AGI vs SAM Income Calculation Methods
One great thing about being involved with UberWriter is the chance to discuss different topics with mortgage professionals from different positions and companies. This allows quite a variety of questions and opinions to be shared. One question that does come up is “Does UberWriter use the AGI (Adjusted Gross Income) or SAM (Schedule Analysis Method) […]
Two questions to ask if using business assets
When I am teaching about underwriting topics, Allregs makes some guidelines very clear which leaves no room for any grey area. Then there are those guidelines that are just vague. They seem almost to have limitless interpretation. Using business funds as cash to close is high up on my list as the “leader of the […]
FHLMC changes student loan programs
On Freddie Mac’s home page, you will see the tag line “We Make Home Possible”, when I see changes in the guidelines as outlined on Selling Update 2018-13 I appreciate the effort to make the mortgage process easier on borrowers and live up to their tagline. Let’s face it, many younger borrowers are stuck between […]
Avoid 3 Major Mistakes with FHLMC Form 91
I would bet at one time or another you have Googled Freddie Mac Form 91 and gave it a try. The purpose of this form is to create a uniform way to evaluate self-employed income and other forms of income for your borrower outside of employment income. The form gives you an acceptable format to […]
How to use FNMA 1039 on Form 8825
I have often said that growing a business has many similarities as raising kids. Every business owner knows that you must spend countless hours helping to form and support your new “baby”. Part of that support means that a new business has no credit until you help build up business credit. And that is where […]
Top 3 lessons on FNMA Day 1 Certainty
Over the last twelve months I have been confronted with quickly learning the in’s and outs of Fannie Mae Day 1 Certainty program, this blog is just about the income portion. I have to say I am a huge fan of the product, but just like any other technology, a lack of understanding of what […]
Key Mistakes with Primary Residence Rental Income
Over the last few days we have been putting the final touches on our 2018 underwriting training courses launching March 2nd. While I was reviewing the rental income course I realized we did not provide enough information in one key area. There is a difference for rental income generated from a primary residence on a […]
Exclude Other|Paid Borrower Debt on FHLMC Loans?
Off and on for the last few years I have been a volunteer financial coach at my church using the Financial Peace University program created by Dave Ramsey. This is a fantastic program that provides all you need to know about how to keep a “peaceful” balance of money in your life.
#1 mistake for a cash out delayed financing loan!
The conventional (FNMA/FHLMC) cash out delayed financing exception program seems to carry a lot of misinformation with the program. I think the reason behind this top mistake is it isn’t a widely used program. Unless you work at a lender where the sales staff has a good clientele of rehabbers or investment property purchasers, you may not see this program.
Major changes to student loan rules for FHLMC
The challenge of estimating the effect student loans on a potential borrower’s ability to repay their mortgage still seems to be an issue at both Fannie Mae and Freddie Mac. With the rising cost of getting an education, making a wrong move now could be detrimental to the future of our industry.