In order to properly show a subordinated lien in encompass and have it pull correctly to the pricing engine several fields must be marked accurately.

Borrowers Summary of Origination: Subordinate Financing Button

In the below illustration you will see that we currently have two liens on the subject property

In order to display our liens correctly you must determine which will be paid off with the new loan.

Page 2 1003: VOL

The example below would indicate that the new loan would be paying off both the existing first and second on the subject property

This would be the correct way to show a refinance of a first and second.  However if the borrower wants to subordinate the current HELOC and do a rate and term on the first it will be done differently

First, using the subordinate financing button that is on the borrower summary of origination make sure your screens look as follows.  Notice all the locks are unlocked and blue in color.  This allows the data from the forms to pull through correctly.  The example below shows us paying off the current first lien and shows the existing lien (HELOC) as not being paid off.

In the VOL section on page 2 of the 1003, you would also show your HELOC like below.  Please note the highlighted sections indicate the lien wont be paid off and will be resubordinated - additionally the credit limit field is highlighted. This is because with a subordinated HELOC you have to show what the MAX LTV could be if the credit line was fully used. 

If the Subordinated lien was a standard mortgage then a credit limit would not be needed and the highlight area would have the current payoff amount listed.