Use this job aid to complete the Real Estate Owned Information and Rental Income in the HUB.

      1         

Go to Full Application  -> REO Information.

      2         

·       Ensure all properties are listed in the Schedule of Real Estate Owned.

·       Click Add Property to enter REO that is not listed.

      3         

Enter the property Address and Property Type.

      4         

Select the Property Status from dropdown.

Note: If the Current Primary Residence is converting to an Investment property, enter as per the table below to have the HUB and AUS consider the conversion calculations.

      5         

Enter or update as necessary:

·       Present Market Value

·       Occupancy Type

­   Will be Primary Residence checkbox – Use only if the Borrower does not currently occupy the subject property and is refinancing the subject as the primary residence.

·       Number of Units – Must be entered to complete rental income information on multi-unit rental properties.

      6         

Enter or update the Current Monthly Expenses as applicable.

·       Place checkmark next to any housing expense already included in mortgage liability aka “Associated Liability”.

·       Leave unchecked if the housing expenses are NOT included in the liability payment.

      7         

Indicate all Associated Liabilities.

·       Click Choose to select from existing liabilities.

·       Click to associate a liability to the property.

Note:  Click New to enter an associated liability not listed.

        1         

Click the Rental hyperlink under Property Status.

        2         

·       The Calculate Rental Income screen will open.

·       Select Manual.

Note:  The Net Rental Income per Borrower automatically populates the PITIA expense.

        3         

Enter the Gross Monthly Rental Income per unit.

Notes:

·       Unit 1 will be grayed out for owner occupied rental properties.

·       Fields for individual units will open based on # of units entered on the Property Info pop up in REO Information.

        4         

Net Rental Income per Borrower – The HUB will automatically populate the PITIA expense. If the Borrower is NOT using rental income to qualify, total PITIA must remain or be re-entered as negative value for Net Rental Income.

Update the Net Rental Income per Borrower (if required).

·       The amount entered as Net Rental Income per Borrower will automatically be applied to the primary Borrower (This is the value passed to AUS).

-   The total amount may be allocated between multiple borrowers (if applicable).

·       If Net Rental Income is a Loss, enter as negative value.

·       Click Save.

        5         

Net Rental Income for all properties will display on the REO Information screen.

Results

Positive and negative cash flow will display on the Ratios screen.