LenderLive has announced that its GuardianDocs unit has introduced a new module to its FACTCheck suite: FACTCheck Tax Transcript Analysis. The new tool enables lenders to receive the FACTCheck tax transcript report as part of their IRS transcript order from select Income Verification Express Service (IVES) providers.
The FACTCheck tax transcript report returns the proprietary FACTCheck rules engine analysis on all income sources in a detailed, interactive report that contains both calculated qualifying income and messages of explanation and instruction. These rules are designed to test for GSE compliance, as well as a borrower’s ability to repay (ATR) under Appendix Q.
FACTCheck streamlines the process of underwriting income by:
►Reviewing all reportable tax income components, including wage, investment, retirement, rental, self-employment, farm, alimony and alternative income.
►Calculating and summarizing historical income and determining income stability.
►Testing for ATR compliance and providing a full rationale.
►Identifying further required action and all supporting documents needed. This enables flawless file preparation prior to the underwriter’s review.
►Empowering the underwriter to update the calculations with documented explanation while preserving the source data.
►Providing uniform documentation for every loan file that clearly illustrates the income and how it was derived, speeding future QC and due diligence review.
Because the new solution delivers a full fact-checked report, underwriters can focus their time on “gray areas” and more difficult situations. It also allows document collection to be done by processors and assistants. Lenders can upload tax transcripts to FACTCheck Tax Transcript Analysis in either HTML or a variety of PDF formats, so there is no need to manually input information.
“In the event of a default, an incorrect or unsupportable ATR calculation suddenly becomes a target on the lender’s back,” said Jonathan Kunkle, president of GuardianDocs. “We’ve designed FACTCheck Tax Transcript Analysis to reduce the risk of manual errors and inconsistently applied processes, as well as improve both accuracy and productivity by empowering exception-based underwriting. Dodd-Frank is about transparency. With FACTCheck, we are on a mission to bring the same transparency to income analysis that credit reports have brought to debt analysis. Ultimately, our goal is to protect both the borrower and the lender, while making the underwriter’s job easier and speeding up the loan process.”
