How to troubleshoot DTI?

This can also be used to assist in determining discrepancies between AUS DTI and DTI in LendingPad.

See this KB article for How is DTI calculated?
Items in Bold are common issues.
DO NOT use omit and payoff at the same time.

Primary Purchase

1. Please look over your scenario

in the Overview > Terms and Mortgage (Loan and Property version 2025).
The purpose field should be set to applicable (Other should not be used).
Please make sure you have chosen the right program and rate. The system MUST have a program and rate to calculate PITI correctly which affects DTI.
Review your Proposed housing expense for entries such as Hazard Insurance, Property Tax, HOA, and Other (Flood, Wind, Volcano, etc.). These should be monthly amounts.

Is there a second or DPA? If so is the Other Finance section completed correctly? If there is a payment is it populating in Subordinate Lien (P&I) section correctly? TIP: If there is a payment and you need it to recalculate, delete the amount and hit the tab key and the system will recalculate the payment.

2. Navigate to Loan Application > Addresses section

Determine the status of the borrower's current residence (Borrowers section version 2025).

All fields must be complete for AUS to run correctly.

3. Navigate to the REO section if the current home is owned.

Residency Type = Own - (Financials > REO version 2025) and ensure the current home is entered as an REO in the REO section.

The CURRENT toggle MUST be toggled on regardless of retaining or selling if the borrower owns a current residence. TIP: If the current toggle cannot be set to on navigate back to the Addresses section and the residency type is either blank or not set to own.

Disposition = Retain - Occupancy MUST be set to Investment or Second home as the agencies do not allow two primaries.
- - - Occupancy = Investment - Ensure any current mortgages are attached to the current home with the liabilities tab within REO or the Liabilities section. The current mortgage will appear in the REO only when the liability is attached.
    - Users will see an Ins&Tax expense. This is a monthly calculation for items such as HOA or if the property is not escrowed. If escrowed no HOA this field can be left blank.
    - Gross Rent is a monthly dollar figure calculation that users can enter and set the occupancy rate to the desired percentage. The system will calculate the net rent. If users have calculated their net rent, open the padlock icon and key in any positive or negative number desired. DO NOT re-lock the padlock icon. This can be repeated for any other REOs the borrower(s) may own.
    - Occupancy = Second Home - If the borrowers will turn their current home into a second home ensure the current mortgage (if any) and any other expenses are aligned in this section and LendingPad will include these as expenses in the "All other payments" section of the DTI breakdown.
Disposition = Sold or Pending Sale - Ensure the current toggle is on. If there is a current mortgage and still appears on the credit report navigate to the liabilities section and DO NOT attach the current mortgage to the REO (Fannie only, Freddie can attach) but instead ONLY hit the omit toggle.

4. Navigate to the liabilities section
Sometimes credit vendors send over car leases as installments but when AUS accesses the credit report its a lease. Users may need to confirm and change the type from installment to lease.
Fannie will automatically calculate installments less than 10 months and omit them. LendingPad will not automatically omit them. Users may need to use the Omit toggle to omit in LendingPad
If a balance and payment calculate to less than 10 months but the remaining term is more than 10 months Fannie will also automatically omit that installment.