The Closing Docs Has Revised Its Report Format
The Closing Docs has upgraded its income report to support property managers and lenders with making faster and more confident decisions when considering applicants.
In order to highlight the data that matters most, the revised report format offers:
- A summary section to support expedited decision making
- Greater visibility into non-recurring deposit income
- Reduced clutter and elimination of redundant information
Also, income summaries for individual banks were removed and are now incorporated into each applicant’s net income summary. The new report format eliminates redundant headers, labels, and data. The result is greater clarity to expedite decision making for the users of this information.
Let’s dig a little deeper to see what has changed and how users will benefit.
A Summary Section to Expedite Decision Making
Our upgraded report makes the separation clear between the high-level actionable summary and the supporting data using a divider:
The beginning of the report up until the first divider offers the high-level income summary for the applicant(s) and contains the primary information you need to know in order to reach decisions with confidence. The sections below the divider present the supporting data used to calculate the summary page. In this way, if you need more detail about the applicant to support a decision, turning to this lower section delivers the micro view.
Non-Recurring Income Upgrades
When applicants verify income through our automated system, our algorithm separates applicant recurring deposits from non-recurring deposits by using the time elapsed between each deposit. In this way, we can make a distinction between the types of income in order to assist with interpreting income sources and amounts.
For example, deposits coming from the same source consistently 14 days apart for 3 months would resemble an income stream derived from payroll and are classified as recurring income. On the other hand, 2 deposits made 1 month apart, and then another deposit 2 weeks later, and then another deposit 3 months later shows an inconsistent time period between deposits, and would be classified as non-recurring income accordingly.
Understanding the distinction between recurring and non-recurring income is useful for a decision maker as it illustrates whether your applicant has a consistent source of income and it can indicate financial stability. However, non-recurring income is still income, and can be a substantial portion of any applicant’s financial profile. The upgraded report clearly delineates between the two types of income, giving the user an easy way to fully understand the financial profile of any applicant.
Non-Recurring and Total Income Calculations in the Net Income Summary
Previously, our report format presented the past 3-month and 12-month average of recurring income in an effort to convey the applicant’s monthly recurring income over time. The new report also calculates the same 3-month and 12-month averages for non-recurring income, offering consistent metrics by which an applicant’s income is measured over time. And a Total column was added to give the decision maker a holistic view of the sum of the applicant’s recurring and non-recurring income.
Non-Recurring Income Sources
In our previous report, we displayed each recurring income source and highlighted key metrics about that income source such as the monthly income and the start and end date. Now, we provide the same breakdown for non-recurring income sources as well, an upgrade in data consistency in an effort to make your review decisions better supported. We also added the Total of the income source, to calculate how much total income the source has generated for the applicant over the report’s time period.
A Cleaner, More Concise Report
We believe our report upgrade will help property managers and lenders make confident decisions faster using our new non-recurring income breakdown and summary page. You can view a full overview of our report here. If you have any questions about our new report format, feel free to reach out to our support team through chat or by emailing firstname.lastname@example.org.