Finances

Use the Finances tab to enter credit scores, financial information, and mortgage delinquencies for each borrower. The Finances tab is accessed as part of the process for creating a loan, or while reviewing or editing a loan that has a status of Prospect or Qualified. Before you can access the Finances tab, you must complete the required fields on the preceding tabs that are used in the loan creation process.

1. On the Home tab, click the My Loans tab, and then click Create new loan or click the borrower name for an existing loan with a status of Prospect or Qualified.
2. Complete the General tab, and then click Next.
3. Complete the Borrower tab, and then click Next.
4. On the Finances tab, in the Documentation Type section, select options for Employment, Income, DSCR, and Asset fields.

• The Non-QM Doc Level field ensures Non-QM loans are qualified based on the Non-QM documentation provided by the borrower.
• This field is only displayed if Non-QM is selected in the Standard Products section on the General tab.
• The available options for the Non-QM Doc Level field will change when “Full Income” or “Alternative Income” (formerly “Limited Income”) is selected for Income.
• The Non-QM Doc Level field is not displayed if “Lite Income”, “Stated Income”, or “No Income” is selected for Income.
• The DSCR field enables loans to be qualified using rent payments.
• This field is only displayed if Non-QM is selected in the Standard Products section on the General tab and "No Income" is selected from the Income dropdown list.
• The field accepts numerals to two decimal places with a maximum value of 9.99.

5. In the Borrower Financial Information section, enter the assets and debts for each borrower you added on the Borrower tab. In addition, you can enable loans to be qualified without credit scores.

The Liquid Assets, Retirement Accts, Annual Income, and Monthly Debt fields will be disabled (and cannot be edited) if their values are passed from Encompass to ICE PPE to prevent a mismatch of amounts when the values are passed back to Encompass. To edit these values, update them in Encompass and then resubmit to ICE PPE.

• Select the No Credit Scores check box to enable loans to be qualified without credit scores. When the check box is selected:
• The credit score validations will not be performed when the loan is qualified.
• The credit score fields are disabled for all borrowers.
• The credit score values are set to zero.
  
• Enter a credit score for each borrower, using the middle score from a tri-merge credit report.
• Enter the Liquid Assets for each borrower, which can include checking and savings accounts, brokerage accounts, or any other assets that will be liquidated for this transaction, and then complete the remaining fields.

6. In the Supplemental Funding section, enter the amount or percentage (of the property value) for any assets that are not supplied by the borrower. These assets may be subject to qualification maximums.

The Gift Funds $ field will be disabled (and cannot be edited) if its value is passed from Encompass to ICE PPE to prevent a mismatch of amounts when the values are passed back to Encompass. To edit this value, update it in Encompass and then resubmit to ICE PPE.

When you enter one field, the remaining field will be calculated automatically.

7. In the Mortgage/Financial History section, enter the number of mortgage delinquencies (i.e., "lates") on the part of any borrowers or co-borrowers. The total number of delinquencies for mortgage accounts for the time period are populated to the fields as applicable.

If any mortgage delinquencies are entered on the VOL form in Encompass, those items are included and displayed in the appropriate mortgage delinquency fields.

8. Enter or select information describing any delinquencies, defaults, or bankruptcies on the part of any borrowers or co-borrowers, and indicate whether the borrower is a first-time home buyer and can demonstrate a 12-month mortgage or rental history.
9. When finished, click Next to open the Property tab.