‘Net Worth’ Widget

The Net Worth widget can be used to enter information about assets and properties owned by the borrowers (individually or collectively), and allows the system to calculate the borrower’s Net Worth. Assets and Properties owned are split out in separate tabs. The asset tab is where all non-real estate assets are listed and the property tab is where all real estate assets are listed. The system takes into consideration the total of all assets listed, including properties, as well as liabilities when calculating the borrower’s net worth which is populated at the bottom of the Net Worth widget. The Net Worth Calculations can be broken down into Current Net Worth, Future Net Worth and then by All Borrowers or by Individual Borrower.

Location

The default location of the Net Worth widget is directly beneath the Credit and Income widgets, and directly above the Conditions and Documents widget.

Net Worth Widget Features

Add New Asset or Property Button - This button is used to add a new asset or property to the application within the Net Worth widget.

Asset List - List of non real estate assets within the application.

Properties List - List of real estate assets within the application.

Assets Tab - The fields in this tab are: Use as Down Payment, Exclude from Calculation, Description, Type, Value, Purchase Price, and Asset Holder. The Type field is a mandatory field.

Property Tab - The fields in this tab are Subject Property Icon, Primary Property Icon (if applicable in your environment),Property Address, Address Details (opens popup for address details), Request iClarify, Open Details in Sidebar (opens sidebar with the property details), Existing Mortgages Total, Monthly Payment, Property Value, Property Sold Checkbox, Sold On, and Property Holder.
Note: For seamless submission to MI companies you should indicate who the property holders will be on the subject property, as well as on already owned properties.

Total Net Worth Amount Box (Current & Future) - Viewable value of combined assets and properties associated with the applicants.

There are two Net Worth Calculations:

Current Net Worth

Total Asset Value: total financial assets value
Other Properties Total Value: other properties total estimated value
Subject Property Value: the subject property min value between the estimated value and the purchase price - only included if the application purpose is not "Purchase"
Total Debt: total financial liabilities amount regardless of the payoff type
Existing and Refinance Mortgages Amount: total existing & refinance mortgage amount regardless of the payoff type. Note for any secured lines of credit the system will consider the balance instead of the limit in this calculation.

To view the calculation for the Current Net Worth and the values used in the system, click on the associated tool tip icon located at the bottom of the Net Worth widget.

Future Net Worth

Total Asset Value: total financial assets value
Other Properties Total Value: other properties total estimated value
Subject Property Value: the subject property min value between the estimated value and the purchase price
Total Debt Paid Off: total of debt indicated as pay off
Property Sale Proceeds: The net equity from any properties indicated as sold
Total Debt: total financial liabilities amount of "None" payoff type
Existing Mortgages Amount: total existing mortgage amount regardless of "None" payoff type. Note for any secured lines of credit the system will consider the balance instead of the limit in this calculation.
Total Loan Amount: requested mortgages total loan amount
Down Payment: total down payment amount - only included if the application purpose is "Purchase"

To view the calculation for the Future Net Worth and the values used in the system, click on the associated tooltip icon located at the bottom of the Net Worth widget.

Note: Both the Current and Future Net Worth calculations default to All Borrowers, however you can segment by borrower by simply selecting the appropriate borrower from the drop down list in All Borrowers (explained below). In addition, the system considers Total Loan Amount taking into account any capped fees and Insurance Premiums from requested mortgages, allowing for more accurate Future Net Worth calculations.

Individual Net Worth

Calculating the net worth for each individual applicant on the application gives underwriters valuable insight into their current and future financial standing. This feature enables more informed decisions to be made based on the net worth at the applicant level, leading to a better understanding of their overall financial situation. It also helps identify who has/brings strength to the deal.

To implement this, we split assets, properties, debts, and mortgages by owner. If one of the records is owned by multiple individuals, we split the value equally between the owners. The requested mortgage amount and down payment is also split equally between all applicants.

Here is an example that demonstrates the calculations for combined and individual net worth:

Combined Future Net Worth Calculation:

Individual Future Net Worth Calculation:

Exclude Assets from Net Worth Calculation

If you want to exclude certain assets from the net worth calculation, you have the option to indicate this and provide a reason. These reasons are managed through the Custom Fields section of the Manager Portal.

To learn more, click this link to watch a video demonstration.

In the example below, a vehicle was submitted as an asset but the vehicle is leased. The underwriter can simply mark the vehicle as “Exclude from Calculation” by selecting the "Leased" option from the drop down menu. The value of that vehicle will then be removed from the net worth calculation. You can see once it is marked to exclude, the net worth values are updated accordingly.

Before:

After:

Omit from TDS and Paid by Other Source

When selecting these reasons to exclude from calculation, the system will remove these liabilities from the TDS calculation but not the net worth calculation. The expectation is that even though the applicant is not required to make the payments on these liabilities, they still owe the debt therefore, the liability should be considered in their net worth calculation.

‘Assets’ Tab

The Assets tab houses the assets list. Assets are listed and associated by the applicant.

Use for Down Payment checkbox - When the check box is selected, this indicates that the asset will be used for the down payment of the subject property. Leave the box unchecked if the asset will not be used for Down Payment or if only a part of the asset will be used for the down payment. The system presumes the full value of the asset is being used for down payment if the box is checked.

Note: Only monetary assets can be used for the down payment. If only a portion of the asset is being used for the down payment, the asset should be split into two lines as checking the “Use for Down Payment” box takes into consideration the entire asset. Alternatively, leave the box unchecked and add the down payment in the down payment tab in the Loan Details widget.

Exclude from Calculation - If you do not want the asset considered in net worth calculations you can select from a configurable list of options which when selected will remove the value of that asset from the net worth calculations. A typical use case for this is leased vehicles for example.

Description - A short description of the asset listed. (i.e. 2017 Toyota Rav 4)

Type - Choose the type of Asset from the drop down list. The option list is configurable by the lender via the Manager Portal.

Value - The monetary value of the asset.

Purchase Price - The original monetary price the item was purchased at (i.e. vehicle or trailer being purchased at a different price then the value of it currently).

Asset Holder - The applicant who owns the asset or the applicant who will be associated with the item for the purpose of the application.

Scroll Bars - Will appear at the bottom of the list of assets and to the far right of the widget if items do not fit on the page. Use these to scroll through your list horizontally or vertically to see what does not fit on the page.

Adding an Asset

Select the 'Add New Asset' button () in the top right hand corner of the Assets tab. This will create a sidebar pop up with empty fields to populate. Once you have finished filling in the details, click on the “Add Financial Asset'' button in the bottom right hand corner and your asset will be added to the list.

Editing an Asset

You can easily edit assets by simply navigating to the field you need to edit and making the necessary changes. All edits are auto saved.

Deleting an Asset

To delete an asset click on the ellipsis located at the far right of the asset and select delete. Your asset will be deleted. We might suggest though that rather than delete you use the exclude from calculation option for data integrity reasons.

‘Property’ Tab

The Property tab houses the list of all properties owned by the borrowers including the subject property. The subject property is marked with a star icon located to the left of the property address field, making it easy to identify. We also have functionality to identify a property as the primary residence which is controlled by a tenant setting. See the “Primary Property Support for GDS Calculations” below for more information

Property Tab Features

Properties and their associated descriptors can be found in the fields of the Properties list under the Column Headers:

Property Address - The address of the properties currently owned by the applicants. To edit the information in this field, you must click on the address details () icon.

Address Details - The orange note () icon located to the right of the address field opens a pop up screen that displays the address broken out into individual fields.

You can edit and update the property address by selecting the field. Click the save () button on the bottom left corner to save and close or cancel to cancel () out of this action.

Request iClarify - Selecting the green comment icon to the left of the Address Details icon will open up the Request iClarify workflow. If you follow through with this workflow, the Verisk integration will pull any property details on record and allow you to populate the Property Details - Property Info Tab automatically with those details.

Details -The Open Details in Sidebar icon opens up the Property Details Sidebar which contains the same fields for editing as displayed in your overview. It will also provide options the user can select to take them directly to the Property Details page for the selected property or to the Existing Mortgages tab for the selected property. .

For detailed functionality regarding this pop up, refer to the Property Details Pop Up Product Feature Guide.

Existing Mortgages - By clicking on the Existing Mortgages () icon you will navigate directly to the Existing Mortgages Tab within the Property Details Pop Up. To view the existing mortgages, click on the inline option for the specific property and then select the "View Existing Mortgages" option.

Existing Mortgages Total - This section will update automatically based on the mortgage balances entered in the mortgage balance field of the Existing Mortgages pop up. It will populate with the total mortgage balances of all mortgages.

Monthly Payment - This section will update automatically based on the monthly payments entered in the Existing Mortgages pop up. It will populate with the total of all monthly payments.

Property Value - For the subject property this will populate automatically based on the value input in the Property Value field within the Requested Mortgage tab. For all other properties this field needs to be filled in manually.

Property Sold - Check this box if the property is sold and you know the closing date. Note: The subject property cannot be marked as Property Sold.

Sold On - If you mark a property as Property Sold, indicate the closing date in this field. The system will use this information when performing certain calculations such as Net Worth and Debt Servicing.

Property Holder - The stakeholder(s) who own the property or the stakeholder(s) who will be associated with the property for the purpose of the application.
Note: For seamless submission to MI companies you should indicate who the property holders will be on the subject property as well as on already owned properties.

Ellipsis - Will provide you with several options including:

Delete - will delete the property entry altogether

View Property Details - Will take you to the Property Details Pop up for this property. For detailed functionality regarding this pop up, refer to the Property Details Pop Up Product Feature Guide.

View Existing Mortgages - By clicking on the Existing Mortgages () icon you will navigate directly to the Existing Mortgages Tab within the Property Details Pop Up. From there you can add, edit, or delete any mortgages that are registered on this property and indicate if you are paying them out or not.

Mark as Primary Residence - only visible if your environment has the tenant setting enabled. See the “Primary Property Support for GDS Calculations” below for more information.

Adding a Property

Select the 'Add New Property' button () in the top right hand corner of the Property tab. This will create a sidebar pop up with empty fields to populate. Once you have finished filling in the details, click on the “Add Property” button in the bottom right hand corner and your Property will be added to the list. You should then update any other fields as required for this new property such as Property Details and Existing Mortgages via their respective pop ups.

Editing a Property

You can easily edit properties by navigating to the field or pop up for the property that you wish to edit and make your changes. All edits are auto saved. Alternatively, you can follow these steps:

Hover to the right of the property address you wish to edit. The open details in the sidebar icon will appear.
Click on the icon to open the Property Details sidebar.
Make any edits as needed and close when done. All changes will be saved automatically.

Note: The system will display a warning sign anytime there are duplicate addresses listed in the property tab alerting the user that some edits may be required.

Deleting a Property

To delete a property navigate to the ellipsis to the far right of the property you wish to delete. Click on the ellipsis and click on “Delete”. A warning pop up will appear ‘Are you sure you want to remove the Property?’. Select the ‘Remove’ () button on the bottom right corner to remove the property and delete it.

Note: You can not delete the Subject property.

Marking a Property as Sold

You now have the ability to mark a property as sold and indicate the date it will be sold, in order for the system to make appropriate calculation adjustments.

When a property is marked as sold, its value and its associated mortgages will no longer be considered in the net worth or debt servicing calculations. The system will make the applicable adjustments based on the below noted rules.

Rules

Action

Impact to Future Net Worth

Impact to Future Payment Amount (GDS/TDS)

Mark as Sold –

Before Purchase Date

Exclude asset record and all associated liability records

Set adjusted payment to 0.00 and use adjusted payment amount

Mark as Sold –

After Purchase Date

Exclude asset record and all associated liability records

Set adjusted payment to 0.00 and use adjusted payment amount

Before Marking as Sold:

Value of property is included in Current and Future Net Worth. All property expenses including mortgages are included in the debt service calculations

After Marking as Sold:

The property being sold is excluded from the Future Net Worth calculation and any associated expenses are also removed from the debt service calculations. However the net equity or sale proceeds will be taken into consideration. More specifically, they will be added to the Future Net Worth calculation.

Warning: Selling a property after the Closing Date

If the closing date for selling a property is after the closing date of your mortgage application, a warning sign will appear next to the property's address. For example, if the closing date of your application was November 20 and the property being sold has a closing date of November 27, the warning sign will be displayed. The warning appears as long as the sold on date is one day or more past the closing date of your application.

Additional Features with the Property Tab

Customize the Property Table

To enhance the user experience, we have implemented a feature that allows users to customize the properties table according to their preferences. This functionality enables users to select the specific columns they want to view in the table and arrange them in their preferred order. This customization option allows users to tailor their view of the property table to better suit their individual needs. To customize the property table, follow these steps:

Navigate to the Property tab within the Net Worth widget.
In the top right corner, click on the "Customize Table" icon.
A sidebar will appear on the right side of the screen:
Select which columns you want to display in the table by checking the corresponding checkboxes next to the column names.
To rearrange the order of the columns in the property table, hover to the left of the checkbox and an icon will appear. Click and drag this icon to change the placement of the columns in the table.
Once you close the sidebar, the property table will automatically update to reflect the preferences you have selected.

Here is an example of a customized property table:

Primary Property Support for GDS Calculations

This is enabled by a tenant setting. Defaults to disabled. If this functionality is not visible in your environment then this tenant setting is not enabled.

Users have the ability to identify a property as the primary property, independently from the subject property. This functionality is useful when expenses from the primary property need to be used to calculate GDS, instead of those from the subject property. If there is a primary property indicated, both the GDS and QGDS calculations will only consider costs from that property. The calculation being (Principal + Interest + Property Taxes + Heat + 50% Condo Fees) / Total Income.

Users can easily differentiate between the subject and primary property. The subject property is identified both on the Dashboard, directly below the applicant's name, and in the Property tab of the Net Worth widget. It will have a star icon to the left of the address in the Net Worth widget.

Users can identify a property as the ‘Primary property’ in the Property tab of the Net Worth widget.

To do so, click on the ellipsis to the far right of the property you wish to assign and select the “Mark as Primary Residence” option.

A house icon will be added to the left of the property, this is the indicator of a Primary Residence.

If the primary property and subject property differ, the GDS will consider the expenses from the primary property in the calculation. If the primary property is not identified or is the same as the subject property, the GDS will take the expenses from the subject property into consideration.

Include existing mortgages in aggregates calculations

Only applicable if your organization has aggregate lending.

As a user, you have the ability to identify an existing mortgage with your organization in the Existing Mortgage tab within Property Details for the related property, so that the mortgage balance or loc limit can be included in mortgage secured aggregates.

The field is called 'Is Lender Liability' and the name can be changed via Custom Fields in the Manager Portal. Changing the field name will not impact the schema.