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New Fields for Non-QM Workflows

Charlie Gunn
  • Updated

Overview

Release 6.1.1000 includes the following enhancements to make it easier for users to shop for non-QM loan programs:

  • Users can now select Non-QM as a search criteria on the “Shop for Rates” page
  • Other search criteria fields on the "Shop for Rates" page have been added/updated to accommodate Non-QM pricing scenarios
  • A new Expanded Guidelines section has been added to the “Credit” and “Shop for Rates” page to document the primary borrower’s late mortgage payments, previous bankruptcies, and other housing events
  • Several new fields have been added to the “Loan Details” page to reflect the new fields added on the "Shop for Rates" page 

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Configurations

This feature does not require any configurations

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Updates to the "Shop for Rates" Page 

The following fields have been added to the "Shop for Rates" page:

  1. Number of Properties Financed - this new field displays the number of financed properties held by the primary borrower based upon the results of the REO report. This number can be edited by typing directly into this field.
  2. Non-QM - this checkbox is used to set non-qualified mortgage programs as a search parameter when shopping for rates. Selecting this checkbox will cause other new fields to appear or affect the behavior of other existing fields (see below)
  3. Pre-Payment Penalty - this field is used to set the pre-payment penalty term. Select from 0-5 years.

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Non-QM Workflow Changes

The Search Criteria for Get Rates section has been updated to respond dynamically with the following new fields and menu options when the Non-QM checkbox is selected:

  1. An expanded range of options will now appear in the Income Verification Type when shopping for non-QM programs:
    • 1 Year Alt Documentation
    • 2 Year Alt Documentation
    • Asset Related
    • Business Bank Statement: 1 Mo
    • Business Bank Statement: 3 Mos
    • Business Bank Statement: 6 Mos
    • Business Bank Statement: 12 Mos
    • Business Bank Statement: 18 Mos
    • Business Bank Statement: 24 Mos
    • Full Documentation (default)
    • Investor - DSCR
    • Investor - No Ratio
    • Personal Bank Statement: 1 Mo
    • Personal Bank Statement: 3 Mos
    • Personal Bank Statement: 6 Mos
    • Personal Bank Statement: 12 Mos
    • Personal Bank Statement: 18 Mos
    • Personal Bank Statement: 24 Mos
    • Restricted Stock
    • Stated
    • Written VOE
  2. When Income Verification Type is set to 'Investor - DSCR,' an additional field will appear to enter the DSCR (Debt Service Coverage Ratio). This field is dependent on client's pricing integrations and will only appear for those using Lender Price.
  3. Expanded Guidelines - this section appears when Non-QM is selected and contains important information from the primary borrower's credit report about their history of late mortgage payments, bankruptcies, and other housing events in order to refine the search results. For more details on the fields contained in the Expanded Guidelines section, see below. The fields in this section can be edited during pricing for interview purposes, but they will be overwritten by the results of the credit report. 

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New Search Criteria Field Order

In this update, the order in which the fields in the Search Criteria for Get Rates appear section has also been changed. This has no affect on the functionality of these fields.

The order of these fields will differ depending on whether you are using oPOS for Retail or TPO.

  New Field Order
Retail

Desired Search Option

Income Verification Type

DSCR Ratio (Conditional)

Mortgage Insurance

Prepayment Penalty

Interest Only

AUS

eVOA
TPO

Desired Search Option 

Price Includes Broker Compensation (TPO Only)

Price Includes Administration Fee (TPO Only)

Income Verification Type

DSCR Ratio (Conditional)

Mortgage Insurance 

Prepayment Penalty

Interest Only 

AUS

eVOA

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Updates to the "Credit" Page

The new Expanded Guidelines section also now appears by default on the "Credit" page below the Miscellaneous Expenses section. This section will populate automatically based on the information in the primary borrower's credit report.

The Expanded Guidelines sections contains the following additional information about the primary borrower's financial history:

  1. Mortgage Lates - this area displays the number of times the borrower has made a late payment on a mortgage within the previous two years. This information is organized into 30 day late increments.
  2. Bankruptcy Event - this area contains information about any bankruptcies filed by the borrower
    • Bankruptcy Chapter - Chapter 7,11, or 13
    • Disposition - indicates the status of the bankruptcy (Pending, Discharged, or Dismissed)
    • Bankruptcy Seasoning - indicates when the bankruptcy occurred
  3. Housing Event - this area contains information about any foreclosures or other housing-related financial events
    • Housing Type - indicates the type of housing event (Deed in Lieu, Foreclosure, Modification, Short Sell)
    • Housing Seasoning - indicates when the housing event occurred
  4. Other - this area indicates whether the borrower owns a unique property

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Updates to the "Loan Details" Page

The "Loan Details" page has been updated to display additional pricing information to reflect the new fields added on the "Shop for Rates" page. 

  • Product Type for Pricing - this field indicates whether the selected loan product is part of a non-QM program. This field only appears after a loan product has been selected and applied.
  • DSCR Ratio - this field displays the debt service coverage ratio when the selected loan product is non-QM
  • Unique Property - if the Unique Property field that appears in the Expanded Guidelines section on the "Shop for Rates" page was completed, the selected value ("Yes"/"No") will appear in this field
  • No. Financed Properties - this field displays the number of properties financed by the primary borrower as calculated from the REO report.
  • Prepayment Penalty - this field displays the prepayment penalty that was selected on the "Shop for Rates" page

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Acceptance Criteria

Use Case #1: oPOS (TPO) Shop for Rates & Loan Details - UI fields
 
Prerequisites:
  • Environment = oPOS (TPO)

Testing Process

  1. Log in to oPOS (TPO)
  2. Click on "New" --> "Price Quote"
  3. Enter the required data fields
  4. Scroll down to the "Qualifying Information" section
  5. VERIFY: the "Number of Properties Financed" field is displayed below the "Months of Reserves" field
  6. Scroll down to the "Search Criteria" section
  7. VERIFY: the Search Criteria for Get Rates fields listed are in the following order...
    • Desired Search Option
    • Price Includes Broker Compensation
    • Price Includes Administration Fee
    • Income Verification Type
    • Mortgage Insurance
    • Prepayment Penalty
    • Interest Only
    • AUS
    • eVOA
  8. VERIFY: "Full Documentation" is the default value in the "Income Verification Type" dropdown
  9. VERIFY: the "Non-QM" checkbox is displayed under the "Conventional Loans" column header, directly below the "Non-Conforming" option
  10. VERIFY: the "Non-QM" checkbox is un-checked by default
  11. Expand the "Income Verification Type" dropdown
  12. VERIFY: the following values are listed:
    • Personal Bank Statement: 24 Mos
    • Full Documentation
  13. Click out to close the dropdown
  14. Check the "Non-QM" checkbox
  15. VERIFY: the "Expanded Guidelines" section is displayed
  16. VERIFY: label "Recommended for Pricing" is displayed below the "Expanded Guidelines" section header
  17. VERIFY: a tooltip icon is displayed to the right of the following subsection headers...
    • Mortgage Lates
    • Bankruptcy Event
    • Housing Event
  18. Hover over each icon
  19. VERIFY: a tooltip window appears that contains the following message; "This data pertains to the primary borrower."
  20. VERIFY: "Full Documentation" is the default value in the "Income Verification Type" dropdown
  21. Expand the "Income Verification Type" dropdown
  22. VERIFY: the following default values are listed:
    • 1 Year Alt Documentation
    • 2 Year Alt Documentation
    • Asset Related
    • Business Bank Statement: 1 Mo
    • Business Bank Statement: 3 Mos
    • Business Bank Statement: 6 Mos
    • Business Bank Statement: 12 Mos
    • Business Bank Statement: 18 Mos
    • Business Bank Statement: 24 Mos
    • Full Documentation
    • Investor - DSCR
    • Investor No Ratio
    • Personal Bank Statement: 1 Mo
    • Personal Bank Statement: 3 Mos
    • Personal Bank Statement: 6 Mos
    • Personal Bank Statement: 12 Mos
    • Personal Bank Statement: 18 Mos
    • Personal Bank Statement: 24 Mos
    • Restricted Stock
    • Stated
    • Written VOE
  23. Select the "Investor - DSCR" value
  24. VERIFY: the "DSCR Ratio" field is displayed directly below the "Income Verification Type" field (Lender Price only)
  25. Expand the "Income Verification Type" dropdown
  26. Select the "1 Year Alt Documentation" value
  27. VERIFY: the DSCR Ratio" field is hidden
  28. Un-check the "Non-QM" checkbox
  29. VERIFY: the "Expanded Guidelines" section is hidden
  30. Expand the "Income Verification Type" dropdown
  31. VERIFY: the following values are listed:
    • Personal Bank Statement: 24 Mos
    • Full Documentation
  32. Navigate to the Loan Details page
  33. VERIFY: the "Product Type for Pricing" field does not appear in the Product Information section 
  34. VERIFY: the "Unique Property" field appears in the Pricing Information section
  35. VERIFY: the "Unique Property" field is defaulted with a blank value
  36. VERIFY: the "Number of Properties Financed " field appears in the Pricing Information section
  37. VERIFY: the "Number of Properties Financed" is defaulted with a value of "1"

Use Case #1.1: oPOS (Retail) Shop for Rates & Loan Details - UI fields 

Prerequisites:

  • Environment = oPOS (Retail)

Testing Process: 

  1. Log in to oPOS (Retail)
  2. Repeat Use Case #1 steps #2-6
  3. VERIFY: the Search Criteria for Get Rates fields listed are in the following order...
    • Desired Search Option
    • Income Verification Type
    • Mortgage Insurance
    • Prepayment Penalty
    • Interest Only
    • AUS
    • eVOA
  4.  Repeat Use Case #1 steps #8-37
 
Use Case #2: Shop for Rates - Expanded Guidelines (No Product Applied) 
 
Testing Process:
 
  1. Log in to oPOS (Retail or TPO)
  2. Click on "New" --> "Price Quote"
  3. Enter the required data fields
  4. Check the "Non-QM" checkbox
  5. VERIFY: The Expanded Guidelines section appears
  6. VERIFY: the information in the Expanded Guidelines section matches the following default values: 
    • 30 Days / 12 Months = 0
    • 60 Days / 12 Months = 0
    • 90 Days / 12 Months = 0
    • 120 Days / 13-12 Months = 0
    • 30 Days / 13-24 Months = 0
    • 60 Days / 13-24 Months = 0
    • 90 Days / 13-24 Months = 0
    • 120 Days / 13-24 Months = 0
    • Bankruptcy Chapter = None
    • Disposition = NA
    • Bankruptcy Seasoning = NA
    • Housing Type = None
    • Housing Seasoning = NA
    • Unique Property = No
  7. Enter/Modify data in all the "Expanded Guidelines" fields
  8. Click on "Shop for Rates" 
  9. User is navigated to the Pricing Results page
  10. Click the "Back" button on the Pricing Results screen
  11. VERIFY: the information that was entered in the Expanded Guidelines section in step #7 is still there
  12. Navigate to the Personal page
  13. Navigate back to the Shop for Rates page
  14. VERIFY: the Expanded Guidelines section has reverted back to its default values (see step #6)
  15. Enter/Modify data in all the "Expanded Guidelines" fields again
  16. Click "Save"
  17. Navigate to the Pipeline 
  18. Open the same loan back up
  19. Navigate to the Shop for Rates screen
  20. VERIFY: the Expanded Guidelines section has reverted back to its default values (see step #6)
 
 
Use Case #3: Credit - "Expanded Guidelines" section
 
  1. Log in to oPOS (Retail or TPO)
  2. Click on "New" --> "Purchase" (or "Refinance")
  3. Enter the Borrowers First and Last Name
  4. Navigate to the Credit screen
  5. Scroll towards the bottom of the Credit screen
  6. VERIFY: the "Expanded Guidelines" section appears
  7. VERIFY: label "Recommended for Pricing" is displayed below the "Expanded Guidelines" section header
  8. VERIFY: an icon is displayed to the right of the following subsection headers...
    • Mortgage Lates
    • Bankruptcy Event
    • Housing Event
  9. Hover over each icon
  10. VERIFY: a tool tip is displayed with the following message; "This data pertains to the primary borrower."
  11. VERIFY: the following default values appear in the Expanded Guidelines section
    • 30 Days / 12 Months = 0
    • 60 Days / 12 Months = 0
    • 90 Days / 12 Months = 0
    • 120 Days / 13-12 Months = 0
    • 30 Days / 13-24 Months = 0
    • 60 Days / 13-24 Months = 0
    • 90 Days / 13-24 Months = 0
    • 120 Days / 13-24 Months = 0
    • Bankruptcy Chapter = None
    • Disposition = NA
    • Bankruptcy Seasoning = NA
    • Housing Type = None
    • Housing Seasoning = NA
    • Unique Property = No
  12. Enter/Modify data in the "Expanded Guidelines" fields
  13. Navigate to the Shop for Rates screen
  14. Complete the required data fields
  15. Click on the "Non-QM" checkbox under "Conventional Loans" in the Search Criteria section
  16. VERIFY: the data entered in the "Expanded Guidelines" section on the Credit screen carried over to the "Expanded Guidelines" section on the Shop for Rates screen
  17. Modify the data in the "Expanded Guidelines" section on the Shop for Rates screen
  18. Click "Save"
  19. Navigate to the Credit screen
  20. VERIFY: the Expanded Guidelines information data entered in Step #12 has persisted 
  21. Navigate to the Shop for Rates screen
  22. Verify: the data entered in Step #17 is wiped and replaced with what was previously entered in Step #12

 

Use Case 4: Credit - "Expanded Guidelines" section & Run Credit

 

Testing Process:

  1. Log in to oPOS (Retail or TPO)
  2. Click on "New" --> "Purchase" (or "Refinance")
  3. Complete the required fields on the Personal and Property screens
  4. Navigate to the Credit screen
  5. VERIFY: the default values are displayed in the "Expanded Guidelines" data fields
    • 30 Days / 12 Months = 0
    • 60 Days / 12 Months = 0
    • 90 Days / 12 Months = 0
    • 120 Days / 13-12 Months = 0
    • 30 Days / 13-24 Months = 0
    • 60 Days / 13-24 Months = 0
    • 90 Days / 13-24 Months = 0
    • 120 Days / 13-24 Months = 0
    • Bankruptcy Chapter = None
    • Disposition = NA
    • Bankruptcy Seasoning = NA
    • Housing Type = None
    • Housing Seasoning = NA
    • Unique Property = No
  6. Modify the "Expanded Guidelines" data fields
  7. Click "Save"
  8. Run Credit
  9. VERIFY: the "Credit Report Date: {Date}" is displayed below the "Report No." field 
  10. VERIFY: the date matches the Credit Report Issue date in the Credit Report
  11. VERIFY: the "Expanded Guidelines" data is updated with with the Credit Report data
    • Mortgage Lates 
    • Bankruptcy Chapter
    • Housing Type
  12. Navigate to the Shop for Rates page
  13. Check the "Non-QM" checkbox and uncheck any other Conventional boxes
  14. VERIFY: the "Expanded Guidelines' data fields are populated with the same data on the Credit screen from Step 10 (from the Credit Report / transactional data) 
  15. Click the "Shop for Rates" button
  16. Apply for a Non-QM Loan Product
  17. VERIFY: User is navigated to the Loan Details screen
  18. VERIFY: the "Product Type for Pricing" filed on the Loan Details screen in the Product Information section has the "Non-QM" value
  19. VERIFY: the "Unique Property" value on the Loan Details screen in the Product Information section displays "No"
  20. Navigate to the Credit page
  21. Modify some of the "Expanded Guidelines" data that was populated with the data from the Credit Report
  22. Update "Unique Property" value to be "Yes"
  23. Navigate to the Shop for Rates screen
  24. VERIFY: the "Expanded Guidelines' data fields are updated with the manual updates from steps # 21 and 22
  25. Uncheck the "Non-QM" checkbox and select "Conforming"
  26. Click the "Shop for Rates" button
  27. Click the "Update" button on a QM Loan Product
  28. User is navigated to the Loan Details screen
  29. VERIFY: the "Product Type for Pricing" filed on the Loan Details screen in the Product Information section is hidden
  30. VERIFY: the "Unique Property" value on the Loan Details screen in the Product Information section displays "Yes"
  31. Save the Loan
  32. Close Out of the Loan
  33. **Wait a Day**
  34. Open the Loan
  35. Navigate to the Credit screen
  36. Re-Issue Credit
  37. VERIFY: the "Credit Report Date" date is updated with the latest Credit Report Issue date
  38. VERIFY: the "Expanded Guidelines" fields on the Credit screen are updated with the data from the latest Credit Report
  39. Navigate to the Shop for Rates screen
  40. VERIFY: the "Expanded Guidelines' data fields are updated with the same data on the Credit screen from Step 36 (from the latest Credit Report) 
  41. Click "Add 1003"
  42. Complete the required fields on the Personal and Property screens for App 2
  43. Navigate to the Credit screen
  44. Scroll down to the bottom of the screen
  45. VERIFY: the "Expanded Guidelines" section is displayed
  46. VERIFY: "Recommended for Pricing" is displayed below the "Expanded Guidelines" section header
  47. Verify: an icon is displayed to the right of the following subsection headers...
    • Mortgage Lates
    • Bankruptcy Event
    • Housing Event
  48. Hover over each icon
  49. VERIFY: a tool tip is displayed with the following message; "This data pertains to the primary borrower."
  50. VERIFY: the "Expanded Guidelines' data fields are updated with the same data on the Credit screen from Step 36 (from the latest Credit Report) 
  51. Modify some of the "Expanded Guidelines" data
  52. Navigate to the Credit screen on the 1st 1003
  53. VERIFY: the "Expanded Guidelines' data fields mirror the updates from Step 51
  54. Navigate to the Shop for Rates screen 
  55. VERIFY: the "Expanded Guidelines' data fields mirror the updates from Step 51
 

Corresponding Feature(s): 443173

 

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