Updated Sales Contract Amount for Construction Loans

Date Available: Available now in beta and production.

Which customers are impacted?:  Applicable to customers whose environments meet all of the following criteria: 

1. Use Encompass as their integrated LOS
2. Perform app intake for Construction Loans
3. Have the following configuration On: Adjust Sales Contract Amount for Construction Loans

Required?: No, this is an opt-in feature. 

How to turn on: If you meet the criteria outlined above and would like to enable this feature, please reach out to Blend Support.

Purpose of Update and Benefit: Blend’s current calculation for SalesContractAmount in the MISMO is causing miscalculations for Construction Loans in Encompass. Once a construction loan is exported to Encompass, the LOS calculates the down payment by subtracting the loan amount from the SalesContractAmount, which can result in negative down payment values in Encompass.

With this update, the SalesContractAmount calculation will now reflect the sum of Purchase Price of the Lot and Cost of Construction if the borrower does not own the lot. Changing the calculation value will ensure that down payment values, which are calculated in the LOS, will accurately reflect the correct values in the LOS.

Current Behavior: 
If the borrower does NOT own the lot, the SalesContractAmount will reflect the value entered into the Purchase Price of Lot field.

New Behavior: 
If the borrower does NOT own the lot, the calculation Blend uses for the SalesContractAmount value in the MISMO file for Construction loans will be equal to the sum of the values entered into the Purchase Price of Lot and Cost of Construction fields. 

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