The Loan Summary tab in Apply Online is to be used as a guide only. It is calculating the NMS based on your data entry and calculations provided to NextGen by the lender.
A negative Net Monthly Surplus (NMS) indicates that the available funds or income are insufficient to cover the transaction or loan commitments. While this can raise concerns about the applicant’s financial capacity, it does not always block application submission.
What should I do?
First double check your data entry for any data entry errors.
Common errors include:
Home or Post Settlement address duplicated
Dependents added to all Applicants
Existing mortgage loans which are clearing not selected as clearing.- Incomplete financial details, such as missing sources of funds like savings, gifted funds, or grants. To resolve these errors, ensure all sources of funds, such as savings, collateral security, gifted funds, or grants, are included in the funding calculator. Additionally, adjust income details by entering previous income in the employment history or adding placeholder employment details with a note for the assessor. For negative income amounts, enter the system’s minimum allowed value (e.g., $1) and include a note explaining the situation.
Look at the warning message at the bottom of the Loan Summary tab, which is put there by Apply Online on behalf of the Lender:
If you see a negative Net Monthly Surplus
or any other calculation, continue to submit the application through to the lender. As long as there are no validation errors, and you have entered the financial details into the application, this summary will not impact servicing.
Use the Originator Comments section to explain the situation and provide context for the assessor. Remember that lenders use their own servicing calculators and assessment rates after submission, so the NMS shown in Apply Online does not necessarily impact the final servicing outcome.
The Apply Online summary calculations use default Assessment Rates which can push a servicing application into a negative NMS. This is especially true if the applicants have multiple existing mortgages.
NextGen offers free training to users. Register via their website.
If you are unable to find the error or if it is not clear, please contact Mercury Helpdesk via email [email protected] or clicking the Talk to a person button in an active chat and the team will be happy to assist.