New Tool Helps Lenders Source and Calculate Income for Non-QM Bank Statement Loan Programs
IRVINE, Calif., July 24, 2019 - LoanScorecard®, the leading provider of non-agency automated underwriting systems (AUS), today announced that it has launched Bank Statement Analyzer™, a new tool designed to automatically collect and verify bank statement data, and then calculate income for non-QM mortgages.
Bank statement loans enable lenders to qualify borrowers who are either self-employed or participate in the gig economy and, therefore, lack traditional forms of income documentation. Typically, lenders calculate their income using 12 or 24 months of personal or business bank statements, instead of tax returns, W-2s or pay stubs.
With Bank Statement Analyzer, an originator has the ability to digitally source bank transaction data directly from a borrower’s financial institution. An invitation is sent to the borrower to have them securely provide credentials and grant 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. Once the data has been collected, Bank Statement Analyzer creates a report that details allowable deposits for each month; transactions that were excluded and why; and an average monthly income calculation. 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. Both Bank Statement Analyzer and Portfolio Underwriter can be used by the originator and the underwriter to accelerate the loan process.
“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.”
LoanScorecard is the leading provider of non-agency automated underwriting, pricing and loan-loss reserve solutions designed to meet today's regulatory challenges and capitalize on market opportunities. LoanScorecard helps institutions address CFPB regulations, compliance and fair lending, and supports banks and credit unions preparing for the upcoming impacts of CECL. For more information, visit loanscorecard.com or call 800-617-0892.