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COMING SOON - SONYMA Express®

For the most up to date news on SONYMA's progress of their automated underwriting and compliance system, click here!


SONYMA's Automated IRS Compliance and Credit Underwriting System Fact Sheet


SYSTEM PURPOSE:

The State of New York Mortgage Agency ("SONYMA") is developing a web-based automated system (the "SONYMA Express®") to help lenders review and make decisions on the IRS compliance and credit underwriting components of SONYMA loans. The purpose of the SONYMA Express® is to:

  • Eliminate uncertainty of the borrower's eligibility for a SONYMA loan early in the process;

  • Dramatically improve processing times;

  • Lower lender costs;

  • Increase SONYMA loan production;

  • Provide capacity to allow lenders to deliver post-closing loan files to SONYMA electronically thus eliminating the need to submit a paper file.
    (Note: Certain original post-closing collateral documents such as the note, mortgage, affidavits, etc. would still have to be delivered to SONYMA in paper format).

MAIN FEATURES:

  • Built-in interface that would allow lenders to upload a DU3.x or MISMO file from their upfront LOS system to SONYMA Express® ;

  • Ability to enter loan applications manually through SONYMA Express's® web portal should lender choose not to interface;

  • Instantaneous IRS compliance and credit underwriting decisions;

  • Program Optimizer feature will recommend which SONYMA program is the best fit for the applicant;

  • Will automatically perform the following functions:

    • Retrieval of Tax Return Data - through a TRV service offered by CBC/Data Verify, retrieve IRS tax data for all applicants for the past three years, and in most cases will eliminate the need to submit tax returns in the post-closing loan file;

    • Retrieval of Census Tract Data - determine if the property is located in a SONYMA target area and will have logic that factors in the benefits of purchasing a home in a target area;

    • Submission of Loan File to the Appropriate Pool Insurer -lenders will electronically submit loan files to the pool insurer. Based on the SONYMA program chosen, the file will automatically be submitted to the correct insurer (Genworth or SONYMA MIF);

    • Generation of E-Mails -lenders will be advised via e-mail each time the status of the loan has been updated or changed. In addition, e-mails will be generated reminding lenders upon any occurrence where:

      • 60 days has lapsed since loan reservation and the loan file has not been submitted to the pool insurer;

      • the SONYMA loan approval and interest rate is due to expire in 15 days;

      • the pool insurance commitment is due to expire in 15 days.

  • Built-in interfaces with both Genworth and SONYMA MIF to ensure that data and information is consistent throughout the loan process;

  • Issuance of a detailed findings report with one of the following decisions:

    • Approvals - listing any conditions of the approval and documentation requirements;

    • Suspends - listing the reasons why the loan was suspended, as well as documents required to amend the deficiency; and

    • Denials - listing the reasons for denial, as well as possible recommendations to reverse the denial decision, if any.

  • Lenders who obtain an approval from SONYMA Express® would bypass the process of submitting a pre-closing (compliance) file to SONYMA prior to closing; and

  • Built-in interface with SONYMA's Lender Online system; therefore, lenders would not be required to re-enter the loan reservation data into LOL.

PROCESS:

Below is a description of how the SONYMA Express® loan process will work. This process may be amended as lenders get more comfortable with SONYMA Express® and as SONYMA gets more comfortable with the lenders use of SONYMA Express®.

Step 1: Lender takes application using lender's LOS.

Step 2: Application can be immediately imported into SONYMA Express® through (1) an interface between lender's LOS and the System; (2) an import of a DU3/MISMO loan file directly into the SONYMA Express's® web portal; or (3) via manual entry into the SONYMA Express® web portal.

Step 3: SONYMA Express® will produce a real-time findings report with SONYMA's decision from both a credit underwriting and IRS compliance perspective and will recommend the SONYMA program(s) that is/are the "best fit" for the applicant. The findings report will list the conditions and documentation requirements that need to be met. Lenders will be able to print pre-populated SONYMA forms from SONYMA Express®.

Step 4: Lenders will be able to automatically and immediately register loans and lock the interest rates on SONYMA's Lender Online system. SONYMA Express® will have a built-in interface with Lender Online and as such, loan data will no longer need to be manually entered into Lender Online.

Step 5: Prior to closing, Lenders will be required to submit specific documentation stated on the findings report to SONYMA's pool insurer (Genworth or SONYMA MIF, depending on the loan program) for pool insurance approval. SONYMA Express® will have a feature that will allow lenders to deliver these documents electronically. The pool insurer will review the required documentation to ensure that all conditions of the findings report have been satisfied and will check the integrity of the data contained on the findings report.

Step 6: Upon pool insurer approval, lender closes the loan at the appropriate SONYMA interest rate.

Step 7: Lender electronically submits a post-closing loan file to SONYMA which contains all closing and IRS compliance documents required by the findings reports. Lenders will also be required to deliver hard copies of certain collateral documents such as the note, mortgage, affidavits, etc. SONYMA will review the file to ensure that all required documentation has been received and accurately completed.

Step 8: Upon approval of the post-closing loan file, SONYMA purchases the loan.