Updated VA residual income calculation

Update 3/24: The “New Behavior” section of this Release Note mentioned that expenses from the proposed housing expenses were being added to the residual income calculation. This is incorrect - they are being subtracted. That section of the text has been updated. Additionally, there is a new bullet to clarify that total monthly tax deductions are also being subtracted from the residual income value. This was the case previously, however we are clarifying that point to avoid confusion. All of the changes are in italics.

Beta 03/07, Prod 04/04

Which customers are impacted?: Any customer who uses Blend for VA loans and has AUS turned on.

How to turn on: This feature will be automatically enabled for all customers on the dates listed above.

Purpose of Update and Benefit:

Blend customers reported that the VA residual income calculation does not always match the GSE's calculated amounts. Blend has reviewed and fixed the issues and are now releasing an updated calculation that will bring our calculations more in line with GSE calculations.

Current Behavior:

We are currently calculating VA residual income, but in some use cases our values do not match what we receive back from DU.

New Behavior:

When enabled, customers will see the following changes to the VA residual income calculation in Blend:

1. The total monthly tax deductions will be added to the MISMO field VAFederalTaxAmount. 

   1. This allows DU to capture this data and include it in their residual income calculation. For Encompass, this maps to field IDs 1156 and 1306.

2. The total monthly tax deductions (in the Borrower Information section) will be subtracted from the residual income value.

3. All expenses from the proposed housing expenses will be subtracted from Blend’s residual income calculation.

4. The VA residual income field will now be a required input for VA loans.

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