, an Irvine, Calif.-based provider of non-agency automated underwriting systems (AUS), has rolled out Bank Statement Analyzer, a product designed to automatically collect and verify bank statement data and then calculate income for non-QM mortgages.
According to the company, Bank Statement Analyzer enables an originator to digitally source bank transaction data directly from a borrower’s financial institution. The borrower grants the originator access to the bank account where they’ve been depositing their income, instead of gathering and supplying hundreds of pages of past bank statements. When the data is collected, Bank Statement Analyzer creates a report that details allowable deposits for each month and offers an average monthly income calculation; the program also explains if transactions are excluded and why they were not considered.
The detailed income analysis can also be pushed into LoanScorecard’s non-agency automated underwriting system, Portfolio Underwriter to validate the loan against program guidelines, by analyzing the full 1003 and credit history.
LoanScorecard stated the Bank Statement Analyzer Bank will help lenders to qualify borrowers who are either self-employed or participate in the gig economy and, therefore, lack traditional forms of income documentation and must rely on personal or business bank statements, instead of tax returns, W-2s or pay stubs.
“Until now, originating bank statement loans has been a time-consuming, error-prone process because originators have had to manually collect a borrower’s bank statements and then calculate their monthly income,” said Ben Wu, executive director at LoanScorecard. “This breakthrough tool helps investors confidently lend to important, yet often underserved borrower segments. With Bank Statement Analyzer, lenders can get directly-sourced bank transaction history and an automated income calculation, so they can qualify more borrowers—accurately and quickly.”