Blue Sage Adds Fannie Mae’s Income Calculator To Its LOS

ByTMN Editor Reading Time: 2 minutes

Blue Sage Solutions is now the first LOS to fully integrate Fannie Mae’s Income Calculator.

This is an API-enabled integration, fully initiated from the LOS, that streamlines income calculation for self-employed borrowers or those with income from business ownership.

With this data, lenders can now get faster, more accurate mortgage approvals.

Fannie Mae offers rep and warrant relief on the income calculations generated by their tool, giving lenders peace of mind and reducing the risk of future loan buybacks due to calculation errors.

“This represents a major leap forward in how lenders handle loans involving self-employed borrowers,” said Carmine Cacciavillani, founder and president of Blue Sage.

“Our integration not only speeds up the income calculation process, but does so with greater accuracy, resulting in fewer defects. For lenders, this means less time spent on manual reviews and more time delivering a fast, reliable, and enjoyable customer experience to their borrowers. We’re proud to be the first LOS to bring a fully integrated capability to the market.”

Blue Sage reduces compliance risk and improves processing times by integrating this tool directly into its digital lending platform.

Fannie Mae’s Income Calculator speeds up the difficult process of calculating self-employment income by automating the calculation of income from business tax returns, personal tax returns, and other documents. 

Another benefit is allowable add-backs not included in 4506-C tax return transcripts, which maximizes borrower income and may lower DTI ratios.

“Fannie Mae strives to make the origination process more efficient and to help lenders avoid issues that may potentially arise in downstream loan quality reviews,” said Mark Fisher, Vice President of Single-Family Credit Risk Solutions at Fannie Mae.

“Working with technology service providers will continue to make Income Calculator widely available, assisting lenders to avoid these pain points to accurately calculate income for self-employed borrowers.”

New Jersey-based Blue Sage launched its Digital Servicing Platform earlier this year.

Lenders can use the platform to automate closed loan transfers, process individual and batch payments, onboard loans, and collect payments. All Blue Sage technologies are 100% browser-based, equipped with mobile applications, and delivered through a secure, fully managed cloud service.