Conditions
Automated conditions use borrower document data, 1003 application data, AUS findings (DU/LPA), and GSE Selling Guide references to automatically generate loan conditions. Instead of creating conditions manually, underwriters receive a pre-populated set of conditions tailored to the borrower, the loan program, and the documents on file.
You can access automated conditions from the Conditions tab within a loan file in Inspect.
This feature is in beta!
This page discusses functionality that is in beta. You may occasionally experience unannounced changes or bugs. We'd greatly appreciate your feedback on this feature and its accompanying documentation.
Automated conditions workflow
Automated conditions combine multiple data sources to generate loan conditions.
| Data source | Role |
|---|---|
| Borrower documents | Ocrolus extracts and analyzes data from uploaded bank statements, pay stubs, tax returns, and other borrower documents. |
| 1003 application | The Encompass 1003 provides borrower-reported assets, income, employment, and loan details as the baseline for comparison. |
| MISMO XML | When Encompass integration is not used, an uploaded MISMO XML provides borrower-reported assets, income, employment, and loan details for comparison. |
| AUS findings | Desktop Underwriter (DU) or Loan Product Advisor (LPA) findings are used to validate and adjust conditions. For example, if DU requires only one year of tax returns, Ocrolus will not generate a condition requesting two. |
Note
Conditions are generated automatically once documents are processed. No underwriter action is required to create them.
Not a rules engine
Ocrolus reads your AUS findings to validate and adjust the conditions it generates. When a waiver or reduced documentation requirement appears in the AUS output, the system respects that determination and avoids over-conditioning.
Conditions tab overview
The Conditions tab displays all automatically generated conditions in a list view. From this view, you can import a condition individually or open it to review the full details. This tab contains the following details:
| Fields | Description |
|---|---|
| Name | The condition name mapped to your organization's existing Encompass condition templates. |
| Status | Current state of the condition (for example, pending review, imported, cleared, or waived). |
| Description | Borrower-specific description referencing the borrower name, relevant account, and exact dollar amounts. |
| Supporting document | The document that triggered or supports the condition. |
| Owner | Indicates whether the condition applies to the borrower, co-borrower, or both. |
| Created date | Timestamp showing when the condition was generated. Useful when additional documents trigger new conditions. |
| Source | Indicates whether the condition originated from Ocrolus document analysis or AUS findings. |
Condition detail view
Selecting a condition opens the detailed condition record. The available details are:
| Field | Description |
|---|---|
| Condition name | Mapped to your organization’s Encompass condition templates. Ocrolus aligns naming conventions with your organization during onboarding. |
| Description | Each description is borrower-specific. It references the individual borrower by name, identifies the relevant account, and cites exact dollar amounts. These are not boilerplate descriptions — they are tailored to the loan file. |
| E-folder document needed | When a condition is imported into Encompass, Ocrolus also creates the associated document placeholder in the E-folder. The condition and the expected document are linked from the point of import. |
| Owner | Indicates whether the condition applies to the borrower, co-borrower, or both. |
| Comments | You can add free-text comments to any condition for internal notes, processor instructions, or audit documentation.. |
| Guideline reference | Each condition includes a citation to the specific Fannie Mae or Freddie Mac Selling Guide section that supports it. Processors can use these references for training, and underwriters can use them to justify or defend the condition during quality review.. |
Reviewing and taking action on conditions
From the condition detail view, you can take the following actions:
- Import: Push the condition to Encompass. This creates both the condition object and the E-folder document placeholder.
- Discard: Remove the condition if it is not applicable. Discarding a condition provides feedback to the Ocrolus engine and helps improve future condition generation.
Importing conditions to Encompass
After reviewing generated conditions, you can push them to Encompass individually or in bulk.
Import workflow
- Review conditions on the Conditions tab.
- Discard any conditions that are not applicable.
- Import conditions individually or use Import All to push all reviewed conditions at once.
- Encompass creates both the condition object and E-folder placeholder simultaneously.
- Status synchronization begins immediately after import.
Bidirectional status sync
Once conditions are imported, status updates remain synchronized between Ocrolus and Encompass. This ensures both systems remain consistent without manual updates.
- When your team clears or waives a condition in Encompass, the update appears on the Ocrolus Conditions tab.
- When a status change occurs within Ocrolus, it is pushed back to Encompass.
AUS integration
Ocrolus reads AUS findings (DU or LPA) and uses them to validate and adjust generated conditions. This ensures that Ocrolus-generated conditions remain consistent with the AUS output used by your underwriting team.
For example:
- If Desktop Underwriter specifies that only one year of tax returns is required, Ocrolus will not generate a condition requesting two.
- If an asset waiver is present in AUS findings, asset verification conditions are adjusted accordingly.
Condition categories
Automated conditions currently support the following categories:
| Category | Details |
|---|---|
| Assets | Bank statements, investment accounts, gift funds, and asset verification conditions. |
| Income | Pay stubs, W-2s, tax returns, and income verification conditions. |
| Credit | Credit report findings and credit-related conditions. |
GSE coverage includes Fannie Mae and Freddie Mac guidelines, and condition generation references the relevant Selling Guide sections for both agencies.
Relationship to Inspect insights and manual conditions
Automated conditions complement, rather than replace, existing Inspect workflows.
- Inspect insights (discrepancies between borrower documents and the 1003) continue to appear on the Inspect tab. These can still be used to manually create conditions using the Create Condition button.
- Auto-generated conditions appear on the Conditions tab and are produced through broader analysis that includes AUS findings and GSE guideline references.
- Both manually created and automatically generated conditions can be imported into Encompass and participate in bidirectional status synchronization.
Updated 1 day ago