Creating a HECM loan application

Starting a New Loan

To begin a new HECM loan application, navigate to the Loans section from the main menu and click Start Loan or New Loan. The system will prompt you to enter initial borrower and property information.

Required Initial Information

Complete the following required fields to create your loan:

• Borrower First Name — Legal first name
• Borrower Last Name — Legal last name
• Date of Birth — Must meet minimum age requirements (typically 62 for HECM, varies for proprietary products)
• Property State — State where the property is located
• Home Value — Estimated or appraised value
• Loan Officer — Select yourself or another loan officer

Automatic Loan Product Selection

The system automatically selects an appropriate loan product based on the borrower's age, the property state, and your company's configured loan products. If no valid product is found, verify that the borrower age meets requirements and that a loan product is configured for the property state. If issues persist, contact your administrator to configure appropriate products.

Entering Borrower Information

After creating the loan, navigate to the Borrower tab to enter complete personal and demographic information.

Personal Information

Enter the following borrower details:

• Name — First, middle, last, and suffix (Jr., Sr., III, etc.)
• Social Security Number — Required for credit reporting and compliance
• Date of Birth — Used for age verification and principal limit calculations
• Phone Number — Primary contact number
• Email Address — For communications and disclosures
• Current Address — Complete mailing address

Demographic Information

Provide the following information, which is required for HMDA reporting:

• Race — Select all that apply
• Ethnicity — Hispanic or Latino / Not Hispanic or Latino
• Sex — Male, Female, or prefer not to answer

Alternate Contact

Include emergency contact information, including name, relationship to borrower, phone number, and address.

License Information

If the borrower holds professional licenses, record the license type, license number, state of issuance, and expiration date.

Managing Multiple Borrowers

For joint applications, click the Add Borrower button and enter all information for the second borrower. Both borrowers must meet age requirements. The system uses the youngest borrower's age for principal limit calculations, and credit reports will be pulled for both borrowers.

Entering Property Information

Navigate to the Property section to provide complete details about the subject property.

Property Details

Enter the following property information:

• Property Address — Complete address (street, city, state, ZIP)
• Property Type — Primary residence, second home, or investment property
• Occupancy — Owner-occupied status
• Property Use — Single-family, condominium, 2–4 unit, etc.
• Year Built — Construction year
• Square Footage — Living area square footage

Appraisal Information

Record appraisal details from the appraisal report:

• Appraised Value — From the appraisal report
• Appraisal Date — Date of the appraisal
• Appraiser Name — Licensed appraiser name
• Appraiser License Number — State license number
• Appraisal Type — FHA, conventional, etc.

Property Charges and Liens

Enter all existing liens and charges on the property:

• First Mortgage — Lender name, account number, current balance, monthly payment, and interest rate
• Second Mortgage (if applicable) — Lender name, account number, current balance, and monthly payment
• Property Taxes — Annual amount, payment status, and escrow information
• Homeowners Association (HOA) — Monthly or annual fees, special assessments, and payment status
• Other Liens — Any liens, judgments, or other encumbrances with amounts and details

Entering Financial Information

Complete the borrower's financial picture by navigating to the Income, Assets, and Liabilities tabs.

Income

Enter all sources of income:

• Social Security monthly benefit amounts
• Pension payments
• Retirement account distributions (401(k), IRA)
• Investment income (dividends, interest, capital gains)
• Employment income (if borrower is still working)
• Other regular income sources

Upload supporting documents and verify that income amounts match documentation. Note which income will continue and which will terminate.

Assets

List all assets owned by the borrower:

• Bank Accounts — Checking and savings account balances
• Investment Accounts — Stocks, bonds, mutual funds
• Real Estate — Other properties owned (not subject property)
• Retirement Accounts — 401(k) and IRA balances
• Other Assets — Vehicles, personal property of significant value

Include bank statements, investment account statements, and property ownership documents as supporting documentation.

Liabilities

Enter all debts and obligations, or review liabilities identified from the credit report:

• Credit Cards — Balances and minimum payments
• Auto Loans — Remaining balance and payment
• Personal Loans — Balance and payment
• Other Debts — Any other obligations

Ordering Credit Reports

Entering Fees

Navigate to the Fees section to review and adjust loan fees.

Automatic Fee Population

The system automatically populates fees based on the loan product configuration, property location, loan amount, and your company's fee templates. Review each fee for accuracy and adjust based on actual vendor quotes while ensuring compliance with regulatory limits.

Fee Categories

Fees are organized into the following categories:

• Origination Fees — Loan origination charge, processing fee, underwriting fee
• Third-Party Fees — Appraisal fee, credit report fee, flood certificate fee, title insurance, recording fees
• Government Fees — Transfer taxes, recording fees, other government charges
• Prepaid Items — Homeowners insurance, property taxes, initial MIP (for HECM loans)

Document any fee changes you make to the automatically populated amounts.

Calculating Loan Proceeds

Reviewing and Submitting

Before submitting your application, conduct both a completeness check and an accuracy check.

Completeness Check

Verify that all of the following sections are complete:

• Borrower information complete
• Property information complete
• Financial information entered
• Credit reports ordered and reviewed
• Fees entered and verified
• Calculations completed
• Required documents attached

Accuracy Check

Double-check the following details:

• All names spelled correctly
• Social Security numbers verified
• Addresses complete and accurate
• Income amounts match documentation
• Property value matches appraisal
• Fees are accurate

Saving Your Work

The system automatically saves your work as you enter information. Loans can remain in Origination status while you work. You can also manually click Save after making significant changes to ensure your data is preserved.

Tips for Success

• Complete Information — Enter complete information from the start to avoid delays
• Verify Data — Double-check all entered information for accuracy
• Use Notes — Add notes to document important information or decisions
• Attach Documents — Upload supporting documents as you collect them
• Save Frequently — Save your work regularly
• Follow Workflow — Adhere to your company's established workflow

Troubleshooting

Loan Won't Create

If you encounter issues creating a loan, verify that the borrower meets age requirements, that loan products are configured for the property state, and that the property state is valid. If problems persist, contact your administrator.

Missing Loan Products

Contact your administrator to verify loan product configuration for the property state and confirm that the borrower age meets requirements.

Calculation Errors

Verify that all required fields are entered, check loan product configuration, and review property value and borrower age for accuracy. If errors continue, consult the calculation issues support documentation.

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