21.4 Updated VOM Calculations (Field FM0016 and FM0021) for Subject Properties Using New URLA Forms

Details:

Fannie Mae Desktop Underwriter (DU) and Freddie Mac Loan Prospector (LP) pull housing expenses and net rental income from the Verification of Mortgage (VOM) record.  This resulted in discrepancies when the current mortgage payment associated with the subject property was different from the proposed payment.  For Encompass to align with the new DTI calculations utilized by DU and LP, updates have been made to calculations in the VOM record for the subject property for loans using the new URLA forms.

Solution Details:

When the Subject Property indicator (field FM0028) is selected, and the Occupancy (field 1811) = Primary, then the following logic applies:

• Mortgage Payment (field FM0016) is now the Qualifying Payment First Mortgage P&I plus the Qualifying Payment Subordinate P&I

When the Subject Property indicator (field FM0028) is selected, and the Occupancy (field 1811) = Secondary or Investment, then the following logic applies:

• Mortgage Payment (field FM0016) is now the Proposed Monthly First Payment P&I plus the Proposed Monthly Subordinate Liens P&I

For Both logic scenarios:

• The Taxes, Ins, Expenses (field FM0021) will have a lock icon and is now the combined total of the proposed monthly hazard Insurance (field 230), supplemental insurance (field URLA.X144), property taxes (field 1405), mortgage insurance (field 232), association/project dues (field 233), and other expenses (field 234).

When the Subject Property indicator (field FM0028) is not selected:

• The Taxes, Ins, Expenses (field FM0021) will not have a lock icon and will go back to a manual entry field.

Note:  The calculations used for Mortgage Payment (field FM0016) and Taxes, Ins, Expenses (field FM0021) changes when the Subject Property indicator (field FM0028) is selected or cleared.