KEY POINTS

 Check AUS in file (DU/LP)

 Check Loan Program in Encompass and UW TOOL are matching
 Check Encompass and Initial 1003 for any mismatching details

Collateral:
Purchase Contract:
 Any missing pages
o Seller name must match = Vesting information in Title/Appraisal Report
o Borrower name match = Encompass
o Subject Property address match = USPS
o Legal Description and APN # = match Title/Appraisal Report
o Subject Property address/Initials & Signature and date in all pages
 Additional name in Buyers section
o Add condition = Non Borrowing Spouse to sign closing docs
 Additional Seller
o Add condition = Additional name in seller section however not in Vesting to be removed
 Purchase Price in Encompass = match AUS/Purchase Contract/ Purchase addendum
o If Purchase value <Appraisal value = See conditions list
 EMD & Option Money: Additional Deposit/Lease Deposit
o EMD Check = verify Borrower name address/Payable To
o Clearance proof
o If clearance missing = deduct in ending balance of respective bank statements; Add in
VOD comments if deducted in ending balance
 Close of escrow date, = If expired Extension of COE
 Seller Paid closing costs – must be within IPC limit – Validate with DOT section of Encompass
 Owner’s Title Policy - Validate with DOT section of Encompass
 Tax Proration’s- Validate with DOT section of Encompass
o Seller LLC = Authorization to sign on behalf of Borrower/Seller
o Seller may be Relocation Company = Relocation Agreement/Employment Relocation
 Any contingency = Pending/Sold property or Pre-Qualification letter
 Buyer/Seller Agent Commission % = Validate with DOT section of Encompass
 Any missing addendum:
o Sellers’ Property Disclosure Statement
o Property Subject to mandatory ownership = Verify for possible HOA dues
o Non Realty Addendum = Match with Appliances in Appraisal report
o Lead base disclosure
o Inclusions/Exclusion Items
o Third Party Financing = No corrections required
 If New Construction = verify documents listed in Conditions list
 If Tenant Purchase = See guidelines
 Any Special Provisions = Any Inspections required/ repairs/treatments/mold inspection ,etc
Title Report:
 All pages = cover letter, Schedule A, Exhibits, Schedule B, Schedule C and D as applicable
 Effective date/commitment date = Expire 90/120 days
 Proposed Borrower and Proposed Insured: NRL
 Loan Policy amount: higher or equal to loan amount – If not Add Title: Title default condition
 Vesting (Clarification required if discrepancy noted) = Match with Appraisal/Purchase Contract
o Vesting states see schedule line # = Check with SME
 Vested under Trust – Check Conditions List
 Legal Description and APN# = Match Appraisal report = Match Encompass
 Additional Parcels – See guidelines Evidence lot cannot be sold individually
 Exceptions (Easements and encroachments)
 Taxes/Supplemental Taxes/Special Assessments – Include in PITI
 Unpaid Taxes/Judgment/Mortgage Other Liens
o Release of all liens condition along with Source of funds for Refinance
o Release of all liens condition in Purchase
 No liens reported in Title = DO NOT ADD Prelim to release default condition
 High Credit limit of liens = Match with Credit Report
 24 months chain of Title = Verify from mortgage lien recorded date
 Probate requirement = If Title requires
 Any Title Endorsements required
 Any pending divorce = To be clarified with Seller for Purchase/Borrower for refinance
 Additional Purchaser names in schedule B = Need clarification
 HOA name = For Encompass update (Transmittal Summary and UW Summary section)
 Deed Restrictions/Zoning Restrictions if any = Match Appraisal report
 Whether Survey required/not required = See below
 Grant Deed
o Refinance = if non borrowing spouse hold Title along with Borrower
o Vesting = along with any Third Party who is not in loan

Non Borrowing Spouse to sign closing docs

o Community States (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas,
Washington and Wisconsin) = FHA current residence in Community states.
o Title to be held in what names = held along with Spouse (NON Community State)
o Manner in which Title held = JOINT TENANTS/Community/any Joint vesting (NON
Community State)

Closing Protection Letter:

 Borrower names and Subject Property address
 Loan number
 Signature
 Any missing pages

Wiring Instructions:
 Wire date not in weekends and US Public holidays
 Borrower name/Subject address/Title Reference date
Survey:
 Survey along with T-47 signed recently by Notary
 Survey/Plat Map required
 Title Acceptance for Survey
Note:
 Survey always required - Florida , Massachusetts , New Jersey , New Mexico , Texas
 if Title requires it - Iowa, Idaho, Indiana, Maryland, Montana, North Dakota, Ohio ,
Oklahoma
 if subdividing land - Alabama , Utah
 if in mining area - Nevada

Appraisal:
 Any missing pages
 Accurate Form number = 1004/1073/1025, etc
o Owner of Record = Title Report Vesting
o Borrower name = Encompass (any missing names of Borrower)
o Subject Property address = USPS
o Subject Property type = HOA dues if applicable
o Owner/Vacant/Tenant occupied
o Legal Description and APN # = Title Report
 MN STATE = Legal Description as per Title Report
 FHA Case # in all pages = FHA loans
 Page #1:
o Subject Investment Property:
 1004MC/1007 Operating Net Rental/216 as applicable
 If tenant occupied = Lease agreement verifying impact on first lien
o Manufactured Home – HUD TAG/LABLE/ENGINEER CERT/REAL PROPERTY CERT, ETC =
2nd Level review
o Property type (SFR/Attached or Detached PUD/CONDO) – HOA Dues Annually/Monthly
o Lender Client – NRL/If not Case Transfer required
 Contract Section:
o Contract Price - if not Appraisal addendum required
o Seller Concessions – if not Appraisal addendum required
o Listed in past 12 months
o Listing source
Neighborhood:
o Other land use comments
o Demand Supply should not be shortage

 Zoning = Grandfathered use/No Zoning – Rebuilt comments, if not require UW review

o Deed Restrictions – Appraiser comments required
o FLOOD ZONE – must match Flood Cert
o Utilities – If Private – require agreements
o Non Traditional style – Neo style – require comments
o Appliances = Inclusions/Exclusions – must match CONTRACT
o FHA – Attic – Head and Shoulders Inspection
 o All utilities were on and functioning property
o No dampness/external hazard found
 Appraisal as is/subject to repairs/subject to inspection
 Appraisal effective date – Check FEMA bulletin for FEMA Comments are applicable for subject
transaction.
 Appraisal value = must support AVM/CDA value
 # of Comparables and # Listing
 Bracket subject appraisal value
 Within 1 miles = Comparables within 1miles of subject – comments for
large/distant comps required
 Reasonable adjustments = Adjustments (Gross living adjustments and Net
adjustments) – call your supervisor for clarification.
 Appreciation of value/Depreciation of Subject/Comparables values in past years
 Flipping transaction – If applicable 2nd Appraisal condition to be added.
 Any recent increase in Appraisal value – required field review
 FEMA disaster comments
 Building Sketch/Map = must math room count in page#1

Appraisal related Documents:

 Appraiser License = valid
 Valid E&O Policy
 AIR CERT
 APPRAISAL ORDER FORM
 APPRAISAL DELIVERY FORM
 SSR REPORTS – if score is 0 to 2.9 - Comment is required
 SSR Risk score – 3 to 3.9 – Require Automated Valuation Model (AVM) must support Appraisal
value
 SSR Risk score – 4 to 5 – Require Collateral Desktop Analysis must support Appraisal value
 Encompass ULDD screen = Update for CONDO/Investment Property

Application:
 Subject address and Borrower name
 Loan amount, rate, loan purpose, type – COC is required, if applicable
 Property will be – Primary/Secondary/Investment
 Vesting = Whether NBS condition required/not=See Title Points
 Fee Simple/Leasehold estate – Agreement required for Leasehold
 Borrower information – home Phone and Business phone match/DOB/SSN/Dependent (include
Spouse as applicable in FHA only)
 2 years residence history – address to match documentation – match Encompass
 2 years employment history – match Encompass (Inclusive of Second Job/Self-Employment
Income)
 Present Expenses – Rent/Rent free $0/Mortgage on own primary residence
 Other Financing – If any second lien in DOT/Proposed PITI
 Income – Base, OT, Bonus, Commission and other income under description
 Proposed PITI
 Assets and liabilities: Check Jointly or Not Jointly
 Additional liabilities in VOL Section, if any
  Alimony/Child Support Payments If any
 All properties in REO section
 Retained/Sold/PS
 Primary/Rental/Second Home
 Market value/Mortgage amount/Mortgage payment/Taxes, Insurance and HOA
 Encompass update = VOL
o Exclude mortgage liabilities = Purchase/Other REO
o Select will be paid off = Mortgage paid in Refinances
o Select 30 day charge account = Exclude (Asset tab = Update as RESERVES)
o Enter Duplicate Accounts = Exclude
o Co-Signor/Endorser = Exclude
o Collection account
 Not add if not included for ratios
 Add if considered for ratios
 Encompass Update = VOM
o Complete Property address =Correct Disposition
o Mortgage Associate with Property = Attach liens
o Property Purchase Date and Purchase Price
o Rental = 75% in % of RENTAL
 Declaration section –
o Any Judgment/Foreclosure/Tax Lien/ Short Sale/Co-Maker/Endorser = Verify
o Any down payment Borrower = Verify
 DOT section – Payoff/Purchase Price/Option Fee/EMD/Owner’s Title Policy/Additional
Deposit/Lease Deposit/Lender Credit, etc
o DO NOT CHANGE FEES IN DOT section
o Discount
o Subordinate Lien amount
o Estimated Prepaid/closing costs
o Loan amount/MIP
o Cash to/cash from Borrower
 Government Monitoring
 Ethnicity/Race/Gender
 Signature
 LO and Borrowers sign and date

Assets:
 Borrower name and address
 Joint Holder XXXX or XXXX – Access letter not required
 Joint Holder– Access letter required
o NBS Access for Net Proceeds
 Any missing pages
o Encompass = Enter all accounts listed in Bank Statements
o Statements within 30 days of application date
o 2 months/one month’s statements
o Missing Transaction Activity
o Online statements = URL/Account Holder/Etc.
  Business Assets = CPA letter required if used for closing
 Beginning and ending balance
 Large deposits = Source of funds/LOE
o Un-sourced Deposits (Verify guidelines)
 Tax Refunds/internal transfers/Payroll deposits = Comments required
 EMD/Option Money Clearance = Comments required
 Net Proceeds = Final CD + Net proceeds $________ + Mortgage payoff
 Gift Deposits = only from Relative
o Signed Gift letter
o Donors ability – See Di-tech guidelines
o Gifts withdrawal from Donor – Deposit to Borrower
o Gift Receipt
o DPA Programs = Check Guidelines
 Rent Deposits = check documents
 Withdrawals - Credit Card payments/Mortgage payments/any undisclosed debt payments
 Other income –SSI/Pension/Distribution/Foster Deposits
 Investment – 70% (liquidation not required if ending balance is higher than down payment)
 Retirement – 60% (Check Borrower’s age, funds held as Stocks and Bonds)
 Life Insurance – Surrender/Death Benefit Value
 IRA Distribution statements
 Trust Assets – Trust agreement/access from all trustees
 Encompass VOD Update
o Comments when EMD/OM deducted
o Assets not verified

Credit:

 Credit report date within 30 days of application date – Check = Document Tracking Screen
 Non Borrowing Spouse Credit = FHA
 Any missing pages
 Additional address/DOB/SSN/Inquiries = LOE
 New debt in Inquiry LOE/UDA disclosure
 Consumer statement/Fraud alert
 Fraud Victim alert = See Conditions list
 OFAC alert
 Additional employment history = LOE required
 All 3 bureau scores – Verify NRL overlays/Guidelines
 Data verify report - PASS
 Compliance MAVENT report – PASS
 LQI report = Add Credit Refresh and LQI expire always
 expire date
 Any lates
 New debts
 New Inquiries
 Recent revolving/installment lates = Comments
 Mortgage lates in past 12 months = verify guidelines
 High Credit limit mismatch with Title Report = Condition
  Trade lines
o Payoff mortgage – Payoff statement/good through date/payoff amount in liabilities
o Mortgage payment history through loan closing = Credit Supplement
o Student loans – verify guidelines for higher payment and student loan statements
o Auto loans – verify guidelines
o Omitted accounts – require documentation to omit/Conditions List
o Dispute accounts – See guidelines
o OPEN 30 days charge account – verify in reserves
o Collection accounts – Not included in Encompass and liabilities (check guidelines)

 Encompass – VOL section – should match Liabilities of UW TOOL

 Closure letter
 Additional paid off account – Paid in full statement/source of funds
 FORECLOSURE/BANKRUPTCY – Verify guidelines (Waiting Period/LOE)
 Judgment – Verify guidelines
 Tax Liens – Verify guidelines
 Mortgage/Non Mortgage charge off accounts – See Guidelines
 Median Score – Check NRL Overlays
 Construction – PERMANENT loans
 Purchase Money 1st and 2nd transaction = HUD required for verifying 2nd lien
 Subordinate lien – check conditions list

Pre-Qualification Letter (check Borrower Authorization Date):

 Pre-Qualification Letter is not required when Credit Report is within 5 days of initial application
o Add: Provide Credit Authorization dated on or before the credit report date

 Pre-Qualification letter is not in format:

o Add: Provide Pre-qualification letter in NRL standard format and a Borrower’s
authorization form dated on or before the prequalification letter to confirm the credit
report pull date

 When Credit Report is after Pre-Qualification letter

o Add: Provide credit authorization dated on or before the prequalification letter

Income: Salaried:

 Income documents within 30 days of application date

 2nd level review – if income 25% increase/decrease in income
 W2 only loans
o Complete Paystubs (FHA 30 days; Conventional = Recent 30 days YTD)
 Pay period
 Regular hours
 Regular Rate
 Loan deductions
 Child support/alimony deductions
 SSN discrepancy
  Employer address – Commute

 WVOE = For Qualifying variable income/Hire and Termination dates

 Lender Signature
 WVOE prepared date
 Borrower name, address and SSN
 Employer name and address
 Borrower hire date/Position held
 Break down of income for current and past years
 Continuance of overtime, Bonus
 Remarks if provided

 W2’s = in past 2 years = all employers = match line #7 wage of Tax Returns
 Wage Transcripts – in lieu of Tax Transcripts
 Letter of Explanation:
 15% increase/decrease in income with same Employer in 2015/2014
 Annual Pay mismatch with WVOE/Paystub
 Switching Multiple employers/employments
 Downgrading of Income
 Unemployment Gaps
 Overlapping Employment dates

 Self Employed Loans = Loan Beam Worksheet = for greater 25%/Rental Income:

 Tax Returns & Tax Transcripts:

 Amended Tax Returns and Tax Transcripts
 Sign and date
 Missing Schedules
 Liable to Alimony
 Filed Jointly with different names in 2013, 2014 and 2015 (Possibility of Divorce)
 Amount owe Tax Liability = Source of funds (Payment Voucher not accepted)
 Schedule A expenses = 2106 document
 Tax Extension 2015 – Tax Returns 2014 & 2013
 No Records Found

Self Employment Business:

 1120: Conventional – 100% ownership for qualifying income/Paystubs/ 2 years
W2’s/1120 Business returns
 1120S: 1120S business returns/K1 of 1120S/Paystubs and W2’s for verifying
Compensation of Officers Income.
 1065: 1065 business returns/K1 of 1065/Paystubs and W2’s for verifying Compensation
of Officers Income/Form 8825 Commercial Rentals if applicable
 Schedule C: Schedule C and add applicable Business miles:
 Business License/ CPA letter
 Current (________ to _________) YTD Profit and Loss Statement