This article provides instructions for creating multiple 1003 applications for the same loan and describes several important factors to keep in mind when working on an M-1003.
Table of Contents
- Creating an M-1003
- Completing the loan application
- When is RESPA triggered on an M-1003?
- How is Debt-to-Income calculated on an M-1003?
- Managing the Borrower's Needs List
Creating an M-1003
To add additional borrowers to a primary borrower's loan, open the Application tab and select + Add 1003
This will create a new separate loan application for the additional borrower. To navigate between different borrowers' applications, use the name tabs that appear below the navigation bar. The currently-opened application is underlined in green.
You can add up to a maximum of three separate applications on a single loan.
Borrowers can also add additional applicants directly from cPOS by indicating that they are applying with someone else. However, borrowers can only one additional applicant this way. Adding a third applicant must be completed in TPO as described above.
Completing the loan application
The loan application for each borrower is identical and is completed separately. The only section that does not need to be completed for each borrower is the subject property and loan information that appears in the Property section of the application - all information about the subject property entered for one borrower will automatically populate that section for each borrower on the loan
For more detailed instructions on completing the individual sections of the loan application, refer to this article
When is RESPA triggered on an M-1003?
A loan with multiple 1003 applications will trigger RESPA and require initial disclosures after the following six pieces of information are collected on any of the included loan applications:
- the borrower's full name
- the borrower's social security number
- the borrower's income
- the street address of the subject property
- the estimated value of the subject property
- the loan amount sought
After these six pieces of information are collected on one of the borrower's applications, a message bar will appear and display the date by which initial disclosures must be requested (3 business days). A red checkmark will also appear next to the name of each borrower whose application has collected the six pieces of information above.
Make sure to collect these six pieces for each borrower on the loan before requesting initial disclosures so that the information contained in the disclosure package sent to the borrowers is correct.
How is Debt-to-Income calculated on an M-1003?
When a loan has multiple 1003 applications, the qualifying Debt-to-Income ratio (DTI) that appears on the "Shop for Rates" page is an aggregated figure that is calculated automatically using the provided liabilities and income from all borrowers on the loan.
Managing the Borrower's Needs List
On a loan with multiple borrowers, the Borrower's Needs List will be separated into separate sections for each borrower.
You will need to Run Needs List separately for each borrower in order to generate their list
To prompt the borrower to complete their tasks in cPOS, select Send SecureLink.
If the borrower is offline, you will be prompted to return to the Personal section of the loan application to provide their email address and convert them to an online borrower. You will also be asked to set up a security question that they can use to activate their account. Click Connect Account to update them to an online borrower.