Q: Borrower has actually just decided not to proceed for now and get his credit score up instead first. We will cancel the current HELOAN file. Spring EQ did register the HELOC on their end but they did not disclose it. Since we will have them just withdraw it prior to disclosing to we still need an encompass file on our end just to withdraw?
A: No need to create an encompass file to withdraw as long as the loan is being cancelled on Spring EQs end as well. You can create a file/trigger the application once the borrower is ready to proceed
Q: This Spring EQ brokered file will is being re registered with them as a HELOC although we started out as a HELOAN because the value came in much lower than anticipated so the fixed rate was too high. For compliance do we need to create a new in house file when switching from HELOAN to HELOC? I know we checked on a another file and didn’t need a new file when switching brokers for a HELOC but wasn’t sure if it made a difference that the loan type is changing.
A: This is a good question. Because this switch is from a TRID to a non-TRID program, this requires a new loan file to be started.