Blend Intelligence Overview

Assets

Automatically requests a Gift Letter to be signed by your borrower and borrower’s donor, inclusive of the following details:

• Gift Amount
• Date of Transfer
• Donor name, address, phone number, and relation to borrower
• Trigger logic: Borrower indicates using a gift as a partial or full source of their downpayment.

 Note: Triggered by borrower-entered applications only.

Configurable decisions

Display lender’s logo (from Blend branding) on Gift Letter.

Bank Statements

Automatically requests Bank Statements (covering last 60 days of activity) for each account a borrower manually enters in Blend.

Trigger logic

Borrower manually entered asset information for an account.

Connected Accounts

Automatically generates Asset Statements (for last 60 days of activity) for each account a borrower connected in Blend.

Trigger logic

Borrower connected their account in Blend.

Income

Paystubs

Automatically requests Paystubs for the last 30 days. If applicable, we will also additionally request an end-of-year paystub.

Trigger logic

To trigger Paystubs, borrower’s current income source is the following:

• Employment Pay
• Military Pay
• C-Corp, regardless of ownership %
• Independent Contractor

Additionally, if the borrower's’ employment period includes 12/31 and borrower indicates any bonus, commission, or overtime income, we will also request an end-of-year paystub.

W-2s

Automatically requests up to 2 years of W-2s for each relevant employer, depending on borrowers’ start date.

Trigger logic

Borrower enters any of the following:

• Employment Pay, excluding Military Pay.
• C-Corp, regardless of ownership %.

 Note: Blend evaluates the start date and uses Feb 1 as the cutoff date to determine which two years of W-2s are requested.

 1099s

Automatically requests up to 2 years of 1099s.

Trigger logic

Borrower enters Independent Contract Pay.

Personal Tax Returns

Automatically requests up to 2 years of Tax Returns. Only one set of tax returns will be requested for borrowers who indicated shared filing.

Trigger logic

Blend uses April 15 as the cutoff date to determine which two years tax returns are requested.

Configurable Decisions

• Option 1: Always request tax returns, except when borrower has C-corp income.
• Option 2: Always request tax returns, except when borrower has employment, military, SSN, or C-Corp pay.

Business Tax Returns or K-1s

Automatically requests up to 2 years of Business Tax Returns or K-1s depending on the type of business and ownership percentage.

Trigger logic

• Borrower enters Business / Self Employment Income.
• See Business Tax Returns detail for full trigger logic across Sole Proprietorship, S-Corp, LLC, or Partnership + ownership %.
• Blend evaluates the start date and an April 15 cutoff date to determine if one or two years of Business tax returns are requested.
• Blend evaluates the start date and an Jan 1 cutoff date to determine if one or two years of K-1s are requested.

Tax Transcripts

Automatically requests Tax Transcripts (4506-C) to be signed by each borrower. With the latest version of the form, only the primary borrower is required to sign the form. The co-borrower does not need to sign.

Configurable Decisions

The following configurations can be made at the lender-level:

• Number of years to request - last year, last 2 years, last 3 years.
• Mail 4506-C to third party address. If left unselected, the 4506-C will be mailed to the financial institution.
• Pre-fill field 5 (IVES Participant Name, Address, and SOR Mailbox ID)
• Pre-fill field 6 Transcripts requested. Can only request one transcript.
• Pre-check the following items on 4506-C:
  • Return Transcript (6a)
  • Account Transcript (6b)
  • Record of Account (6c)
  • Form W-2, Form 1099 Series, Form 1098 series, or Form 5498 series transcript (7)

Annuity Award Letter, Deferred Compensation Award Letter, Pension Award Letter, and Social  Security Award letter are not under Tax Transcripts. They should each get their own header.

Rental Agreement

Automatically requests a Rental Agreement for each investment property.

Trigger logic

• Borrower enters Rental Income
  OR
  
• Borrower enters owned real estate and selects a Property Use of “Investment/Rental Property”

Mortgage Statement

Automatically requests a Mortgage Statement for each relevant property (owned properties with outstanding mortgages and/or subject property that is being refinanced)

Trigger logic

• Borrower indicates real estate owned with outstanding mortgage payments (If configured as “all properties”)

• Borrower applies for a refinance (If configured as “refinance”)

Configurable Decisions

Client can select whether Mortgage Statements should be requested for:

• All properties (default configuration)
  OR

• Refinance

Other Financing Statement

Automatically requests statement to validate any Additional Financing.

Trigger logic

Borrower indicates owning the subject property

Home Insurance Policy

Automatically requests borrower's home insurance policy.

Trigger logic

Borrower indicates owning real estate. Each owned property will get a separate HOI request. If refi, always request HOI.

Letters of Explanation

Large Deposit LOE

Automatically requests a Large Deposit Letter of Explanation with source of deposit and supporting documentation, as applicable.

Possible supporting documentation include proof of sale, paystubs, 2 months of bank statements, or other.

Trigger logic

• Borrower’s “connected” assets or manually uploaded Bank of America statements in Blend have deposits that are >=50% of monthly qualifying income (MQI) and MQI >= $800. See LOE Large Deposit Detail for Blends MQI calculation.
   Note: Triggered by borrower-entered applications only.
• Blend will not request an explanation if it is able to detect that the deposit is a direct deposit, SSA income, IRS refund, or pension income. If a transaction has a transaction type, Blend uses that to detect the source of the deposit.

Configurable decisions

• Require borrower(s) signature on LOE (decision is applicable across all Blend LOEs.
• Trigger Large Deposit LOEs as automatic follow-ups or suggested follow-ups, requiring LO to review before sending to the borrower.

Credit Inquiry LOE

Automatically requests a Credit Inquiry Letter of Explanation with a borrower-provided outcome and reason for each inquiry.

Trigger logic

• Requires credit pull in Blend.
• Borrower’s credit report has credit inquiries in the last 120 days.

Configurable decisions

Require Borrower signature on LOE (decision is applicable across all Blend LOEs).

Late Payment LOE

Automatically requests a Late Payment Letter of Explanation with a borrower-provided reason for each late payment.

Trigger logic

• Requires credit pull in Blend.
• Borrower’s credit report has any non-medical late payment within your configured look-back period.
• Look-back period is configurable only at the lender-level.

Configurable decisions

• 120 days, 6 months, 1 year, 2 years, always
• Require Borrower signature on LOE (decision is applicable across all Blend LOEs)

• Look-back period over which to request LOEs on non-medical accounts that had a late payment.

Public Record LOE

Automatically requests a Public Record Letter of Explanation with a borrower-provided outcome for each public record (judgment, tax liens, bankruptcies, etc.).

Trigger logic

• Requires credit pull in Blend.
• Borrower’s credit report has any public records listed.

Configurable decisions

Require Borrower signature on LOE (decision is applicable across all Blend LOEs).

Other

Custom Request

Automatically requests lender-specified document from all borrowers

Configurable decisions

Lender can request any document to be configured to be asked of all borrowers post-submission. For example: Borrower’s Authorization Form.