Associate housing payments with the loan instead of the borrower

Date Available: Beta 10/31, Prod 11/28

Which customers are impacted?: Any customer that uses loan structuring and AUS with Blend.

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

Purpose of Update and Benefit:
There is currently an issue with how we are storing housing payments related to borrowers. Customers have called out that after swapping borrowers, the DTI and housing payments seem to be incorrect. We are releasing this update to correct those concerns.

Current Behavior:
Currently, we store the housing payments (principle, interest, taxes, insurance, etc) related to the monthly debt with the borrower. This means that when a user swaps borrowers through the manage borrowers workflow, the housing payments on the loan disappear. The original co-borrower is now the new primary borrower, and since no housing payments were entered with the new primary borrower, the housing payments are essentially $0.

The user then needs to add new housing expenses again. However, the housing expenses that were originally added for the former primary borrower still exist in our data model, so when the loan is sent to AUS, the DTI is higher than expected. 

The primary borrower in this test loan, Alice Firstimer, has total proposed housing expenses of $5,592.96/mo. If the user wants to swap Alice from primary borrower to co-borrower, the proposed housing expenses stored with Alice, will disappear. 

When swapping Homer, the co-borrower, to primary borrower, the proposed housing expenses amount to a total of $5,613.79/mo, which now differs from Alice’s total since Alice’s proposed housing expenses didn’t carry over once the borrowers were swapped. 

Because the proposed housing expenses don’t carry over with the borrowers once they’re swapped between primary and co-borrower, this causes discrepancies with the values entered in the monthly debt page along with the DTI monthly debt total. 

New Behavior:
The behavior will store the housing expenses with the loan rather than with the borrower. So when borrowers are swapped, the housing expenses do not disappear. 

The primary borrower in this test loan, Sonny Graves, has total proposed housing expenses of $2,892.64/mo. If the user wants to swap Sonny from primary borrower to co-borrower, the proposed housing expenses associated with Sonny, will stay with the loan. 

Note: The “First Mortgage (P&I)” type expense is locked and will stay the same, no changes or updates were made to this. 

When swapping Alice, the co-borrower, to primary borrower, the proposed housing expenses amount to the same total of $2,892.64/mo now that the proposed housing expenses stay with the loan when borrowers are swapped.

Because the proposed housing expenses carry over with the loan when borrowers are swapped, the DTI total is adjusted to match the proposed housing expenses on the monthly debt screen. 

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