Introduction
Activating Total Debt Service (TDS) and Gross Debt Service (GDS) ratios allows lenders to quickly evaluate a borrower's ability to manage debt. Once enabled, these ratios appear in a convenient pop-out panel within the loan interface, providing immediate insight into key underwriting metrics.
Navigating to This Section
1. Click the Gear icon in the top-right corner to open Settings.
2. Select Company Settings.
3. Use the left-hand navigation menu to find and expand Loan Setup/Origination.
4. Locate Underwriting Ratios.
Tip: If you cannot access Underwriting Ratios, ensure you have the necessary permissions or check with your administrator.
Loan Underwriting
Setting | Description |
Total Debt Service (TDS) Ratio | Measures the percentage of a borrower's income used to cover total debt payments, including the mortgage. |
Gross Debt Service (GDS) Ratio | Measures the percentage of a borrower's income spent on housing costs, including mortgage payments, property taxes, and heating. |
Enable Ratio Pop-Out Panel | Displays TDS and GDS calculations in a right-side panel for quick reference during loan assessment. |
Best Practice: Use these ratios as a preliminary qualification tool, but always conduct a full underwriting review before approving a loan.
FAQs
Why are TDS and GDS ratios important?
These ratios help assess a borrower's financial stability and ability to handle mortgage payments relative to their income.
Can I adjust TDS and GDS ratio thresholds?
Yes, ratio thresholds can be customized based on internal underwriting policies.
Where do the ratios appear in the loan interface?
Once enabled, a pop-out panel on the right side of the loan view displays real-time TDS and GDS calculations.
Need Further Assistance?
For additional support, contact us:
📧 Email: support@mortgageautomator.com
💬 Live Chat: Click the question icon at the top-right corner of your screen.