The Loan Amount work area includes a matrix and a custom rule editor to determine the Maximum Loan Amount.  In addition, the loan amount can be reduced when the request results in a Loan-To-Value (LTV), Debt-To-Income (DTI), or Payment-To-Income (PTI) exceeds a defined cutoff.

 

The matrix, when used, will assign an initial Maximum Loan Amount.  The custom rule editor can either assign and/or modify the Maximum Loan Amount.

 

LTV Rules, DTI Rules, and PTI Rules are used to assign respective cutoffs which, in turn, will be used to reduce the loan amount when those cutoffs are exceeded.  When no rules assign one of these cutoffs, the Default Cutoffs are used.

 

Finally, the Maximum Loan Amount is compared with the Requested Amount and the lesser of the two becomes the final Approved Loan Amount.

 

For example, if an applicant qualifies for a Maximum Loan Amount of $30,000, but the Requested Amount was only $25,000, the system will return an Approved Loan Amount of $25,000.  However, if the applicant only qualifies for a Maximum Loan Amount of $20,000 and the Requested Amount was $25,000, the system would return a counter offer of $20,000. Amount Matrix and/or Loan Amount Adjustments.

 

Both the matrix and the rule editor are optional.  If neither is used, the Requested Amount will be the Approved Loan Amount.

 

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