MAVENT
Compliance
Review Training
Encompass is set up to run the MAVENT Compliance Reports
automatically as Milestones are “Finished”, but we encourage that a
compliance report is run manually anytime numbers, loan terms or
ATR/QM information changes during the loan process.
The two types of MAVENT Compliance Reports are:
• Order – compares current loan data to how the file was last
disclosed.
• Preview – reviews the current loan data.
Milestone
Retail
Wholesale
Processing
Preview
Preview
Submittal
Order
Order
Resub
Order
Order
Approval
Preview
Preview
Ready for Docs
Preview
Preview
Doc Signing
Order
Order
Funding
Order
Order
The possible results that can be returned for each report are listed in
order of severity below:
Review Status
Description
Error
Data is missing or entered incorrectly so the system is unable to give a
determination. Action required for resolution.
Fail
Information entered does not meet requirements. Action required for
resolutions.
Alert and Warning Notifying you of a potential problems. Must investigate to determine if
acceptable or not.
Pass
This status is delivered when the Encompass Compliance Service does
not identify any exceptions with the loan data.
Compliance Preview
Always run the “Preview” when checking ATR/QM
compliance as it reviews current loan data. “Order” will
check information on how the loan was last disclosed and
may not be correct for ATR/QM purposes.
Compliance Preview
Alerts/Warnings
Alerts and Warnings need to be reviewed prior to proceeding. Some
Alerts or Warnings will appear on all loans such as the HMDA Warning
shown below. Remember that these are alerting/warning you of
potential (not current) issues with the loans file.
Fail
You cannot proceed with a Fail and the issue must be resolved.
Compliance Preview
Fails, Warnings and Alerts
If a Fail, Warning or Alert is received, the body of the report will
identify the issue.
Verifies if loan is compliant with all ATR/QM requirements.
Verifies the TILA tolerance and that the disclosed finance
charge and APR are within tolerances defined by TILA.
Verifies if loan is considered a High Cost loan. We should
never have a High Cost loan as SNMC does not do High
Cost loans.
Verifies if loan is an HPML. If loan is HPML & conventional,
VA or USDA, the residual income worksheet is required.
Verifies if loan meets all state requirements and laws.
Verifies all involved parties meet license requirements
including the lender is licensed in the particular
jurisdiction, licenses are active & in good standing, license
authorizes the lender to originate the type of transaction.
Verifies the individual loan originator’s NMLS information
against NMLS data bases.
This reviews the allowable points and fees thresholds as
defined by the appropriate agency.
Enforces specific requirements depending on loan type.
Reviews the pertinent loan data to HMDA requirements
Compares all the loan’s borrowers names and aliases
against several government lists including the OFAC list and
the SSN death master files.
This checks for anything that doesn’t fall in the other
categories such as: Preview Mapper, Service Info, etc.