This month is a little different. Given the nature of this screen, the guide has been split into two separate articles. Part two will be released next month. In addition, each part will only have two FAQ items, resulting in a total of four for the screen overall.
Given that the Financial Information screen has so much information on it, and that so much of it needs to be covered in detail, this will be a two-part article. This first part will cover the fields in the uppermost part of the screen. Much of the information in this section of the screen will be available in either the lender’s closing instructions or in the loan terms.
The Purchase Price is the agreed upon price for the transaction as listed on the purchase and sales agreement.
Appraisal Value defaults to the purchase price but may be adjusted if it needs to be different. If you are using the Lookup ERNST Data feature, this is the value used for the mortgage recording cost unless the purchase price is higher.
The Loan Amount is the full amount of the loan that is being taken out in relation to the transaction.
The Exp Pay Meth is related to how the lender will fund the transaction. While this is not necessary for the file to function, it can be handy for informational purposes.
The Interest Rate reflects the amount of interest being charged on the loan.
The Origination Fee and Discount/Points can be entered here or manually entered on the CD/HUD. These fields are programmed for a percentage amount, not a dollar value. If you want to enter a dollar amount, you can do so if you first add a $ to the field.
Term refers to the length of time over which the loan will be paid back to the lender.
The Pmt Sched. shows how often payment is due over the loan’s term. The Payment field shows the amount of this payment and is calculated based upon the preceding information and the Daily Interest field, which shows the per diem interest. If the calculated amount is different from your instructions, you can manually change it.
The 1st Payment Date pulls based upon the Disbursement Date; defaulting to the first day of the first full month following the Disbursement Date. The related Payment Day generates based on the 1st Payment Date. Both can be manually changed if necessary.
Late Day defaults to 15 but may be altered based upon the lender’s terms. Similarly, the Late Charge Rate defaults to 5%, but may be altered if necessary. Maturity Date also calculates from the 1st Payment Date and loan terms.
A Mers Number may be added if necessary for the file. Filling out this field will automatically add MERS language to the commitment and policies.
The Interest Type, Loan Number, and Gov/MIC Number can be entered in these fields if necessary. Certain integrations require a loan number to be entered in order to generate a CPL in the Title Policy screen. The Interest Rate will also affect the CD by adding tables depending on the type selected. Also, the Variable rate type will generate additional fields for you to fill out that carry to the Note.
A Note Form must be selected if you need to generate a Note for a mortgage. Without a selection made, the system will assume that you are not generating a Note and will not allow you the opportunity to do so. The Interest Type chosen can affect your available selections.
“I have a construction holdback or other situation where the borrower isn’t using all of the loan amount for the initial purchase. Should my loan amount be only the amount the borrower is taking up front?”
No. The Loan Amount field needs to have the full amount of the loan that the borrower is taking. If you enter a different amount the file will not properly calculate other items such as title insurance premiums.
“I need to generate a Note for this file and the document isn’t showing in the package!”
Make sure you’ve chosen a Note Form. Without a selection made, you will not be able to generate a Note as the system will not know what format you need.