Non QM Workflow Guide

NAVIGATING NON

QM

Your go-to guide for setting up Non QM products in Encompass.

Flowchart

For Internal Use Only

FAQS How do I upload bank statements for a Bank Statement loan?

How do I price Non QM in Polly?

Where do I find Investor contacts?

How do I issue disclosures for Non QM?

Who do I ask about Non QM guidelines?

Which investor handles our ________ loans?

WHERE TO BEGIN WITH NON QM

You’re staring at your Encompass screen and you don’t know where to begin.

Your mind is swirling with everything you DON’T know about how to get started on the Non QM loan you’ve envisioned your borrower utilizing, so their dream of homeownership is tangible.

But you don’t know where to start.

Before you pick up the phone or draft an email to sales support – take a beat.

In this guide, you’ll find a workflow and links and notes that will answer all your questions – from which screens in Encompass should be completed and how, to where you’ll find all the necessary guidelines and necessary documents needed to get the ball rolling.

Consider this your handbook to understanding the how’s, what’s, where’s and why’s of the Non QM products Stockton offers so you can explore loan options and access the resources necessary to empower you in navigating the process independently.

But if you’re the sort who likes to skip to the end, check out the “too long didn’t read” section to the right.

tldr: All roads lead to the Investor Guidelines The answer to the most questions when it comes to Non QM loans can be found by referring to the Investor Guidelines & Loan Docs Non QM folder - which we will reference continually throughout this piece. If you find yourself stumbling, the best place to start is in the Investor folder.

EXPLORING NON QM OPTIONS

You’ve met with your borrower & gotten to know them.

And now, working with the borrower you’ve determined the best product to meet their needs might be Non QM.

The following workflow is designed to help our sales support team ensure a timely approval and processing of your file, and help you see your borrower to the closing table in a seamless fashion.

Please note: As Investors change and processes evolve, this guide will act as a living document to keep you in tune with those changes.

Bookmark the link for Navigating Non QM to your web browser and ensure you always have the most current edition of your Non QM flowchart, so you’ll never be lost!

In Encompass, go to the Non QM screen on the Forms tab.

1

SELECT THE NON QM PRODUCT TYPE FROM THE DROPDOWN

2

SELECT THE FLOATING INVESTOR FROM THE DROPDOWN

3

IN THE COMMENTS SECTION, DESCRIBE THE PRODUCT AND INVESTOR, ALONG WITH ANY DOCUMENTS REQUIRED BASED ON INVESTOR GUIDELINES. SEE EXAMPLE.

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THAT’S COMPLETE. WHAT NEXT?

REVIEW THE INVESTOR'S FOLDER FOR ADDITIONAL CHECKLISTS SPECIFIC TO YOUR BORROWER’S FILE NEEDS

REGISTER LOAN & RUN PRICING IN POLLY

HOW TO REGISTER THE LOAN & RUN PRICING

COLLECT NECESSARY DOCUMENTS FROM BORROWER

ISSUE DISCLOSURES & COLLECT SIGNATURES FROM BORROWER. USE THE NONCONFORMING TEMPLATE IN ENCOMPASS.

HOW TO COMPLETE THE NONCONFORMING TEMPLATE IN ENCOMPASS

NON QM INVESTOR GUIDELINES

You can check out the Non QM Investor Guidelines through Stockton Connect, Teams, or by clicking the button above.

PUT FILE SUBMISSION TOGETHER

ORDER TITLE AS YOU TYPICALLY WOULD

APPRAISAL : REVIEW YOUR INVESTOR CONTACT SHEET FOR PREFERRED APPRAISAL ORDER TYPE (FOR EXAMPLE: ALL FNB LOANS MUST GO THROUGH AMC, NOT REGORRA).

SUBMIT FILE TO SET UP!

🎉

INVESTORS & PRODUCTS AT A GLANCE

Which investors offer what products?

The table below provides an at-a-glance view of Non QM products and which investors offer them.

NON QM INVESTORS & PRODUCTS TABLE (AT A GLANCE)

NONCONFORMING LOAN TEMPLATE

For issuing Non QM disclosures.

Following these steps, we’ll guide you through navigating a few dropdown menus so your disclosures may be issued on your borrower one step closer to closing!

1 2

START YOUR LOAN APPLICATION IN ENCOMPASS

SELECT NONCONFORMING LOAN PROGRAM TEMPLATE ON THE BORROWER SUMMARY

THEN YOU’LL PROCEEDTO POLLY; ENTER MANUAL INFORMATION TO COMPLETE PRICING FOR MULTIPLE NON QM PROGRAMS

2

For Pricing Non QM in Polly.

Follow steps 1-4 to navigate running pricing in Polly to see which Non QM products could be an option for your borrower.

1

COMPLETE THE NON QM DOCUMENTATION SCREEN IN THE BOTTOM LEFT CORNER. CHOOSE THE APPROPRIATE VERIFICATION METHOD FOR YOUR PRODUCT TYPE FROM THE DROP DOWN MENU. VERIFICATION TYPES INCLUDE: FULL DOCUMENT BANK STATEMENT(S) VERIFICATION OF EMPLOYMENT ASSET QUALIFICATION

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SELECT THE SPECIALTY PRODUCT FROM THE SPECIALTY PRODUCT DROPDOWN MENU. SPECIALTY PRODUCT OPTIONS INCLUDE: 203K CLICK & CLOSE DOCTOR PROGRAM ESSEX

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DEBT SERVICE COVERAGE RATIO 1099

HOBBY FARM HOMESTYLE NOT APPLICABLE

IN THE COMMENTS SECTION, DESCRIBE THE PRODUCT AND INVESTOR, ALONG WITH ANY H I T B L U E R EREQUIRED FRESH PRIC ING BU TTON DOCUMENTS BASED ON AND ALL P R O G R A M S WSEE ILL B E LISTED INVESTOR GUIDELINES. EXAMPLE.

NOW YOU WILL DETERMINE THE BEST PRODUCT OPTION & COORRESPONDING INVESTOR FOR YOUR BORROWER

1 3

3

IN THE COMMENTS SECTION, DESCRIBE THE PRODUCT AND INVESTOR, ALONG WITH ANY DOCUMENTS REQUIRED BASED ON INVESTOR GUIDELINES. SEE EXAMPLE.

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