(Updates) Updated MISMO handling of self-employment fields

Posted 12 days ago by José Gómez

J
José Gómez Admin

Available: Beta 11/8, Prod TBD

 

Update 12/9: The production release for this feature has been rescheduled for 12/13. Additionally, the text of this release note has been updated to specify that the expected behavior when ownership interest type is equal to 25% is that the EmploymentBorrowerSelfEmployedIndicator is set to true. This has always been the expected behavior for this release, but it was not included in the release note initially.

 

Which customers are impacted?

All customers using Blend for mortgage applications.

 

How to turn on

This feature will automatically be turned on for all customers on the dates listed above.

 

Purpose of Update and Benefit

In reviewing our data models with the GSEs, Blend discovered that we needed to make a minor update to how we send data for self-employed borrowers. The main change is that when the ownership interest type is less than 25%, the GSEs do not consider this as self-employment. Therefore the self-employment flag should be false instead of true.

This change is being made to our MISMO file and will affect all customers using Blend for mortgage applications.

 

Current Behavior

If the employment type is self-employment, then we set EmploymentBorrowerSelfEmployedIndicator to true, regardless of ownership interest type.

 

New Behavior

EmploymentBorrowerSelfEmployedIndicator is set based on OwnershipInterestType. If OwnershipInterestType is greater than or equal to 25%, the EmploymentBorrowerSelfEmployedIndicator is set to true.

If it is less than 25%, it will be treated as employment rather than self-employment.

With this change of categorization, the MISMO will include other additional income components in the CURRENT_INCOME_ITEMS container for this employment type.

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