INCOME+ is all about simplicity and standardization.
Improve income calculations with this easy-to-implement enhancement tool using source data verifications you already order.
With 2020 seeing record loan volume, all while bringing new staff up to speed remotely, lenders are looking for automated fintech solutions that ease the bottleneck effect in loan processes. With that said, many folks have asked us about our income calculation tool -- but faced challenges to find the time to chat. So, to make things easier, here is our best overview, with a link to view a short video demo at the end.
Setting the stage
Income calculations are often done using a decentralized process with limited rule sets- for example, open to considerable person-to-person interpretation. A loan officer, processor, and underwriter, when provided the same financial docs on the same borrower, will most frequently arrive at differing qualifying income figures – again, a lack of standardization leads to open interpretation. Unfortunately, many shops have designed an inefficient process for calculating income, much like determining home values.
At application, the LO will often complete a quick calculation measuring whether there’s any shot at qualifying the applicant. If the file proceeds forward, a processor and underwriter will conduct their own calculations.
Underwriters are trained to be skeptical, which means they will perform their own income calculations even if calculations were performed by company peers. This redundancy is an example of inefficient processes.
A lender’s rule set for income calculations is often “tribal knowledge,” as SERVICE 1st’s Lisa Binkley describes it. Lisa has provided QA and fraud mitigation leadership for multiple lenders over the years. These tribal knowledge rules are passed informally to team members as they train and grow with a lender. Calculation overlays to investor requirements further cloud the water. Additionally, borrower-supplied data (or tax transcript data) is manually transcribed or copied and pasted into homegrown Excel spreadsheets – creating further inefficiency and raising the risk for human error.
The key to Income+ is leveraging the natural efficiencies of existing and proven solutions. Income+ limits the friction of requiring borrowers to source financial and employment documents for the origination to proceed. Income+ capitalizes on instant tax return and employment data when available. When instant data is unavailable, the process cascades to manual data procurement from the IRS and employer. Income and employment data are no longer manually transcribed from one medium to another. With Income+, these data points are categorized and distributed via a system-to-system interface.
Qualifying income results are calculated using customizable rule sets that eliminate redundancy and inefficiencies. You calculate borrower income one time (1x)! Remove multiple team members calculating the same borrower’s income, using the same borrower financials – and arriving at different results. Leverage source data you already order with instantly verified totals. Simply put -- Income+ standardizes income calculations.
Rushed for time? Click here for a quick video on Income+