Bank statement Income calculator

Get detailed analytics from a borrower's bank statements in Excel format.

Overview

The Ocrolus Bank Statement Income Calculator offers comprehensive analytics such as NSF transactions, large deposits, and statement balances; these analytics are derived from transaction details extracted from the borrower's bank statements. You can easily adjust input and automatically receive analytics output for the final qualifying income calculation. This product offering is designed to benefit retail lenders looking to offer non-QM bank statement loan products as well as current non-QM lenders looking to decrease turn times, reduce risk and increase volume.

The Bank Statement Income Calculator is offered as an Excel spreadsheet, suitable for use in any compatible program such as Microsoft Excel or Google Sheets.

You can view the following video for a start-to-finish tutorial on using the Bank Statement Income Calculator.

Prerequisites

To use the Bank Statement Income Calculator, you must have an active Dashboard user profile.

Uploading New Bank Statements

This section describes the process of creating a Book and uploading Documents so that you can use the Bank Statement Income Calculator described on the rest of this page.

First, go to the Ocrolus Dashboard and navigate to the Books overview page.

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The New Book button on the Book list page is highlighted.

Give the Book a name that makes sense to you and click Submit.

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The Create New Book window is present, and the user is prompted to enter the name of a new Book.

Choose the Bank Statement form type from the dropdown menu, drag and drop your bank statements into the File Uploader and click Submit.

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The File Uploader window is present, and the Bank Statement form type is selected.

The submitted bank statements will have a status of Verifying until they've been processed, at which point the status will change to Verification Complete.

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A book named "Jills Coffee Shop" is highlighted on the Dashboard. Its current status of Verifying is highlighted.

Transactions Page

This section explains how you can view information about extracted bank transactions in the browser, before downloading the Bank Statement Income Calculator.

Available Attributes

Once your Book is in the Verification Complete status, you can view the transactions extracted from each bank statement on the Financial Analysis page.

The page provides a table that includes the following data:

Account
The name and number of the bank account that performed this transaction.
Date
The date of this transaction.
Description
The description captured from this transaction.
Debit/Credit
The monetary amount of this transaction.
Explanation*
User-entered notes in the Explanation section of this transaction.
Tags
Annotations that indicate certain properties of this transaction. The available tags are "Transfer" and "Recurring" for bank transfers and recurring transactions.
Comment*
User-entered notes in the Comment section of the transaction.

*Not editable by default. Contact your account manager for more information.

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The Transactions tab on the Financial Analysis page for a selected Book. The header of the transactions table is highlighted, indicating the available data.

Sorting and Filtering

You can sort transactions by any of these fields by clicking the arrow icon in its associated column header.

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The order icon in the transaction table's Date column is highlighted, indicating that transactions can be sorted by date.

You can also search for particular transactions by amount, date range, or keyword.

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The search filters for amount, date range, and keyword are highlighted above the transaction table.

You can isolate transfers or recurring transactions by clicking on their respected buttons.

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The Transfers button above the transactions table is highlighted.

To clear all filters, click the Reset button.

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The Reset button above the transactions table is highlighted.

Finding a Transaction's Source

You can view the exact source of a captured transaction by selecting its row on the transactions table. The transaction's original page will be shown alongside the extracted data, with the specific region on this page highlighted.

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A particular transaction is selected. An excerpt of its original bank statement is shown, and the specific row on this document is highlighted in yellow. The highlighted data matches the captured transaction attributes.

Excluding Transactions

You can exclude specific transactions from the income calculator with the following steps:

  1. Select the Included button to show all included transactions.
  2. Check all transactions you wish to exclude from income calculations.
  3. Select the Move to Excluded button.
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How to Generate the Income Calculator

You can generate the Income Calculator via the Dashboard Books List overview or the Book Summary page.

Once you've finished adjusting or filtering your transactions, click on the dropdown at the top to return to the Document Manager.

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The dropdown menu at the top of the Financial Analysis page is expanded. The Document Manager menu item is highlighted.

Click on the arrow next to the Upload button in the upper-right corner and select Export Bank Statement Income.

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On the Document Manager menu, the Upload button's submenu is expanded. The Export Bank Statement Income menu item is highlighted.

You can also generate an Income Calculator directly from the Book List Overview page. Click on the ellipses menu on the right-hand side of the Book from which you'd like to generate a Bank Statement Income Calculator.

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A Book's menu icon is highlighted, indicating where the user can generate a bank statement income calculator.

From the menu, click on the Export Bank Statement Income option to download the Income Calculator in Excel format.

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The submenu for a particular Book is expanded, showing the various options available. The "Export Bank Statement Income" option is highlighted.

Inspecting the Excel Output

This section describes the information available within the aforementioned Income Calculator. The Income Calculator is formatted as an Excel spreadsheet separated into different sections. This allows you to inspect each transaction detail, along with the inputs/outputs for the income.

Some rows or fields are color-coded. Their meanings are as follows:

  • Yellow highlights indicate fields that require manual entry from the end user.
  • Teal highlights indicate qualified income details impacting the DTI ratio.
  • Red highlights indicate transactions that exceed the large deposit threshold amount.
  • Purple highlights indicate transactions that are excluded from the qualifying income amount.

Borrower Transaction Details

Borrower transaction details include any loan-level or borrower-level details to be aware of. This will require some manual input from the end user, as some of these details cannot be captured from the bank statements Ocrolus has processed (e.g. Loan Number).

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The Borrower/Loan Information table on a sample Income Calculator spreadsheet for a business named "Jill's Coffee". The account holder and number were captured from the provided bank statements. The Borrower Name, Loan Number, and Account Type fields are empty and require manual input.

Deposits

This table of the Income Calculator includes all of the transaction-level details Ocrolus has extracted from the collected bank statements. These transaction amounts will directly impact the borrower’s computed qualifying income amount.

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The Deposits table on the Income Calculator. Some transactions are excluded from the overall qualifying income amount; these transactions are highlighted in purple, and the Include/Exclude field is set to Exclude.

To include or exclude a specific transaction from the qualifying income amount, select the drop-down field and change the value accordingly.

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A particular transaction is shown. The Include/Exclude field is selected, and a drop-down menu offering both options is visible.

How does Ocrolus identify deposits?

We consider any transaction with a credit amount greater than $0 a deposit.

How does Ocrolus decide which transactions are included or excluded in the income amount?

Once we capture a transaction's details, we categorize it according to a library of rules based on client feedback and use cases. These rules mainly involve the transaction's description.

Large Deposits

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The Large Deposit Flag table on the Income Calculator. The Percentage Amount is configured to the default of 50%.

This table is used to configure the rules by which a transaction is considered "large." Large transactions are marked with a Y in their Large Deposit column. Any transaction that exceeds this amount is considered large.

The default threshold is 50%; any deposit greater than the computed average by at least this ratio is considered large. You can change this amount by modifying the percentage amount in the yellow input field.

NSF Transactions

This table lists all NSF (non-sufficient funds) transactions identified in the provided bank statements. We isolate these transactions to show how often the borrower overdraws on their account. You may include or exclude these transactions as you see fit.

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The NSF Transactions table of the income calculator. Two overdrawn transactions of $35 are listed, one of which is excluded from qualifying income calculations. The Total NSF Count field sitting above this table lists the number of included transactions.

Statement Overview

This table contains an overview of the statement periods included in the provided bank statements. We support up to 36 months' worth of bank statements within this income worksheet. You can also see details of the statement balances, total amounts for deposits, and the number of NSF transactions.

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The Statement Overview table, listing statement periods ranging from August 2020 to January 2021.

Borrower/Loan Information

The fields in this table represent borrower-specific details used to determine the outputs within the Qualifying Income sections. The Guideline Expense Factor and Borrower(s) % Ownership of Business must be manually entered by the end user.

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The Borrower/Loan Information section of the Income Calculator. The two fields that require user input are empty.

Qualifying Income

The qualifying income tables include cell-level calculations driven by manual data entry and transaction details collected in the Deposits section from the bank statements extraction. Below is an outline of the calculations that live within each field.

Standard Expense Factor Calculation

Total Allowable Deposits
The sum of all deposits from column C that are marked as Included in Column D.
Qualifying Business-Related Deposits × Expense Factor × % Ownership
The Borrower's % of Ownership of Business multiplied by the difference of the Included Deposits minus the total of Included Deposits multiplied by the Guideline Expense Factor.
Qualifying Expense Factor Monthly Income
Qualifying Business-Related Deposits × Expense Factor × % Ownership divided by the Total Months Included.
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The Standard Expense Factor Calculation table.

CPA/Licensed Tax Preparer Expense Factor Calculation

Total Allowable Deposits
The sum of all deposits from column C that are marked as Included in Column D.
CPA/Tax Preparer Expense Factor
An expense factor typically supplied by a CPA or tax preparer. Must be entered manually.
Total Allowable Deposits × Expense Factor × % Ownership
The Borrower’s % of Ownership of Business multiplied by the difference of the Included Deposits minus the total of Included Deposits multiplied by the CPA Expense Factor.
Qualifying Income
Qualifying Business-Related Deposits × CPA Expense Factor × % Ownership divided by the Total Months Included.
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Profit & Loss Expense Factor Calculation

Gross Revenue from Profit and Loss Statement
Total gross revenue from a borrower-provided profit and loss statement. Must be entered manually.
Expenses from Profit and Loss Statement
Total expenses from a borrower-provided profit and loss statement. Must be entered manually.
Expense Factor (Expenses / Gross Revenue)
Expenses from Profit and Loss Statement divided by Gross Revenue from Profit and Loss Statement, expressed as a percentage.
Total Allowable Deposits minus Expenses
Gross Revenue from Profit and Loss Statement minus Expenses from Profit and Loss Statement.
Total Allowable Deposits × Expense Factor × % Ownership
Total Allowable Deposits minus Expenses multiplied by Borrower % Ownership of Business.
Qualifying Income
Total Allowable Deposits × Expense Factor × % Ownership divided by Total Months Included.
Tolerance of Allowable Deposits / Gross Revenue
Total Included Deposits divided by Gross Revenue from Profit and Loss Statement, expressed as a percentage.
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