using the encompass product and pricing service custom

Using the Encompass Product and Pricing Service (EPPS) Custom Program Management


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Copyright Statement

© 2020 Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®, DataTrac®, Ellie Mae Network™, Mavent®,

Millennial Tracker™, Mortgage Returns®, Prospect Manager®, Total Quality Loan®, True CRM®, TQL® and the

Ellie Mae logo are trademarks of Ellie Mae, Inc. or its subsidiaries. All rights reserved. Other company and

product names may be trademarks or copyrights of their respective owners.

Rev. 4/20/2020


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Table of Contents

Introduction ......................................................................................................................................................................... 1

Introduction ....................................................................................................................................................................... 2

Custom Program Management .................................................................................................................................... 2

Custom Programs ........................................................................................................................................................ 2

Virtual Programs........................................................................................................................................................... 3

Anatomy of a Program ....................................................................................................................................................... 4

Anatomy of a Program ...................................................................................................................................................... 5

Guidelines .................................................................................................................................................................... 5

Guideline Listing Page ............................................................................................................................................. 5

Guideline Versions ................................................................................................................................................... 6

Guideline Definition .................................................................................................................................................. 7

How to Read/Write Guidelines ................................................................................................................................. 9

Conditions .................................................................................................................................................................... 9

Conditions Listing Page ........................................................................................................................................... 9

Condition Versions ................................................................................................................................................. 10

Condition Definition ................................................................................................................................................ 11

Using Conditions in Program Definitions ................................................................................................................ 14

Ratios ......................................................................................................................................................................... 15

Ratios Listing Page ................................................................................................................................................ 15

Ratio Versions ........................................................................................................................................................ 15

Ratio Definition ....................................................................................................................................................... 16

How to Read/Write Ratios ...................................................................................................................................... 18

Using Ratios in Program Definitions ...................................................................................................................... 19

Risk Grades ............................................................................................................................................................... 19

Risk Grades Listing Page....................................................................................................................................... 19

Risk Matrix Definition ............................................................................................................................................. 20

Using Risk Grades in Program Definitions ............................................................................................................. 21

Matrices ...................................................................................................................................................................... 21

Matrices Listing Page ............................................................................................................................................. 22

Matrix Versions ...................................................................................................................................................... 23

Matrix Definition ..................................................................................................................................................... 24

Using Matrices in Condition Definitions .................................................................................................................. 27

Geographies ............................................................................................................................................................... 28

Geography Versions .............................................................................................................................................. 28

Geography Definitions ........................................................................................................................................... 29

Editing Production Versions of Geographies.......................................................................................................... 31


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Rate Definition ............................................................................................................................................................ 32

Best Practices, Tips, and Tricks ...................................................................................................................................... 33

EPPS Tech Ops Best Practices, Tips and Tricks ........................................................................................................... 34

Understanding the Standard Product Build Hierarchy ................................................................................................ 34

Building Matrices or Conditions .................................................................................................................................. 37

Overall Custom Program Best Practices .................................................................................................................... 38

Virtual Programs ............................................................................................................................................................... 41

Virtual Programs ............................................................................................................................................................. 42

Virtual Program Wizard .............................................................................................................................................. 42

Creating a Virtual Program..................................................................................................................................... 42

Maintain Virtual Programs .......................................................................................................................................... 43

Actions Available .................................................................................................................................................... 44

Virtual Program Versions Page .................................................................................................................................. 45

Actions Available .................................................................................................................................................... 46

Creating a Sample Virtual Program ............................................................................................................................ 47

Creating a Virtual Program..................................................................................................................................... 47

Creating a Rule ...................................................................................................................................................... 48

Testing Virtual Programs ............................................................................................................................................ 49

Testing a Virtual Program ...................................................................................................................................... 49

Troubleshooting – Trace ............................................................................................................................................ 51

Promotion Management ............................................................................................................................................. 52

Custom Programs ............................................................................................................................................................. 54

Custom Programs ........................................................................................................................................................... 55

Custom Program Wizard ............................................................................................................................................ 55

Creating a Custom Program .................................................................................................................................. 55

Maintain Custom Programs ........................................................................................................................................ 56

Custom Program Versions Page ................................................................................................................................ 59

Maintain Guidelines .................................................................................................................................................... 61

Maintain Ratios .......................................................................................................................................................... 61

Maintain Conditions .................................................................................................................................................... 61

Maintain Risk Grades ................................................................................................................................................. 61

Maintain Matrices ....................................................................................................................................................... 61

Promotion Management ............................................................................................................................................. 61

Maintain Geographies ................................................................................................................................................ 62

Maintain Program Flags ............................................................................................................................................. 63

Loan Limits Table ....................................................................................................................................................... 63

Loan Limits Table Example .................................................................................................................................... 64

Objects ............................................................................................................................................................................... 65


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Break Down of the Objects of a Program ................................................................................................................... 67

Guidelines .............................................................................................................................................................. 68

Matrices ................................................................................................................................................................. 70

Ratios ..................................................................................................................................................................... 72

Risk Grades ........................................................................................................................................................... 74

Expression Variables – Conditions and Matrices .......................................................................................................... 76

Conditional Actions and Matrix Actions ......................................................................................................................... 84

Introduction


2 Introduction

Introduction

Custom Program Management

Clients must be subscribed to Custom Program Management (CPM) before their Client Administrators (Client

Admins) assigned with the Manage CPM right within the Encompass Product and Pricing Service (EPPS) can

access CPM via the CPM link in the header menu. Under Manager Rights, Client Admins will see a new Manage

CPM right which can be assigned to their users to manage CPM (including virtual and custom programs).

Custom Programs

Custom programs enable Clients to create fully customized self-maintained programs from a variety of templates.

• A custom program is created in the Client’s environment.

▪ A custom program is a full copy of an existing program.

▪ Custom programs are historically versioned in the same manner as all other Investor programs.

• Clients assume full ownership of maintaining custom program eligibility criteria and price adjustments in

the system.

▪ Ellie Mae will not update eligibility criteria or price adjustments for custom programs when the

original Investor from which they were copied updates their eligibility or price adjustments.

• Clients can choose from Program Types including generic Fannie, Freddie, FHA, VA and USDA.

• Clients are required to provide their own base pricing for custom programs.


Introduction 3

Virtual Programs

Virtual programs enable Clients to offer a uniquely priced version of another Investor’s programs and continue to

offer those Investor’s programs.

• A virtual program is created in the Client’s environment.

▪ Virtual programs are historically versioned in the same manner as the underlying Investor

programs.

• Virtual programs refer to existing Investor programs.

▪ Ellie Mae continues to maintain all eligibility criteria and pricing adjustments for these existing

programs.

▪ Clients do not have to maintain eligibility criteria or pricing adjustments in the system when an

Investor updates its eligibility criteria or pricing adjustments.

• Clients can choose programs from those Investors with which the Client has a previously existing

relationship.

• Clients can use their own base pricing or the Investor’s pricing, which can be adjusted using Rule

Manager.

Note: if you use your own base pricing, it requires setup by the EPPS Technical Operations Group

▪ Refer to the Using the EPPS Rule Manager document for more details on the Rule Manager.

**All screenshots included in this documentation have been taken from EPPS test environments and do

not accurately reflect the production data and setup of Investors and Clients utilized as examples.

http://help.elliemae.com/DocumentationLibrary/360/UsingEPPSRuleManager.pdf

Anatomy of a Program

Section

1


Section 1: Anatomy of a Program 5

Anatomy of a Program

All Programs within EPPS, including Virtual and Custom Programs, are made up of seven (7) key objects.

• Guidelines

• Conditions

• Ratios

• Risk Grades

• Matrices

• Geographies

• Rate Definition

The following sections break down and define each key object.

Guidelines

Investors publish hard guidelines for eligibility. These guidelines are built into EPPS in grid form to mimic the

published versions.

Guideline Listing Page

Select Maintain Guidelines on the CPM page to open the Guidelines Listing page.

The Guidelines Listing page is filtered by investors in which the Client has a relationship.

Tip: A best practice for maintaining guidelines is to identify a concise and descriptive universal naming convention for all Client Admins to follow. For example, in the screen shot above, SunTrust uses a naming convention starting with Product Type, which results in all Agency named products to be filtered to the top by default. SunTrust also uses descriptors such as DU, LP, Fixed, ARM, and other niche factors to distinguish each guideline.

• Client Admins can sort the list into ascending or descending order by clicking on the Guideline label in

the header row.

• Client Admins can also sort the guidelines by ID and Effective Date in ascending or descending order, by

clicking on their respective header labels.


6 Section 1: Anatomy of a Program

Actions Available

On the Guidelines Listing page, the following Actions are available:

• View – Opens the Guideline Definition page in view ONLY mode.

• Versions – Opens the Guideline Versions page, which displays all versions of the guideline.

• Hide – Hides the row (stored for historicial purposes) from the Guidelines Listing page. All hidden rows

can be viewed by selecing the Hidden check box. To display a hidden row, select Hide again.

Note: Guidelines may be hidden to reduce the number of displayed rows or to better organize the page and

reduce confusion/clutter.

Guideline Versions

Select the Guideline name or versions on the Guidelines Listing page to open the Guideline Versions page. This

page displays past and present production versions of the investor’s hard guideline, and any guidelines in Test

profile.

Note: Past versions are stored as a point of reference for historical eligibility purposes.

Actions Available

On the Guideline Versions page, the following Actions are available for guideline versions:

• Edit – Enables Client Admins to edit a version of the guideline definition (Test or Production).

Tip: As a best practice, Ellie Mae recommends you utilize the copy or clone actions to create a new

version if revisions are necessary to guideline definitions, instead of edit.

• Copy – Creates a copy of the guideline version and puts it in Test profile. All parameters of the guideline

version/definition are copied with the exception of effective date and notes. Copy is helpful when there

are simple changes to the guideline definition. A Client Admin can copy the version, edit the copied

version/definition to reflect updated guidelines, select an effecive date to test, and then promote it.

• Clone – Creates an entirely new guideline based on the selected version and its parameters. All

parameteres of the guideline, guideline version, and guideline definition are cloned with the exception of

effective date and notes. A Client Admin can clone the version, edit the cloned guideline/version/definition

to reflect updated guidelines, select an effecive date to test, and then promote it.

• Delete – Delete is only available for guideline versions in Test profile. Production versions can not be

deleted for historical purposes.

• Deleted Check Box – Displays all deleted guideline versions stored for historical purposes.

If a guideline version is in Test profile, a 5th Action option is displayed.

• Promote – Moves the guideline version from a Test profile into Production.



Guideline Definition

Select the most recent production guideline version (e.g., Agency DU Fixed) to open the Guideline Definition

page, which houses the hard investor guidelines for the products that fall into the category and reference Agency

DU Fixed as a part of eligibility.

The Guideline Definition page displays the following information:

• Name – A required field that will be used to list/sort guideline definitions.

• Effective Date – A required field for production and historical pricing/eligibility purposes.

• Investor – The Investor associated with the guideline.

• Profile – Indicates whether the guideline definition is a Test or Production profile.

• Notes – An optional field but highly recommended by Ellie Mae to all Client Admins accessing the

guidelines. Short detailed explanations for the guideline, reason for a new version, etc.



The Guideline Definition grid contains the following fields used to build the guidelines:

• Loan Usage – An optional field. Enter one or more loan usages to which the guideline applies, or leave

blank for "any". The acceptable usages are listed below the Guideline grid.

• Property Usage – An optional field. Enter one or more property usages to which the guideline applies, or

leave blank for "any". The acceptable usages are listed below the Guideline grid.

• Property Type – An optional field. Enter one or more property types to which the guideline applies, or

leave blank for "any". The acceptable property types are listed below the Guideline grid.

• Credit – An optional field. The minimum credit allowed for the guideline.

• LTV – A required field. The maximum LTV allowed for the guideline, expressed as a whole number (e.g.

80).

• CLTV – An optional field. The maximum CLTV allowed for the guideline, expressed as a whole number

(e.g., 105).

• HCLTV – An optional field. The maximum HCLTV allowed for the guideline, expressed as a whole

number (e.g., 105).

• Max Loan Amount – An optional field. The maximum loan amount allowed for the guideline. If blank,

defaults to GSE General Conforming limit for the given property type.

Tip: Best practice is to leave the Max Loan Amount blank in the guideline definitions and define the

maximum loan amounts in loan limits (excluding Non Agency limits). Adding a max loan amount in the

guidelines will create another rule to maintain and adjust when loan limits are revised by investors.

• Max Cash – An optional field. The maximum cash-out allowed.

Building Guidelines

When building guidelines, the following actions are available:

• Client Admins can Append rows to the bottom of the grid.

• Client Admins can select a row and Insert Row Above to add a row above the selected row.This helps

Client Admins keep their hard guidelines understandable and organized.

• Client Admins can select a row and Insert Row Below to add a row below the selected row.This helps

Client Admins keep their hard guidelines understandable and organized.

• Client Admins can select a row and Duplicate it. Clients can select the number of rows to duplicate from

the drop-down list. For example, if a Client Admin selects a row, selects 4 from the drop-down list, and

then clicks Duplicate, the selected row will be duplicated four times at the bottom of the grid.

Duplicate is helpful because the duplicated guideline rows may have similar components to the original guideline row and only require minimal manipulation.

• Client Admins have the ability to highlight a row and Delete the row from the Guideline grid.

• Client Admins can highlight rows by clicking on the row number on the far left. They can also copy and

paste within the grid.

• Client Admins can Save the grid once they have completed it.

Note: Clicking Cancel will close the Guideline Definition page and all work will be lost.

Testing and Promoting Guidelines

• All guidelines should be tested within Qualify, as discussed within this document.

• After the guidelines are tested in Qualify, and the expected results are validated, The Client Admin can go

to the Guideline Version page and promote the guideline to Production based on the effective date

selected on the Guideline Definition page.



How to Read/Write Guidelines

In the above example, the first line of the grid reads:

• “If a loan is Purchase or Rate/Term Refi,

• A Primary residence,

• Single family, 1-4 story Condo, 5-8 story Condo, 9+ story Condo, Town House, PUD,

• The minimum credit must be at least 640,

• The maximum LTV must not exceed 97%, and

• The maximum CLTV must not exceed 105%

• The maximum HCLTV must not exceed 105%

Taking the first line into consideration, the second line of the grid reads:

• “If a loan is Purchase or Rate/Term Refi,

• A Primary residence,

• A 2 family home,

• The minimum credit score must still be at least 640, but

• The maximum LTV is reduced to 85%, and

• The maximum CLTV remains at 105%

• The maximum HCLTV must remains at 105%

Conditions

Conditions are soft guidelines from the investor. These guidelines are ancillary eligibility rules to enhance the hard

guideline grid published by the Investor. Conditions represent the most critical object in EPPS and can reference

and link to other objects.

Conditions Listing Page

Select Maintain Conditions in the CPM menu to open up the Conditions Listing page



The Conditions Listing page is filtered by investors in which the Client has a relationship.

Tip: A best practice for maintaining conditions is to identify a concise and descriptive universal naming convention for all Client Admins to follow. For example, in the screen shot above, Flagstar uses a naming convention starting with Product Type, which results in all Agency named products to be filtered to the top by default. Flagstar also uses descriptors such as FNMA, FHLMC, Jumbo, LPMI, Fixed, ARM, and other niche factors to distinguish each condition.

• Client Admins can filter the list into descending order by clicking on the Condition label in the header

row.

• Client Admins can also sort the conditions by Effective Date, NP (number of Non Production (Test)

versions for the condition, and PC (number of Production versions for the condition) in ascending or

descending order, by clicking on their respective header label.

Actions Available

On the Conditions Listing page, the following Actions are available:

• View – Opens the Condition Definition page in view ONLY mode.

• Versions – Opens the Condition Versions page, which displays all versions of the condition.

• Hide – Hides the row (stored for historicial purposes) from the Conditions Listing page. All hidden rows

can be viewed by selecing the Hidden check box. To display a hidden row, select Hide again.

Note: Condtions may be hidden to reduce the number of displayed rows or to better organize the page

and reduce confusion.

Condition Versions

Select the Condition name or versions on the Conditions Listing page to open the Condition Versions page. This

page displays past and present production versions of the investor’s hard conditions, and any condition versions

in Test profile.


Actions Available

On the Condition Versions page, the following Actions are available for condtion versions:

• Edit – Enables Client Admins to edit a version of the condition definition (Test or Production).


version if revisions are necessary to condition definitions, instead of edit.

• Copy – Creates a copy of the condition version and puts it in Test profile. All parameters of the condition


are simple changes to the condition definition. A Client Admin can copy the version, edit the copied

version/definition to reflect updated conditions, select an effecive date to test, and then promote it.



• Clone – Creates an entirely new condition based on the selected version and its parameters. All

parameteres of the condition, condition version, and condition definition are cloned with the exception of

effective date and notes. A Client Admin can clone the version, edit the cloned condition/version/definition

to reflect updated conditions, select an effecive date to test, and then promote it.

• Delete – Delete is only available for condition versions in Test profile. Production versions can not be


• Deleted Check Box – Displays all deleted condition versions stored for historical purposes.

If a condition version is in Test profile, a 5th Action option is displayed.

• Promote – Moves the condition version from a Test profile into Production.

Condition Definition

Select the most recent production condition version (e.g., Agency Guideline Diffs) to open the Guideline Definition

page, which houses the hard investor conditions for the products that fall into the category and reference Agency

Guideline Diffs as a part of eligibility.

The Condition Definition page displays the following information:

• Name – A required field that will be used to list/sort condition definitions.


• Investor – The Investor associated with the condition.

• Profile – Indicates whether the condition definition is a Test or Production profile.

• Notes – An optional field but recommended by Ellie Mae to to all Client Admins accessing the condition.

Short detailed explanations for the condition, reason for a new version, etc.

• The Condition Definition grid contains the following fields used to build the conditions:

▪ Expression – A required field. The logical expression that will be evaluated. If True, the Action will

be applied.

▪ Action – A required field. The Action will be applied if the Expression is True.

▪ Description – An optional field. A brief description of the condition.

▪ Note – An optional field. The note will be displayed to the user.



▪ Internal Note – An optional field. A note for the Client Admins that is only displayed on this page.

Tip: 1=1 is used when the action should apply to ALL scenarios. 1=0 is used only as a placeholder. The

EPPS Technical Operations Group (EPPS Tech Ops) uses these to separate sections as conditions can

get long.

▪ In a condition, a negative action using price is a price IMPROVEMENT

▪ In a condition, a positive action using price is a price CHARGE

▪ In a condition, a negative action using rate REDUCES the rate

▪ In a condition, a positive action using rate INCREASES the rate

Building Conditions

Conditions can (and often do) reference and apply other conditions.

For example, in the screen shot above, within the AUS Base Condition Definition, if 1=1, then apply AAA Test’s

Test Notes Base condition set. Since 1=1, the condition set will apply to all loans tied to the AUS Base Condtions

set.

Ellie Mae follows the general order, listed below, to maintain condition.

• Hard Rejections

• Standard Rejections

• Adjust Qualifications

• Concessions

• Gifts



When building conditions:

• Builder – Provides Client Admins the ability to build out conditions using drop-down fields rather than

manually writing out syntax in its entirety.

• Expression – Loan criteria available for writing conditions. If the Expression is True, the defined Action

will be applied. The table below provides a list of available loan criteria.

• Action – Critera for the condition to take Action on (e.g., degine maximums, reject eligibility, +/- price,

LTV, exit condition, etc.). The table below provides a list of available Actions. Actions Available

When building conditions, the following actions are available:



Client Admins keep their conditions understandable and organized.


Client Admins keep their conditions understandable and organized.




• Duplicate is a helpful within conditions because the duplicated condition rows may have similar

components to the original condition row and may only require minimal manipulation.

• Client Admins have the ability to highlight a row and Delete the row from the Conditions grid.




Note: Clicking Cancel will close the Condition Definition page and all work will be lost.

Validating Rules

• Client Admins can validate rules by clicking Validate. EPPS will display an OK pop-up if all the rules are

written in a workable manner.



Using Conditions in Program Definitions

Condtions can be added to a program definition using the drop-down field. All Investor defined and Global Risk

conditions are available. Multiple condition definitions can be selected and assigned to a program definition.

Tip: Best practice is to only attach one condition to the program. Usually the base condition is attached. All

conditions used in the program will funnel through the base condtion when the base condition is attached to the

program



Ratios

Ratios house the back-end ratio limitations and reserves implemented by investors for loan eligibility.

Ratios Listing Page

Select Maintain Ratios in the CPM menu to open up the Ratios Listing page

The Ratios Listing page is filtered by investors in which the Client has a relationship.

Tip: A best practice for maintaining ratios is to identify a concise and descriptive universal naming convention for all Client Admins to follow. For example, in the screen shot above, SunTrust uses a naming convention starting with Product Type, which results in all Agency named products to be filtered to the top by default. SunTrust also uses descriptors such as DURP, Jumbo, Local, Streamline, and other niche factors to distinguish each ratio.

• Client Admins can filter the list into descending order by clicking on the Ratio label in the header row.

• Client Admins can also sort the conditions by Effective Date, NP (number of Non Production (Test)

versions for the ratio), and PC (number of Production versions for the ratio) in ascending or decending

order, by clicking on their respective header label.

Actions Available

On the Ratios Listing page, the following Actions are available:

• View – Opens the Ratio Definition page in view ONLY mode.

• Versions – Opens the Ratio Versions page, which displays all versions of the ratio.

• Hide – Hides the row (stored for historicial purposes) from the Ratios Listing page. All hidden rows can be

viewed by selecing the Hidden check box. To display a hidden row, select Hide again.

Note: Ratios may be hidden to reduce the number of displayed rows or to better organize the page and

reduce confusion.

Ratio Versions

Select the Ratio name or versions on the Ratios Listing page to open the Ratio Versions page. This page

displays past and present production versions of the investor’s ratios, and any ratio versions in Test profile.




Actions Available

On the Condition Versions page, the following Actions are available for condtion versions:

• Edit – Enables Client Admins to edit a version of the ratio definition (Test or Production).


version if revisions are necessary to ratio definitions, instead of edit.

• Copy – Creates a copy of the ratio version and puts it in Test profile. All parameters of the ratio


are simple changes to the ratio definition. A Client Admin can copy the version, edit the copied

version/definition to reflect updated ratios, select an effecive date to test, and then promote it.

• Clone – Creates an entirely new ratio based on the selected version and its parameters. All parameteres

of the ratio, ratio version, and ratio definition are cloned with the exception of effective date and notes. A

Client Admin can clone the version, edit the cloned ratio/version/definition to reflect updated ratios, select

an effecive date to test, and then promote it.

• Delete – Delete is only available for ratio versions in Test profile. Production versions can not be deleted

for historical purposes.

• Deleted Check Box – Displays all deleted ratio versions stored for historical purposes.

If a ratio version is in Test profile, a 5th Action option is displayed.

• Promote – Moves the ratio version from a Test profile into Production.

Ratio Definition

Select the most recent production ratio version (e.g., Agency) to open the Ratio Definition page, which houses the

investor ratios for the products that fall into the category and reference Agency as a part of eligibility.

Ellie Mae recommends that all Clients leave ratios relaxed and use this Ratios object specifically to set an

absolute maximum limit for the Back End Ratio. Use of other characteristics will create additional rules already

addressed in Guidelines or Conditions to be maintained when adjustments are made by investors. The example

below is more extreme. Most ratios are 1 line and elaborated upon in the conditions.



The Ratio Definition page displays the following information:

• Name – A required field that will be used to list/sort ratio definitions.


• Investor – The Investor associated with the ratio.

• Profile – Indicates whether the ratio definition is a Test or Production profile.

• Notes – An optional field but recommended by Ellie Mae to to all Client Admins accessing the ratio.

Short detailed explanations for the ratio, reason for a new version, etc.

• The Condition Definition grid contains the following fields used to build the conditions:

▪ Expression – A required field. The logical expression that will be evaluated. If true, the Action will

be applied.

▪ Action – A required field. The Action will be applied if the Expression is true.

▪ Description – An optional field. A brief description of the condition.

▪ Note – An optional field. The note will be displayed to the user.

▪ Internal Note – An optional field. A note for the Client Admins that is only displayed on this page.

The Ratio Definition grid contains the following fields used to build the guidelines:

• Loan Usage – A required field. Enter one or more loan usages to which the ratio applies. The acceptable

usages are listed below the Ratio grid.

• Property Usage – A required field. Enter one or more property usages to which the ratio applies. The

acceptable usages are listed below the Ratio grid.

• Property Type – A required field. Enter one or more property types to which the ratio applies. The

acceptable property types are listed below the Ratio grid.

• Credit – An optional field. The minimum credit allowed for the ratio line.

• LTV – A required field. The maximum LTV allowed for the ratio line, expressed as a whole number (e.g.

80).

• CLTV – An optional field. The maximum CLTV allowed for the ratio line, expressed as a whole number

(e.g. 80).

• HCLTV – An optional field. The maximum HCLTV allowed for the ratio line, expressed as a whole

number (e.g. 80).

▪ Max Loan Amount – An optional field. The maximum loan amount allowed for the ratio line Not to be

used in lieu of guidelines.

Tip: Best practice is to leave the Max Loan Amount blank in the ratio definitions and define the

maximum loan amounts in loan limits. Adding a max loan amount in the ratios will create another rule to

maintain and adjust when loan limits are revised by investors. Unless the ratio is controlled by the loan

amount, do not put in Max Loan Amount. Same applies for Reserves. You want the ratio to reject based

on the ratio unless Max Loan Amount or Reserves is part of the ratio equation.

• Resrv – A required field. The months of PITI reserves required for the ratio line.

• FR – An optional field. The front of housing ratio. Expressed as a whole number (e.g., 28).

• BR – A required field. The back or total debt ratio. Expressed as a whole number (e.g., 36).

Building Ratios

When building ratios, the following actions are available:



Client Admins keep their ratios understandable and organized.




Client Admins keep their ratios understandable and organized.




• Duplicate ishelpful because the duplicated ratio rows may have similar components to the original ratio

row and only require minimal manipulation.

• Client Admins have the ability to highlight a row and Delete the row from the Ratios grid.




Note: Clicking Cancel will close the Ratio Definition page and all work will be lost.

Testing and Promoting Ratios

• All ratios should be tested within Qualify, as discussed within this document.

• After the ratios are tested in Qualify, and the expected results are validated, The Client Admin can go to

the Ratio Version page and promote the ratio to Production based on the effective date selected on the

Ratio Definition page.

How to Read/Write Ratios

• In the above example the first line of the grid reads:

“If a loan is ANY purpose,

Primary Residence Occupancy type,

ANY Property type,

The maximum LTV must not exceed 100%, and

The Back End Ratio maximum must not exceed 36%

• Taking the first line into consideration, the second line of the grid reads:

“If a loan is ANY usage (purpose),

Primary Residence Occupancy type,

ANY Property type,

ANY Credit score,

The maximum LTV must not exceed 80%, and

The Back End Ratio maximum must not exceed 43%

Reviewing the two ratio rules above, for Primary Residences, the Back End Ratio is more relaxed at 43% for

loans with a loan to value (LTV) of less than or equal to 80%. For loans with an LTV greater than 80% but less

than 100%, the maximum Back End Ratio is tighter at 36%.



Using Ratios in Program Definitions

Ratios can be added to a program definition using the drop-down field. All Investor defined and Global Ratios are

available.

Risk Grades

Risk Grades house delinquency, bankruptcy and foreclosure limitations implemented by investors for loan

eligiblity.

Risk Grades Listing Page

Select Maintain Risk Grades on the CPM page to open the Risk Grades Listing page.



The Risk Grades Listing page is filtered by investors in which the Client has a relationship.

Tip: A best practice for maintaining risk grades is to identify a concise and descriptive universal naming convention for all Client Admins to follow. For example, in the screen shot above, Flagstar uses a naming convention starting with Product Type, which results in all Agency named products to be filtered to the top by default.

• Client Admins can filter the list into descending order by clicking on the Risk Matrix label in the header

row.

Actions Available

On the Risk Grade Listing page, the following Actions are available:

• Edit – Opens the Risk Grade Definition page in edit mode. Client Admins can modify risk grades to the

defined risk matrix.

• Delete – Enables Client Admins to delete the defined risk matrix and it’s risk grades.

Risk Matrix Definition

Select a risk matrix to open the Risk Matrix Definition page.

Building Risk Matrices

Define the risk matrix using the following criteria:

• Order – The number order is determined by the Cleint Admin.

• Grade – The risk grade is determined by the Client Admin for the matrix (e.g., A, A-, etc.).

• Credit – An optional field. The minimum credit score..

• LTV– An optional field. A decimal format from 0.0 to 1.1 (e.g., 80% equals .80).

• CLTV– An optional field. A decimal format from 0.0 to 1.1 (e.g., 80% equals .80).

• HCLTV– An optional field. A decimal format from 0.0 to 1.1 (e.g., 80% equals .80).

• Late30 – An optional field. Maximum 30 day lates allowed for the matrix.



• Late 30x24 – An optional field. Maximum 30 day lates allowed in 24 months.



• Chapter 7 – Maximum number of Chapter 7 bankruptcies allowed (selected from drop-down field).



• Chapter 11 – Maximum number of Chapter 11 bankruptcies allowed in the time period (selected from

drop-down field).

• Chapter 13 – Maximum number of Chapter 13 bankruptcies allowed in the time period (selected from

drop-down field).

• Foreclosure/Default – Maximum number of foreclosures allowed in the time period (selected from drop-

down field).

• Guideline – An optional field. The selection is based off the Investor.

• Rate – An optional field. The selection is based off the Investor.

Using Risk Grades in Program Definitions

Risk matrices can be added to a program definition using the drop-down field. All Investor defined and Global

Risk Matrices are available.

Note: Risk matrices do not use effective dates.

Matrices

Matrices house pricing actions to be taken on loans falling within certain parameters. Loan level pricing

adjustments (LLPAs) are written in the Matrices object in EPPS to determine individual loan pricing. Clients can

create the standard LLPA Matrix utilizing an expression to create LLPAs or a Rate Matrix where Clients can

create LLPA matrices based on Rate values.



Matrices Listing Page

Select Maintain Matrices on the CPM page to open the Matrices Listing page.

The Matrices Listing page is filtered by investors in which the Client has a relationship.

Tip: A best practice for maintaining risk grades is to identify a concise and descriptive universal naming convention for all Client Admins to follow. For example, in the screen shot above, Flagstar uses a naming convention starting with Product Type, which results in all Agency named products to be filtered to the top by default. Flagstar also uses descriptors such as DU Refi Plus, Jumbo, LPMI, Sub Financing, and other niche factors to distinguish each guideline.

• Client Admins can filter the list into descending order by clicking on the Matrix label in the header row.

• Client Admins can also sort the matrices by Effective Date, NP (number of Non Production (Test) versions

for the matrix PC (number of Production versions for the matrix) and whether a Matrix is a Rate Matrix or

a standard Matrix in ascending or descending order, by clicking on their respective header label.

Actions Available

On the Matrix Listing page, the following Actions are available:

• View – Opens the Matrix Definition page in view ONLY mode.

• Versions – Opens the Matrix Versions page, which displays all versions of the matrix.

• Hide – Hides the row (stored for historicial purposes) from the Matrices Listing page. All hidden rows can

be viewed by selecing the Hidden check box. To display a hidden row, select Hide again.

Note: Matrices may be hidden to reduce the number of displayed rows or to better organize the page

and reduce confusion.



Matrix Versions

Select the Matrix name or versions on the Matrices Listing page to open the Matrix Versions page. This page

displays past and present production versions of the investor’s matrices, and any matrices in Test profile.


Actions Available

On the Matrix Versions page, the following Actions are available for matrix versions:

• Edit – Enables Client Admins to edit a version of the matrix definition (Test or Production).

Tip: As a best practice, Ellie Mae recommends you utilize the copy or clone actions to create a new version if

revisions are necessary to matrix definitions, instead of edit.

• Copy – Creates a copy of the matrix version and puts it in Test profile. All parameters of the matrix


are simple changes to the matrix definition. A Client Admin can copy the version, edit the copied

version/definition to reflect updated matrices, select an effecive date to test, and then promote it.

• Clone – Creates an entirely new matrix based on the selected version and its parameters. All

parameteres of the matrix, matrix version, and matrix definition are cloned with the exception of effective

date and notes. A Client Admin can clone the version, edit the cloned matrix/version/definition to reflect

updated matrices, select an effecive date to test, and then promote it.

• Delete – Delete is only available for matrix versions in Test profile. Production versions can not be


• Deleted Check Box – Displays all deleted matrix versions stored for historical purposes.

If a matrix version is in Test profile, a 5th Action option is displayed.

• Promote – Moves the matrix version from a Test profile into Production.



Matrix Definition

Select the most recent production matrix version (e.g., Agency FICO/LTV) to open the Matrix Definition page,

which houses the hard investor guidelines for the products that fall into the category and reference Agency

FICO/LTV as a part of eligibility.

The Matrix Definition page displays the following information:

• Name – A required field that will be used to list/sort matrix definitions.

• Variable – The variable to run along the X axis.

CLTV

Credit Score

DSCR

HCLTV

Lock Days

LTV

Mortgage Term

Mortgage Term -

Fixed

PPP Years

Qualification Loan

Amount



• Schema –

• Action – If the Expression within the variables are True, the selected Action will be applied.

• Short Circuit Evaluation – Ends the process of reading the matrix so adjustments below the intended

adjustment are not hit. (Exit at first match checkbox)

• Must Find Value – Loan must hit a value in the matrix or a loan error is generated. (Error if no match

found checkbox)

• Custom Investor – The Investor associated with the matrix.


• Locked - Locks the matrix.

• Profile – Indicates whether the condition definition is a Test or Production profile.

• Notes – An optional field but recommended by Ellie Mae to to all Client Admins accessing the matrix.

Short detailed explanations for the matrix, reason for a new version, etc.

Building Matrix Definitions

The Matrix Definition grid contains the following fields used to build the matrices:

• Expression – A required field. The logical expression that will be evaluated. If True, the Action will be

applied. Actions Available

When building matrices, the following actions are available:



Client Admins keep their matrices understandable and organized.


Client Admins keep their matrices understandable and organized.




• Duplicate is helpful because the duplicated matrix rows may have similar components to the original

matrix row and only require minimal manipulation.

• Client Admins have the ability to highlight a row and Delete the row from the Matrix grid.

• The +/- button switches the sign to either positive or negative in the grid. If no particular cell is highlighted,

the entire matrix will switch signs. If a particular cell is highlighted, only the highlighted cell will switch

signs.

• The Column + - button adds or subtracts columns to the end of the matrix to add more variable schemes.




EPPS Tech Ops uses these to separate sections as conditions can get long.

▪ In a matrix a negative value in the adjustment grid is a price IMPROVEMENT

▪ In a matrix, a positive value in the adjustment grid is a price CHARGE

▪ Clients can also copy and paste from excel into a matrix. Excel must be formatted as General.




Note: Clicking Cancel will close the Matrix Definition page and all work will be lost.

Validating Rules

Client Admins can validate rules by clicking Validate. EPPS will display an OK pop-up if all the rules are written

in a workable manner.

Rate Matrices

• When Entering a new Matrix Definition, the Client will be prompted with the below popup asking which

matrix the user would like to create

• The Rate Matrix Definition is set up in a similar manner to the standard Matrix. The Actions and Variables

are the same offered in a standard Matrix. The expression does not exist because a Rate Matrix is

designed to adjust based on Rate.



• Below is an example of a Rate Matrix set to adjust price based on rate buckets and CLTV value. Ex. If

the rate is between 3% and 3.5% and CLTV is between 0% and 50%, adjust price by 0.5.


EPPS Tech Ops uses these to separate sections as conditions can get long.

• In a matrix a negative value in the adjustment grid is a price IMPROVEMENT

• In a matrix, a positive value in the adjustment grid is a price CHARGE

• Clients can also copy and paste from excel into a matrix. Excel must be formatted as General.

Using Matrices in Condition Definitions

Matrices are used in a condition definitions. In Row 6 in the screen shot below, If an Expression is True, the

Action applies the defined Matix in the row (i.e., If Term>180 and Refi Plus or Relief Refi, apply Flagstar HARP

LTV/FICO Adj defined matrix).

Note: A Matrix can only be attached to a program via a Condition. Matrices must be attached to Conditions to

apply to the program.



Geographies

Geographies are part of Ellie Mae’s continued effort to support geocoding-based pricing and qualification.

Note: Geographies are available as a condition in the Rule Manager in EPPS 17.4 and later.

Clients can prepare Geographies such as States, Counties, Zip Codes, MSAs, Census Tracts, County Codes,

and State Codes.

Note: Geographies can only be attached to a program via a Condition. Geographies must be attached to

Conditions to apply to the program.

Geography Versions

Select the Geography name or versions on the Geography Listing page to open the Geography Versions page.

This page displays past and present production versions of geographies, and any geographies in Test profile.


Actions Available

On the Geography Versions page, the following Actions are available for geography versions:

• Edit – Enables Client Admins to edit a version of the geography definition (Test or Production).


version if revisions are necessary to geography definitions, instead of edit.

• Copy – Creates a copy of the geography version and puts it in Test profile. All parameters of the

geography version/definition are copied with the exception of effective date and notes. Copy is helpful

when there are simple changes to the geography definition. A Client Admin can copy the version, edit the

copied version/definition to reflect updated geography, select an effecive date to test, and then promote it.

• Clone – Creates an entirely new geography based on the selected version and its parameters. All

parameteres of the geography, geography version, and geography definition are cloned with the

exception of effective date and notes. A Client Admin can clone the version, edit the cloned

geography/version/definition to reflect updated geographies, select an effecive date to test, and then

promote it.

• Delete – Delete is only available for geography versions in Test profile. Production versions can not be


• Deleted Check Box – Displays all deleted geography versions stored for historical purposes.

If a geography version is in Test profile, a 5th Action option is displayed.

• Promote – Moves the geography version from a Test profile into Production.



Geography Definitions

Select Enter a new Geography Definition to open the Geography Definition page.

The Geography Definition grid contains the following fields used to build the geographies:

• State – An optional field. Required if County is to be specified.

• County – An optional field. Will only match for the selected state

• Zip – An optional field. If specified, State and County are not required.

• MSA, Census Tract, County Code and State Code – Optional fields. If specified, no other entries are

required.

Building Geographies

There are many ways to use geographies. The example below is purely for illustrative purposes using two (2)

different building methods.

In the example above, a Geography of “NJ Coop Counties” is created by:

• Enter State = NJ and County = Bergen by using the Builder below the grid and clicking Append.



• The remaining NJ Coop Counties can be added using Copy (from Excel) and Paste.

NJ Essex

NJ Hudson

NJ Middlesex

NJ Monmouth

NJ Morris

NJ Passaic

NJ Union

The Client Admin will Append seven (7) rows for the remaining counties under Bergen and Copy (from Excel) and Paste in the State Row 2.

• The Client Admin will enter an Effective Date, and then Save the geography.

When building geographies, the following actions are available:


• Client Admins can select a row and Insert to add a row above the selected row.This helps Client Admins

keep their geographies understandable and organized.

• Client Admins have the ability to highlight a row and Delete the row from the Geography grid.



then clicks Duplicate, the selected row will be duplicated four times at the bottom of the gird.

Duplicate is helpful because the duplicated geography rows may have similar components to the original geography row and may only require minimal manipulation.






Note: Clicking Cancel will close the Guideline Definition page and all work will be lost.

Testing Geographies

• All geographies should be tested within Qualify, as discussed within this document.

Promoting Geographies

After successfully testing a geography, Client Admins can promote the geography for Production use.

1. Locate the geography by going to Admin>Settings>Geographies.

2. Select the version to be promoted. In this case, there is only one version of the geography.

3. Select promote.

4. Select OK. The geography is promoted to Production based on the effective date defined in the

geography.

Editing Production Versions of Geographies

Ellie Mae recommends creating a new version of the geography to handle any modifications. Editing a Production

version of a geography will impact historical qualifications.

For example, if Monmouth county New Jersey is removed from the approved NJ Coop Counties list:

1. Create a new version of the geography by selecting Copy from the NJ Coop Counties version on the

Geography Versions page.

2. Delete the NJ Monmouth row within the geography.

3. Assign a new effective date.



4. Save.

5. Test a Monmouth County, NJ Coop loan using the Test button in Qualify to verify the loan disqualifies and

Note fires (if defined).

6. When promoting the new version, the current Production version of the NJ Coop Counties and the Test

version will be displayed.

7. Promote the new Test version.

• The newly promoted version will move to Production in accordance with its effective date.

• The original version will still be in Production for historical purposes, firing loans from its effective date to the effective date of the newly promoted version.

Rate Definition

Ellie Mae works with each Client to set up and maintain rate definitions, which define the rate sheet structure

developed, created, and assigned by each Client/Investor relationship.

Best Practices, Tips, and Tricks

Section

2


34 Section 2: Best Practices, Tips, and Tricks

EPPS Tech Ops Best Practices, Tips and Tricks

Understanding the Standard Product Build Hierarchy

• Definitions

▪ Programs – individual, unique products with specific amortization types and terms

▪ Objects – the functional building blocks within EPPS

▪ Referencing – relationships form one Object to another

• Understanding the 5 main objects

▪ Products - Specific product info and the hub for related objects

▪ Guideline matrix – The basic eligibility rules in grid form

▪ Ratio sets – Establishes simple ratio & reserves requirements

▪ Conditions – The rule engine, the most critical object, points to other objects

▪ Matrices – Provides simple matrix functions. Used primarily for LLPAs. Always called by

conditions.

▪ Secondary Objects

o Risk Grades (System defaults to best case for Credit Events), Geographies, Flags

o Rate Definitions – special objects maintained by the EPPS Tech Ops. Container for the

data acquired from rate data file.

• Key Concepts on Hierarchy

▪ References matter!

o Changing an object that is referenced by other objects affects them ALL

o They are shared among objects

▪ All direct object references for a Program can be seen on the Program Listing page

▪ Lender “pre” condition is a special condition that gets called first, every time, outside the normal

hierarchy


Section 2: Best Practices, Tips, and Tricks 35

• Risk Matrices (yellow) are only used when extended credit is considered

▪ Extended credit is defined as lates, bankruptcies, events such as short sale, deed in lieu and

defaults

▪ If the Client does not want to consider extended credit, no action is necessary. Risk Matrices are

only created when the Client wants credit eligibility to be less restrictive.

• Rate Definitions (orange) are maintained by the EPPS Tech Ops and available for the Client to manage

via the program. Clients are only able to attach Rate Definitions to the program.

Standard Product Build Hierarchy Example

• In the FNMA Mand Conf Fixed 30 Product example above, eligibility and pricing objects are diagramed. It

is assigned guidelines, ratios and a risk matrix. There are a series of conditions assigned to the product.

Matrices and other overlays are also assigned in conditions to link to and fire within the product. The

diagram further illustrates the linkage of different conditions and matrices referencing other Conditions

• All components of Programs, Rule Manager, and all Objects in EPPS consist of the following heirarchy.

For our example, the Guidelines heirarchy is displayed for SunTrust (investor).

▪ Listings Page – List of existing programs, guidelines, conditions, ratios, etc. for SunTrust.



▪ Versions Page – List of existing versions of programs, guidelines, donditions, ratios, etc. display when selecting a Guideline in the Listings Page.

o CPM Object Versions have no explicit Expiration Date

• A Version is valid for the period of time between its Effective Date and the Effective Date of the prior version

• Users can insert Versions into the Historical Chain

▪ Definitions Page – Building blocks of existing programs, guidelines, conditions, ratios, etc. display when selecing a guideline version in the Versions Page.

Note: For additional information, refer to the Custom Program Guidelines section.



Building Matrices or Conditions

• In order to have an adjustment display as a line item in the details, add a description. If a description is not added, the value will be consumed in the base price or rate instead of a line item in the details.

▪ The below example shows a base rate of 3.75 with separate line items of descriptions and adjustments.

▪ In the condition we have added the highlighted line that does not have a description associated with the highlighted line 38. This is a rate adjustment of 5.



▪ After adding the above line 38 in the condition and running qualification, the details displayed below (from the qualify tab), display a base of 8.75 showing the rate adjustment of 5, being consumed into the base rate.

• Any Reject or LLPA Action, Clients MUST put a note stating why it’s rejected in order to display in Qualification.

• MaxLoan Amount can be handled in Guidelines or Conditions.

o MaxLoan Amount should be maintained in Guidelines if the maximum loan amount is outside Agency limits (Non Agency)

o If MaxLoan Amount is multiple levels, best practice is to build out in Guideline Conditions so you can add notes

• MaxCash (Cashout) can be handled in Guidelines or Conditions

o Utilize “leading 0s” prior to decimal points when building any Objects and adding notes. Not leading with 0s can potentially cause a “miss” in a decimal causing a potentially substantial and incorrect adjustment. Adding leading 0s make the decimal point more visual.

• When Implementing a Guideline Swap, utilize the following format which will enable you to enter a note for clarification

Overall Custom Program Best Practices

• Editing names inside Programs and Objects does not update references. If you update Program names,

they must be updated manually in ALL references. Ellie Mae advises against updating names once they

have been linked to objects unless the Client is confident all references have been identified.

• Editing Production Versions

▪ Any Edits to a Production Version at any time are for historical purposes effective as of the Version’s effective date

▪ Most changes to a Production Version should be handled by creating a new Version



• Check the Effective Dates

▪ A Custom Program Version is valid for the period of time between its Effective Date and the Effective Date of the prior version

o Users can insert Versions into the historical chain

• Use the Test Feature for Custom Programs

▪ Includes Test Version objects in Qualification (including Rules)

▪ Trace can help identify why Custom Programs might be failing in Qualification

o Trace is further detailed below in the Virtual Programs section of this document

• Guidelines should always be the least restrictive

• Conditions should be more restrictive

• Keep “like” Conditions together in the condition set.

• Risk Matrix Definitions cannot be blank. The EPPS Tech Ops uses the best practice to make the value you are not restricting as the high number.

▪ In the below example, the EPPS Tech Ops uses “99” in the lates that are not restricted

• Any rules pertaining to DTI should be handled in a Condition

• Recognize the importance of “Exit at first match” and “Error if no match found” checkboxes in Matrix Definitions

▪ In the example below, “Conv Misc. Adj” Matrix Definition displays a Matrix where the 2 checkboxes are not applicable.



▪ In the example below, “Agency Fico/LTV” Matrix Definition displays a Matrix where the 2 checkboxes are applicable and very important. If the “Exit at first match” checkbox is unchecked, qualification will process and apply ALL LLPAs the loan scenario may match. If the “Error if no match found” checkbox is unchecked, qualification could potentially miss an LLPA when each loan scenario should fit one of the adjustments defined in the matrix.

• When Custom Programs utilize Conditions, Guidelines and Ratios of another Investor as the example below, for the time being, Clients will be unable to view Conditions, Guidelines and Ratios of other Investors on the Maintain Custom Programs page accessed through the CPM link.

• You cannot delete a promoted object version. If you accidentally promote a version, copy the last correct

promoted version, change the date/timestamp to be 2 minutes AFTER the accidentally promoted version,

make your edits and promote. This workaround will limit the incorrect version to only being active for 2

minutes hopefully mitigating any pricing inaccuracies.

• Conditions and Matrices expression values can be multiselected by using the control button. This is

useful for expressions utilizing States, PUsage, PType, etc. However, proceed with caution utilizing

multiselect as EPPS will not stop you from selecting expression values that are not necessarily mean to

be selected together.

Virtual Programs

Section

3


42 Section 3: Virtual Programs

Virtual Programs

Client Admins can use virtual programs when they want to reference an existing Investor program and create a

replica program offering both their virtual program and the Investor’s program.

• Clients can either use their own uploaded pricing or the pricing of the Target Investor.

▪ Target Investor is the Investor the virtual program will be based upon.

• Clients want to duplicate an existing Investor program and add simple overlays in the Rule Manager.

▪ Client can either use their own uploaded pricing or the pricing of the Target Investor.

Tip: Clients can create virtual/custom programs and insert versions between existing virtual/custom programs.

The Rule Manager has a definitive effective and expiration date. Clients are urged to carefully coordinate effective

and expiration dates when creating virtual/custom programs AND rules in the Rule Manager.

Virtual Program Wizard

The Virtual Program Wizard enables Client Admins to create multiple virtual programs in one action. Client

Admins can create up to 200 current production virtual programs to be active at one time. The number of

remaining active Production virtual programs is displayed when the Virtual Program Wizard is selected from the

CPM page.

Creating a Virtual Program

1. Click on the CPM link.

2. On the CPM page, select Virtual Program Wizard.

3. Select the Custom Investor under which the virtual program will be created from the drop-down list.

Note: The Investor must be set up as “Available” to CPM by Ellie Mae.

4. Select an Effective Date.


Section 3: Virtual Programs 43

5. Complete the following fields:

• Target Investor – Referenced Investor for the Virtual Program

▪ When any eligibility rules, such as guidelines, conditions, or ratios are updated for the

Target Investor by Ellie Mae, the rules associated with the virtual program with the same

assigned Target Investor will also update.

▪ Loan level price adjustments (LLPAs) associated with the virtual program will be updated

in Matrices as maintained by Ellie Mae for the Target Investor.

• Product Type – Agency, Non-Agency, FHA, VA, USDA.

• Loan Limit – Defined loan limits (ex. Conforming, High Balance).

• Type – Loan type or term of loan.

• Program – Existing and defined programs for selected Target Investor.

• Rates – Existing and defined rates for selected Custom Investor OR use Target program rates (existing and defined rates for the Target Investor).

• Virtual Name – Clients desired naming convention for virtual program. Ellie Mae recommends choosing unique and meaningful names.

• Program Code – Clients desired program or product code for virtual program. Ellie Mae recommends choosing unique and meaningful program codes

6. Use the following Actions:

• Append – Adds defined fields to the Virtual Program Wizard grid and clears defining fields for next virtual program to be created.

• X - Deletes the virtual program.

• Save – Saves the virtual program defined in the wizard.

• Cancel – Closes the Virtual Program Wizard and all work will be lost.

Maintain Virtual Programs

Use Maintain Virtual Programs to edit and maintain virtual programs.

• The Maintain Virtual Programs link displays the Virtual Programs Listings page. This page displays

virtual programs for the selected Custom Investor ONLY.

• Batch Expire – Expires selected virtual programs (with corresponding check boxes).

• Close – Closes Virtual Programs page and brings you back to the CPM landing page.



• Filter products based on the criteria below located in the drop-down field by selecting one and clicking

add.

▪ Product Type – Provides the ability to filter down to virtual programs categorized as Agency, Non-agency, FHA, VA, or USDA.

▪ Loan Limit Type – Provides the ability to filter down to virtual programs categorized as Conforming, Agency High Balance, FHA or HUD 184.

▪ Program Type – Fixed terms, ARM terms, Balloon terms and HELOC.

• Header fields are sortable alphanumerically in ascending or descending order by clicking on the blue

header field.

• A Red Flag next to virtual programs indicates there is an error with pricing. The pricing is missing,

hasn’t been uploaded, or is out of date.

• If a flag displays next to any virtual program as above, a current production version of the virtual program is experiencing one or more of the following scenarios:

o Its Target Program is disabled.

o Its Target Investor Relationship is disabled.

o Its Target Investor is disabled and/or deleted.

• Far Right “Dis” column is the Disabled column.

• L = Client Custom Investor is Disabled

o If an “L” is present in the “Dis” column and no flag is present next to the corresponding

program.

o If an “L” is present in the “Dis” column AND a red flag is present next to the

corresponding program, there is a pricing issue with the Target Investor as mentioned

above in Flags AND the Client’s Custom Investor.

• “NP” column indicates the number of versions of the program that are NOT promoted to production.

• “PC” column indicates the number of versions of the program that are promoted to production.

Actions Available

The Virtual Program Listing Page provides the Client Admin with four Actions.

• View – Opens the Virtual Program Definition page in view ONLY mode.

Note: Save is disabled since this is a view ONLY page. To exit page, select Cancel.



• Versions – Opens the Virtual Program Versions page, which displays all versions of the program.

• Hide – Hides the row (stored for historical purposes) from the Virtual Program Listing page. All hidden

rows can be viewed by selecting the Hidden check box. To display a hidden row, select Hide again.

▪ A message appears asking to delete or undelete the selected program. Selecting OK removes the

program from the Virtual Program Listing page.

• Expire – Expires the selected virtual program.

• A message appears asking to Expire the selected Program. Selecting OK expires the virtual program and makes it unavailable for Production.

Virtual Program Versions Page

The Client Admin can select the Program field links to open the Virtual Program Versions page.

The Virtual Program Versions page displays all versions, test and production, of the virtual program. The Virtual

Program Versions page also displays the profile of the program (test or production), their effective date, last

change date, and managing user for each version.



Actions Available

Client Admins can select the following Actions links.

• Edit – Enables Client Admins to edit a version of the virtual program (Test or Production). The fields on the Virtual Program Definition page are the same as the ones defined in the Virtual Program Wizard.

Tip: As a best practice, Ellie Mae does not recommend editing Target Investor or Product Type for

Production virtual programs. To prevent confusion or errors with historical pricing, Ellie Mae recommends

disabling the virtual program and creating a new virtual program with the desired Target Investor or

Product Type.

• Cancel – Closes the page, returns the Client Admin to the Virtual Program Versions page, and does not save any changes made to the virtual program.

• Copy – Creates a copy of the virtual program. Client Admins can change any parameter, but if the Client

Admin is making an exact copy, only the effective date needs to be modified. Clicking Save will save the

copied virtual program.

• Promote – Enables Client Admins to promote their virtual programs to production. Ellie Mae recommends

all Client Admins test all virtual programs through qualification prior to promotion to confirm the virtual

programs fire and price as expected.

▪ Promote will ONLY be available for programs in Test profile (NOT production).

▪ By selecting promote, the effective date for the selected virtual program will be overridden, and then the program will be moved from Test to Production.

▪ If another version of the virtual program is currently in Production, the promoted virtual program will become the active program and the version previously in Production will be disabled.

▪ Effective dates for promotion of virtual programs are key to historical pricing.

• Delete –Delete is only available for virtual programs in Test profile. Production versions can not be deleted for historical purposes.

• Deleted Check Box – Displays all deleted virtual programs stored for historical purposes. If you select Delete on an already deleted version, it will return to the versions page displayed when the Deletec Check Box is unselected.



Creating a Sample Virtual Program

A Client would like to create a virtual program that is the same as a Targeted Investor’s (Chase, Wells, Freedom,

etc.) 30 Year Fixed, but with a stricter FICO requirement than that of the Target Investor’s 30 Year Fixed. The

Target Investor in this example will be “AAA Test”.

The virtual program will point to the setup of the selected Target Investor program the Client wishes to mirror

(AAA Test 30 Year Fixed) with a FICO rule created in the Rule Manager. This rule will disqualify loans based on

the AAA Test 30 Year Fixed qualification criteria the virtual program is pointing at with an added layer tightening

the FICO requirement.

Creating a Virtual Program

1. On the CPM page, click Virtual Program Wizard to create a virtual program.

2. Select a Custom Investor. In this example, “0 Beyer Investor”.

3. Enter an Effective Date.

4. Select AAA Test as the Target Investor. The virtual program will use the AAA Test guidelines and

conditions in accordance with the other selected fields.

5. Selected program parameters are Conforming 30 Year Fixed.

6. Rates can be selected as rates defined in your Custom Investor OR using Target program rates AAA

Test pricing.

Note: The example uses the Target Investor AAA Test’s rates.

7. Enter a Virtual Name describing the virtual program.

8. Enter a distinctive Program Code for the virtual program.

9. Click Append to add the program to the grid.



10. Click Save.

• Cancel will discard the virtual program.

11. A new virtual program referencing the AAA Test 30 Year Fixed product is created and named “Veronika

CON30F”.

The Client Admin will add an overlay to the Veronika CON30F virtual program by creating a rule in the Rule

Manager disqualifying loans with a stricter FICO.

Note: Refer to the Using the EPPS Rule Manager document for more details on the Rule Manager.

Creating a Rule

1. On the CPM page, click Rule Manager.

2. Complete the following fields to disqualify loans that are “Virtual Programs, 30 Year Fixed Agency

Products with FICO/credit score less than 700”:

• Effective Date

• Expiration Date (if date has been defined)

• Task (for this example, “Disqualify a Loan”)

• Conditions (these conditions drill down to the exact program definition to fire on 30 Year Fixed Agency Virtual Programs)

▪ Programs is Virtual

▪ Credit Score < 700

▪ Fixed Rate

▪ Loan Term

▪ Product Type

▪ The Client Admin can also add more conditions drilling the rule down to fire only for specific offices, programs, etc.

3. Click Save.

http://help.elliemae.com/DocumentationLibrary/360/UsingEPPSRuleManager.pdf



Testing Virtual Programs

After the virtual program is created and set up, Ellie Mae recommends Client Admins test their virtual programs

and verify they are firing as expected.

Client Admins must enable virtual or custom programs (under Admin>Programs) and Save in order for any Test

or Production loans to qualify under the new virtual or custom program.

Testing a Virtual Program

1. Create and qualify a loan intended to fire your new virtual program in EPPS (under Home> My

Loans>Create new loan).

2. Complete the following tabs with qualifying loan information:

• General

• Borrower

• Finances

• Property

3. Clicking Qualify will display a list of qualified loan programs.

4. Note programs for comparison:

• AAA Test (Target Investor), AAA Test 30 Year Fixed – Full Doc (Target Product)

• 0 Byer Investor (Custom Investor), Veronika 30 year fixed – Full Doc (Virtual Program)

5. Both the Target Investor’s product and the Custom Investor’s virtual program will qualify. Since the FICO

overlay rule is in Test profile, Client Admins will need to click Test to validate their rule fires as designed.

• Clicking Test will qualify the loan using any existing Test virtual programs and overlays created in the Rule Manager.

• As illustrated in the screen shot below, after clicking Test, the FICO disqualification rule is applied for this loan with a FICO of 600.



6. Client Admins can validate rules are firing:

• In this case, the rule disqualifies the loan, showing up in the ineligible box and shaded in red.

▪ The Program Note defined in the Rule Manager fired. In this case, “Minimum Fico/credit

score is 700”.

7. Client Admins can verify virtual programs and overlay rules are working as expected by comparing the

qualification results before executing the Test to the results from the Test qualification with the Test virtual

program and overlay rules applied.

Ellie Mae recommends Clients create and qualify loans intended for a positive and negative test ensuring

virtual programs are firing intended eligibility and LLPAs, including overlay rules in the Rule Manager.

8. Validate the Summary page by changing the FICO to 700 so the virtual program will pass qualification

and the Test button and pricing can be selected.

9. After testing and validating the virtual programs, and if applicable, overlay rules from the Rule Manager,

they are ready for promotion.

Note: Promotion is explained in greater detail in the Virtual Programs Version Page and Promotion

Management sections of this document.



Troubleshooting – Trace

Trace will be available to users who are assigned Trace Manager Rights by their Client Admins under their

Profile. Trace offers users a step-by-step view of qualification results by program to diagnose any unexpected

qualification results.

The trace functionality is located within every product, eligible and ineligible, returned in Qualify.

• Locate the trace link to the right of each Product name.

• Click the trace link.

This example displays the trace results for the qualified virtual product of Veronika 15 Yr Fixed. It references the

Target program of Pacific Union’s Conventional Fixed 30.



Promotion Management

Virtual programs are defined with an effective date in the Virtual Program Wizard. After virtual programs have

been created, tested, and confirmed as firing correctly, they will be promoted to Production in one of two (2) ways:

• Promote feature in Virtual Program Versions Page

• Promotion Management link on the CPM page

All virtual programs must be promoted. They will NOT automatically be moved to Production on their effective

date without being promoted.

• The Effective Date is a required field during the virtual program setup in the Virtual Program Wizard. It

can be modified in each individual program using the Virtual Program Definition page under Maintain

Virtual Programs.

The Virtual Programs Promotion Management page displays all virtual programs in Test profile. Client Admins

can execute a mass approval and override the original effective dates using Promotion Management.

Note: Override Effective Date is useful to Client Admins creating multiple virtual programs who want to give all

virtual programs the same effective date timestamp.

Virtual programs promoted with effective dates in the past (back date) will potentially cause historical pricing

issues. Ellie Mae recommends overriding effective dates to the current date or individually promote virtual

programs with current effective dates.

For easy identification, virtual programs will turn RED in the Virtual Program Promotion Management on their

effective date if it is still in Test Profile.



If the Client Admin would like to move the effective date, it can be done in the Virtual Program Promotion

Management. In the above example, the original effective date is 7/28/2017 and the current date is 8/1/2017.

Since the initial effective date has passed, the Client Admin can override the effective date by completing the

following:

1. Select the check box next to the virtual program.

2. Enter a new Effective Date.

3. Select the check box next to Override Effective Date

4. Select Promote.

Selecting the virtual program name on the Virtual Programs Promotion Management will open the Virtual Program

Versions page.

Custom Programs

Section

4


Appendix 1: Objects 55

Custom Programs

Custom Program Wizard

The Custom Program Wizard enables Client Admins to create multiple custom programs in one action. Custom

programs are created by copying existing programs and all their related objects to the Custom Investor. Unlike

virtual programs, Client Admins can modify guidelines, conditions, and other program components to design their

custom program.

Custom programs, like all standard programs, must be assigned, guidelines, ratios, and conditions. These

objects define the eligibility components of the custom program.

All programs are currently functioning and firing successfully within EPPS, and returning expected results. Ellie

Mae recommends all Clients fully consider any and all implications of changes made within the objects of a

program.

Creating a Custom Program

1. Click on the CPM link.

2. On the CPM page, select Custom Program Wizard.

3. Select an Investor.

4. Apply filters to drill down the program selection to locate the program to copy into a new custom program

by selecting filters in the drop-down field and clicking add.

• Product Type – Gives ability to filter down to virtual programs categorized as Agency, Non-agency, FHA, VA or USDA

• Loan Limit Type - Gives ability to filter down to virtual programs categorized as Conforming, Agency High Balance, FHA or HUD 184

• Program Type – Fixed terms, ARM terms, Balloon terms and HELOC

5. Select a Custom Investor.

6. Enter an Effective Date.

7. Header fields are sortable alphanumerically in ascending or descending order by clicking on the blue

header field.

8. Condition link displays the Condition Versions page.

9. Guideline link displays the Guideline Versions page.

10. Select the check box on the far left of the grid with the corresponding Investor program to copy and create

the custom program.

11. Click Copy,

12. Close the Custom Program Wizard and navigate back to the CPM menu.


56 Section 4: Custom Programs

13. Click Maintain Custom Programs and select the Custom Investor from the drop-down list.

• The copied program from the Custom Program Wizard is displayed on the Custom Programs page.

Maintain Custom Programs

Use Maintain Custom Programs to edit and maintain custom programs.

• The Maintain Custom Programs link displays the Custom Programs Listings page which displays

custom programs ONLY for the selected Custom Investor.

• Close – Closes Custom Programs page and brings you back to the CPM landing page.

• Filter products based on the criteria below located in the drop-down field by selecting one and clicking

add.

▪ ARM

▪ ARM Index

▪ Disabled

▪ DisabledAny

▪ Documentation

▪ Flags

▪ Loan Limit Type

▪ Options

▪ ProductType

▪ ProgramType

• Multiple filters can be applied at one time to narrow down the search for custom programs.

• Undo filters by clicking the Clear button.

• Header fields are sortable alphanumerically in ascending or descending order by clicking on the blue

header field.



• Columns link gives the Client Admin the ability to customize the columns listed in the page.

▪ The Custom Programs listing page defaults to the following columns:

o Condition – Assigned Condition Name

o DisStatus – Disabled Statue

o Guideline – Assigned Guideline Name

o LoanLimit – Assigned Loan Limit

o MinCredit – Minimum credit/fico score for eligibility

o ProductType – Assigned Product Type (Agency, Non Agency, etc.)

o ProgramType – Assigned Program Type (Term type 30 year fixed, 15 year fixed, 5/1

ARM, etc)

o Rate Def

o Ratio – Assigned Ratio Name

▪ To customize the columns in the Custom Programs listings page:

o Click on the Columns link.

• Select the check boxes for the desired attributes.

• Click Update.

• The Custom Programs listing page will update with the selected columns.

o To revert to default columns:

• Click on the Columns link.

• Click Default at the bottom of the popup



• The Custom Programs listing page will update with the default columns

o All or none of the column attributes in the Columns link popup can be selected and

applied.

• A Red Flag next to a custom program indicates there is an error with pricing (i.e., pricing is missing, has

not uploaded, or is out of date).

Actions Available

The Custom Program Listing Page provides the Client Admin with four Actions.

• View – Opens the Custom Program Definition page in view ONLY mode...

▪ Save is disabled since this is a view ONLY page. To exit page, select Cancel.

• Versions – Opens the Custom Program Versions page, which displays all versions of the program.

▪ Hide – Hides the row (stored for historicial purposes) from the Custom Program Listing page. All

hidden rows can be viewed by selecing the Hidden check box. To display a hidden row, select

Hide again

o A message appears asking to delete or undelete the selected program.

o Selecting OK removes the program from the Custom Program Listing page.

• Expire – Expires the selected virtual program.

▪ A message appears asking to Expire the selected Program.

o Selecting OK expires the custom program and makes it unavailable for Production.



Custom Program Versions Page

The Client Admin can select the Program field links to open the Custom Program Versions page.

The Custom Program Versions page displays all versions, test and prodction, of the custom program. The

Custom Program Versions page also displays the profile of the program (test or production), their effective date,

last change date, and managing user for each version.

Actions Available

Client Admins can select the following Actions links:

• Edit – Enables Client Admins to edit a version of the custom program (Test or Production).

▪ Ellie Mae does not recommend editing a Production version of the custom program, for historical

purposes. Consider creating a new version of the custom program using Copy or Clone.

▪ The fields on the Virtual Program Definition page are the same as the ones defined in the Virtual Program Wizard.

• Cancel – Closes the page, returns the Client Admin to the Virtual Program Versions page, and does not save any changes made to the virtual program.

• Copy – Creates a copy of the custom program. Client Admins can change any parameter, but if the Client

Admin is making an exact copy, only the effective date needs to be modified. Clicking Save will save the

copied custom program.



• Promote – Enables Client Admins to promote their custom programs to production. Ellie Mae

recommends all Client Admins test all custom programs through qualification prior to promotion to confirm

the custom programs fire and price as expected.

▪ Clients can identify a custom program as “Production” as it displays at the top of the

Custom Program Definition page in RED as Production next to Profile under the Effective

Date.

▪ Promote will ONLY be available for custom programs in Test profile (NOT production).

▪ By selecting Promote, the effective date for the selected custom program will be overriden and move from Test to Production.

▪ If another version of the custom program is currently in production, the promoted custom program will become the active program and the product previously in production will be disabled.

▪ Effective dates for promotion of custom programs are key to historical pricing.

• Delete –Delete is only available for custom programs in Test profile. Production versions can not be deleted for historical purposes.

• Deleted Check Box – Displays all deleted custom programs stored for historical purposes. If you select Delete on an already deleted version, it will return to the versions page displayed when the Deletec Check Box is unselected.



Maintain Guidelines

Investors publish hard guidelines for eligibility. These guidelines are built into EPPS to mimic the published

versions. Client Admins can asign and modify guidelines to apply to their custom programs. Clients are

responsible for all updates and maintenance to their active custom program guidelines.

Note: Refer to the Guidelines section for detailed information about guidelines.

Maintain Ratios

Ratios house the back-end ratio limitations implemented by investors for loan eligibility. Client Admins can modify

existing Ratios to apply to their Custom Programs.

Note: Refer to the Ratios section for detailed information about ratios.

Maintain Conditions

Conditions are soft guidelines from the investor. These guidelines are ancillary eligibility rules to enhance the hard

guideline grid published by the Investor. Clients can assign and modify conditions to apply to their custom

programs. Clients are responsible for all updates and maintenance to their active custom program conditions.

Note: Refer to the Conditions section for detailed information about conditions.

Maintain Risk Grades

Risk hrades house delinquency, bankruptcy and foreclosure limitations implemented by investors for loan

eligiblity. Risk matrices are ideal for Clients to build out Non-Prime.

All copied custom programs will already be assigned risk matrices if defined by the owning Investor.

Note: Refer to the Risk Grades section for detailed information about risk grades.

Maintain Matrices

Matrices house pricing actions to be taken on loans falling within certain parameters. LLPAs are written in the

Matrices object in EPPS to determine individual loan pricing.

Note: Refer to the Matrices section for detailed information about matrices.

Promotion Management

Custom programs are defined with an effective date in the Custom Program Wizard. After custom programs have

been created, tested, and confirmed as firing correctly, they will be promoted to Production in one of two (2) ways:

• Promote feature in Custom Programs Version Page

• Promotion Management link on the CPM page

Custom programs must go through the promote process. They will NOT automatically move to Production on their

effective date without promoting them

The Effective Date is a required field during the custom program setup in the Custom Program Wizard. It can be

modified in each individual program using the Custom Program Definition page under Maintain Custom Programs.

The Promotion Management displays all custom programs in Test profile. Client Admins can execute a mass

approval and override original effective dates defined during creation using the Promotion Management.

Note: Override is useful to Client Admins creating multiple custom programs who want to give all virtual programs

the same effective date timestamp.

Custom programs promoted with effective dates in the past will back date and potentially cause historical

pricing issues. Ellie Mae recommends overriding effective dates to current dates or individually promote

custom programs with current effective dates.



For easy identification, custom programs will turn RED in the Custom Program Promotion Management on their

effective date if it is still in Test Profile.

If the Client Admin would like to move the effective date, it can be done in the Custom Program Promotion

Management. In the above example, the original effective date is 7/28/2017 and the current date is 8/1/2017.

Since the initial effective date has passed, the Client Admin can override the effective date by completing the

following:

1. Select the check box next to the custom program.

2. Enter a new Effective Date.

3. Select the check box next to Override Effective Date

4. Select Promote.

Selecting the custom program name on the Custom Programs Promotion Management will open the Custom

Program Versions page.

The Custom Program Management can also be used to promote guidelines, ratios, conditions, and matrices.

Maintain Geographies

Clients can apply geographies to their expressions in conditions or matrices. Geographies can include States,

Counties, Zip Codes, MSAs, Census Tracts, County Codes and State Codes to group together in one Geography

and apply as a simple expression inside a condition.

Note: Refer to the Geographies section for detailed information about geographies.



Maintain Program Flags

Clients can create program flags to identify loan characteristics and use them within conditions.

Loan Limits Table

Clients can find and reference loan limits built into EPPS by selecting Loan Limits Table on the CPM page. Loan

Limits default to the National Loan Limits.

Loan Limits can be determined by:

• Zip code OR

• State and County

• Effective Date (If blank, results will default to current date)



Loan Limits Table Example

• State = NJ and County = Morris

▪ Results display 5 effective Loan Limit Types

o GSE General Conforming – Effective Date – 1-4 Unit Loan Amount Limits

o GSE High Balance – Effective Date – 1-4 Unit Loan Amount Limits

o FHA 203(b) High Cost – Effective Date – 1-4 Unit Loan Amount Limits

o VA Maximum Guaranty – No Effective Date – 1-4 Unit Loan Amount Limits

o HUD 184 – Effective Date – 1-4 Unit Loan Amount Limits

• The loan limit results table provides the maximum potential loan amount for a specific county.

• Factors could enforce lower limits in certain areas determined in guidelines or conditions.

• The VA Maximum Guaranty is based on a maximum loan amount for which the VA may provide a guaranty. An actual guaranty amount must be based on specific loan parameters.

Objects

Appendix

1


66 Appendix 3: Conditional Actions and Matrix Actions

Program

Rates - Rate Definition

Program Rate Version

Program Rate Definition

Lock

Base

+ Points

+ Rate

Risk Matrix - Risk Grade

Risk Grade Version

Risk Grade Definition

Order

Grade

Min Credit

Max LTV

Max CLTV

Max HCLTV

Max 30 day lates

Max 60 day lates

Max 90 day lates

Max 30 day lates in 24 mo



Max Ch 7, 11 ,13 Bankruptcies

Max Short Sales

Max Deed in Lieu

Max Foreclosure/Defaul

t

Guideline

Rate Definition

Guidelines

Guideline Version

Guideline Definition

Loan Usage

Property Usage

Property Type

Min Credit

Max LTV

Max CLTV

Max HCLTV

Max Loan Amount

Max Cashout

Ratios

Ratio Version

Ratio Definition

Loan Usage

Property Usage

Property Type

Min Credit

Max LTV

Max CLTV

Max HCLTV

Max Loan Amount

Min Reserves

Min Front End Ratio

Min Back End Ratio

Conditions

Condition Version

Condition Definition

Expression

Action

Description

Note

Internal Note

Geographies

Geography Version

Geography Definition

State

County

Zip

MSA

Census Tract

County Code

State Code

Matrices

Matrix Version

Matrix Definition

Variable

Scheme

Action

Expression

Program Flags

Global

Investor Specific



Break Down of the Objects of a Program

In CPM, the objects described below are available for maintenance.

• Guidelines – Hard guidelines for eligibility published by the investor that are built into EPPS to mimic

these published guides

• Ratios – House the back end ratio limitations implemented by investors for loan eligibility

• Conditions – Soft guidelines from the investor. Soft guidelines are ancillary eligibility rules to enhance

the hard guideline grid published by the investor

• Risk Grades – House Delinquency, Bankruptcy and Foreclosure limitations implemented by investors for

loan eligiblity

• Matrices – House Pricing actions to be taken on loans falling within certain parameters. Loan level

pricing adjustments (LLPAs) are written in the Matrices object in EPPS to determine individual loan

pricing

• Geographies – Geographies is part of a continued effort to support geocoding-based pricing and

qualification.

• Program Flags – Clients can create Program Flags to identify loan characteristics and use them within

Conditions

• Rate Definition – Outside CPM Menu managed by Client Admins. Ellie Mae works with each Client to

set up and maintain Rate Definitions. Rate Definitions define the ratesheet structure developed, created

and assigned by each Client/Investor relationship.



Guidelines

Hard guidelines for eligibility published by the investor that are built into EPPS to reflect these published guides.

• Name – Required. Will be used to list/sort guideline definitions.

• Loan Usage – Optional. Type in 1 or more Loan Usages to which this guideline applies, or leave blank

for "any".

• Prop Usage – Optional. Type in 1 or more Property Usages to which this guideline applies, or leave

blank for "any".

• Property Type – Optional. Type in 1 or more Property Types to which this guideline applies, or leave

blank for "any".

• Credit – Optional. The minimum credit allowed for this guideline.

• LTV – Required. The maximum LTV allowed for this guideline. Expressed as whole number, e.g. "80".

• CLTV – Optional.

Guidelines

Loan Usages

blank (Any)

Pur -Purchase

RT -Rate/Term Refinance

CO - C/O Refinance

Cn -Constructio

n

C2P -Constructio

n-Perm

Prop Usage

blank (Any)

Pri - Primary Residence

Sec -Secondary Residence

Inv -Investment/

Rental

Prop Type

blank (Any)

1F - 1-Family

2F - 2-Family

3F - 3-Family

4F - 4-Family

CL - Condo 1-4 Story

CM - Condo 5-8 Story

CH - Condo 9+ Story

CD - Condo Detached

TH -Townhouse

CP - Coop

DM -Double-

wide Mobile

MN -Manufactur

ed

PD - PUD

Credit LTV CLTV HCLTV MaxLoan MaxCash



• HCLTV – Optional.

• Max Loan – Optional. The maximum loan amount allowed for this guideline. If blank, defaults to GSE

General Conforming limit for the given property type.

• Max Cash – Optional. Maximum cash-out allowed.

Deciphering Example below: 3 rows of Guidelines displayed. (Check boxes example displayed for 1st line)

• Loan Usage – 1st line = If loan is Purchase, 2nd line = If loan is RT, 3rd line = If loan is CO

• Prop Usage – All 3 lines apply to Primary Residences

• Property Type – Multiple Property Types selected to all 3 lines

• Credit – Minimum credit is 300. Low enough to not exclude any loans hitting these rules due to credit

• LTV – Maximum LTV differs based on loan purpose of Purchase, RT or CO

• CLTV – Maximum CLTV differs based on loan purpose of Purchase, RT or CO

• Max Loan – Not defined in guideline, therefore applying to all loan amounts and not disqualifying loans

for max loan amount in this Guideline

• Max Cash – Not defined in guideline, therefore not disqualifying loan for max cash out in this Guideline



Matrices

Pricing actions to be taken on loans falling within certain parameters. All LLPAs (Loan Level Pricing Adjustments)

are housed in Matrices

:

Matrices

Variable

CLTV

Credit Score

DSCR

HCLTV

Lock Days

LTV

Mortgage Term

Mortgage Term Fixed

PPPYears

Qualification Loan

Amount

Scheme

> LowVal <= HighVal

>=LowVal < High Val

Action

Adjust Margin

Adjust Final Price

Adjust Rate

Adjust Rate and Margin

Adjust SRP

Expressions

Annual Income

ARM

Bankrupt

Bankrupt11

Bankrupt13

Bankrupt7

Base Loan Amount

BorrowerComp

CashOut

CensusTract

Channel

CLoanAmount

CLTV

Community/Affordabl

eSecond

Concessions

ConcessPct

Condo

CondoAttached

Expressions contd...

Condotel

ConfLimit

Conforming

Conventional

Credit

CreditorComp

CustomProgram

Default

DefaultDeedinLieu

DefaultForeclosure

DefaultShortSale

Delivery Type

Doc

DownpayPct

DownpayctING

DSCR

EPASSCustomField

FHA

FinancedMIP

FirstAmount


fLocal1

FTHB

Geography

Gift

GiftPct

Guideline

HCLTV

HELOC

HIBalLimit

iLocal1

IsDSCR

IsNoCreditScores

LenderFeeWaiver

LienPos

LoanAmount

Lock Days

LTV

LUSage

MSA

MtgHistory


MtgLate30

MtgLate30x24

MtgLate60

MtgLate60x24

MtgLate90

MtgLate90x24

MtgLates

MtgLatesx24

NoClosingCost

NumBorrowers

NumProps

NWCondo

Office

OfficeCategory

Options

PPPDisp

PPPYears

ProductType

Program

ProgramFlag

Expresssions contd...

ProgramType

PType

PUnits

PUsage

RiskGrade

RuralUnique

SelfEmployed

State

StateCode

Statements

SubFin

TargetInvestor

Term

TermFixed

TotalLoanAmount

USDA

VA

VAConfLimit

VAConforming

Virtual Program

WSChannel



• Variable – the loan parameter to be evaluated along the horizontal axis

• Scheme – Greater than X and Less than or equal to Y or Greater than or equal to X and Less than Y

• Action –to be taken to pricing for loans falling within defined parameters

• Short Circuit Evaluation – ends process when loan finds most appropriate value

• Must Find Value – All loans referencing the grid with a Must Find Value Checkmark, must find an

applicable action within the grid, else there is an error within the loan setup

• Expression - Required. The logical expression that will be evaluated. If true, the Action will be applied.

Deciphering Example below: Fico/LTV Grid

• Variable – LTV. Exact LTV values and tranches determined by Investor/Client in published pricing grids.

Written in decimal

• Scheme – Greater than X and Less than or equal to Y or Greater than or equal to X and Less than Y

• Action – an Increase to price anywhere from .25bps up to 2.5pts.

• Credit score = 705 and LTV = 85, LLPA = 1pt increase in price to the loan

• Short Circuit Evaluation – Checked to end process when loan finds most appropriate value

• Credit score = 705 and LTV = 85, LLPA = 1pt increase in price to the loan. Even though loan falls into

tranches >=640 all the way up to >=700, the grid will stop evaluating when it hits the >=700, the most

appropriate value

• Must Find Value – All loans referencing the grid with a Must Find Value Checkmark, must find an

applicable action within the grid. All loans referencing this grid should have a valid credit score and LTV

to find an appropriate pricing adjustment

• Expression – Credit, broken out in greater than or equal to tranches



Ratios

Definitions for Back End Ratio limitations implemented by investors for loan eligibility

:

• Name – Required. Will be used to list/sort ratio definitions.

• Loan Usage – Required. Select 1 or more Loan Usages to which this ratio line applies.

• Prop Usage – Required. Select 1 or more Property Usages to which this ratio line applies.

• Property Type – Required. Select 1 or more Property Types to which this ratio line applies.

• Credit – Optional. The minimum credit allowed for this ratio line.

• LTV – Required. The maximum LTV allowed for this ratio line. Expressed as whole number, e.g. "80".

• CLTV – Optional.

• HCLTV – Optional.

• MaxLoan – Optional. The maximum Loan amount for this ratio line. Not to be used in lieu of guidelines.

• Resrv – Required. The months of PITI reserves required for this Ratio line.

• FR – Optional. The Front or Housing ratio. Expressed as whole number, e.g. "28".

• BR – Required. The Back or Total Debt ratio. Expressed as whole number, e.g. "36".

Ratios

Loan Usages

blank (Any)

Pur -Purchase

RT -Rate/Term Refinance

CO - C/O Refinance

Cn -Constructi

onC2P -

Construction-Perm

Prop Usage

blank (Any)

Pri -Primary

ResidenceSec -

Secondary Residence

Inv -Investmen

t/Rental

Prop Type

blank (Any)

1F - 1-Family

2F - 2-Family

3F - 3-Family

4F - 4-Family

CL - Condo 1-4 Story

CM -Condo 5-8

StoryCH -

Condo 9+ StoryCD -

Condo Detached

TH -Townhous

e

CP - Coop

DM -Double-

wide MobileMN -

Manufactured

PD - PUD

Credit LTV CLTV HCLTV MaxLoan Resrv FR BR



Deciphering Example below: 2 rows of Ratios displayed. (Checkboxes example displayed for 1st line)

• Loan Usage – Any loan purpose is applicable.

• Prop Usage – Any property usage type is applicable.

• Property Type – 1st line = all single-family property types. 2nd line = Multifamily property types

• Credit – No credit requirements are defined for these ratio rules.

Tip: Best practice is to handle credit/fico requirements within guidelines and more specifically in

conditions to minimize the number or rules to maintain when updates are passed by the Investors or

Clients.

• LTV – Maximum LTV is 200. High enough to not exclude any loans hitting these rules due to LTV.

• MaxLoan – Not defined in ratio, therefore applying to all loans amounts and not disqualifying loans for

max loan amount in this ratio.

• Resrv – 1st line = Single family property types do not require reserves (Principal, Interest, Taxes,

Insurance). 2nd line = Multifamily property types requires 6 months reserves (Principal, Interest, Taxes,

Insurance).

• FR – Not defined in Ratio, therefore applying to all loans amounts and not disqualifying loans Front End

Ratio in this Ratio definition

• BR – Maximum Back End ratio is 70%. High enough to not exclude any loans hitting these rules due to

Back End Ratio



Risk Grades

Gives the ability for Clients to setup bankruptcy and foreclosure requirements. Risk matrices are ideal for Clients

to build out Non-Prime

• Order – # order determined by Client

• Grade – Risk grade determined by client for the matrix (ex. A, A-, etc.)

• Credit – Optional. Minimum Credit Score

• LTV – Optional. Decimal format from 0.0 to 1.1 (ex. 80% = .80)

• CLTV – Optional. Decimal format from 0.0 to 1.1 (ex. 80% = .80)

• HCLTV – Optional. Decimal format from 0.0 to 1.1 (ex. 80% = .80)

• Late30 – Optional. Maximum 30 day lates allowed for matrix



• Late30x24 – Optional. Maximum 30 day lates allowed for matrix in 24 months



• Chapter 7 – Maximum # of bankruptcies allowed determined by selection in dropdown



• Deed in Lieu – Maximum # of foreclosures allowed determined by selection in dropdown

• Foreclosure/Default – Maximum # of foreclosures allowed determined by selection in dropdown

• Guideline – Optional. Selection based off Investor

• Rate – Optional. Selection based off Investor

Risk Grades

Order Grade Min Credit Max LTV Max CLTV Max HCLTV Late30

Late30x24

Late60

Late60x24

Late90

Late90x24

Chapte 7, 11, 13

Never or none in last 7

years

None in last 60 months







Within last 6 months

Currently in Bankruptcy

Short Sale


years










Deed In Lieu


years










Foreclosure/Default


years










Guideline Rate



Deciphering Example below: 3 Rows of Risk Grades displayed

• Order – 3 risk grades ordered by Client for evaluation

• Grade – 3 risk grades of A, B and C defined by the Client

• Credit – No Credit score defined. Will hit all eligible credit scores

• LTV – No LTV defined. Will hit all eligible LTVs

• Late30 – Risk Grade A = 5 lates, Risk Grade B = 5 lates, Risk Grade C = 5 lates

• Late60 – Risk Grade A = 0 lates, Risk Grade B = 1 late, Risk Grade C = 5 lates

• Late90 – Risk Grade A = 0 lates, Risk Grade B = 0 lates, Risk Grade C = 1 late

• Late30x24 – Risk Grade A = 5 lates, Risk Grade B = 5 lates, Risk Grade C = 5 lates

• Late60x24 – Risk Grade A = 0 lates, Risk Grade B = 1 late, Risk Grade C = 5 lates

• Late90x24 – Risk Grade A = 0 lates, Risk Grade B = 0 lates, Risk Grade C = 1 late

• Chapter 7 – Risk Grade A = No Ch. 7 bankruptcies allowed in last 18 months, Risk Grade B = No Ch. 7

bankruptcies allowed in last 12 months, Risk Grade C = No Ch. 7 bankruptcies allowed in last 12 months

• Chapter 11 – Risk Grade A = No Ch. 11 bankruptcies allowed in last 18 months, Risk Grade B = No Ch.

11 bankruptcies allowed in last 12 months, Risk Grade C = No Ch. 11 bankruptcies allowed in last 12

months

• Chapter 13 – Risk Grade A = No Ch. 13 bankruptcies allowed in last 18 months, Risk Grade B = No Ch.

13 bankruptcies allowed in last 12 months, Risk Grade C = No Ch. 13 bankruptcies allowed in last 12

months

• Short Sale – Risk Grade A = No short sales allowed in the last 24 months, Risk Grade B = No short sales

in the last 18 months, Risk Grade C = No short sales allowed in last 12 months

• Deed in Lieu – Risk Grade A = No deed in lieu foreclosures allowed in last 24 months, Risk Grade B =

No deed in lieu foreclosures allowed in last 18 months, Risk Grade C = No deed in lieu foreclosures

allowed in last 12 months

▪ Foreclosure/Default – Risk Grade A = No foreclosures/defaults allowed in last 24 months, Risk

Grade B = No foreclosures/defaults allowed in last 18 months, Risk Grade C = No

foreclosures/defaults allowed in last 12 months

▪ Guideline – None defined by Client

▪ Rate – None defined by Client

Expression Variables – Conditions and Matrices

Appendix

2


Appendix 3: Conditional Actions and Matrix Actions 77

Variable Definition Example

AnnualIncome - (Data Type: Number) Tests the total annual

income of all borrowers.

AnnualIncome > 100000

ARM - (Data Type: True/False) Evaluated as TRUE if tested

product is defined as an Adjustable Rate Mortgage; FALSE if

tested product is defined as Fixed Rate Mortgage (not an

ARM).

ARM OR NOT(ARM)

Bankrupt - (Data Type: Number) Test for Bankruptcy in the last

XX months. Value Example: 60 = None in the last 60 Months,

18=None in the last 18 Months, etc.

Bankrupt <= 36

Bankrupt11 - See Bankrupt, Chapter 11 specific test. Bankrupt11 <= 36



BaseLoanAmount - (Data Type: Number) Tests the base loan

amount financed, not including MI.

BaseLoanAmount > 100000

BorrowerComp - (Data Type: True/False) Evaluated as TRUE

if loan has Borrower Compensation; FALSE if it does not have

Borrower compensation.

BorrowerComp OR NOT(BorrowerComp)

BuydownContributor - (Data Type: Select from List) Select

the Buydown Contributor (Borrower, Builder, Parent, etc.)

based on the list of the types available in EPPS.

BuydownContributor(Lender)

BuydownType - (Data Type: Select from List) Select the

specified Buydown Type from the list of the types available in

EPPS.

BuydownType(2-1)

CashOut - (Data Type: Number) Tests the total cash out value

for C/O Refinance transactions.

CashOut < 50000

CensusTract - (Data Type: Number) Tests for the Census

Tract for the property.

CensusTract = 2452

Channel - (Data Type: Select from List) Select the specified

Pricing Channel based on the list of the pricing channels

available for the Investor.

Channel(Flagstar: Corr)

CLoanAmount - (Data Type: Number) Tests the Total

Combined Loan Amount including any subordinate financing.

CLoanAmount > 150000

CLTV - (Data Type: Number) Tests the Combined Loan To

Value. Percentage converted to decimal.

CLTV <= 0.90

CommunityAffordableSecond - (Data Type: True/False)

Evaluated as TRUE if the tested product is defined as having a

Community/Affordable Second; FALSE if tested product is

defined as Not having a Community/Affordable Second.

CommunityAffordableSecond

OR

NOT(CommunityAffordableSecond)




Concessions - (Data Type: Number) Tests Seller

Contributions in dollar amount.

Concessions > 5000

ConcessPct - (Data Type: Number) Tests Seller Contributions

in percentage converted to decimal.

ConcessPct <= 0.03

Condo - (Data Type: True/False) Evaluated as TRUE if tested

property is a Condo; FALSE if tested property is NOT a Condo.

Condo OR NOT(Condo)

CondoAttached - (Data Type: True/False) Evaluated as TRUE

if tested property is an Attached Condo; FALSE if tested

property is NOT an Attached Condo.

CondoAttached OR NOT(CondoAttached)

Condotel - (Data Type: True/False) Evaluated as TRUE if

tested property is defined as a Condotel; FALSE if tested

property is NOT a Condotel.

Condotel OR NOT(Condotel)

ConfLimit - (Data Type: Number) Tests the Conforming Limit

Loan Amount.

LoanAmount <= ConfLimit

Conforming - (Data Type: True/False) Evaluated as TRUE if

loan amount is Conforming; FALSE if loan amount is not within

the conforming limit.

Conforming OR NOT(Conforming)

Conventional - (Data Type: True/False) Evaluated as TRUE if

product type is Agency or Non-Agency; FALSE if product type

is anything other.

Conventional OR NOT(Conventional)

Credit - (Data Type: Number) Test the Min/Max FICO score

allowed.

Credit <= 620

CreditorComp - (Data Type: True/False) Evaluated as TRUE if

loan has Creditor Compensation; FALSE if it does not Creditor

Compensation.

CreditorComp OR NOT(CreditorComp)

CustomProgram - (Data Type: True/False) Evaluated as

TRUE if loan program is a Custom Program; FALSE if not.

CustomProgram OR NOT(CustomProgram)

Default - (Data Type: True/False) Evaluated as TRUE if there

is a default in the credit history; FALSE if there are no defaults

in the credit history.

Default OR NOT(Default)

DefaultDeedinLieu - (Data Type: Number) Tests the # of

months since the last Deed In Lieu.

DefaultDeedinLieu > 6

DefaultForeclosure - (Data Type: Number) Tests the # of

months since the last Foreclosure.

DefaultForeclosure > 6

DefaultShortSale - (Data Type: Number) Tests the # of

months since the last Short Sale.

DefaultShortSale > 6




DeliveryType - (Data Type: Select from List) Select the

specified Delivery Type based on the list of the types available

in EPPS.

DeliveryType(Forwards)

Doc - (Data Type: Select from List) Select the specified Loan

Document Type based on the list of the types available in

EPPS.

Doc(Full Doc)

DownpayPct - (Data Type: Number) Tests the Down Payment

in Percentage converted to decimal.

DownpayPct <= 0.03

DownpayPctNG - (Data Type: Number) Tests the Down

Payment in Percentage converted to decimal which cannot

come from a gift. NG=No Gift.

DownpayPctNG <= 0.03

DSCR - (Data Type: Number) Tests the Debt Service Coverage

Ratio in Percentage converted to decimal.

DSCR > 1.00

EPASSCustomField - (Data Type: Number) Test the Custom

Field ID Encompass.

EPASSCustomField <= 2455

FHA - (Data Type: True/False) Evaluated as TRUE if loan is an

FHA; FALSE if not an FHA.

FHA OR NOT(FHA)

FinancedMIP - (Data Type: Number) Tests the Financed

Mortgage Insurance Premium.

FinancedMIP <= 5000

FirstAmount - (Data Type: Number) Tests the First Lien

Amount.

FirstAmount <= 50000

fLocal1 - (Data Type: Variable) User variable that is local only

to the current condition’s subsequent logic.

fLocal1 <= 1

FTHB - (Data Type: True/False) Evaluated as TRUE if there is

a First Time Home Buyer present on the loan; FALSE if not.

FTHB OR NOT(FTHB)

Geography - (Data Type: Select from List) Select the

Geography Object that was built to accommodate

eligibility/price adjustments specific to geography object.

Geography(Global: Cook County)

Gift - (Data Type: Number) Tests the Gift amount. Gift > 5000

GiftPct - (Data Type: Number) Tests the Gift amount in

percentage converted to decimal.

GiftPct <= 0.03

Guideline - (Data Type: Select from List) Select the Guideline

Object that was built to accommodate eligibility/price

adjustments specific to the guideline object.

Guideline(Global: FHA Global 203K)

HCLTV - (Data Type: Number) Tests the Home Equity

Combined Loan To Value. Percentage converted to decimal.

HCLTV <= 0.90




HELOC - (Data Type: True/False) Evaluated as TRUE if loan is

a HELOC; FALSE if not.

HELOC OR NOT(HELOC)

HiBalLimit - (Data Type: Number) Tests the High Balance

Limit. Number signifies max loan amount allowed.

LoanAmount <= HiBalLimit

iLocal1 - (Data Type: Variable) User variable that is local only

to the current condition’s subsequent logic.

iLocal1 <= 1

IsDSCR - (Data Type: True/False) Evaluated as TRUE if the

Debt Service Coverage Ratio is populated. FALSE if not.

IsDSCR OR NOT(IsDSCR)

IsNoCreditScores - (Data Type: True/False) Evaluated as

TRUE if No Credit is available; FALSE if not.

IsNoCreditScore OR NOT(IsNoCreditScore)

LenderFeeWaiver - (Data Type: True/False) Evaluated as

TRUE if Lender Fee should be waived; FALSE if not. (Default, it

is not waived)

LenderFeeWaiver OR NOT(LenderFeeWaiver)

LienPos - (Data Type: Number) Tests the position of the loan

lien. Number signifies position.

LienPos <= 2

LoanAmount - (Data Type: Number) Tests the loan amount. LoanAmount <= 250000

LockDays - (Data Type: Number) Tests lock days for the base

rate.

LockDays > 90

LTV - (Data Type: Number) Tests the Loan To Value.

Percentage converted to decimal.

LTV > 0.80

LUsage - (Data Type: Select from List) Select the Loan Usage

(Purchase, R/T Refinance, etc.) to test for eligibility/price.

LUsage(C/O Refinance)

MSA - (Data Type: Number) Tests the Metropolitan Statistical

Area value.

MSA = 35614

MtgHistory - (Data Type: True/False) Evaluates if Mortgage

History is present as TRUE; FALSE if not. (Default, is true)

MtgHistory OR NOT(MtgHistory)

MtgLate30 - (Data Type: Number) Tests the # of 30 day

Mortgage Lates in 12 Months.

MtgLate30 > 3

MtgLate30x24 - (Data Type: Number) Tests the # of 30 day


MtgLate30x24 > 3



MtgLate60 > 3



MtgLate60x24 > 3






MtgLate90 > 3



MtgLate90x24 > 3

MtgLates - (Data Type: True/False) Evaluates if Mortgage

Lates in the last 12 months are present as TRUE; FALSE if not.

MtgLates OR NOT(MtgLates)

MtgLatesx24 - (Data Type: True/False) Evaluates if Mortgage

Lates in the last 24 months are present as TRUE; FALSE if not.

MtgLatesx24 OR Not(MtgLatesx24)

NoClosingCost - (Data Type: True/False) Evaluates if Closing

Costs are not present as TRUE; FALSE if Closing Costs are

present.

NoClosingCost OR NOT(NoClosingCost)

NumBorrowers - (Data Type: Number) Tests the # of

borrowers allowed on the loan.

NumBorrowers > 5

NumProps - (Data Type: Number) Tests the # of properties

that are allowed. Does not consider Financed Properties,

reduce number by 1 for the loan being financed. (example is for

5 financed properties)

NumProps > 4

NWCondo - (Data Type: True/False) Evaluates if property is a

Non-Warrantable Condo as TRUE; FALSE if not.

NWCondo OR NOT(NWCondo)

Office - (Data Type: Select from List) Select the Client’s Office

to test for eligibility/price.

Office(Dev: Development)

OfficeCategory - (Data Type: Select from List) Select the

Client’s Office Category to test for eligibility/price.

OfficeCategory(EllieMae: Wholesale)

Options - (Data Type: Select from List) Select the Options

available on the General Tab to test for eligibility/price.

Options(Waive Escrows)

PPPDisp - (Data Type: Select from List) Test the Pre-Payment

Disposition of a loan for eligibility/price.

PPPDisp(Reduced)

PPPYears - (Data Type: Number) Tests the # of years for Pre-

Payment Penalties.

PPPYears > 3

ProductType - (Data Type: Select from List) Test the Product

Type of a loan for eligibility/price.

ProductType(Agency)

Program - (Data Type: Select from List) Test the Program

Name for eligibility/price.

Program(Agency High Balance Fixed 30)

ProgramFlag - (Data Type: Select from List) Program Flags

are pre-made by EPPS or you can make your own. Program

Flags are a good way to test for specialty items (Portfolio,

Specialty, Resort Condo, etc.) for eligibility/price.

ProgramFlag(Global:Fannie)




ProgramType - (Data Type: Select from List) Test the Program

Type (term) for eligibility/price.

ProgramType(10 Year ARM)

PType - (Data Type: Select from List) Test the Property Type

for eligibility/price.

PType(4-Family)

PUnits - (Data Type: Number) Tests the # of Units the property

has. (1 Unit includes Condo/Townhome/SFR/PUD)

PUnits >= 2

PUsage - (Data Type: Select from List) Test the Property

Usage for eligibility/price.

PUsage(Secondary Residence)

RiskGrade - (Data Type: Text) Tests the Risk Grade of the

borrower credit based on the defined Risk Matrix associated

with the program.

RiskGrade = ‘A-’

RuralUnique - (Data Type: True/False) Evaluates if property is

a Rural Unique as TRUE; FALSE if not. Checkbox on located

Property tab.

RuralUnique OR NOT(RuralUnigue)

SelfEmployed - (Data Type: True/False) Evaluates if

Borrowers are Self Employed as TRUE; FALSE if not.

SelfEmployed OR NOT(SelfEmployed)

State - (Data Type: Select from List) Test the Property State for

eligibility/price.

State(CA,MI,TX)

StateCode - (Data Type: Number) Tests the Property State

Code.

StateCode = 32

Statements - (Data Type: Select from List) Test the Statement

Doc Type for eligibility/price.

Statements(24 Months W-2/Tax Returns)

SubFin - (Data Type: True/False) Evaluates if loan has

Subordinate Financing as TRUE; FALSE if not.

SubFin OR NOT(SubFin)

TargetInvestor - (Data Type: Select from List) Test the Target

Investor for Virtual Programs (available for Investors that client

has a relationship with), used Doc Type for eligibility/price.

TargetInvestor(AAA Test)

Term - (Data Type: Number) Tests the Term of a loan. Term <= 180

TermFixed - (Data Type: Number) Tests the Fixed Term of a

loan. Used to not include ARM Terms.

TermFixed > 240

TotalLoanAmount - (Data Type: Number) Tests the total loan

amount financed, not including MI.

TotalLoanAmount > 350000

USDA - (Data Type: True/False) Evaluated as TRUE if loan is

an USDA; FALSE if not an USDA.

USDA OR NOT(USDA)

VA - (Data Type: True/False) Evaluated as TRUE if loan is an

VA; FALSE if not an VA.

VA OR NOT(VA)




VAConfLimit - (Data Type: Number) Tests the VA Conforming

Limit Loan Amount.

LoanAmount <= VAConfLimit

VAConforming - (Data Type: True/False) Evaluated as TRUE

if loan amount is VA Conforming; FALSE if loan amount is not

within the VA conforming limit.

VAConforming OR NOT(VAConforming)

VirtualProgram - (Data Type: True/False) Evaluated as TRUE

if loan program is a Virtual Program; FALSE if not.

VirtualProgram OR NOT(VirtualProgram)

WSChannel - (Data Type: True/False) Evaluated as TRUE if

loan is a Wholesale Channel loan; FALSE if not.

WSChannel OR NOT(WSChannel)

Conditional Actions and Matrix Actions

Appendix

3



Conditional Action Definition Example

CLTVMax - Sets the Max CLTV allowed, adding or subtracting

from the CLTV set in the Guideline Definition Object. It can

also be used to set the Max CLTV as long as it is less than the

CLTV set in the Guideline Definition Object. Percentage

converted to decimal.

CLTVMax(-0.10)

CLTVMax(+0.10)

CLTVMax(0.80)

Condition - Used to reference another Condition Definition

Object within your CPM instance.

Condition(EPPS: Conv Adjs)

Delta LTV - Not in use Not in use

Exit - Immediately exits the current Condition Definition Object. Exit()

fGlobal1 - Set or +/- the fGlobal1 variable. fGlobal1(2.75)

fLocal1 - Set or +/- the fLocal1 variable. fLocal1(-0.125)

Guideline - Immediately runs the specified Guideline Definition

Object.

Guideline(EPPS: DU High Balance)

HCLTVMax - Sets the Max HCLTV allowed, adding or

subtracting from the HCLTV set in the Guideline Definition

Object. It can also be used to set the Max HCLTV as long as it

is less than the HCLTV set in the Guideline Definition Object.

Percentage converted to decimal.

HCLTVMax(-0.10)

HCLTVMax(+0.10)

HCLTVMax(0.80)

iGlobal1 - Set or +/- the iGlobal1 variable. iGlobal1(+1)

iLocal1 - Set or +/- the iLocal1 variable. iLocal1(0)

LTVMax - Sets the Max LTV allowed, adding or subtracting

from the LTV set in the Guideline Definition Object. It can also

be used to set the Max LTV as long as it is less than the LTV

set in the Guideline Definition Object. Percentage converted to

decimal.

LTVMax(-0.10)

LTVMax(+0.10)

LTVMax(0.80)

Margin - Adds, Subtracts or Sets the ARM Margin. Margin(-0.25)

Margin(+0.25)

Margin(2.75)

MarginMax - Sets the ARM Margin Maximum allowed. MarginMax(3.00)

MarginMin - Sets the ARM Margin Minimum allowed. MarginMin(1.25)

Matrix - Used to reference a Matrix Definition Object within

your CPM instance. (Note: This is the only way to connect a

Matrix to a Program)

Matrix(EPPS: LTV/FICO Adj)

Note - Adds a note in the Notes section on the Qualify Tab

when pricing a loan.

Note(‘Must have DU approval’)




Option - Turns on or off the selected option. This is a set list.

(Lender-paid MI, Waive Escrows, Interest Only, etc.) Example:

Turning off Interest Only and Turning On Waive Escrows. Does

not remove the option from the U.I.

Option(-Interest Only)

Option(+Waive Escrows)

Price - Adds or Subtracts to the base price.

Positive Number = Charge

Negative Number = Benefit

Price(-0.25)

Price(+0.75)

PriceCap - Sets the Price Cap before Profit Margins have been

added. All rates after this cap will be priced the same price,

regardless of LLPAs or base price. (Example represents 103

cap)

PriceCap(3)

PriceMax - Sets the Maximum Price allowed before Profit

Margins have been added. (Example represents 103) To set a

below-par max, you must set the price to par first, then the next

row, set to the max as a negative number (see example for a

max of 97).

PriceMin(3)

Below Par Example:

PriceMin(0)

PriceMin(-3)

PriceMin - Sets the Minimum Price allowed before Profit


below-par Min, you must set the price to par first, then the next

row, set to the min as a negative number (see example for a

min of 98).

PriceMin(1)

Below Par Example:

PriceMin(0)

PriceMin(-2)

Rate - Adds or Subtracts to the base rate.

Positive Number = increases the Rate

Negative Number = reduces the Rate

Rate(-0.25)

Rate(+0.75)

RateGroup - Used to reference a different Rate Group then

what is attached to the Program Definition Object. The rate

group must be within your CPM instance. (Note: This is used

when you have a different base rate/price for a different

characteristic of the loan. Maybe for Investment Properties or

Higher LTVs)

RateGroup(EPPS: DURP 20yr<=105%)

RateMax - Sets the Maximum Rate allowed. RateMax(4.75)

RateMin - Sets the Minimum Rate allowed. RateMin(1.375)

RatePrice - Allows you to apply an LLPA to a set rate range.

Example Shows: Adding a .25 adjustment to price for a rate

between 4.50% and 5.00%

RatePrice(+/-#.#,>MIN,<=MAX)

RatePrice(+0.25,4.5,5.0)




RateQual - Sets the Qualifying Rate, used to calculate DTI as

RateQual(X). This is also found in the Program Definition

Object when set as an ARM Term. See Examples.

RateQual(0) X > 0 – greater of the regular rate or X

RateQual(7.25) X < 0 – regular rate + Abs(X) RateQual(-2)

X <= -100 – fully-indexed rate + Abs(X+100)

RateQual(-100)

X <= -200 – greater of fully-indexed rate or rate +

Abs(X+200)

RateQual(-202)

RateSRP - Allows you to apply an SRP to a set rate range.

Example Shows: Adding a .125 adjustment to the SRP for a

rate between 3.50% and 4.00%

RateSRP(+/-#.#,>MIN,<=MAX)

RateSRP(+0.125,3.5,4.0)

RatioMax - Sets the Maximum DTI Ratio. Percentage

converted to decimal.

RatioMax(0.43)

RatioPrice - Allows you to apply an LLPA to a set DTI Ratio

range. Percentage converted to decimal.

Example Shows: Adding a .50 adjustment to price for a DTI

between 46% and 55%.

RatioPrice(+/-#.#,>MIN,<=MAX)

RatioPrice(+0.25,0.46,0.55)

RatioRate - Allows you to apply a Rate Adjustment to a set DTI

Ratio range. Percentage converted to decimal.

Example Shows: Adding a .125 Rate Adjustment for a DTI

between 35% and 45%.

RatioRate(+/-#.#,>MIN,<=MAX)

RatioRate(+0.125,0.35,0.45)

Reject - Used to Reject a written expression. You can use the

EPPS written responses or you can enter a note in the Note

column stating why this loan is not eligible. You can also use

this to hide a program.

Default Response: Reject(FAIL_MAXGIFT)

Manual Note Response: Reject() Note Column:

Maximum CLTV is 90% for this Term.

Hide a Program if not Eligible: Reject(FAIL_HIDE)

ReservesMin - Set the minimum required reserves. Number

represents months of PITI. For “Determined by AUS” use (-2),

to reset (-1) forces to 0, if positive it never reduces.

ReservesMin(6)

RiskGrade - Sets the risk grade to the given string, does NOT

change guidelines or evaluate anything.

RiskGrade(AA+)

ShowLender

SkipIA - When set, the Income and Asset calculations to set

the DTI will be skipped.

SkipIA()

SRP - Adds, Subtracts or Sets the SRP.

Positive Number = increases the SRP

Negative Number = reduces the SRP

SRP(-0.25)

SRP(+0.75)




YSPMax - Sets the Maximum Price allowed before Profit


below-par max, you must set the price to par first, then the next

row, set to the max as a negative number (see example for a

max of 97).

YSPMin(3)

Below Par Example:

YSPMin(0)

YSPMin(-3)

YSPMin - Sets the Minimum YSP allowed after Profit Margins

have been added. (Example represents 101) To set a below-

par Min, you must set the price to par first, then the next row,

set to the min as a negative number (see example for a min of

98).

YSPMin(1)

Below Par Example:

YSPMin(0)

YSPMin(-2)

Action Definition Matrix Actions

Adjust Final Price - Sets the entire matrix to adjust the Final

Price with the value entered.

Positive Number = Charge to Price

Negative Number = Benefit to Price

Adjust Margin - Sets the entire matrix to adjust the ARM

Margin with the value entered.

Positive Number = Add to the Margin

Negative Number = Reduce the Margin

Adjust Rate and Margin - Sets the entire matrix to adjust the

Rate and the ARM Margin with the value entered.

Positive Number = Add to the Rate and Margin

Negative Number = Reduce the Rate and Margin

Adjust SRP - Sets the entire matrix to adjust the final SRP

with the value entered.

Positive Number = Reduce the SRP

Negative Number = Add to the SRP

using the encompass product and pricing service custom

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