Remove Default Funding Fee Percentage for VA Loans in Blend

Date Available: Beta 11/14, Prod 12/12

Which customers are impacted?: Customers who use Blend to process VA loan applications. 

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

Purpose of Update and Benefit:
The VA funding fee varies by a few different criteria, however Blend does not have the calculation logic for this fee programmed into our settings today. Today, if loan teams indicate that the mortgage type for a loan is VA before running a product and pricing search, an incorrect default funding fee percentage of 1.75% is applied in the Governmental Program Information section of the lender application. This update removes the incorrect default, static value that Blend applies to VA loans. The Funding fee percentage field will then be blank, and can be filled in from the pricing engine or by the loan team manually entering that value based on current rates. 

Current Behavior:
Currently, Blend will apply an incorrect default funding fee percentage of 1.75% when lenders indicate the mortgage type of the loan product is VA. 

New Behavior:
When enabled, Blend will not add a default funding fee percentage when the mortgage type is VA. The Funding fee box will be empty, and loan team members will be able to pull in that information from their pricing engine (PPEs that will pull in this value automatically when a VA loan product is selected currently include Optimal Blue, EPPS, Empower PPE, Polly, Lender Price, and custom pricing engines that have this logic configured) or manually fill in this value. The Funding fee field will calculate on its own if the Loan amount and funding fee percentage fields are filled in.

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