When I worked as a mortgage recourse auditor, I had to play a game daily called “where’s waldo”. I am sure you have heard of this game where you look at book page or online and that drawing has hundreds of characters, scenery items, and some funny random objects… but your goal is to find “waldo” in all that visual noise.
I can tell you I was not looking at drawings all day while working, but I did have to take a lot of time trying to figure out how the underwriter came up with the final income. Income calculation was my own version of “where’s waldo”. Instead of finding a cool character with a red and white stripped hat, I had to do multiple math formulas to figure out how the underwriter came up with the income. Sometimes the number was off due to using wrong base pay, sometimes it was due a bad trending analysis, and some times it seemed just flat out made up!
I think I could boil down most of the problems attributed to the underwriter not doing “enough math” during income calculation. To be fair we (underwriters) are under a lot of pressure to get things done and must take short cuts some days to make sure we hit production quota. Most of the time these shortcuts are no harm no foul but sometimes they really take a bite out of our quality rating.
There is a system that I was taught to follow. The key is knowing the “Why, What, and How” of the system to get your borrowers variable base pay, overtime, bonus, and commissions right every time. We just completed a webinar on this topic a few days ago and thought we would share it here.
Make sure you take advantage of our free version of UberWriter, this tool will help you do all the income calculations we explained in this video!