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Date Available: Beta 11/14, Prod 12/12
Which customers are impacted?: Customers using Blend to process refinance loans.
How to turn on: This feature will be automatically enabled for all customers on the dates listed above.
Purpose of Update and Benefit:
This feature will introduce improvements to how Blend calculates Cash to Close/Cash to Borrower in the DoT page for refinance loans. Currently, Blend does not take into account loan amounts marked to be paid off in the Cash to Close/Cash to Borrower calculations in the DoT page. With this update, Blend will correct this calculation so that loan teams will see accurate values when processing refinance loans in the Blend platform. Customers who have enabled the optional “Fees in Loan Scenarios” feature in their environments will notice that this upgrade applies to the DoT page associated with each Loan Scenario that is added to the application, as well.
Customers who previously went through an LO Toolkit enablement with Blend in the past will already have this improvement enabled in their environments and will not be impacted by this rollout schedule.
Current Behavior:
Blend does not factor the unpaid balance of the current mortgage loan into the Cash to close calculation.
New Behavior:
With this update, loan teams will notice a few changes in the DoT page when processing refinance loans.
Updated Cash to Close / Cash to Borrower calculation and line item names
The DoT page will properly account for negative amounts in the Cash to close calculations in Blend. The calculation will be as follows:
[
TotalorBase Loan Amount] - [liabilities marked “will be paid at close” (including mortgage and other liabilities)] - closing costsIf the resulting value is positive, the line item on the DoT page will read “Cash to borrower” and represents the amount that is due to the borrower.
If the resulting value is negative, the line item on the DoT page will read “Cash to close” and represents the amount that the borrower needs to pay.
Updated fields
Additionally, fields in the Borrower Summary, Loan Information, and Other details of transaction sections of the DoT page will be updated to more accurately reflect a refinance transaction.
Borrower Summary and Loan Information
“Down Payment” has been removed
“Closing Costs” will be “Total Closing Costs”
“Borrower Cash to Close” will now either say “Cash to Close” or “Cash to Borrower” (see details above regarding updated calculation)
“Purchase Price” has been removed
Other details of transaction
“Refinance (inc. debts to be paid off)” will be “Refinance paid off at close”
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