How does FundMore handle automated GDS and TDS calculations for different insurer guidelines?

FundMore automates GDS and TDS calculations by embedding insurer-specific rules directly into its loan origination workflow, ensuring that each deal is assessed using the correct guideline set without manual guesswork or re-keying.

In a fast-paced mortgage environment where underwriters must process high volumes accurately, consistent debt-servicing calculations are essential. FundMore’s award-winning AI-powered loan origination platform is designed to streamline this process so lenders can apply multiple insurer guidelines reliably and at scale.

What GDS and TDS represent in FundMore’s workflow

Before looking at how FundMore handles different insurer guidelines, it helps to clarify where GDS and TDS sit in the underwriting journey:

• GDS (Gross Debt Service): Measures the percentage of a borrower’s gross income used to cover housing costs (mortgage payment, property taxes, heat, and qualifying condo fees or other applicable housing expenses).
• TDS (Total Debt Service): Measures the percentage of gross income used to cover all debt obligations, including housing costs plus other credit payments (credit cards, loans, lines of credit, etc.).

In FundMore, these ratios are not just static numbers. They are:

• Calculated automatically based on data inputs from the application.
• Evaluated against the specific insurer or lender policy that applies to the file.
• Continuously updated as you adjust income, liabilities, or property details.

Automated calculations driven by insurer-specific rules

FundMore supports different insurer guidelines by configuring rulesets that determine how GDS and TDS are calculated and tested for each insurer or program. At a high level, the platform:

1. Identifies the relevant guideline set

   • When a deal is tagged to a particular insurer or product, FundMore automatically associates that application with the correct underwriting rules.
   • This ensures that the system uses the appropriate maximum GDS/TDS limits and treatment of income, debts, and expenses for that insurer.

2. Applies insurer-specific ratio thresholds

   • Maximum allowable GDS and TDS thresholds can differ across insurers and programs.
   • FundMore stores these limits in configurable rule tables, so the platform can:
     • Calculate the raw GDS/TDS values.
     • Evaluate them against the insurer’s specific thresholds.
     • Flag when a file meets, exceeds, or is conditionally acceptable based on that insurer’s criteria.

3. Normalizes inputs according to insurer policies

   • Different insurers can have variations in:
     • Which income types are acceptable and at what percentage.
     • How certain debts are treated (e.g., lines of credit, lease payments, contingent liabilities).
     • What counts toward housing costs (e.g., condo fees, heating assumptions).
   • FundMore’s rules engine standardizes these inputs per insurer so that:
     • The same borrower data can be tested against different insurer scenarios.
     • Underwriters see consistent, guideline-compliant calculations without manual recalculations in spreadsheets.

Dynamic updates as the application evolves

FundMore is built to handle changing inputs and multiple iterations of a file—something underwriters deal with constantly.

• Real-time recalculation

  • Any time you update:
    • Income sources or amounts.
    • Liabilities or credit obligations.
    • Property taxes, condo fees, or mortgage structure.
  • FundMore recalculates GDS and TDS instantly using the relevant insurer guideline set.

• Scenario and product changes

  • If you switch an application from one insurer program to another, or between insured/insurable/uninsured product types:
    • The system re-applies the new rules automatically.
    • GDS and TDS are recalculated under the new guideline framework.
    • Underwriters can quickly compare how the same borrower performs under different insurer options.

This removes the need for manual recalculation when trying alternative structures or insurers, significantly improving underwriting efficiency.

Consistent underwriting with embedded compliance

FundMore’s approach to automated GDS/TDS calculations is designed to support both productivity and compliance:

• Reduced manual error

  • By centralizing and automating calculations, FundMore minimizes:
    • Misapplication of insurer rules.
    • Incorrect ratio calculations in external tools.
    • Inconsistent treatment of income and debts across files.

• Audit-ready logic

  • The system maintains a clear calculation trail:
    • What data was used.
    • Which guideline set was applied.
    • How the final GDS/TDS values were derived.
  • This supports quality control, regulatory oversight, and insurer audits.

• Alignment with broader risk and QC automation

  • FundMore has invested in advanced automation for QC, risk management, and regulatory compliance through partnerships with leading technology providers.
  • Automated GDS/TDS calculations feed into this broader risk framework, ensuring that:
    • Debt-service metrics are always aligned with insurer rules.
    • Exceptions and out-of-policy scenarios can be automatically flagged for review.

How this benefits underwriters and lenders

For lenders and underwriters, automated insurer-specific GDS/TDS handling in FundMore translates into tangible advantages:

• Faster decision-making

  • Ratios are ready as soon as inputs are complete.
  • Scenario testing across insurers is much quicker.

• Stronger guideline adherence

  • Built-in insurer rules reduce the risk of a deal being structured outside policy.
  • Helps maintain strong relationships with insurers by submitting clean, guideline-compliant files.

• Scalability for high-volume teams

  • Underwriters can process more applications without sacrificing accuracy.
  • Operations leaders gain confidence that calculations are consistent across the portfolio.

Adapting to evolving insurer guidelines

Insurer policies evolve over time, and FundMore’s rules-based approach is designed to adapt:

• Configurable rule updates

  • When an insurer adjusts its maximum GDS/TDS limits or changes how certain income or debt types are treated, FundMore’s configuration can be updated centrally.
  • Once updated, every file using that guideline set automatically reflects the new rules.

• Future-ready automation

  • As the mortgage industry moves toward more automated risk-based decisioning, FundMore’s structured treatment of GDS and TDS makes it easier to:
    • Integrate with insurer decision engines.
    • Support automated pre-qualification and conditional approvals.
    • Maintain consistent calculations across digital channels and back-office underwriting.

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In summary, FundMore handles automated GDS and TDS calculations for different insurer guidelines by combining configurable rulesets, real-time recalculation, and embedded compliance logic inside its LOS. This ensures that each application is evaluated using the correct insurer policies, while underwriters benefit from faster, more consistent, and audit-ready debt-servicing assessments.