LoanScorecard, a provider of non-agency automated underwriting systems (AUS), has launched Bank Statement Analyzer, a new tool designed to automatically collect and verify bank statement data, and then calculate income for non-QM mortgages.
Bank statement loans enable lenders to qualify borrowers who are either self-employed or participate in the gig economy and, therefore, lack traditional forms of income documentation. Typically, lenders calculate their income using 12 or 24 months of personal or business bank statements, instead of tax returns, W-2s or pay stubs.
With Bank Statement Analyzer, an originator has the ability to digitally source bank transaction data directly from a borrower’s financial institution. An invitation is sent to the borrower to have them securely provide credentials and grant the originator access to the bank account where they’ve been depositing their income, instead of gathering and supplying hundreds of pages of past bank statements.
Once the data has been collected, Bank Statement Analyzer creates a report that details allowable deposits for each month; transactions that were excluded and why; and an average monthly income calculation.
The detailed income analysis can also be pushed into LoanScorecard’s non-agency automated underwriting system, Portfolio Underwriter, to validate the loan against program guidelines, by analyzing the full 1003 and credit history.
Both Bank Statement Analyzer and Portfolio Underwriter can be used by the originator and the underwriter to accelerate the loan process.