Desktop Underwriter (DU) Troubleshooting. User Guide

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Desktop Underwriter (DU) Troubleshooting User Guide

Table of Contents 1. Overview...3 2. Getting Started...4 3. Error Details - Failed to create DU request properly -...5 4. Error Details - Casefile xxxxxxxxxx is not associated (Wholesale Only)...6 5. Error Details - Credit Agency SSN does not match...6 6. Error Details - Check credit report valid for UW ing...7 7. Error Details - Hired from Date is missing for...7 8. Error Details - Casefile ID xxxxxxxxx for resubmission...8 9. Error Details - Credit Agency Invalid Name...9 10. Error Details - Fannie Mae 111371... 10 11. Error Details Real Error 118361 Estate Owned Section... 11 12. Error Details Cannot Complete re-issue: requested... 12 13. Error Details Case is out of scope (CLTV)... 13 14. Error Details Polling for DU Underwrite Documents... 14 15. Error Details Loan Amount Exceeds Value Calculation... 15 16. Error Details Account number and/or password are not recognized... 16 17. Error Details Pending Sale REO Property has negative equity of... 17 18. Error Details Field 02D-070 (Purpose of Refinance)... 18 10.01.2013 Page 2 Caliber Home Loans, Inc. 2013

1 Overview Introduction Caliber Home Loans has integrated Desktop Underwriter (DU), directly into the H2O LOS platform for expedient use for our employees/clients. This guide will provide users with the information needed to correct DU Errors, and selftroubleshoot many of the common issues that occur in H2O s integration. Who to Contact for DU Assistance at Caliber: H2Online Support has the ability and experience to correct or escalate any DU issues/errors. H2onlinesupport@caliberhomeloans.com Via Live Chat in H2O Caliber employees will have limited accessibility to DU once a file has been submitted. If any changes are needed on files in process; user will need the assistance of the CRM/Processor or Regional Operations Manager, as Online Support will not make changes to files in process. 10.01.2013 Page 3 Caliber Home Loans, Inc. 2013

2 Getting Started This section will outline the steps to access any DU error as they occur, as well as correct the error to receive corrected/completed findings. Once DU findings are requested, H2O will automatically load the View findings page. Navigation to DU Findings in H2O: To access previously run findings: In Wholesale loans, click on View beside the AUS action item: In Retail loans, click on View AUS on the AUS/Prequalify action item: Once in the View screen, click on both the link marked Error and the Status link marked Error. On occasion, a PDF will generate with the error displayed. Determining Error type/source: Errors will show in a separate pop up when accessed from the Transaction History, and as a PDF when accessed from the DU Details section. These details will help the user determine the error source/cause. Once an Error status is received, use the Find feature built into this Adobe PDF to more quickly find the solution. (Ctrl + F also activates this feature) Finding the Solution: NOTES: It is best to search off of key words. (I.e. DU, Casefile, SSN, Credit, etc.) Depending on the error, accessing both Errors may provide clarification 10.01.2013 Page 4 Caliber Home Loans, Inc. 2013

3 Error Details Failed to create DU request properly - This error is caused when a TBD Property loan is run through DU and there is no City, State or Zip code entered in for the Subject property address. This information can be easily added to the borrower summary of the 1003. Once this is input, rerun the DU. 10.01.2013 Page 5 Caliber Home Loans, Inc. 2013

4 Error Details Casefile xxxxxxxxxx is not associated Wholesale Only Error is caused when the Casefile ID is not Finalized to Caliber Home Loans. BP will need to access Fannie/DU and finalize the findings to Caliber Home Loans, Inc. Once finalized, the broker would simply rerun the DU. 5 Error Details Credit Agency SSN does not match Borrower Information (specifically SSN) on the 1003 in H2o does not match the Credit report attached to the DU. Ensure the following information matches between 1003 and Credit Report and correct the appropriate documentation/h2o accordingly: Borrower(s) Name (First, Middle and Last) Spelling Also and if there is a Suffix or Generation (I.e. Jr, Sr, etc) make sure there is no. at the end. (I.e. Jr. remove the.) Borrower(s) SSN matches how the credit was pulled Reference # for the Credit report is correct in H2O Once this is information matches, rerun the DU. 10.01.2013 Page 6 Caliber Home Loans, Inc. 2013

6 Error Details Check credit report valid for UW ing Credit agency/ credit report error caused by the credit report being NOT acceptable to run DU findings. In most instances the Credit report is NOT a tri -merge credit report. NOTE: DU requires a tri-merge credit report to provide completed findings. Associate a tri-merge credit report to the loan. Once this is input, rerun the DU. 7 Error Details Hired from Date is missing for Underwriting Checklist Error Specifically, the Hire Date is missing from a borrower on the loan. The SSN for borrower/co-borrower that has no data for employment dates will be listed within the error. Review/ Correct this information on the Employment, Income & Housing tab of the 1003 and this will clear the error. Once this information is input, rerun the DU. 10.01.2013 Page 7 Caliber Home Loans, Inc. 2013

8 Error Details Casefile ID xxxxxxxxx for resubmission Casefile ID does not exist with DU. H2online Support must correct this error. The accurate/correct Casefile ID must be provided to Online Support to be able to move forward. Originator will not have access to correct the Casefile ID once DU has been run in H2o. Support Analyst Walkthrough: On the DU Request Setup Screen, One of two methods can be used: 1. Correct the Casefile ID; unlock the lock icon, enter in the correct Casefile ID and then re-lock the icon, then re-run DU. 2. Request New DU Findings. This is not to be used unless manager approval is given, as this charges Caliber for the DU. NOTE: If H2o is prompting for reference # s, input 12345 to associate the Casefile ID and then the Broker will need to re-run the DU to associate the credit to the loan correctly. 10.01.2013 Page 8 Caliber Home Loans, Inc. 2013

9 Error Details Credit Agency Invalid Name This is caused by an error in the Suffix field on the Borrower Summary. Check the borrower(s) name(s) on the 1003, Borrower summary screen and remove any punctuation (., : ;, etc.) from the Suffix field. Once this information is removed and saved, rerun the DU. 10.01.2013 Page 9 Caliber Home Loans, Inc. 2013

10 Error Details Fannie Mae 111371 DU Troubleshooting Guide Error reads: Fannie Mae Error code 111371. Please Resubmit This is a credit agency generated error. This refers to the reference number that is attached to the DU findings; specifically to a CoreLogic Credit report, as H2o Defaults to Credco CoreLogic. If the credit on a file is a Credco CoreLogic credit report, check the reference number on the DU Setup Screen in the Credit Request Setup section, ensuring there are no dashes and the number is 15 digits. CoreLogic Example: 123451234512345 If the credit agency being used is not CoreLogic Credco, please ensure that the reference number is correct prior to advancing. Once the reference number is input correctly, re-run the DU. 10.01.2013 Page 10 Caliber Home Loans, Inc. 2013

11 Error Details Real Error 118361 Estate Owned Section This happens when the Credit for the loan is pulled Jointly and the REO/MTG Liability is showing assigned to the Co-Borrower. DU cannot read the loan correctly and errors. Correct the Mortgage Liability and REO for the property to show belonging to the primary borrower on the loan. Once changes are made, Save and rerun the DU. Correcting the Liability: Correcting the REO: 10.01.2013 Page 11 Caliber Home Loans, Inc. 2013

12 Error Details Cannot Complete re-issue: requested This error is returned by the Credit Company the Originator used to associate to the Findings. The retention period for the loan has been exceeded; I.e. the report may older than 90 days. The Originator must contact the Credit company to see what the issue is with the Retention Period. This issue must be addressed by the users Credit Company. 10.01.2013 Page 12 Caliber Home Loans, Inc. 2013

13 Error Details Case is out of Scope (CLTV) DU Troubleshooting Guide Loan is set up as a Purchase; however in the REO section of the loan, a property that is already owned and is not the subject property has been marked as the subject property causing DU to double count the CLTV. Remove the is Subject Property checkmark from the REO page of the incorrect property. 10.01.2013 Page 13 Caliber Home Loans, Inc. 2013

14 Error Details - Polling for DU Underwrite Documents This error is caused by an issue with the XML data transferring over from H2o to DU/Fannie for review and decision. This particular error was caused by special characters entered in the CAVIRS # as shown below. 1008 > UW Analysis > click on Generate 92900-LT, and correct the CAIVRS #. Note: Access to this screen is restricted, if you do not have access please contact your ROM for assistance. 10.01.2013 Page 14 Caliber Home Loans, Inc. 2013

15 Error Details - Loan Amount Exceeds Value Calculation Loan amount does not exceed value calculation or the FHA maximum loan calculation does not exceed maximum, yet the DU findings reflect that it does. Caused by the LTV exceeding the Guidelines for an FHA Purchase, LTV cannot exceed 96.5% Lower the Total Loan Amount (Base LA + MIP if financed) to within guidelines, then rerun the DU. 10.01.2013 Page 15 Caliber Home Loans, Inc. 2013

16 Error Details Account number and/or password The Account number or the password for the Credit information does not match with the Credit Agency. Originator must reach out to Credit Agency to confirm the information for their account and password. 10.01.2013 Page 16 Caliber Home Loans, Inc. 2013

17 Error Details Pending Sale REO property has negative (Error Located within completed findings) There is an REO record that shows the Property Status marked as Pending Sale and DU is counting the information into the Funds to close. If the Property being sold will close prior to the Subject Loan, Correct the REO to show as Sold. DU will then remove the Required funds from the pending sale. 10.01.2013 Page 17 Caliber Home Loans, Inc. 2013

18 Error Details - Field 02D-070 (Purpose of Refinance) Refinance Purpose is missing from the loan in the Borrower Summary of the 1003 within H2O. Correct the 1003 > Borrower Summary screen under the Loan Details. NOTE: DU will not run with the Purpose of Loan as Construction-Permanent; Loan will need to show as REFI or Purchase. 10.01.2013 Page 18 Caliber Home Loans, Inc. 2013

19 Error Details VA Loan Ineligible due to Marital Status VA Findings returning as Ineligible due to the co-borrowers not being married, even though marked as married in the 1003. This is due to an import miscommunication in certain cases where DU is not reading the marital status correctly. Originator needs to change the marital status to Unmarried, Save, and then change it back to Married and Save again. Once completed, re-run the DU. 10.01.2013 Page 19 Caliber Home Loans, Inc. 2013

20 Error Details Investment Property & 2 nd Home DU has a specific setup needed for 2 nd homes and Investment properties. FNMA provides a general walkthrough specific to this, (Click Here), the below details this in H2O. This results in an Error recommendation, and the below Risk/Eligibility error. This error is primarily caused by the input in the H2O 1003 not including the Taxes and Insurance on for the Primary home on 2 nd Home and Investment property transactions. This can also be caused by mismatching information from the Employment, Income & Housing section of the 1003 to the Assets, Liabilities & REO section of the 1003. 10.01.2013 Page 20 Caliber Home Loans, Inc. 2013

Error Details Investment Property & 2 nd Home CONTINUED To correct errors of this sort it is imperative to confirm all figures match from the Employment, Income & Housing section of the 1003 to the Assets, Liabilities & REO section of the 1003. In the Employment, Income & Housing screen of the 1003, within the Monthly Income and Combined Housing Expense Information section at the base of the screen, there are several items to be cognizant of: 1. The field Sub Prop Net CF is where the Subject Property Net Cash Flow must be input. This amount needs to match the Proposed total payment for purchases where the subject property does not have rental income, or is not being used to qualify. This must be entered as a negative number to calculate correctly. 10.01.2013 Page 21 Caliber Home Loans, Inc. 2013

Error Details Investment Property & 2 nd Home CONTINUED 2. The Other Fin. (P&I), Hazard Insurance, & Real Estate Taxes MUST match the information input into the Liabilities and REO sections for the corresponding properties. a. If taxes or insurance includes any cents, they must be rounded up to the next dollar. In this example, the taxes are $199.25, this must be rounded to $200 in the Liability that must be added, and in the REO record for the property. (Present = Primary Home & Proposed = Subject Property) Correction Continued: 3. Once all information is input correctly, Re-run the DU. 10.01.2013 Page 22 Caliber Home Loans, Inc. 2013