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RE: Liabilities Help Needed

bevlove — Fri, 05 Dec 2008 10:43:59 GMT

We are experiencing the same problem and we are working on Point 6.2.

Since DU is the FNMA product, then our 1008 should match DU.

However, when we mark something in Point to show that it is to be excluded,the 1008 will still have it included in the total debt and the DTI. DU accurately excludes it. Or, when a debt has less than 10 months to be paid in full, DU accurately excludes it, but the 1008 still includes it in the total debts and the DTI. The only work around I have found is to run DU and print it and the 1003, then go back into the liabilities on page 3 of the 1003 and delete the debts. But if someone else needs to work on the file afer that, then they do not know that the debts have been deleted and will not be working with accurate information.

Will this problem be corrected in the next release? If so, what is the eta?

RE: Liabilities Help Needed

pfloor — Wed, 19 Sep 2007 12:39:41 GMT

Is there ever going to be a resolution to this problem? I just updated to 6.0 and this problem persists.

RE: Liabilities Help Needed

pfloor — Thu, 28 Jun 2007 18:42:42 GMT

[quote][b]Bryan Telford (12/16/2005)[/b][hr]No you're not missing anything. The Omit selection is only sent to Fannie Mae at this time, and does not effect the calculations inside Point.[/quote]

Why is this the case? DU doesn't count omitted debts in the ratios, why does point? If you omit the liability then is should be removed from the ratio calculations.

[quote][b]Bryan Telford (12/16/2005)[/b][hr] Can you give some examples of when you need to omit a liability?[/quote]

Sure:

1-Double reported liabilities (Bank of America and AMEX liabilities are famous for this). I have a file right now that I must omit 4 double reporting debts with a total of $420 in payments.

2-Debts that have a $0 balance but still show a payment. Same file as above has another $50 in monthly payments that need to be omited.

3-Debts that are paid by someone else (eg: a child paying a car loan that was co-signed on and can be documented with 12 cancelled checks).

If I omit the debt then the 1008 is inacurate, If I don't omit the debts then DU declines the loan. The only way to make things match is to run DU with the debts omitted and then go back and put the omitted liabilities in brackets and then print the 1008.

The real question here is why doesn't point do what DU does with an omitted liability and exclude it from the ratios?

Can you give me a reason why an omitted debt would be counted in the ratios?

-Paul

RE: Liabilities Help Needed

mwm50 — Fri, 06 Jan 2006 14:02:00 GMT

RE: Liabilities Help Needed

szaino — Sun, 18 Dec 2005 08:31:51 GMT

Nothing is as simple as it seems...

If there exists a 2nd mortgage (like a home equity line of credit) and you are refinancing the 1st mortgage. As far as the check box and the legality goes, there exists only two options for the HELOC:
1. You are paying it off and discharging it as a lean on the property.
2. Resubordinating it.
No in between.

Having said that, you could be paying it off as part of the refinance in order to get the DTI ratio down so that the loan gets approved in either LP or DO and not discharging it but keeping it in which case it would be resubordinated. So in this case you may check the "WIll be paid off" box as well as the "resubordinate" box.

One more situation that I have on a current loan that I am doing.

Borrower has only a home equity line of credit on his home. I am doing a cashout 1st mortgage and he wants to keep his current HELOC. In this case the HELOC which is currently in a 1st position will be "Subordinated" to the new 1st mortgage.

RE: Liabilities Help Needed

Bryan Telford — Sat, 17 Dec 2005 22:57:25 GMT

We are looking into making some changes in the liabilities section in the next release. Do you have any examples when you would use the "Resubordinated" checkbox? I welcome any other comments. Thanks.

RE: Liabilities Help Needed

szaino — Sat, 17 Dec 2005 10:28:22 GMT

Here is an example of needing to omit a liability, this has come up on several occasions:

Borrower buying or refinancing a home and ...

Mortgage debt shows up on his credit report. It is a mortgage on his old house which his ex wife is residing in and making all of the payments. This must be included on the liabilities because he is still liable on the debt) but the monthly payment need not be included in the ratios if it is documented another party (in this case the ex wife) is making all the payments per terms of a divorce decree.

RE: Liabilities Help Needed

Bryan Telford — Fri, 16 Dec 2005 20:43:19 GMT

No you're not missing anything. The Omit selection is only sent to Fannie Mae at this time, and does not effect the calculations inside Point. Can you give some examples of when you need to omit a liability? Anyway, the developers are aware of the issue, and it should be addressed in the next release.

Liabilities Help Needed

szaino — Thu, 15 Dec 2005 14:14:32 GMT

Don't use DO too much, am an LP guy. I'm sure this has come up before, but would sure appreciate some help.

In Calyx if you mark a liability to be omitted by using the check box it doesn't change the ratio and total debt. The only way Calyx seems to eliminate the liability is to put the monthly payment amount in brackets and now Calyx reports it correctly.

Putting the monthly payment amount in brackets now causes an error message in DO that says a field is missing and it requires a monthly payment amount even if it is going to be omitted. So you fill in the monthly payment for the omitted debt so that you can run DO and get a finding.

Now when you finish in DO and go back to Calyx the monthly payments are back in and your ratios are off in Calyx. Real pain when you are going back and forth with different scenarios.

Am I missing something ?