Home Possible Streamlined & Improved by Freddie Mac
The MBA projects that mortgage volume will be about 1.8 Trillion for 2019, which is stable compared to 2018 but down compared to 2017. The major reason for this downward change is less opportunities for refinances due to the current rates and other factors. That prediction means we need to stay focused on the primary […]
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 […]
How to calculate statutory employee pay
Ever wonder why the IRS tax code is currently at 74,608 pages of information? (and yes, this is a rhetorical question). I am convinced it is a ploy to drive us nuts around tax time. I mean what did we do to the IRS to mess with us so much! So here is a twist, […]
The power of teamwork
We have been producing blogs since 2013. Over the years we have gained followers that are originators, processors, underwriters, and operations managers. So when I use the word team, lets use one of my favorite southern terms to describe who I am talking too……. All Y’All!!! We have a problem that the team needs to […]
Is your borrower a “saver” but exceeded the maximum DTI?
If you have ever worked with a borrower who is an excellent saver but is coming up short on DTI ratio you might be able to use this extra trick to get them approved. This extra boost to income is following the Fannie Mae guideline under B3-3-.1-09 called Employment Related Assets as Qualifying Income. In […]
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 […]
Sneaky 2106 calculation error
I had an interesting question come in a few weeks back. At first it seemed like a “1 in a 1000 issue” but a few days later another person had the exact same issue. The email question was regarding our 2106 calculator. The client was confused about the result our calculator showed, because it ended […]
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 […]
Training Mastermind
Training, and especially ongoing training, is a key area for debate in many mortgage companies big and small. However, there are several reasons to suggest that regular training is well worth the investment because building up the skills within the business will effectively improve your company’s bottom line. In the area of processing, underwriting, and auditing there are less […]