How to Navigate Income Analysis

The Income Calculation tab is the first tab listed in Income Analysis. It is the primary screen that Underwriters work from and is in view only mode for Loan Officers. From here you will interact with borrower income information that is categorized by Wage, Self Employed, Rental and Other income. The figures from each of these categories will automatically calculate the income totals and display them in one of the following three columns:

• Baseline: Most conservative income figures calculated by using the exact documented values that align with guideline requirements and no conditioning.

• Potential: Calculated income value that includes income opportunities that, with proper documentation, could be acted on to increase the borrower’s qualifying income.

• Adjusted: Calculated value of income that reflects modifications or adjustments made by Underwriters during review. When a loan is initially reviewed, the Adjusted amount should mirror the Baseline value, unless Fannie Mae has immediate overrides.

For loans with co-borrowers, each borrower’s income is accessible by clicking the borrower tab labeled with their name. These are located just beneath the Summary box on both the Income Calculation and LO View pages.

Expand each income category by clicking the > symbol.

The Rental tab displays an editable worksheet of each rental property listed on Schedule E. From the Rental Income tab, you can edit rental income, reassign income to another borrower, select alternative calculations and view the results from the GSE analysis.

• Click any field to launch the rental property details Edit popup.

• Click B1 → B2 button to reassign rental income to another borrower on the tax return and mirror the assignment in the LOS.

• For Fannie Mae loans, click the FNMA Surround to launch the Fannie Mae Rental Rep and Warrant calculation findings.

The Document Storage tab displays the list of borrower income documents submitted to Income Analysis. From here you can view upload statuses, view or download submitted documents and add comments to the document records.

Additionally, this tab lists income documents that Income Analysis identifies as “Missing” or “Recommended”. For missing documents, add the document to an existing order or reclassify the document status to “Requested”, “Received” or “Not Required”. Documents labeled “Recommended” are optional. The document status will update to “Uploaded” once processed by Income Analysis.

Note: The document status feature is optional and provides visibility to other users working on the file or tracking it. Changes to a document status will not trigger a borrower alert, notification or email and Cotality will not contact borrowers to obtain documentation.

The PS/W2 Summary tab displays a list view of all paystubs and W2s submitted for analysis. Paystub and W-2 details are for informational purposes only and no action is taken on this screen.

The File Status tab provides you with details as to each document submitted for analysis. View document statuses and download individual documents to your local drive.

The Change Log tab provides you with a detailed log of all changes and actions taken by all users. Click the Download Order History button to generate and download an Excel Activity Report for all orders.

The LO View is the primary screen that Loan Officers work from to interact with borrower income. This tab mirrors the Underwriter’s Income Calculation layout but uses simplified income drilldowns. The view focuses on monthly qualifying income and related opportunities, making it easier to discuss with applicants and gather any needed income documentation.

Income presented on this tab is categorized by Wage, Self Employed, Rental and Other. The figures from each of these categories will automatically calculate the income totals and display them in one of the following four columns:

• Baseline: Most conservative income figures calculated by using the exact documented values that align with guideline requirements and no conditioning.

  Potential: Calculated income value that includes income opportunities that, with proper documentation, could be acted on to increase the borrower’s qualifying income.

• LO Adjusted: Calculated income value that includes income adjustments made by the Loan Officer.

• UW Adjusted: Calculated value of income that reflects modifications or adjustments made by Underwriters during their review. When a loan is initially reviewed, the Adjusted amount should mirror the Baseline value unless Fannie has immediate overrides.

For loans with co-borrowers, each borrower’s income is accessible by clicking the borrower tab labeled with their name. These are located just beneath the Summary box.

Expand each income category by clicking the > symbol.

If you’re integrated with Encompass, use Income Match tab to view the income calculated by Income Analysis side-by-side with the values reflected in your Loan Origination System (LOS). When you access this tab,  the Income Match Walkthrough guides you through income sources that need to be matched.

Note: Income sources from Encompass® are pre-matched to the income sources from Income Analysis when company names are similar enough.

The Task List organizes all potential items that need attention into a dynamic workflow at the loan level. Highlighted tasks are either required or beneficial, and you can take action directly from the list, reducing the need to navigate across multiple screens.

We recommend starting each completed analysis by reviewing all items in the Task List first.

The Investor Guideline dropdown determines which investor guidelines Income Analysis uses to evaluate submitted income.

You can choose from FHA, FHLMC (Freddie Mac), FNMA (Fannie Mae), VA, or custom investors such as Portfolio loans, depending on your organization’s configuration and product offerings. Switch guidelines at any time to see how different rulesets affect loan qualification.

Note: When the Investor Guideline is set to "Default," Income Analysis will use a conservative set of industry standard guidelines.

Access the Output Options dropdown menu to generate a PDF Income Analysis report at any time.

• To download a copy to your local drive, click Output Options and select View PDF.

• If you're an Encompass®-integrated user, select Send PDF to eFolder to send the report directly to the loan's eFolder within Encompass®.

Each Income Analysis order includes a Summary section at the top of the Income Calculation or LO View tab. The summary gives you a quick snapshot of key order details, including available opportunities, missing documents, tax return notes and data capture comments. Use the Summary to quickly assess the status of the analysis and access helpful resources.

Note: Data Capture Comments highlight issues found in scanned income documents—for example, if a document is cut off or incomplete.

The Lock File button is available to Underwriters. Once the borrower’s income has been finalized, click the Lock File button to prevent further income adjustments by the Loan Officer.

Note: Underwriters can still make edits and upload additional documents even when the file is locked.

The Update LOS button is available to Encompass®-integrated users. After making updates to your income, click the Update LOS to extract all the income figures calculated by Income Analysis and send them to your Loan Origination System (LOS).

Each time you access Income Analysis from Encompass®, loan data is automatically refreshed to ensure the income figures are current. A green confirmation message appears at login to indicate that income match data has been updated from the Loan Origination System.

Note: Clicking "Update LOS" will not execute the update immediately. You will have multiple confirmation steps prior to sending the update where you can elect to cancel.