NCS Introduces TRV® Cash Flow Analysis Report With Verified IRS Data
New income verification solution integrates tax data into loan file documents,
helping mortgage lenders streamline compliance to upcoming federal requirements –
NCS showcasing latest products at this week at MBA Annual Conference and Expo
NCS has released a new TRV® Cash Flow Analysis Report solution that integrates IRS-direct data about a borrower’s income into Fannie Mae 1084 worksheets. The new solution, currently being demonstrated at the Mortgage Bankers Association’s 100th Annual Conference and Expo in Washington, D.C., helps lenders meet upcoming Consumer Financial Protection Bureau (CFPB) requirements by more easily documenting and calculating a borrower’s ability to pay.
Other products NCS is showcasing at the conference include VOE CONFIRM, its verification of employment product, its recent integration with Calyx® Point® and the company’s full line of electronic signature solutions. NCS will also seek input from visitors on a new verification of deposit (VOD) product currently in development.
NCS’ new TRV Cash Flow Analysis Report is modeled after the 1084 worksheet. The Fannie Mae accepted report organizes verified tax transcript data directly from the IRS, automatically filling in fields within the 70-line document that is used in determining self-employed income for loans submitted to Fannie Mae. It saves the underwriter time and the lender money, which is critical as origination costs are expected to rise 11 percent this year from a year ago, according to a recent article in Mortgage Technology magazine.
"The strength of the TRV Cash Flow Analysis Report is that it uses official IRS tax transcript data obtained through the IRS’ 4506-T form to show self-employed borrowers have sufficient qualifying income, per Fannie Mae, to pay back their loans," said Joe Poppler, NCS' director of solutions research and development. "This provides many advantages, including the ability to mitigate errors when transcribing data from the applicant’s tax return to the Fannie Mae 1084 worksheet or equivalent document. It’s also a significant time saver for the underwriter."
While the Fannie Mae 1084 worksheet provides space for lenders to document two years of borrower income, NCS' TRV Cash Flow Analysis report can furnish a third year of data, which helps lenders identify any recurring items. The data is returned to the lender in a PDF format within 24 to 48 hours. Clients have the option of ordering the TRV Cash Flow Analysis Report through secure, customized online signing rooms that are part of NCS' new electronic signature and delivery platform.
An innovation that will be discussed at the NCS booth during the MBA convention is a nearinstant and extremely detailed Verification of Deposit (VOD) product. Currently in development, this solution has significant advantages over a traditional VOD solution when determining a borrower's ability to repay, a cornerstone of recent Dodd-Frank and CFPB requirements affecting the mortgage industry. NCS representatives will ask guests at the booth what features would be of value to them.
Other solutions that will be on display at the NCS booth #343 will be:
Verification of Employment – NCS' VOE CONFIRM is one of the industry’s most robust and complete solutions for verifying a borrower’s employment. Orders are processed through the company's secure website and results are available through the WorkNumberTM and through manual verification. Completed manual verifications are emailed within 24 to 48 hours and often delivered on the same day.
Electronic Signature Solutions – This year, NCS helped move the industry forward by adding an electronic signature platform for loan origination documents. Clients can easily expedite the execution of 4506-T requests. Following the lender placing the request, NCS’ e-Sign suite will automatically contact borrowers via e-mail, inviting them to a secure, online signing room where they will execute the document.
Calyx Point-TRV Integration – Recently, NCS integrated with Calyx to provide access through Calyx Point® to its full line of TRV Services for tax return transcript products. "This year, we poured all our efforts into creating new ways to help lenders adjust to shifts in the mortgage space and prepare for the CFPB requirements that go into effect in January 2014," said NCS Executive Vice President Curtis R. Knuth. "These innovations are the result of collaborative efforts by our IT and operations teams as well as our clients."