The Income/Housing Tab is where gross income and housing expense information is entered.
In the Gross Monthly Income section, next to the Base Income field, there is a blue Calculate hyperlink. When Calculate is selected, a separate Monthly Income Calculation window will open. There is a Payment Schedule drop-down list to select; Annual, Bi-Weekly, Hourly, Semi Monthly or Weekly. Input the dollar amount corresponding with the Payment Schedule selected to calculate the Gross Monthly Income. The Calculate button at the bottom of the window will update the value in the Gross Monthly Income Field. The Cancel button will close the Monthly Income Calculation window but will not update the Base Income field while Save/Close will close the Monthly Income Calculation window and update the Base Income field with the new calculated income.
Overtime, Bonuses, Commissions and Dividends/Interest fields can be manually input to add to the total monthly income.
The Other field is greyed out because it updates based on the value(s) entered into the Monthly Amount field in the Description of Other Income section.
The Net Rental Income field will populate from the 1003 > REO Tab > Net Rental Income.
Next to the Subject Net Cash field there is a blue Calculate hyperlink. When Calculate is selected, a separate Subject Net Cash Calculation window will open. Gross Rent can be input if it is being used for the subject property. The occupancy rate will default to 75%; however, this percentage can be changed. The Total Housing Expense field populates from the 1003 > Income/Housing Tab > Total Proposed payment field. The Calculate field at the bottom of the window will calculate the Subject Net Cash. The Cancel button will close the Subject Net Cash Calculation window but will not update any new calculations in the Subject Net Cash field while the Save/Close will close the Subject Net Cash Calculation window and update the Subject Net Cash field with the new calculation.
Tip: If the subject property is an Investment Property and the full proposed payment should be included in the DTI calculation, select the Calculate hyperlink next to Subject Net Cash then click on the Save/Close button. This will populate the total proposed payment into the Subject Net Cash field as well as populate to Forms & Docs > U/W Transmittal > Negative Cash Flow (Subject Property) field to add to the monthly debts for the DTI calculation.
The Combined Monthly Housing Expense section will compare the borrower’s current housing expense to the proposed housing expense.
If the 1003 > Terms Tab > Lien Type drop-down list displays First Mortgage or Other Mortgage, the proposed P&I will populate into the First Mortgage (P&I) field. If the 1003 > Terms Tab > Lien Type drop-down list displays Second Mortgage, then the proposed P&I will populate into the Other Financing (P&I) field.
The Proposed Hazard Insurance, Real Estate Taxes, MI and HOA Dues can be itemized out in the Proposed column as well. These figures will populate to Forms & Docs > GFE/IFW > 1000 Reserves Deposited with Lender section. Once the GFE/IFW is accessed, users will still have the ability to change the monthly figures on the 1003 > Income/Housing Proposed Combined Monthly Housing Expense column, however, if the monthly Real Estate Taxes field is changed on the 1003, the same value will not update the GFE/IFW.
Tip: To ensure accuracy between the 1003 and GFE, once the GFE/IFW has been accessed, users can update escrow values on the GFE/IFW so that they update the 1003 > Income/Housing fields accordingly.
When a loan requires monthly mortgage insurance, the blue MI Rate % hyperlink should always be used so that the MI factors and monthly values flow to the correct screens within a loan. When the blue MI Rate % hyperlink is selected, an MI Calculation window displays. Based on system settings, users will manually enter the MI factor by selecting the radio button next to the User Defined Rate field or will input the MI Data section then click the Calculate button to calculate the MI factor.
When the 1003 > Terms Tab > Mortgage Applied For drop-down list displays FHA there will be a MI Renewal Rate % drop-down list next to the Mortgage Insurance field where users can select the Monthly MI factor.
When the 1003 > Terms Tab > Mortgage Applied For drop-down list displays USDA/RHS there will be a Guarantee Fee hyperlink next to the Mortgage Insurance field. When selected, a GRH Fee Calculation window will open. Once the Conditional Commitment Data field is input, the monthly and upfront guarantee factors will populate and the Guarantee Fee will calculate. Users can indicate the dollar amount for the Financed Guarantee Fee. Save/Close will save the data and close the GRH Fee Calculation window while Cancel will close the window without saving any data entered.