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Loan Calculation Issues

From time to time, users may encounter issues with loan calculations in ReversePilot. This document provides guidance on how to troubleshoot and resolve common calculation discrepancies.

Common Calculation Issues

  • Incorrect Principal Limit: The principal limit may not match expected values due to incorrect inputs or outdated data.
  • Expected Rate Does Not Match: The expected rate may differ from the actual rate used in calculations, leading to discrepancies in loan amounts.

Troubleshooting Steps

Reverse mortgage loans are complex and require accurate data inputs. If you encounter calculation issues, follow these steps in this order:

  1. Verify Borrower Date of Births: Ensure that the date of birth for each borrower is entered correctly. This is crucial for calculating the principal limit and expected rate.
  2. Verify Property Value: Check that the property value is accurate and reflects the current market conditions. An incorrect property value can significantly affect the principal limit.
  3. Verify Loan Type: Ensure that the correct loan type is selected (e.g., HECM, proprietary). Different loan types have different calculation rules.
  4. Verify Expected Rate (HECM only): For HECM loans, the expected rate is a critical factor in determining the principal limit. Ensure that the expected rate is set correctly (go to Comparison page).
  5. Verify Application & Closing Dates: Ensure that the application and closing dates are accurate. These dates will affect the expected rate calculations.

Usually, by following these steps, you can resolve most calculation discrepancies. If issues persist, please contact our support team for further assistance.

Contact Support

If you have followed the troubleshooting steps and still encounter issues, please reach out to our support team.