TPO: Completing the Loan Application

In order to help users complete the loan application more quickly, this article provides a comprehensive list of every required field and task in the 1003 loan application. After completing these required fields, users will be ready to proceed to run AUS and request initial disclosures.

 

Table of Contents

• Overview
• RESPA - Six Pieces
• Completing the Personal Section
• Completing the Property Section
• Completing the Assets Section
• Completing the Demographics Section
• Completing the Credit Section
• Completing the Declarations Section
• Completing the Income Section
• Summary
• Related

 

Overview

The loan application is where users provide important information about the borrower and their financial situation so that lenders can determine their eligibility for borrowing. In order to complete the loan application, every required field in the loan application must be filled out. These fields can be completed either by the borrower in the consumer site (cPOS) or by users in TPO.

The application is organized into seven distinct sections:

• Personal - this section contains questions about the borrower's name, contact information, and other personal details
• Property - this section contains questions about the subject property and how the borrower intends to use it
• Assets - this is where information about the borrower's financial assets is entered
• Demographics - this section contains questions about the borrower's sex, race, and ethnicity
• Credit - this section contains information about the borrower's debts and other liabilities
• Declarations - this section contains a list of questions about the borrower's financial history
• Income - this section contains questions about the borrower's employment history

When all required fields in one of these sections is complete, a green checkmark appears in the tab for the corresponding section

Incomplete	Complete

 

This article will help you to attain a green checkmark for each section so that you can complete the loan application. However, this article does not contain information about the many optional fields contained in the loan application. For a comprehensive guide to each section of the application, follow the links in the article below to learn more about that specific section.

Note: some of the fields below are specific to only purchase or refinance loans, or only appear when there are multiple borrowers on the loan. Make sure that you complete the required fields according to the kind of loan you are working with.

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RESPA - Six Pieces

While completing the loan application, users should keep in mind that the system will automatically trigger the 3-day countdown to issue initial disclosures (per RESPA) once the following six pieces of information are provided in the application:

• Borrower's name
• Borrower's Social Security Number
• Borrower's Income
• Subject property street address
• Estimated value of the subject property
• Loan amount

Once all six of these fields have been completed, a message bar will appear at the top of the page to remind users that they must request disclosures within three days. When this message bar appears, users will need to complete the loan application and apply a product before the disclosures clock expires.

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Completing the Personal Section

The Personal section collects important personal information about the primary borrower and any co-borrowers.

 

Step 1: Borrower Information

To complete this section, start by entering the following required pieces of information about the primary borrower:

1. First Name
2. Last Name
3. Preferred Phone Number
4. Employment Status
5. Citizenship
6. Military Service
7. Date of Birth 
8. SSN
9. Marital Status
10. Property Rights (required when Marital Status is set to 'Civil Union,' 'Domestic Partnership,' or 'Registered Reciprocal Beneficiary Relationship')
11. State Relationship Established (required when Property Rights is set to 'Yes, there is a relationship with property rights')

*If the borrower is single and applying by themselves, proceed to step 3

 

Step 2: Co-Borrower/Non-Borrowing Spouse Information

When the borrower indicates that they are married or in a relationship with property rights, additional fields will be added to provide 'Co-Borrower Information.' If the borrower intends to apply with their spouse or partner, the following fields must be completed:

1. First Name
2. Last Name
3. Preferred Phone
4. Employment Status
5. Citizenship
6. Military Service
7. Date of Birth
8. SSN
9. Marital Status

If the borrower does not intend to apply with their spouse or partner, set the toggle switch labelled 'Spouse or registered partner going to be on the loan?' to 'No'

If the borrower's spouse or partner is not going to be on the loan, but will still be on the title, set the toggle switch labelled 'Spouse or registered partner going to be on Title?' to 'Yes.' When this switch is enabled, additional required fields will appear for a non-borrowing spouse (NBS):

1. First Name
2. Last Name
3. Preferred Phone

 

Step 3: Title Information

The Names to be on Title field will be automatically populated with the names of the borrower(s) entered above. Make sure that these names correctly reflect the individuals who should be on the title for the subject property.

After these steps are completed, a green checkmark will appear in the Personal tab.

 

Completing the Property Section

The Property section collects information about the subject property and the size of the borrower's loan.

 

Step 1: Subject Property Information

Enter the following required pieces of information about the subject property:

1. Property Address
2. Property Type
3. In a PUD
4. Occupancy Type

 

Step 2: Loan Information

Enter information about the purchase price of the subject property and the size of the loan the borrower is seeking. The required fields in this section differ between purchase and refinance loans

Purchase - Required Fields

1. Purchase Price
2. Loan Amount | Base LTV
3. Down Payment Source

Refinance - Required Fields

1. Estimated Value
2. Loan Amount | Base LTV
3. Purchase Price & Date
4. Purpose of Refinance

 

Step 3: Current Address Information

Enter the following information:

1. The borrower's current address
2. Time at Address (if less than 2 years, additional fields will appear to provide borrower's previous address - two years of residency info required) 
3. Same as Subject Property (refinance only - select this checkbox if the borrower's current residence is the same as the subject property to skip entering the address again)

After these steps are completed, a green checkmark will appear in the Property tab.

 

Completing the Assets Section

The Assets section is where users can add information about the borrower's current financial assets, including cash on hand, bank accounts, or stocks and bonds. To complete this section of the loan application, at least one asset needs to be added. 

Select one of the following to add an asset to the borrower's application:

1. Add Financial Asset
2. Add Other Asset
3. Add Gift Fund or Grant

After at least one asset has been added on this page, a green checkmark will appear in the Assets tab.

 

Completing the Demographics Section

The Demographics section collects information about each borrower's race, ethnicity, and sex. Borrowers can choose to provide all, some, or none of this information.

 

Step 1: Legal Information

Before asking the borrower(s) about their demographic information, you must read the text at the top of this page to them so that they understand why it is being requested and that they have the right to decline to furnish this information.

 

Step 2: Interview Format

Use the drop-down menu next to the 'Borrower' heading to indicate how the borrower provided their demographic information. If the borrower declines to provide any of their demographic information, select the I do not wish to provide this information checkbox. 

 

Step 3: Demographics Questions

Answer the following questions by selecting the appropriate checkboxes (more than one box can be selected for any of these questions):

1. What is your race?
2. What is your ethnicity?
3. What is your sex?

After completing these steps for each borrower on the loan, a green checkmark will appear in the Demographics tab.

 

Completing the Credit Section

The Credit section is where users can run a credit report and provide information about the borrower's liabilities.

To complete this section, the borrower's credit score must be obtained. To do so, use one of the following methods:

1. Run New Credit Report - select this option to enter the borrower's information and run a new credit report
2. Manually Enter Credit Scores - if a credit report was run externally, select this option to enter the borrower's scores manually

After the borrower's credit scores are obtained, a green checkmark will appear in the Credit tab.

 

Completing the Declarations Section

The Declarations section of the loan application is used to disclose important details about the borrower's financial history, such as personal bankruptcies, foreclosures, or outstanding judgments.

In order to complete this section, every question on this page must be responded to for all borrowers on the loan (question b is required only for purchase loans)

After all declarations questions have been answered, a green checkmark will appear in the Declarations tab.

 

Completing the Income Section

The Income section is used to provide information about the borrower's employment and income. In order to complete this section, at least one source of income must be added for the borrower. If eVOI is enabled, you can select Run eVOI to verify the borrower's income automatically. Otherwise, use the following steps to add an income source for the borrower.

 

Step 1: Employment Information

Select an employment type

• Employed - proceed to step 2
• Active Military Duty - proceed to step 3
• Self-Employed - proceed to step 2
• Retired - proceed to step 4

 

Step 2: Employment/Self-Employment Information

The following fields are required when Employment Type is set to 'Employed' or 'Self-Employed':

1. Position
2. Years on this Job
3. Duration in Same Field
4. Company Name
5. Business Phone
6. Base Pay/Gross Income

 

Step 3: Active Military Duty Information

The following fields are required when Employment Type is set to 'Active Military Duty':

1. Rank
2. Years on this Job
3. Duration in Same Field
4. Branch
5. Business Phone
6. Military Base Pay

 

Step 4: Retirement Information

When Employment Type is set to 'Retired,' the borrower's retirement date must be provided.

In addition to the borrower's retirement date, you must also add their retirement income in the Other Income section

 

After an income source is added for the borrower, a green checkmark will appear in the Income tab.