DACSS, therefore, is the quintessential full-service securitization tool for the lender: at the front-end, it determines reduced income documentation and appraisal requirements for a first-lien nonconforming loan, including a determination of which AVM systems the loan is eligible for; at the back-end, it is an effective analytic tool for bulk loan sale/acquisition valuation, ensuring competitive risk-based loan pricing for a securitization.
Perhaps most significant, however, is the prominent place that DACSS takes in the evolution of the U.
With the use of DACSS, however, a nonconforming loan pre-approved by the system for streamlined or alternative documentation and appraisal will not get hit with a loss-coverage penalty later on for bearing this alternative assessment.
Originators utilizing DACSS at the front end of their application process are provided acceptable documentation alternatives at the time the loan is granted.
Nonetheless, originators using DACSS must also provide the actual documentation type for each loan when submitting loan-level detail for ratings.