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Your First Loan Application

This guide walks you through creating and processing your first reverse mortgage application in ReversePilot. Follow these steps to understand the complete workflow.

Prerequisites

Before starting, ensure:

  • You have logged in to ReversePilot
  • You have permission to create loans (Loan Officer role)
  • Your company has configured at least one loan product
  • You have borrower information ready

Step 1: Start a New Loan

  1. Navigate to the Loans section from the main menu
  2. Click the "Start Loan" or "New Loan" button
  3. You'll be prompted to enter initial borrower information

Required Initial Information

  • Borrower First Name
  • Borrower Last Name
  • Date of Birth (must meet minimum age requirements for the loan product)
  • Property State (where the property is located)
  • Home Value (estimated or appraised value)
  • Loan Officer (select from available loan officers)

Loan Product Selection

The system will automatically select an appropriate loan product based on:

  • Borrower age
  • Property state
  • Available loan products configured for your company

If no valid product is found, you'll need to contact your administrator to configure appropriate loan products.

Step 2: Enter Borrower Information

Once the loan is created, navigate to the Borrower section:

Personal Information

  • Full name (first, middle, last, suffix)
  • Social Security Number
  • Date of Birth
  • Phone number
  • Email address
  • Current address

Additional Borrower Information

  • Demographic Information: Race, ethnicity (for HMDA reporting)
  • Alternate Contact: Emergency contact information
  • Licenses: Professional licenses held by the borrower

Multiple Borrowers

For joint applications:

  1. Add additional borrowers using the "Add Borrower" button
  2. Enter information for each borrower
  3. All borrowers must meet age requirements
  4. The youngest borrower's age is used for principal limit calculations

Step 3: Enter Property Information

Navigate to the Property section:

Property Details

  • Property Address: Complete address including street, city, state, ZIP
  • Property Type: Primary residence, second home, investment property
  • Occupancy: Owner-occupied status
  • Property Use: Single-family, condominium, etc.

Appraisal Information

  • Appraised Value: Enter the appraised value from the appraisal report
  • Appraisal Date: Date of the appraisal
  • Appraiser Information: Appraiser name and license number

Property Charges

Enter any existing liens or charges:

  • First mortgages
  • Second mortgages
  • Property taxes
  • Homeowners association fees
  • Other liens

Step 4: Calculate Loan Proceeds

Before proceeding, calculate the loan proceeds:

  1. Navigate to the Calculations section
  2. Review the loan product settings (interest rate, MIP, servicing fee)
  3. Click "Calculate Loan" or "Calculate Principal Limit"
  4. Review the results:
  5. Principal Limit
  6. Expected Rate
  7. Available Loan Proceeds
  8. Initial MIP
  9. Servicing Fee Set-Aside

Understanding the Calculation

  • Principal Limit: Maximum amount available to the borrower
  • Expected Rate: Used to determine the principal limit factor
  • Available Proceeds: Principal limit minus required set-asides and payoffs

For detailed information, see Loan Calculations.

Step 5: Enter Financial Information

Income

Enter all sources of income:

  • Social Security
  • Pensions
  • Retirement accounts
  • Investment income
  • Other income sources

Assets

List all assets:

  • Bank accounts (checking, savings)
  • Investment accounts
  • Real estate (other than subject property)
  • Other assets

Liabilities

Enter all debts and obligations:

  • Credit cards
  • Auto loans
  • Personal loans
  • Other debts

Step 6: Order Credit Report

  1. Navigate to the Credit section for each borrower
  2. Click "Order Credit Report"
  3. The system will automatically pull credit reports from all three bureaus (Equifax, Experian, TransUnion)
  4. Review the credit report data once it's received

For more information, see Credit Reporting Integration.

Step 7: Enter Fees

Navigate to the Fees section:

Standard Fees

The system will automatically populate standard fees based on:

  • Loan product configuration
  • Property location
  • Loan amount

Fee Categories

  • Origination Fees: Loan origination charges
  • Third-Party Fees: Appraisal, title, flood certificate, etc.
  • Government Fees: Recording fees, transfer taxes
  • Prepaid Items: Insurance, property taxes

Adjusting Fees

  • Review each fee for accuracy
  • Adjust fees as needed based on actual costs
  • Ensure fees comply with regulatory requirements

Step 8: Review and Submit

Before submitting the application:

  1. Review All Sections: Ensure all required information is complete
  2. Verify Calculations: Double-check loan proceeds and fees
  3. Check Compliance: Verify all required documents are attached
  4. Review Borrower Information: Confirm accuracy of all data

Submit to Processing

  1. Click "Submit to Processing" or change loan status
  2. Select the processor (if applicable)
  3. Add any notes or instructions
  4. Confirm submission

The loan status will change from "Origination" to "Processing".

Step 9: Track Progress

After submission, you can track the loan's progress:

  • Status Updates: Monitor status changes
  • Activity Log: View all actions taken on the loan
  • Document Status: Track required documents
  • Condition Status: Monitor underwriting conditions

Common Workflow Patterns

HECM Loans

  1. Create loan with borrower and property info
  2. Calculate principal limit
  3. Order credit report
  4. Complete financial assessment
  5. Submit to processing
  6. Processor collects documents
  7. Underwriter reviews
  8. Clear to close
  9. Closing and funding

Proprietary Loans

  1. Similar workflow to HECM
  2. Uses proprietary PLF tables instead of HECM tables
  3. May have different age requirements
  4. Different compliance requirements

Next Steps

After creating your first loan:

Tips for Success

  1. Complete Information: Enter complete and accurate information from the start
  2. Save Frequently: Save your work regularly
  3. Use Notes: Add notes to document important information or decisions
  4. Verify Data: Double-check calculations and data entry
  5. Follow Workflow: Adhere to your company's established workflow

Troubleshooting

Loan Won't Create

  • Verify borrower meets age requirements
  • Check that loan products are configured
  • Ensure property state is valid
  • Contact administrator if issues persist

Calculation Errors

  • Verify all required fields are entered
  • Check loan product configuration
  • Review property value and borrower age
  • See Calculation Issues

Missing Information

  • Review all sections for required fields
  • Check for validation errors
  • Consult with your administrator about required fields

For detailed information about specific features, see the User Guides.