Bye Bye Continuity of Obligation
During the recent “dark age” of the mortgage business FNMA put continuity of obligation rules in place to try to slow down the real estate crash. Terms like buy and bail, declining markets, short sale, departure residence reserves, and many more became normal parts of conversations in countless mortgage shops across the nation. Continuity of obligation […]
REO Changes FNMA SEL 2016-03
Working in the mortgage business sometimes I forgot that FHLMC and FNMA are competing companies, most lenders work with both companies so they just seem to complement each other not compete! Changes like FNMA SEL 2016-03 shows that they definitely compete with each other. FHLMC changed their maximum number of financed properties from four to […]
Mortgage Women Magazine
UberWriter is in the news See our write up in Mortgage Women Magazine. http://www.mortgagewomen-digital.com/mwmag/march_2016?pg=36#pg36 Michael Whitbeck and David Stamm sat down with AR Smith to discuss the challenges underwriters face. By far determining a borrower’s income accurately as well as quickly is top of the list. A.R. Smith is the CEO/President of AR Consulting Partners […]
FHLMC Allregs – new format & new content
A few years back FNMA updated their website to include a well designed, searchable, web based version of Allregs. In 2015 for the FHA program HUD created a sleek new all-inclusive guideline book that no longer requires DE underwriters to keep an extensive list of mortgagee letters. New look for FHLMC Allregs Now FHLMC is […]
Time’s up on distributions
NOTICE: Due to regulation changes the content of this article is no longer current. For years FNMA’s guidelines for self-employed borrowers who receive income on the K-1 form (either 1065 or 1120S business types) was at best loosely followed. The guidelines required that if you were using income from lines 1, 2, 3 and […]
Kudos on new FNMA 1084 form
FNMA Form 1084 Is Better, But Not Perfect If you have been following my blogs a recurring theme is how both agencies have made many updates to their guidelines and programs. Some of these changes have been on guidelines that have been the same since the days I started in the mortgage business in 1994. One […]
January problems hold you up in underwriting
We are one month into the New Year, many people are a few weeks into progress on their plans for 2016, if one of your resolutions was for smoother loan approvals and fewer problems then I have a few reminders for you to help January and February applications. When getting your income document verification, the […]
FNMA Rule – Less can be more
During 2015 FNMA had notified users in a few of the SEL’s about guideline clarifications on self employed borrowers that felt a bit like a seesaw. As you remember there was a big change announced early in 2015 that dramatically shifted the way we calculated income for borrowers who are self-employed using a partnership, LLC, or […]
Not all tax preparers are created equal
Is your CPA Getting it Wrong? Recently I was working on a purchase loan for a borrower who is self-employed and owns three different businesses. In reviewing the borrower’s two 1120S and one 1065 tax returns I noticed something interesting. I notice this in about ten percent of all tax returns I review. What has […]
HomeReady – FNMA Rebuilds the 97% LTV Program
Over the last few blogs I have been reviewing the recent guideline changes from both FNMA and FHLMC. In this blog I want to move outside of the detail points of underwriting to make sure you are ready for a great new program just completed by FNMA. FNMA is replacing the My Community Mortgage with new […]