The mortgage data screen gathers information that outlines the terms of the subject loan. The data for this screen is used to determine qualifying ratios, complete print forms, calculate fees, calculate mortgage insurance, and for automated underwriting exports.
The program selection tool is accessible from the Mortgage Data Screen by selecting the LookUp Button in the program field. The selection tool provides users a list of available programs sorted by program type and name. This option is convenient for users that regularly use the same program with most of their customers such as FHA or VA originators. Selecting the Program Picker allows users to search for programs that meet specific loan parameters. This search option is ideal to help find the best program based on updated guidelines when several loan programs meet the loan parameters.
By selecting a program name many of the other fields located on the Mortgage Data Screen are automatically populated. This field also helps the IHM program determine the appropriate fees, print forms, and in many cases, the appropriate investor.
A user choosing to create a “custom” loan program has the ability to select the financing method. The data for this screen is used to determine print forms, calculate fees and mortgage insurance The Loan Purpose field is used to determine automated fees, mortgage insurance, print forms, and status items. These fields must be populated correctly to use many of the data export features. This field is also found on the subject property screen, and information flows freely between the two.
The Lien Position field typically defaults to first lien position and changes only for second mortgages or equity lines. It is important to complete this field correctly for automated underwriting exports. The Doc Type field is used to indicate what type of income and asset verification will be provided. This data is used for automated underwriting exports.
The Funding Type field is used to identify where the funds for the loan closing will come from. The field is linked to the investor selected for the loan. The entry pulls from the Data tab of the Company Information screen for the investor. A "Closed" funding type indicates a loan that will be closed in the Lender’s name (the company using IHM).
A "Broker" funding type indicates a loan that will be sent to another lender for approval, closing documents, and funding. That lender is identified in the system as the Investor for this type of transaction. Table funded loans are loans that are funded by the investor in the Lender’s name (the company using IHM). The First Payment Date is automatically calculated by assuming the loan will close 30 days from the date of the inquiry and populating with the first day of the following month. If required, it may be manually overridden at the time of closing.
The shaded Loan Amount field is the final loan amount that populates the note and calculates based on the Base Loan Amount field and any business rules or program related guidelines. The field can be double-clicked to display how the final loan amount was calculated. For example, FHA loans should reflect the base loan amount in the Base
Loan Amount field, and the shaded Loan Amount field will reflect the note loan amount which includes the UFMIP (Up Front Mortgage Insurance Premium).
The Other Financing option permits a user to enter a loan amount or LTV, an interest rate, and a term to determine a monthly payment. The field is used to reflect the loan amount and collect relevant information for any additional liens on the subject property. Access this field by selecting the Lookup icon to the right of the field or pressing the Down Arrow on your keyboard. This information is used to complete print forms, determine the loan qualifying ratios, and to determine the cash required for closing and must be completed accurately for automated underwriting.
Loan program and qualifying notes can be found by selecting the button with the corresponding label. The Program Details button is used to access the program detail screen where the information about the loan program is found. The information found in the program detail screen populates based on the background information maintained by your IHM administrator, but can be overridden on a loan-by-loan basis using this screen. The screen will change based on the type of program selected.
The escrow cushion determines the number of months of lender reserves and defaults when a loan program is selected (based on the loan program setup in the background information). This field must be completed manually if an unlisted program (“Other”) is being established by a user and the loan will be closed in the Lender’s name.
The TIL Information used to populate the Truth in Lending disclosure will generally default based on the loan program selected. However, these fields must be completed manually if an unlisted program (“Other” ) is used.
Mortgage insurance is automatically calculated as a monthly figure and linked to the fees screen based on the Loan Type, Occupancy, and Loan to Value. The mortgage insurance can be edited by entering an annual factor to complete the TIL correctly. Additionally, financed PMI or MIP is entered as a financed fee on the Fees screen.
To edit the Mortgage Insurance field, select the Lookup icon to the right of the field and open the Mortgage Insurance Edit screen seen above. The Standard Monthly mortgage insurance description will auto-populate for conventional loans and the FHA Monthly description will populate for FHA loans.
These options are based on standard MI tables and are configurable by your IHM administrator. The applicable MI rate add-ons will calculate to determine the final Standard Monthly rate. If the rate calculated by IHM needs to be edited, select the Lookup icon to the right of the Name field. This will open the Mortgage Insurance Lookup screen.
The Mortgage Insurance Lookup screen allows a user to view the mortgage insurance options available.
The filters at the top of the screen can be used to show additional options for different LTV’s, occupancies and other loan characteristics. The only option that is configurable on the user level is the Other option shown at the top of this screen. Select the Other option when none of the options displayed are appropriate. Once selected, IHM will return to the Mortgage Insurance Edit screen where the mortgage insurance characteristics can now be edited. Note that the fields that were previously displayed in gray when the Standard Monthly option was selected are now displayed in white and therefore editable. Enter the appropriate MI information, save, and exit.
Program Picker and Loan Pricing Tools Overview
The Program Picker and the Loan Pricing tools help lending professionals select the loan program that best fits a borrowers circumstance while ensuring secondary market best execution delivery. This is accomplished by testing the data fields of a loan against a set of investor program rules, both the disqualifiers and pricing adjustments. Then, In House Mortgage, in a simple snapshot, displays every applicable program. The screen identifies disqualifiers and also shows if pricing adjustments apply. A loan officer can then view the adjustments or the disqualifiers with one simple click and apply the program to the loan.
Accessing the Program Picker and the Loan Pricing Tool
To access the Program and Loan Pricing Tool from the Loan Ledger, select a loan, and then select the Mortgage Data screen from the Navigation Tree. In the menu bar on the top of the Mortgage Data Screen are a Program Picker and a Rates button . The Program Picker button allows you set a criteria and then search for an acceptable program. The rates button allows you to identify a program and then see the rate and point options by lock period.
Program Picker Program Searching
After selecting the Program Picker button the Program Selection screen will open. You must define your program search criteria. To define a search criteria first. Click on the Advanced Search Button then enter the search amount, either the points the borrower/broker wishes to pay, or the rate. Next select whether the amount entered represents the rate or the number of points. Then open the lock period drop down menu and select a lock period. Finally, press the Show Me Programs Button . The programs that meet your criteria will be displayed in the open area below the search criteria.
Program Picker Loan Program Review
After pressing the Show Me Programs Button all matching programs will appear .
NOTE: Should this space be blank there are no programs that match your search criteria. You should repeat the Program Search process changing the search criteria. You can sort the list by clicking on any of the headers. If you click once on the header the list sorts by the field selecting in ascending order and if you click twice on the header the list sorts in descending order.
Programs displayed are those programs that match your criteria, this does not mean that your loan qualifies for all the programs displayed. The disqualifiers field identify if the loan is qualified for the program. If the number is 0 then the loan qualifies for the program . You can also see the number of pricing adjustments applied to the price. . To see the details related to the Disqualifiers and Adjustments highlight the targeted program, then click the icons in the upper left hand corner For Further Information on the Detail Disqualifier and Adjustments screens see Disqualifier and Adjustment Detail Review.
If you want to apply the program to the loan, double click on the desired program, the program will be assigned to the loan and IHM will return to the Mortgage Data screen.
Loan Pricing Tool
After selecting the Rates button the Rate screen will open. The program will open showing the program you selected on the Mortgage Data screen. You can change the program by opening the drop down menu and selecting another program . You can also change the pricing displayed for a program by choosing the Price Drop down menu and changing the pricing from Adjusted to Base .
The Rates Screen also displays program Disqualifiers and Adjustments for the loan in the lower right hand corner. To see the details related to the Disqualifiers and Adjustments you can click the Detail button in the upper left hand corner For Further Information on the Detail Disqualifier and Adjustments screens see Disqualifier and Adjustment Detail Review.
Disqualifier and Adjustment Detail Review
Press the button in the upper left hand corner. The Disqualifying Factors screen will open.
Pressing the Adjustment Review icon, the Adjustments screen will open. Each adjustment is identified and the adjustment amount displayed. The total adjustments are shown at the bottom right corner of the screen.
