Calyx Software is coming out next week with a qualified mortgage findings report that will allow originators to thoroughly document compliance with the
Ben Wu, executive director of technology, said in the past organizations typically tried to solve similar issues by having their loan officers and underwriters use a checklist. The problem is that under the rules established by the Consumer Financial Protection Bureau, lenders need to document the data that were used in making the determination on the borrower’s ability to repay.
A simple “check-the-box” checklist will not meet that standard, he said.
So Calyx has created a QM findings report that will be released on Aug. 8 as part of Point version 9.0. However, for those originators who do not use Point, Calyx will have a Web browser accessible version of the report available in September.
For Point users, the report is free; for non-Point users it will cost $5 per report.
To access the report in Point, all users will have to do is click on a button on the bottom of the screen.
Wu said the report gives lenders “transparent and clear” documentation on why the loan qualifies under QM. There are four categories of QM and the system goes through each starting with general QM and working its way down if the loan fails the test.
A negative report is generated if the loan fails the QM test and it shows why the loan failed.
The report lists the regulatory threshold in one column and shows actual loan data for that standard in the next. It also includes a point and fees calculation and the cushion or deficiency from the standard.
Wu added the bottom of the report has a section which explains the background of the analysis.
He said originators need to document QM compliance to protect themselves, and to show to their investors and compliance examiners. The report helps originators to meet the requirement to retain evidence of compliance in the loan file for three years.
