Updating Loan Prospector's Total Debt Calculation
[September 7, 2008]
On September 16, we are updating how Loan Prospector calculates "Total Debt" for conventional/conforming, Federal Housing Administration (FHA), and Department of Veterans Affairs (VA) loans in Loan Prospector. Based on your feedback, we're making these enhancements to align more closely with the Freddie Mac Single-Family Seller/Servicer Guide (Guide) requirements, as well as related FHA and VA requirements.
Beginning September 16, Loan Prospector will follow these guidelines, based on liability type, when calculating the Total Debit for conventional/conforming, FHA, and VA loans:
| Liability Type |
FHA and VA Loans
in Loan Prospector |
Conventional/Conforming Loans
in Loan Prospector |
| Installment |
If a monthly payment is entered for an Installment with 10 months or more entered in the "Months Left To Pay" field, then the monthly payment will be included in the Total Debt Calculation. |
If a monthly payment is entered for an Installment with greater than10 months in the "Months Left To Pay" field, then the monthly payment will be included in the Total Debt Calculation. |
| Revolving Charge |
If a monthly payment is entered for a Revolving Charge with 10 months or more entered in the "Months Left To Pay" field, then the monthly payment will be included in the Total Debt Calculation. |
If a monthly payment is entered for a Revolving Charge, then the monthly payment will be included in the Total Debt Calculation. |
| Open End/30 Day Charge Account |
If a monthly payment is entered for an Open End/30 Day Charge Account with 10 months or more entered in the "Months Left To Pay" field, then the monthly payment will be included in the Total Debt Calculation. |
If a monthly payment is entered for an Open End/30 Day Charge Account, then the monthly payment will be included in the Total Debt Calculation. |
This enhancement will affect pipeline loans in Loan Prospector. If you submit or resubmit a loan in Loan Prospector on or after September 16, 2007, then the new calculation guidelines will be used. Please keep that in mind as you begin to complete your loan transaction. For questions on when to resubmit to Loan Prospector, please refer to the Guide Section 2.2.1k
If your system currently uses a different method to calculate the total debt than Loan Prospector today, please be sure to modify your system accordingly.
For More Information:
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