With LO Toolkit, lenders can view high level liabilities details on the lender portal. Additionally, lenders have the ability to manually add or edit liabilities through the Monthly Debt screen.
- View Liabilities
- Liabilities Details in the Monthly Debt Section
- Liability Exclusion Logic
- Link a Real Estate Owned (REO) from Application Page
Liabilities will be displayed in the Monthly Debt page after credit is pulled.
- Navigate to the DTI/LTV side panel
- Click Edit next to Monthly Debt
When both debt and income details are entered on the loan application, the DTI ratio will populate in real time.
Liabilities Details in the Monthly Debt Section
|Liabilities||The sum of liabilities per month. Updates in real time with changes to any value in the Liabilities section.|
|Front-end and Back-end DTI ratio||The FE and BE DTI ratio is visible and updated in real time.|
|Creditor Name||The name of the creditor and borrower on the tradeline.|
|Liability Type||The type of liability. Lenders can choose from a list of liabilities types using the drop down menu.|
|Monthly Payment||Monthly payment sorted from highest to lowest.|
|Months Left||Number of months remaining on the installment debt.|
|Unpaid Balance||The outstanding balance on the tradeline.|
|Link to Property||Link to property offers the following options:
Liabilities that are linked to real estate owned will be identified by with
Note: Linking to Real estate owned will overwrite with monthly payment from liabilities.
|Omit/Paid||Mark the liability as omitted or paid at close. Checking this box will present the following options for Purpose:
Removes the liability
Resets the liability
Note: Only liabilities that were manually added can be removed.
|Add additional liability||Click this button to add new liabilities manually and fill out the following details:
Note: Both Creditor Name and Account Number are required fields.
|Reset all||Resets all liabilities back to what was originally retrieved from the credit report (non-0 or open tradelines).|
Click Save & Close to apply any changes you have made in this screen.
Liability Exclusion Logic
There are three rules that will automatically exclude liabilities all of which have tool tips:
- Certain liability types have a 10 month unpaid balance requirement in order for the liability to be included in DTI.
- Certain liability types must have a greater than $1 balance to be included in DTI.
- Certain liability types must have a greater than $0.01 to be included in DTI.
Debts will be automatically excluded in DTI based on Fannie's DU exclusion logic. Hover over the for more details.
Link a Real Estate Owned (REO) from Application Page
Mortgages that are entered on the Application page need to be linked to the mortgages that come in from the credit report.
- These mortgage payments are always excluded from the DTI.
- To include a mortgage in DTI, it needs to be added as a liability and linked.
Refer to Debt-to-Income (DTI) Calculation to learn more.
To link an REO to a liability follow the steps below.
- Navigate to the Real estate owned section of the Application tab.
- The question "Mortgage payments on this property?" must be answered with "Yes" to see the Link liability option.
- Click Link liability to be directed to the Liabilities section in the Monthly Debt screen.
- In the Liabilities section, click the link button to link to property.
- Check the Link to Real estate owned box.
- Choose the REO from the dropdown menu.
- Click Save & Close to apply changes.
Mortgages not linked to a property will be indicated by a icon.
DISCLAIMER: The features on this page may not be applicable to your institution. Please reach out to Blend Support for more information on what features are enabled for your use.