Loan Review ULAD Extraction Companion

Loan Guaranty Service

Loan Review ULAD Extraction Companion Document

VA LGY

Loan Review API ULAD Extraction Companion Document | Page 2

Date 11/10/2022

Version 1.0

Revision History

Description Initial version

VA LGY

Loan Review API ULAD Extraction Companion Document | Page 3

Contents

Document Purpose ....................................................................................................................................... 4 Validations Run Against the ULAD ................................................................................................................ 4 Data Points Extracted.................................................................................................................................... 4

Date of Original Loan Application ............................................................................................................. 4 Business Context ................................................................................................................................... 4 Extraction Description........................................................................................................................... 5

How Title is Being Taken ........................................................................................................................... 5 Business Context ................................................................................................................................... 5 Extraction Description........................................................................................................................... 5

Correct Family Size, Number of Dependents, Are There Children Under 12 ........................................... 5 Business Context ................................................................................................................................... 5 Extraction Description........................................................................................................................... 6

Number and Names of Co-Borrowers....................................................................................................... 6 Business Context ................................................................................................................................... 6 Extraction Description........................................................................................................................... 6

Applicant Occupation................................................................................................................................ 6 Business Context ................................................................................................................................... 6 Extraction Description........................................................................................................................... 6

Occupancy Indication................................................................................................................................ 7 Business Context ................................................................................................................................... 7 Extraction Description........................................................................................................................... 7

Total Liquid Assets .................................................................................................................................... 7 Business Context ................................................................................................................................... 7 Extraction Description........................................................................................................................... 8

Liabilities ................................................................................................................................................... 8 Business Context ................................................................................................................................... 8 Extraction Description........................................................................................................................... 9

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Document Purpose This document details how LGY extracts information from the Uniform Loan Application Dataset ("ULAD") submitted for a loan requested for full file loan review. It is meant to foster transparency and certainty in the lending community by:

? Establishing best practices for how to populate the ULAD for VA loans, ? Providing the lending community with the knowledge of how that data will be extracted for use

in VA post-closing loan reviews.

Validations Run Against the ULAD Prior to the extraction of data points from the provided ULAD, an XML schema validation is performed against the ULAD schema to confirm that the ULAD is well formed XML conformant with the ULAD XML schema.

Data Points Extracted LGY extracts each of the following data points from the ULAD provided for a loan requested for full file loan review. The names of the data points the ULAD data is extracted to are from the LGY data model for Loan Review.

Specifying a particular data point within the ULAD/MISMO Reference Model 3.4 is often lengthy due to the long paths in the Reference Model. To assist, the following shorthand paths are established to simplify the paths to the data points and will be used throughout this document.

? LoanPath = "MESSAGE/DOCUMENT_SETS/DOCUMENT_SET/DOCUMENTS/DOCUMENT/DEAL_SETS/DEAL_SE T/DEALS/DEAL/LOANS/LOAN"

? SubjectPropertyPath = "MESSAGE/DOCUMENT_SETS/DOCUMENT_SET/DOCUMENTS/DOCUMENT/DEAL_SETS/DEAL_SE T/DEALS/DEAL/COLLATERALS/COLLATERAL/SUBJECT_PROPERTY"

? DealPath = "MESSAGE/DOCUMENT_SETS/DOCUMENT_SET/DOCUMENTS/DOCUMENT/DEAL_SETS/DEAL_SE T/DEALS/DEAL"

The data points identified in this document are driven by the full file loan review. We anticipate mapping to these data points for the Pre-Close and Guaranty Remittance APIs in the future. Mapping these data points correctly will become increasingly more important as we progress through our transformation journey.

Date of Original Loan Application Business Context The application date of the loan is sometimes determinative of whether rules and regulations apply to it. For example, regulatory rules often have an effective date where those rules apply to loans with an application date on or after the effective date of the regulation but not to those loans with an application date before.

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The loan application date is captured as the date the loan originator signed and dated the loan application.

Extraction Description The date the loan originator signed and dated the loan application (application date) is extracted from the ULAD from the ApplicationReceivedDate in the LOAN_DETAIL section of the ULAD.

How Title is Being Taken Business Context People who hold title to the subject property of the loan who are not Veterans with entitlement at stake nor spouses of Veteran obligors with entitlement at stake on the loan proportionally decrease the amount of the loan able to be guaranteed. Extracting the manner in which title is held post loan closing by all property owners for that property allows LGY to determine if the guaranty must be proportionally decreased.

Extraction Description The manner in which the title is held is modeled in the ULAD/MISMO Reference model 3.4 as the RelationshipVestingType for a party to the deal with a role of property owner. This is connected to an obligor on the loan by that same party having a role of borrower. (Reflected in the URLA L2. Title Information). Parties who have a role of property owner but not borrower are extracted as non-obligors on the title. Parties who have both roles are extracted as obligors.

Loan Review allows three categories for how the title can be taken:

? Veteran ? Veteran and Spouse ? Multiple Obligors

If there is only one property owner on the loan (then that property owner must also be the borrower), "Veteran" will be selected.

If there is one property owner on the loan that is also a borrower and one property owner on the loan that is not a borrower and the PartyRelationshipVestingType for both the borrower property owner and non-borrower property owner is "TenantsByTheEntirety", "Veteran and Spouse" will be selected.

If there are exactly two borrower property owners and both of their PartyRelationshipVestingType is "TenantsByTheEntirety", "Veteran and Spouse" will be selected.

If there is more than one non-borrower property owner or more than two property owner borrowers, "Multiple Obligors" will be selected.

Otherwise, the extraction service will return null so the specialist can select themselves.

Correct Family Size, Number of Dependents, Are There Children Under 12 Business Context The size of the household, number of dependents under 12, and whether any children in the house are under the age of 12 impact the amount of residual income required after shelter costs for a home to be responsibly affordable for the Veteran borrower.

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