Will the new tax laws affect mortgage underwriting?
Welcome to our first blog of 2018, this marks our fourth year of creating content focused on the topic of mortgage underwriting! There are many guideline changes already lined up at FHLMC alone, so this will be a busy first few weeks of 2018 with lots of topics to cover, so lets get started! <h2>New […]
Big changes coming for FHLMC rental income
Coming in February 2018 underwriters will need to consider more information before using rental income to qualify a borrower. Agencies, banks, credit unions, and broker shops will adjust guidelines based on risk in their loan portfolio. So far I have not read any articles or reports that rentals have become an issue for FHLMC.
7 Updated Guidelines Underwriters Need To Know – SEL 2017-06
Many people have heard the rumors and seen the blogs and articles about the DTI going up to 50% announced in the new DU 10.1 version now out in the market! Did you know there are other important updates in SEL 2017-06 that can help more credit worthy borrowers? Let’s review! Changes announced in SEL […]
Asset income can save your loan
When working with borrower’s just into retirement years they sometimes come with a unique challenge of FANTASIC credit, TONS of assets, but low-income due to being retired. Nothing more frustrating then telling a perfect borrower like this “sorry I can’t get you a mortgage due to your income” UGGGGG!!! Little used income tip Here is […]
Does co-signed debt count to borrower DTI? (SEL 2017-04)
The answer to this question has changed for the better as of April 25, 2017. Fannie Mae continues to improve and streamline the loan approval process with SEL 2017-04. In the past lenders were required to take a few steps to exclude co-signed debts from the borrower. Step one was to confirm the other party […]
What is FNMA Day One Certainty?
Good news for the mortgage lending world, we have an advocate in our marketplace who wants the same goals for our companies as we do! Who is this silent partner? It is none other than Fannie Mae! And they want to help us get more approved borrowers and reduced operations costs for our companies. Fannie […]
REO Showdown FNMA vs. FHLMC Calculations
I recently had a few discussions with some of our clients and blog followers about how different the REO calculations are between FNMA and FHLMC. Growing up in the business I was taught the FNMA method, and to be honest, I generally use the FNMA method since most of the time that number is more […]
How to handle any rental income – part 1
This blog is going to be a three-part series, I want to break down the information for FNMA and FHLMC loans in the following three categories. 2-4 unit primary residence rental income Rental income for subject property Rental income for non-subject properties (including when the borrowers business owns a property) So let’s get started on […]
Reuse existing appraisal to save money
Sometimes when competing for a new loan, your running “neck and neck” on the offered interest rate and need to find little edge to win over your competition, and that edge is lower costs. One of the biggest expenses for a refinance is the appraisal. Did you know you can re-use the borrower’s appraisal one […]