Lien, Non- Convertible, (1/1, 3/1 Adjust Type), 2% Cap, Assumable Life of Loan Freddie Mac 5510/5110 Single Family, 1st Lien, Non- Convertible, (5/1, 7/1, 10/1 Adjust Type), Open Cap, Assumable After Initial Period Fannie Mae 3526/3189 Single Family, 1st Lien, Non- Convertible, (1/1, 3/1 Adjust Type), 2% Cap, Assumable Life of Loan Freddie Mac 5531/5131 Single Family, 1st Lien, Non- Convertible, (5/1, 7/1, 10/1 Adjust Type), Open Cap, Assumable After Initial Period Product = Negotiated Texas Home Equity [Fixed, Fixed/Adjustable, ARM] Fannie Mae 3244.1 Fixed Rate Treasury Bill (CMT) Single Family, Texas Home Equity Fixed Rate, 1st Lien, Refinance* Mortgage Fannie Mae 3522.44 Single Family, Texas Home Equity, 1st Lien, Non- Convertible, (5/1, 10/1 Adjust), Rate Caps VMP BSI Reference 843N 843R 168N 168R 822N 822R 834N 834R 166N 166R 856N 856R 8035T 8039T USDA Section 502 Guaranteed Rural Home Loans Product = Standard Fixed Rate Mortgage USDA Single Family, 1st Lien, Purchase Money Mortgage Limited to support of Initial and Annual Fee Calculations not USDA specific documents FHA/HUD Lending - Supported by Wolters Kluwer Financial Services Non-Proprietary Content Product = Section 203(b) Standard Fixed Rate Mortgage FHA/HUD 203(b) Single Family, 1st Lien, Purchase Money Mortgage, 1R fixed rate, monthly payments FHA/HUD 203(b) Single Family, 1st Lien, No Cash-Out Refinance* [Rate & Term or Simple] FHA/HUD 203(b) Single Family, 1 st Lien, Construction/Perm, single transaction Single Fixed or Variable Rate, I/O Construct Period [monthly payments], P&I Perm Period [monthly payments] Product = Section 203(k) Standard Fixed Rate Rehabilitation (Home Improvement) Mortgage for 10/3/15 Production Use Target 4 P a g e V 1 0 302 0 1 5

Product & Index Note/Rider Product Description FHA/HUD 203(k) Single Family, 1st Lien, monthly payments Product = Section 251 Standard Adjustable Rate Mortgage Treasury Bill (CMT) FHA/HUD Single Family, 1st Lien, (1/1, 3/1, 5/1, 7/1, 10/1 Adjust Type), Open Cap, Non-Assumable Wall Street Journal LIBOR FHA/HUD Single Family, 1st Lien, (1/1, 3/1, 5/1, 7/1, 10/1 Adjust Type), Open Cap, Non-Assumable VMP BSI Reference for 10/3/15 Production Use Target 590 590L 2. ComplianceOne mortgage Supported Features The following ComplianceOne mortgage transaction features are supported or planned for future support. Channel Sources Banks Credit Unions Mortgage Types Supported Flexibilities Within Transactions In-house Loans [Portfolio] In-House Construction Loans [Two-Phase Loan] In-House Refinances* In-House Second Mortgages In-House Bridge Loans [12 or less months, closed-end, I/O with Balloon] Fannie Mae Fixed Rate Loans Purchase Monthly payments Freddie Mac Fixed Rate Loans Purchase Money Monthly payments Fannie Mae & Freddie Mac Fixed Rate Loans Refinance* Fannie Mae & Freddie Mac ARMS; Purchase & Refinance* Reference above for scoped programs FHA Section 203(b) Fixed Rate Loans Purchase & Refinance* FHA Section 251 Variable Rate Loans Purchase & Refinance* FHA Section 203(k) Fixed Rate Rehab Loans USDA Section 502 Rural Housing Loans Support of Initial and Annual Fee Calculations not USDA specific documents Veterans Administration [VA] Guaranteed Loans Parties to the Transaction Borrower, Individual, Owner Occupied 10/3/15 Fixed Rate Target Variable Rate Reference Section 3 for 5 P a g e V 1 0 302 0 1 5

Supported Flexibilities Within Transactions 10/3/15 Target Borrower, Individual, Owner Non-Occupied Borrower, Intervivos (Living) Trusts Borrower, Sole Proprietorship Borrower, LLC [Support mortgage lending to foreign nationals] Cosigner Guarantor [Individual or Trust] Illinois Land Trusts Seller Power of Attorney Signatures Payment Information Interest Rate Type: Fixed Rate Adjustable Rate Including index, adjustment periods, conversion options, assumption options, and caps ARM Initial Rate ARM Ceiling Definition ARM Floor Definition ARM Rate Change Information Repayment Method: Installment without Balloon [fully amortized payments] Installment with Amortized Balloon [n-house loans only] Equal to the Market Rate Premium Discount Specific Value Specific Value None Single Periodic Cap Installment with Balloon [In-House loans only] Interest Only [In-House Construction Phase only] Interest Only [In-House only] Fixed Rate Payment Frequency: Biweekly [fka FNMA Biweekly] Every Other Week [aka Biweekly] Monthly Unsupported - a floor that is lower than the margin Specific Value Initial Rate lower than Margin Relative to Initial Rate Relative to Market Rate Relative to Initial Rate Relative to Market Rate Multiple Periodic Caps Variable Rate Reference Section 3 for Reference Section 3 for Quarterly Single Payment 6 P a g e V 1 0 302 0 1 5

Supported Flexibilities Within Transactions 10/3/15 Target Annually Accrual Method: 30/360 Actual/365 Actual/360 Actual/Actual Indexes: 1 Year Treasury Bill (CMT) 3 Year Treasury Bill (CMT) [In-House only] 5 Year Treasury Bill (CMT) [In-House only] 10 Year Treasury Bill (CMT) [In-House only] 26 T-Bill Rate [In-House only] 6M Wall Street Journal (WSJ) LIBOR [In-House only] 1 Year Wall Street Journal (WSJ) LIBOR 11th Dist. FHLB Cost of Funds (COF) [In-House only] JP Morgan Chase Bank Prime Rate [In-House only] National Avg. Contract Rate [In-House only] Wall Street Journal Prime [In-House only] Loan Features Applications Fannie Mae 1003/Freddie Mac 65 & WKFS Proprietary Application ARM Disclosure - Simplified, in transaction documents ARM Disclosure - 15 Year Index ARM Disclosure - Combined, within transaction set of documents Assignments Assumable Loans Barcodes in Taglines of Documents Commitment Letters Custom & Modified Standard Documents via Professional Services, including Lender specific Privacy Document Demand Early/Upfront Disclosures TRID Loan Estimate Escrows FHA Mortgage Insurance Premiums (MIP) & UMIP High Cost Mortgages [In-House only] High Priced Mortgages [In-House only] Homeownership Counseling List/Document Late Charges Reference Section 3 for 7 P a g e V 1 0 302 0 1 5

Supported Flexibilities Within Transactions 10/3/15 Target Imaging support for downstream imaging workflows Lien Position Second or Junior [In-House only] Loan Ratios: LTV, DTI MERS - Mortgage Electronic Registration Support MERS language within existing documents MERS Algorithm to support creation of the number Modifications and Renewals NMLS Numbers - Organizations, Originators Origination Fees Private Mortgage Insurance [Installment loans without balloon payment] Rate Lock Agreement Secure exchange of documents and manage delivery/receipt requirements to Parties via SD solution add-on Templates [Standard Product Features] Within Administration, ability to pre-configure Fees, Fee Policies, and associate to a Template for use at transaction time Templates [Standard Product Features] Ability to pre-configure field level attributes Collateral Categories and Types Real Estate or Residence: 1-4 Family Dwelling Manufactured Home Permanently Attached to Real Estate Condominium [FHA post August 2015] Townhome (PUD) Raw Land 2-4 Family Dwelling Mobile Home (Personal Property/Residence) Note: Documented with Raw Land Additional Collateral: UCC Collateral Equipment generally; Fixtures; General Intangibles Financial Assets/Possessory Bond; C.D./Share Certificate; Deposit/Share Accounts; Life Insurance Policy; Mutual Funds, Securities * Refinance as represented is the payoff of an existing real property loan and the consummation of a new loan. Refinance as represented is not the modification/renewal of an existing mortgage loan 8 P a g e V 1 0 302 0 1 5

3. ComplianceOne mortgage Prioritized Feature List Following is a list of the top feature priorities for ComplianceOne mortgage SaaS. We will re-engage in delivering these features after we have addressed critical performance and stability items. When the implementation method is understood and refined for each feature we will be able to communicate a targeted release date. In addition, we will communicate interim processes where available. Feature Variable Rate Construction Only or Construction/Permanent Loans Interest Only, Variable Rate In-House short-term Loan Annual Payment Frequency Loan Ratios additional ratios found on Loan Application Summary FNMA Biweekly Payment Frequency Fully Dynamic Consumer Note Purchase Money Construction/Permanent Loans Purchase Money Construction Only Loans Additional Information Interim Process: Until Variable Rate feature is available Lender can offer a fixed rate. Interim Process: Until Variable Rate is available, lender can offer a Fixed Rate Interest Only short term loan. Interim Process: Until Annual repayment is available, lender can offer Quarterly or Monthly repayments. Currently, ComplianceOne mortgage only calculates the LTV ratio. Interim Process: Manual calculation of ratios or use of publically available on-line calculators. Use of FNMA Biweekly repayment method for In-House Fixed/Variable Rate loans or Freddie Mac Fixed Rate loans. Interim Process: Every Other Week repayment method Based on market feedback, we are authoring a more fully dynamic Consumer Note for Lenders who desire to use this type of Consumer Note. Lenders will be able to use the existing ComplianceOne mortgage Consumer Note [similar, yet different to the current ARTA-Lending Consumer Note] or choose to use the more fully dynamic Consumer Note [similar yet different to the current ComplianceOne lending Consumer Note]. Interim Process: Until available Lenders must use the existing Consumer Note. The TILA-RESPA regulation provides little to no guidance on how to properly disclose mixed-purpose construction/permanent loans. Due to this lack of clarity, WKFS reached out to the CFPB on behalf of our customers for guidance. WKFS received this guidance in late September with insufficient time to implement by 10/3/15. Interim Process: Until available. Lenders can document these loans as unique transactions, disclosing each separately. The TILA-RESPA regulation provides little to no guidance on how to properly disclose mixed-purpose construction loans. Due to this lack of clarity, WKFS reached out to the CFPB on behalf of our customers for guidance. WKFS received this guidance in late September with insufficient time to implement by 10/3/15. Interim Process: Until available, Lenders can document this as 2 separate transactions, disclosing each separately (i.e. a transaction for the purchase of the lot/land and a subsequent Construction only transaction for improving the lot/land). 4. ComplianceOne mortgage Future Supported Features Following is a list of additional features ComplianceOne mortgage SaaS will support in the future. They are on the prioritized roadmap. As Section 3 features deliver, these features will move up in priority. Additionally, when the implementation method is understood and refined for each feature we will be able to communicate a targeted release date. Interim processes, where available, are noted. Feature Borrower, LLC [Support mortgage lending to foreign nationals] ARM Disclosure with 15 Year Index & ARM Disclosure - Combined, within Additional Information The transaction characteristics would need to remain as a consumer purpose real property transaction. Interim Process: Until supported we are not aware of an interm process that can be used within ComplianceOne mortgage. The Lender could explore utilizing the available data fields and populating them with LLC information. The Simplified ARM Disclosure is available within transactions. 9 P a g e V 1 0 302 0 1 5

transaction set of documents ARM Rate Information Initial Rate, Ceiling, Floor, Rate Caps Including an Initial Rate that is lower than the Margin Barcodes in Taglines of Documents Imaging support for downstream imaging workflows Modifications and Renewals Securing the Real Property Loan with Additional collateral Loans with a Single Payment Interim Process: Until supported, Lenders can generate and utilize the ARM Disclosure with 15 Year Index or ARM Disclosure Combined from ComplianceOne lending or ARTA-Lending. Additional ARM rate definitions will be supported in the future as we resolve existing regulation ambiguity or content and calculation limitations. Interim Process: Until supported, Lenders can use existing available options. For ceiling limitations: Lenders can obtain the same impact of having the Ceiling relative to the market rate by utilizing the Specific value option and calculating what that value would be manually. In situations where the Initial Rate is lower than the margin (this will ocurr with some indices that are extremely low and the lender is offering a discount), the lender can utilize a different index or work with the other parameters i.e. margin and/or discount. The ability to utilize barcodes on documents is being researched relative to broader electronic workflows and is on our prioritized roadmap. Interim Process: Until supported, there is not an automated interim process unless the Lender has workflow capability to apply a barcode to a printed document enabling further workflow processes. The ability to provide document images and/or data for subsequent downstream archiving workflow purposes is being researched and is on our prioritized roadmap. Interim Process: Until supported, there is not an automated interim process unless the Lender s imaging system can accept a PDF file as a source document for downstream imaging input. The ability to support Modifications and Renewals will be added in the future as part of the ComplianceOne mortgage SaaS prioritized roadmap. Until supported, Lenders that desire to renew or modify an existing loan should do so only at the advice of their legal counsel. Interim Process: Until supported, the Lender would need to do consumer loans within ComplianceOne lending against the non-real property collateral and document value of the real property loan within ComplianceOne mortgage. The ability to support In-House loans with a single payment is on our prioritized roadmap for support in a future release. Interim Process: Until supported, Lenders can use existing available options of quarterly, monthly, or every other week. 5. ComplianceOne mortgage Unsupported Features The following transaction features will not be available within ComplianceOne mortgage and are not currently planned for future support. These items will be considered if there is sufficient market need. Channel Sources Not Supported Correspondents Finance Company Mortgage Companies/ Mortgage Brokers Mortgage Products Not Supported Cooperative Housing Real Property Loans Product, Transactions, and Transaction Flexibilities Not Supported Fannie Mae: - Standard Growing Equity [3255] - Standard Fixed/Adjustable Rate, Index =10 Year Treasury [3263] - Standard Biweekly with or without conversion [3264, 3265] - Standard Adjustable Rate, CMT, Programs = 3501,3503,3508,3523 - Standard Adjustable Rate, WSJ LIBOR, Programs = 3525,3527,3529 - Standard Adjustable Rate, Index = 3 Year CMT, Programs = 3504,3505 - Standard Adjustable Rate, Index = COF, Programs = 3510,3511 - Standard Adjustable Rate - ARM Plans 711/511 [3512] - Negotiated Texas Home Equity, Convertible, CMT [3523.44] 10 P a g e V 1 0 302 0 1 5

- Negotiated Texas Home Equity, Non-Convertible, WSJ LIBOR [3528.44] - Negotiated Texas Home Equity, Convertible, WSJ LIBOR [3529.44] - Negotiated Texas Home Equity, Non-Convertible, Index = 10 Year CMT [3263.44] - Negotiated Adjustable Rate, Index = 5 Year CMT [3514] - Negotiated Fixed/Adjustable Rate, Index = 10 Year CMT [3267] - Negotiated Navajo Nation Mortgages [3270] - Negotiated Adjustable Rate, Index = Fractional 1 Year CMT [3517] - Negotiated Adjustable Rate, Index = 1 Month WSJ LIBOR [3524] Freddie Mac: - Affordable Merit Rate Product [3294] - Standard Adjustable Rate, Index = COF [3510] - Standard Adjustable Rate, CMT, Programs = 3501,5511,5512,5513 - Standard Adjustable Rate, WSJ LIBOR, Programs = 5530,5532,5533,5534 - Standard Adjustable Rate, Index = 3 Year CMT [3504] - Standard Adjustable Rate, Index = 6 Month WSJ LIBOR, Programs = 5522,5524 FHA Title 1 Manufactured Home Loans FHA Second Mortgages/Liens FHA Streamline Refinance Home Affordable Refinance Program (HARP) Leased Properties Making Home Affordable Modification Programs (HAMP) Mortgage loans to unincorporated U.S. Territories - Guam, U.S. Virgin Islands, Puerto Rico Mortgage loans beyond 51 jurisdictions Reverse Mortgages State Housing Authority Loans Mortgage Documents Not Supported Documents for Secondary Market s other than Fannie Mae, Freddie Mac, or HUD/FHA Electronic Booklets - HUD Settlement Cost Disclosure, Consumer Housing Adjustable Rate Mortgage Disclosure Freddie Mac Master Form/Short Form Security Instruments Servicing Workflow Phase Documents Spanish or Bilingual Documents [except those mandated by regulation] Transaction Features or Additional Capabilities Not Supported Buy Downs Credit Life & Disability Insurance offered and documented with the mortgage loan Collateral: Multi-family Dwellings (5+), Manufactured Homes Unattached to Real Property; Personal Property Residences (other than Mobile Home); Titled Goods Debt Cancellation & Bundled Debt Cancellation offered and documented with the mortgage loan Use of Electronic Signatures on documents Negative Amortization No Cost Loans Parties to the Transaction - Entities other than Individual, Sole Proprietor, Trust, or LLC Payment Frequencies: 73 Days, Bi-monthly, Semiannually, Semimonthly, Weekly Preferred Rates Prepayment Penalties Private Mortgage Insurance on Installment loans with Balloon payment Repayment Methods: Mixed Principal & Interest, Level Principal Reduction, Irregular Payments Skip Payments Solve for term Calculations For information regarding Business-to-business and Core System interfaces for use within the workflow of ComplianceOne mortgage reference the ComplianceOne mortgage Interface Guide. 11 P a g e V 1 0 302 0 1 5