A: If you are primarily a retail lender, and your loan transactions usually go smoothly, then you may not need us to create your UCDs. In the retail model, we currently come into play when there is a change to the CD terms at the closing table, or it is originally produced by the closing agent. In 2018, when the requirement to provide the seller CD on purchase transactions comes, there will be an increased need for us to create UCDs.
Our UCD verification use case also comes into play in Retail as a double-check that the data within the UCD matches the image of the CD document. We accept a UCD, extract the CD image, convert it, and then compare the two XMLs to verify accuracy.
If you are involved with correspondent or bulk acquisitions, there is a much stronger use case since you may only have access to the documents, and you may have an increased need to verify your sellers’ UCD compliance.
(follow up) A: I’d encourage you to verify regarding the seller CDs – our understanding is that these are customarily produced by the closing agent, not the lender.
I’d also suggest you run some tests on the UCDs created by your doc prep provider – not only that they pass the GSE edits upon submission to the collection portals, but also that the data as broken out in MISMO actually matches the data as displayed on the document image embedded and Base64 encoded within the XML.
If all of these check out, congratulations, you are ahead of the pack on UCD! If not, feel free to reach out in the future.
A: We are LOS and doc prep vendor agnostic. So while we don’t have a direct integration to Encompass right now, our CD2UCD portal can accept CD documents produced natively by the LOS, through a doc prep provider, or via any other mechanism, and convert them to UCD.
We are also currently working with other Encompass clients who want to verify that the data within the UCDs it produces actually matches the CD document. With Encompass’ suggested UCD process, there’s a risk they might not match.
A: You are correct that there is no requirement for a signed version of the CD to be included in the UCD at present. Here’s a link to the Freddie website where they address that exact question:
A: I assume your question was asked as a seller to aggregators such as Wells Fargo and JPM (if not, please let me know). In general, yes, I would suggest that the UCD be prepared once the CD is ready for delivery to the investor. That said, we have heard that some aggregators will require the UCD earlier in the process – especially in a non-delegated model. My best suggestion would be to start the conversation with your investors soon!
A: To date, we have not evaluated incorporation of the settlement statement into our offering. Our group’s understanding is that it typically doesn’t contain enough information to produce a UCD.
However, if you have a different workflow or specific business need around your use of the ALTA statement, we’d be happy to discuss how Visionet can address it. In addition to CD2UCD, Visionet has a full suite of products and services we can apply to enhance your offerings to your clients and their members.
A: Getting to the Reg Z Points and Fees Indicator for each fee/escrow/prepaid involves: