WaterfallCalc.com assists mortgage servicers with choosing the best FHA loss mitigation option and performs all calculations based on the most current FHA Loss Mitigation Guidelines. It can be used equally as a real-time loss mitigation analysis tool, or can be used to review past loss mitigation options for situations like FHA servicing audits, servicing transfers of loans in a default status, and due diligence exercises.
WaterfallCalc.com follows the FHA Loss Mitigation Waterfall from Special Forbearance through HAMP, until the loan qualifies for an option or fails other qualification criteria, performing the analysis and calculations for the best option. The software is extremely flexible, allowing for individual clients to customize features to meet their specific needs. However, WaterfallCalc.com instinctively allows the client to consider borrower contributions to the delinquency prior to application, which is especially helpful during mediation hearings, adjusting the calculations accordingly; 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, allowing for managerial override where circumstances warrant.
WaterfallCalc.com is exceedingly intuitive, allowing the user to click on an information link within the calculator to clearly understand what is needed for each field. This drastically reduces staff training time. The typical processing time is under 10 minutes if being manually input, however the software is able to interface with servicing systems, which can typically reduce the number of required fields to be completed by 75%. Larger clients that use this interface ability enjoy reduced keystroke errors, and the processing time is further reduced to approximately 5 minutes.
When WaterfallCalc.com has completed its analysis and calculations, it produces two reports. The first report walks through the entire FHA waterfall of home-retention options and clearly summarizes why each option either passed or failed. This report is exceptionally important because it satisfies HUD’s requirement to document that each loss mitigation option was considered in order, and why it was or was not used. The second report provides an immensely detailed summary of the option that passed, and the calculations used to produce the positive result. Both reports are produced in PDF format that can be emailed to anyone the user prefers, and can be imaged or attached to the loan level file as evidence of FHA Waterfall compliance.