Q: How do I access WaterfallCalc.com?
A: WaterfallCalc.com is a secure web based program. To view the program, simply type WaterfallCalc.com into your search browser. Click on the “WaterfallCalc” button on the top of the page, and select “Servicers” from the drop down list. Click on the “Member Login” button. Enter the user name and password provided. The system will leave you logged in. The system will periodically ask you to change your password. The password must be a minimum of 8 characters with at least one capital letter and one number to be acceptable. NOTE: You must use Google Chrome or Internet Explorer V8 or higher as your internet browser in order for the calculations to work properly.
Q: How is my WaterfallCalc.com account set up?
A: Each WaterfallCalc.com account is set up with a primary administrator. Each Lender can have multiple users after the administrator. Lender administrators will be able to access all lender loans run through the program by any user. Other users will only be able to see the loans they run through the program. We recommend having at least 2 user accounts (administrator and one regular user) per Lender client. This provides added security during staffing changes. NOTE: The Lender Client will be responsibile for all charges on loans processed on WaterfallCalc by former users, if the Lender Client had not notified WaterfallCalc to terminate the user’s access.
Q: What information do I need to enter into WaterfallCalc.com?
A: To run a loan through the WaterfallCalc.com program, a relatively small amount of information is needed. Basic loan and borrower income and budget information is required to complete the program, as well as an escrow analysis. The escrow analysis information should detail as if the loan remained delinquent, and as if the loan were brought current by a partial claim. Default information is also needed. If the system determines that the situation does not qualify for the forbearance and repayment options, additional information relating to HAMP will also be needed.
Q: What if I make a mistake in WaterfallCalc.com? Will I be charged?
A: WaterfallCalc.com will ask you to save and proceed with calculations after all required information is inputted. A prompt will then be displayed giving you one last opportunity to review your inputted data. Check your data carefully. Once you select OK, you will be charged for using the program and will be limited to the fields you will be able to alter. This is a security feature that will ensure that that data cannot be altered after a loss mitigation option had been offered to a borrower. If you selected OK for the final time and then found errors in your initial input, you will need to run your data through WaterfallCalc.com again. You will be charged to use the program again. However, there may be certain circumstances where tech support can edit or fix a small error at no charge. Please email tech support for assistance.
Q: I service Housing Finance Agency loans. Does WaterfallCalc.com provide for HUD approved variances?
A: Yes. WaterfallCalc.com allows the user to apply HUD approved variances for interest rate reductions and term extensions. These variances should not be applied unless the Lender Client has such a variance in writing directly from FHA. For those HFAs that service both Mortgage Revenue Bonds (MRBs) – for which FHA has granted variances and GNMA pools – where the variance do not apply; the system will give you the option to apply the variance or not depending on the loan type you are processing through the system at that time.
Q: Is your program authorized by HUD?
A: WaterfallCalc.com is not acting on behalf of or at the direction of the United States Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA) or the Federal Government. It is the responsibility of the user to ensure all information inputted into WaterfallCalc.com and exported from the analysis is correct. WaterfallCalc.com is a subsidiary of DLS Servicing Consultants, LLC and programmed by WorkSmart Database Masters, LLC.
Q: What if I want to use a lower interest rate than what FHA requires?
A: WaterfallCalc.com allows for a manual override for interest rates. WaterfallCalc.com calculates the maximum modification rate based on FHA specifications; recognizes FHA variances for mandatory interest rate reductions or allows you to enter a lower interest rate.
Q: How is the delinquent interest capitalization handled in WaterfallCalc.com?
A: WaterfallCalc.com allows for delinquent interest to be calculated in multiple ways. Delinquent interest can be calculated as straight interest or amortized interest. When entering additional information for a loan modification, only one of these options should be selected.
Q: What are the benefits of using the WaterfallCalc?
- Provides real time loss mitigation analysis or look back quality control evaluations
- Reduces Staff Training time for compliance specifications
- Follows the FHA Loss Mitigation Waterfall from Special Forbearance through HAMP, until the loan qualifies for an option or fails other qualification criteria
- Does the analysis for best option and then performs the calculations for each option
- Produces reports that summarizes why an option could not be chosen and details of the calculations performed for approved option
- Allows you to consider borrower contributions to the delinquency prior to application – especially helpful during mediation hearings, adjusting the calculations accordingly
- System allows the user to delay the start of any plan when circumstances require – leading to a one and done approach to the review
- Ensures that a major workout cannot be approved within 24 months of the last major workout, but allows for a password override, if circumstances warrant
- Typical processing time – under 10 minutes per loan
Q: What criteria is used for the WaterfallCalc to select Forbearance for a loan?
- Will only approve a borrower for a Special Forbearance plan if all previously employed borrowers are currently unemployed, or if one borrower is unemployed and the loan fails for HAMP because the front end DTI is above 40%
- Will check to ensure that the loan is at least 3 months delinquent and no more than 12 months delinquent before approving the Special Forbearance
- Ensures that all Special Forbearance Plans last 12 months, and that the loan never becomes more than 12 months delinquent by the end of the plan
- System calculates 85% of the borrower’s surplus income and determines whether the loan can be brought current within 6 months using this amount
- System provides a warning message that alerts you if waiving the late charge for a Forbearance Plan will allow a forbearance/repayment plan to bring the loan current in 6 months and allows you to make that adjustment if desired
Q: How does the WaterfallCalc calculate HAMP?
- Will calculate the maximum claim amount, less any previous partial claims
- Calculates the target payment in compliance with FHA guidelines
- Determines if a principal reduction is needed to meet the target payment amount
- Maximizes the allowable claim, and then capitalizes any other amounts that are needed to bring the loan current
- Only approves a HAMP option if the new payment results in a front end DTI of 40% or under
- Provides details for the claim breakdown, including amount needed for arrears, legal fees and costs, escrow shortages, netted against trial payments received
- Will automatically calculate whether 3 or 4 trial payments are required based on whether the loan is already in default or in imminent default
- Recalculates the borrower’s net surplus income based on the new monthly payment and provides a warning message if the borrower still needs to reduce other spending.
- Recognizes written variances given to Housing Finance Authorities for interest rate reductions and/or term extensions
- Will perform the calculation for the maximum rate allowed by FHA, and provide the correct modified interest rate – either the max rate allowed or current rate, whichever is lower
- Lays out the distribution of claim funds (payment application, legal fees and costs, or escrow shortage recovery), and details how any remaining capitalization was calculated.
Q: What other features does the WaterfallCalc have?
- The system will automatically waive all late charges associated with this delinquency for all options that pass, with the exception of the Forbearance/Repayment Plan. For this option the user can opt to allow the payment of the late charges to be included in the plan or waive
- Allows the user to enter legal fees and costs that can be capitalized into a loan modification, or if this is not permitted by the loan’s Investor, they can be considered for inclusion in the partial claim only.
- WaterfallCalc.com can accept key data elements from your servicing system and import them in batches. Some user entry is still required, but this feature will limit user entry mistakes and allow easy processing of servicing transfer due diligence files, etc.
- We listen to our clients – and more updates are coming with features requested by them!
Stay tuned . . .