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Enhancements to Refinance Loans (cPOS)

Michael Ferri
  • Updated

Overview

The following changes have been made to refinance loans within release 6.0.1000:

  • the options that appear on the "Refinance Goal" page in cPOS have been expanded. In addition to the previously available options, the user can now select Tuition Expense or Purchase Home as a refinance goal.
  • when a borrower creates a refinance loan in cPOS and enters a cash out amount of $0, they will now receive an error message reminding them to enter an amount greater than $0. This fixes a previous issue in which entering $0 in the cash out field caused oPOS to misclassify the loan purpose. 

 

Refinance Goal

 

The "Refinance Goal" page now has an expanded range of options for the cPOS user to indicate the purpose of their loan. They can choose from the following options:

  1. Better rate and term - the borrower is seeking a better interest rate or a new payment term  
  2. Consolidate debt - the borrower wants to consolidate their existing debt into a new mortgage
  3. Home improvement - the borrower wants to use their home’s equity to finance improvements to their home
  4. Take cash out - the borrower wants to withdraw cash from their home’s equity
  5. Tuition expense - the borrower wants to withdraw cash from their home’s equity in order to make tuition payments
  6. Purchase home - the borrower wants to withdraw cash from their home’s equity in order to purchase another home  
  7. Other - the borrower has other reasons for refinancing not included in the other options 

 

Informational Link - About refinance goals 

 

If the borrower is uncertain about which refinance goal applies to them, they can click About finance goals, which opens a modal window that provides a more precise definition of each option. This window has been updated to reflect the new Tuition Expense and Purchase Home options.

 

 

 Cash Out

When a borrower selects Take Cash Out on the "Refinance Goal" page, they will later be prompted to enter the amount they would like to withdraw. In previous releases, if the borrower entered $0 in this field, oPOS automatically re-classified the loan purpose to 'Better Rate & Term, which in some cases may have caused confusion for the lender. This issue has been remedied by requiring cPOS users to enter a cash out amount that is greater than $0. If the user enters $0 in this field, they will now receive an error message that prevents the system from re-classifying the loan purpose.

 

To learn more, check out the link(s) below: 

cPOS: Loan Application - Loan Purpose

 

Acceptance Criteria

Use Case #1: Borrower completes and submits loan app in cPOS; LO reviews in oPOS

  1. Register as a borrower in cPOS
  2. Begin a new loan application
  3. Loan Purpose: select Refinance
  4. Refinance Goals:
    • VERIFY: page contains the following 7 radio/tile options: including
      • Better rate and term 
      • Consolidate debt
      • Home improvement 
      • Take cash out
      • Tuition expense (New)
      • Purchase home (New)
      • Other
  5.  Click About Refinance Goals
    • VERIFY: 'About Refinance Goals' modal window contains the following new entries: 
      • Tuition Expense: "The cost of education has gone up. The equity in your home can be utilized by taking cash out to cover for tuition expenses."
      • Purchase Home: "Adding an additional home can be a nice opportunity in owning a vacation home or an investment property. By using the equity in your current home, you can take cash out to cover the down payment cost for purchasing another home." 
  6. Click Next on the "Refinance Goals" page without selecting a refinance goal
  7. VERIFY: 'page validation' error message appears, along with the 'field level validation'
  8. Select Tuition Expense
  9. VERIFY: validation errors disappear
  10. Click Next
  11. Select Loan Purpose from left nav
  12. VERIFY: 'Tuition expense' appears on the loan purpose summary page
  13. Click Edit
  14. Click Next
  15. VERIFY: "Tuition Expense" is still selected
  16. Select Purchase home 
  17. Click Next 
  18. Select Loan Purpose from left nav
  19. VERIFY: Refinance Goal = 'Purchase Home'
  20. Click Next 
  21. Complete the Personal section of the 1003 loan application
  22. Property section (Refi):
    • enter: subject property address
    • enter: complete occupancy/property type
    • enter: original purchase price/date
  23. "Calculate Loan Amount" Page
    • Enter estimated value amount ($0 or above)
      • Note: this field does not appear in certain configurations
    • Enter remaining mortgage balance ($0 or above)
    • Enter 'Cash Out' amount of ($0)
      • VERIFY: field validation error message displays: 'Cash Out amount must be greater than $0'
    • Click Next  
      • VERIFY: alert page validation error displays the above message as a bulleted list.
    • Enter: "$1" in the 'Cash Out' field
      • VERIFY: page and field validation errors disappear
    • Click Next
  24. Complete Property section of the 1003 loan application
  25. Property (Review Screen)
    • VERIFY: $1 Cash Out amount is visible
    • Click Next 
  26.  Complete Income section of the 1003 loan application
  27. Complete Assets section of the 1003 loan application
  28. Sign out of cPOS
  29. LO opens up the loan in oPOS
  30. Navigate to the Property tab
  31. VERIFY: Purpose of Refinance = 'Cash-Out Purchase Home'
  32. Navigate to "Shop for Rates" page
  33. VERIFY: Purpose of Refinance*' (field label) has an asterisk
  34. VERIFY: 'Purpose of Refinance' is 'Cash-Out Purchase Home'
  35. VERIFY: 'Cash Out Amount' = $1; set to Yes
  36. Complete required fields on the "Shop for Rates" page
  37. Click Action button
  38. On the "Pricing Results" page:
    • VERIFY: the Product Adjustments column displays 'Purpose is Cash Out' 
    • VERIFY: the available loan products are tied to 'Cash-out' loan products and not 'Rate/Term' refinance loan products. 
Additional Test:

Run the same test as above, with the following amendments:

  • select a different refinance goal in cPOS; verify that borrower input is mapped properly to oPOS. The following table displays the respective messages that appear in oPOS for each refinance goal
cPOS (Refinance Goals)

oPOS (Cash Out)

oPOS (Purpose of Refinance)

Better rate and term

NO

No Cash-Out Rate/Term

Debit consolidation

YES

Cash-Out Debt Consolidation

Home improvement

YES

Cash-Out Home Improvement

Take some cash out

YES

Cash-Out Other

Tuition expense

YES

Cash-Out Tuition Expense
Purchase home

YES

Cash-Out Purchase Home

Other

YES

Cash-Out Other: 
 
 
Use Case #2: M-1003 - Loan Purpose Editing Disabled for Co-Borrowers
  1. Log in to cPOS as a co-borrower. You will automatically be directed to the Personal tab
  2. Click on Loan Purpose in the left nav
  3. Click the Edit button
    • VERIFY: Refinance option is disabled
  4. Click Next
    1. VERIFY: Refinance Purpose options are also disabled
  •  

 

Use Case #3: Refinance Goal - "Other"

Run the same test as above, with the following amendments:
  • Set Refinance Goal to Other

Test Process:

  1. Register as a borrower in cPOS
  2. Begin new loan application
  3. Loan Purpose: select Refinance
  4. Click Next 
  5. "Refinance Goals" Page
    • Select Other 
  6. Complete Personal section of the 1003 loan application and proceed to Property section
  7. Property Section
    • enter: subject property address
    • enter: complete occupancy/property type
    • enter: original purchase price/date
  8. "Calculate Loan Amount" Page
    • Enter estimated value amount ($0 or above)
      • Note: this field does not appear in certain client configurations
    • Enter remaining mortgage balance ($0 or above)
    • Enter 'Cash Out' amount of ($0)
      • VERIFY: field validation error message displays: 'Cash Out amount must be greater than $0'
    • Click Next  
      • VERIFY: alert page validation error displays the above message as a bulleted list.
    • Enter: "$1" in the 'Cash Out' field
      • VERIFY: page and field validation errors disappear
    • Click Next
  9. Complete Property section of the 1003 loan application
  10. Property (Review Screen)
    • VERIFY: $1 Cash Out amount is visible
    • Click Next
  11. Complete Income section of the 1003 loan application
  12. Complete Assets section of the 1003 loan application
  13. Sign out of cPOS
  14. LO opens up the loan in oPOS
  15. Navigate to the Property tab
  16. VERIFY: Refinance Goal = 'Cash-Out Other'
  17. Navigate to "Shop for Rates" page
  18. VERIFY: Purpose of Refinance*' (field label) has an asterisk
  19. VERIFY: Cash out amount = $1; set to Yes
  20. Complete the required fields on the Shop for Rates page
  21. Click the Action button
  22. On the "Pricing Results" page:
    • VERIFY: the Product Adjustments column displays 'Purpose is Cash Out' 
    • VERIFY: the available loan products are tied to 'Cash-out' loan products and not 'Rate/Term' refinance loan products. 

Use Case #4: LO requests a price quote and selects 'cash out' refi goal; sends SecureLink to borrower

  1. Log in to oPOS as a Loan Officer and request a price quote
  2. Loan Purpose: select Refinance
  3. VERIFY: 'Purpose of Refinance' now includes an asterisk *
  4. Without completing the required fields on the page, click Shop for Rates button
  5. VERIFY: option field for 'Purpose of Refinance*' shows red alert style
  6. Enter "$10,000" in the 'Cash Out' field
  7. VERIFY: the 'Cash Out' dropdown field is set automatically to 'Yes'
  8. Purpose of Refinance: select Cash Out - Home Purchase
  9. Complete the remaining required fields and Shop for Rates
  10. Navigate to the Personal tab and complete the borrower information 
  11. Navigate to the Property tab
  12. Enter subject address
  13. Property type: select Condo
  14. VERIFY: 'Cash-out Home Purchase' appears
  15. Return to the Personal tab and send a SecureLink invite to the borrower
  16. Save the loan and log out of oPOS
  17. As the borrower, access the activation email sent from the Loan Officer and click the activation link
  18. Enter information to activate borrower account
  19. Navigate to the "Loan Purpose" page
  20. VERIFY: Refinance is selected
  21. Click Next to navigate to the "Purpose of Refinance" page
  22. VERIFY: Home Purchase is selected
  23. Complete the Personal section of the 1003 loan application
  24. Property Section:
    • VERIFY: same subject property address (entered from oPOS) appears
    • VERIFY: same occupancy / and property type (Condo) appears
    • enter: original purchase price/date
  25. "Calculate Loan Amount" Page
    • Click Next
    • VERIFY: page validation error alert message appears for the 3 incomplete fields
    • VERIFY: estimated value amount matches entry from oPOS
    • VERIFY: remaining mortgage balance matches entry from oPOS
    • VERIFY: cash out amount matches entry from oPOS 
  26. Complete Property section of the 1003 loan application
  27. VERIFY: cash out amount on "Summary" page matches entry from oPOS 
Additional Test:

Run the same test as above with the following amendments:

  • select a different refinance goal; verify that input is mapped properly to cPOS

*(Corresponding Feature number(s) - 441065, 429875)

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