Blue Sage Solutions, a provider of end-to-end mortgage technology, announced it is the first loan origination system (LOS) to fully integrate Fannie Mae’s income calculator.
This API-enabled integration, directly initiated from the LOS, streamlines income calculation for borrowers with income from self-employment or business ownership, enabling faster, more accurate mortgage approvals for lenders, company leaders said.
“This represents a major leap forward in how lenders handle loans involving self-employed borrowers,” Carmine Cacciavillani, founder and president of Blue Sage, said in a release. “Our integration not only speeds up the income calculation process, but does so with greater accuracy, resulting in fewer defects. For lenders, this means less time spent on manual reviews and more time delivering a fast, reliable and enjoyable customer experience to their borrowers. We’re proud to be the first LOS to bring a fully integrated capability to the market.”
A key benefit of this integration is Fannie Mae offering rep and warrant relief on the income calculations generated by its tool. By integrating this feature directly into Blue Sage’s digital lending platform, lenders can improve processing times and reduce compliance risk while delivering a smoother experience for borrowers, according to Blue Sage.
Fannie Mae’s income calculator automates the calculation of income from business tax returns, personal tax returns, and other tax documents. Lenders can also benefit from allowable add-backs not included in 4506-C tax return transcripts, which maximizes borrower income and may lower DTI ratios.
“Fannie Mae strives to make the origination process more efficient and to help lenders avoid issues that may potentially arise in downstream loan quality reviews,” said Mark Fisher, vice president of single-family credit risk solutions at Fannie Mae. “Working with technology service providers will continue to make the income calculator widely available, assisting lenders to avoid these pain points to accurately calculate income for self-employed borrowers.”