Create a Piggyback Loan from the Pipeline
A piggyback loan is a loan that is completed at the same time as a primary
(or 1st) loan. Piggyback loans are also referred to as concurrent
or 80/10/10 loans. You can use the Duplicate Loan feature from the
Pipeline to save data entry time when you start a piggyback loan. Only
the loan forms are duplicated, with changes made to loan terms and costs as
appropriate.
The following features
of piggyback loans are supported:
-
Concurrent loans for
a borrower from the same or different lender.
-
Ability to duplicate
the information and verifications gathered from the first loan to second
loan.
-
Ability to track the progress and milestones of
each loan separately.
You can also use the Piggyback Loans tool to create a piggyback loan. And, even if you create your piggyback loan from the Pipeline, you can work with and manage both the 1st and 2nd loans using the Piggyback Loans tool.
To Create a Piggyback Loan from the Pipeline
Start the 1st Mortgage and Gather Information
-
Complete as much information as possible on the
Borrower Summary, 1003, GFE, verifications, and other loan forms. All
of this information will be duplicated when you create the piggyback mortgage.
-
Order credit, appraisal, and other services.
Create the
Piggyback Loan
-
Click to select the loan on your Pipeline.
-
Click the Duplicate icon.
-
Select Create a second lien using the data from the selected loan.
-
Select the folder where you want to add the loan from the dropdown list.
-
A
duplicate of the loan is added to your Pipeline.
-
If you are using the
auto loan numbering and MERS MIN numbering features, the loan is assigned
the next numbers
Changes Made to the Duplicated Loan
When you select the Create a second lien using the data from the selected loan option, the following adjustments are made to the duplicated
loan file. Click a Field Name for a description of the change.
| Form |
Field Name |
|
Bor. Summary
|
Lien Position change
from 1st to 2nd
|
|
|
Loan Amount copy
from 1003 Page 2, Other Finance Loan Amount
|
|
|
Note Rate copy
from 1003 Page 2, Other Finance Note Rate
|
|
|
Term copy
from 1003 Page 2, Other Finance Term
|
|
|
Sub. Financing,
1st copy
from Borrower Summary Loan Amount
|
|
|
Sub. Financing,
2nd copy
from 1003 Page 2, Other Finance Loan Amount
|
|
1003 Page 2
|
1st Mort. Loan
Amount copy
from Borrower Summary Loan Amount
|
|
|
1st Mort. Interest
Rate copy
from Borrower Summary Note Rate
|
|
|
1st Mort. Term copy
from Borrower Summary Term
|
|
1003 Page 3
|
j. Sub. Financing- delete,
2nd has no subordinate
|
|
|
l. New First
Mortgage copy
from Borrower Summary Loan Amount
|
|
|
l. CC from First
Mortgage from
1003 Page 3, Section VII;subtract the total of lines e, f, and h
|
|
GFE and MLDS
|
Lines 800 thru
1300 delete
Costs and Prepaid values
|
|
|
Loan Program
Name remove
|
|
|
Closing Cost
Program Name remove
|