Frequently Asked Questions (FAQs)

AutomatIQ Borrower Income Analysis is an intelligent income calculation and analysis tool designed to scan and analyze all income sources provided by a loan applicant. It provides a comprehensive, integrated, and user-friendly interface for lenders to streamline the income qualification process, ensuring compliance with GSE, FHA, and ATR rules.

Income Analysis helps lenders by providing consistent and objective results earlier in the loan application process, enabling them to qualify borrowers more quickly. The solution eliminates manual data entry by using Optical Character Recognition (OCR) technology to extract data from documents. It also allows lenders to control workflow, exceptions, and other processes.

The interactive task list displays potential tasks to Loan Officers and Underwriters based on the results of an income analysis and directs them to the exact locations where these tasks can be addressed.

Income Analysis creates many operational efficiencies to be excited about. The interface streamlines workflows by extracting data from borrower documentation then auto-calculates the income for all types, eliminating the need for sales and fulfillment to manually calculate qualifying income. The output results in an analysis report that helps to make timely informed loan decisions and each report aligns with investors and their unique requirements.

Yes, Income Analysis can be customized to meet unique investor requirements. It generates an investor-compliant PDF output detailing all qualifying income sources selected by the lender with calculations and comments.

Cotality® monitors regulatory guidelines to ensure the income analysis rules engine is up to date. Raw income data is submitted directly to the GSE calculation engines, and validation feedback is presented to the user.

Machine learning is used in the Income Analysis data extraction process to produce accurate, consistent, and reliable reports with high confidence, regardless of which team member initiates the solution.

Income Analysis helps mitigate risk by leveraging its rigorous and consistent rule engine, allowing lenders to protect themselves and their investors from unwanted financial compliance and regulatory risks. Furthermore, all calculations are transparent, and the system provides a complete history of changes by user in the user interface.

Yes, Income Analysis can handle complex income calculations for self-employed borrowers and complex earners, simplifying the process and ensuring accurate results.

The transparent and iterative processing feature allows income documents to be submitted as they become available, and the solution automatically updates the income calculation. It also enables the reviewer to find income opportunities to increase borrower qualifying potential transparently.

Yes, Loan Officers and Underwriters have custom views in Income Analysis. The Loan Officer (LO) view is designed to simplify the income calculations, omitting complex calculation detail. The Underwriter (UW) view not only displays all detailed figures and calculations but offers the flexibility to choose custom calculations with built-in calculators.

The collaboration feature allows multiple users to work on the same loan simultaneously, facilitating teamwork and providing a real-time audit trail of all actions taken.

Yes, Income Analysis is a fully functional web-based system that tracks all user modifications, including system-generated modification, while maintaining a secure audit trail for each action taken.

Income Analysis can be instantly accessed via ICE Encompass®, API integration, and the AutomatlQ Borrower Portal (Web UI).

Yes, Income Analysis is integrated with both Freddie Mac and Fannie Mae, ensuring seamless data exchange and compliance with their guidelines and the ability to produce Rep & Warrant Relief based for certain transactions based on income calculation types.

Income Analysis automatically identifies any missing documents with the Document Inventory tool and flags potential sources of new income, allowing users to determine if any documents are missing from the analysis.

Yes, Income Analysis can include or analyze income from 1065, 1120s, 1120, and Schedule C businesses.

Income Analysis allows users to easily enter profit and loss or bank statement calculations with direct click access to the documents, streamlining the income analysis process.

Income Analysis uses advanced automation technology to analyze borrower's income data and calculate their qualifying income. The automated processing feature uses algorithms to process data quickly and minimize the need for manual input. This feature not only saves time but also reduces the chances of errors.

Income Analysis uniquely provides a single underwriting solution for all income types. It is not a digital report that needs to be keyed into another spreadsheet or calculator. Wages, Commission, Bonus, Rental, Retirement, Investment, Asset, and Self Employment (as well as myriad other types) can all be underwritten in one tool that generates a single compliant output PDF with all qualifying calculations.

Income Analysis is an intelligent solution that uses advanced algorithms to analyze income data and provide accurate results. It is not a static report but a dynamic solution that drives lender workflow and efficiencies while adapting to different income scenarios across all income types.

Income Analysis simplifies the complex income calculation process by automating data processing and analyzing borrower's income data using defined algorithms. It can handle complex income scenarios and provide detailed analysis for various income types, making it easier and quicker for underwriters to determine the borrower's qualifying income.

The user interface of Income Analysis is intuitive and interactive, making it easy for users to navigate and understand the results. A task list shows the user all the areas of the income that need review and special attention. The primary screen is easy to understand, enabling users to drill down to view detailed information. The user interface is designed to simplify the complex income calculation process and provide accurate results.

Yes, multiple users can simultaneously work on the same report in Income Analysis. The solution provides collaboration features that allow users to share reports and work together in real time. This feature improves efficiency and reduces the need for manual input.

Income Analysis integrates seamlessly with ICE Encompass. The integration allows users to access Income Analysis directly from the Encompass interface, making it easy to analyze borrowers' income data and calculate their qualifying income. The user can update the income data on the LOS and upload the income report to the eFolder with a button click, so there is no rekeying of data.

Income analysis reduces closing time by providing accurate documented income calculations as early as pre-qualification. Standard rules-based analysis eliminates exceptions and GSE Rep & Warrant verification cuts out conditioning. This reduces the chances of errors and improves efficiency, leading to faster closing times and lower repurchase risk.

The borrowers’ income data is automatically updated to the LOS (Encompass) through the Encompass Partner Connect1M (EPC) based integration between Income Analysis and Encompass. The solution seamlessly integrates with Encompass, and the updated income data is reflected in the loan file.

The built-in tasks and guided steps in Income Analysis help users to navigate through the income perfection process and provide accurate analysis. This feature simplifies the complex income calculation process and improves efficiency.

Income Analysis facilitates training and adoption for sales and underwriting teams through its intuitive and interactive user interface. The solution is designed to simplify the complex income calculation process and provide accurate results. The user interface is easy to navigate, and the solution provides detailed analysis for various income types. This feature improves adoption and reduces the learning curve for new users.

Yes, Income Analysis can be used for both simple and complex loan profiles. The solution can handle complex income scenarios and provide detailed analysis for various income types. It is designed to simplify the complex income calculation process and provide accurate results for all loan profiles.

AutomatlQ Borrower Income Analysis is certified by both Fannie Mae and Freddie Mac Rep & Warrant programs. It provides all the raw income data in the formats necessary for the GSEs to perform their calculations and provide the Rep & Warrant relief.

Yes. AutomatIQ Borrower Income Analysis provides you with the flexibility to include or exclude any portion of the income that was calculated during your review.

If you started a loan with two borrowers and no longer the need co-borrower’s income or documentation for qualification, there is no need to start a new loan. From Income Analysis simply select the borrower(s) to be included or excluded. Your selection will be highlighted in blue. Next, adjust the the toggle to indicate whether the selected borrower income should be included.  

• Underwriters will perform this action from Income Calculation screen.

• Loan Officers will perform this action using the LO View screen.  

It is not a requirement to run the automated underwriting system (AUS) before ordering AutomatIQ. Until the AUS identification number is input into AutomatIQ, the findings will remain in preview mode.

AutomatIQ Borrower will calculate an income based on the income documents provided. If there is a paystub provided with a stale date, Income Analysis will process that as an opportunity to refine the income calculation by replacing this outdated document.

We recommend asking your Encompass Admin about creating a Loan Folder Business rule in Settings that would create an Encompass Alert based on Encompass Log events happening in the milestone log.

Special characters used in the document naming convention will affect the OCR process analyzing the documents. It is best to take the special character out of the naming convention on income documents uploaded to get a speedy output.

The OCR QC team will make document-relatable notes visible under Data Capture in the Summary section of the Income Calculation screen. The QC team will make Tax Return notes in the same summary screen for unsigned tax documents or legibility issues.

Custom reports can be configured in Encompass, based on the milestone log data, that consider when the Income Analysis request was generated vs. when the Income Analysis report is ready to be reviewed. Your Encompass Admin can help you configure these reports. There are currently no reports in the AutomatIQ Portal for the users to pull.

Calculations provided by Income Analysis are based on the most conservative figure and the data extracted from the provided documents. The calculations are fully visible in the interface and can be validated by the user. The underwriter has the ability to make documented additions to income.

FNMA tests for both quick and current ratios and applies the appropriate ratio in their output based on the nature of the business. Clients do have the opportunity to affirm the business has liquidity and still maintain R&W coverage.

These messages are not duplications. They are separate from DU messages but may be like the DU messages returned regarding income. The messages appearing for the underwriter are FNMA Income Calculator messages provided to inform underwriters what FNMA Income Calculator output is based on.

AutomatIQ is using baseline configurations for tolerance limitations based on industry best practices for an increase or decrease in consistency. Be sure to confirm your credit policy needs before considering changes, and advise your sales consultant if further changes are needed.

The baseline calculation cannot be changed by anyone because it is an output of the Income Analysis data extraction. The LO can select their figures, and the Underwriter can finalize the income, but the baselines cannot be changed without adding new income documents. If a correction is required, contact Cotality Customer Service.