Reporting Seller Debt To Income (DTI) StatisticsOnce the necessary mortgage loan servicing data is available, the investor runs a Debt To Income (DTI) report that generates DTI statistics for loans in their portfolio by seller. Investor DTI reports vary depending on the reporting needs of the investor. The DTI report detailed in this article is intended to fulfill an investor requirement to report month end active servicing DTI distribution statistics by seller.
Creating the Report...
Report Seller DTI Distribution StatisticsThe following steps generate a report of the seller's active servicing DTI distribution. Prior to setting up the report the investor must determine the DTI Distribution reporting buckets (e.g. No Ratio, < 39%, > 45%) that are reported. Each DTI distribution bucket is then reported as a percentage of active servicing.
Step #1The seller's total active servicing is calculated.
The seller's total active servicing is equal to the sum of the principal amount of all loans in the investor's servicing portfolio, for the seller, where the loan's status is Active, Repurchase, Bankruptcy, Foreclosure, Prepayment or Early Payoff for the period calculated. Typically, the only loans excluded by an investor when calculating the total active servicing for a seller are those loans that have been sold servicing released by the investor or loans that are still on the investor's servicing system but considered paid in full and not in a prepayment or early payoff status.
Step #2The seller's total active servicing by DTI ratio is calculated.
The seller's total active servicing by DTI is equal to the sum of the principal amount of all loans in the investor's servicing portfolio, for the seller, by the loan's DTI ratio where the loan is in an active status.
Step #3The seller's active servicing DTI percentages by DTI reporting bucket are calculated.
In this step the report is retrieving the seller's active servicing total from Step #1 and comparing it to the active servicing totals with DTI ratios, from Step #2, where the DTI value less than or equal to the DTI bucket range that the investor wants to report. The resulting records are used to report the percentage of loans, by seller, with a DTI less than or equal to the bucket range the investor is reporting.
Step #4Repeat Step #3 to create additional DTI buckets.
A Seller Debt To Income (DTI) report similar to the Sample Debt To Income (DTI) Statistics Report in the Sample Debt To Income (DTI) Statistics Report section of this article can be generated by the investor for distribution to the seller.
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