How to underwrite a statutory employee?
One of the more unusual income types that you will run across is a statutory employee. You can spot them right away when you are looking at their pay stubs. They will have the normal SSA, Medicare, and health insurance deductions, but will have no deductions for federal, state, or local taxes. Generally they will […]
How to handle non occupant borrowers
We all can relate to those hard to find answers on questions about non occupant borrowers. This has a lot to do with how infrequent an application with these borrowers comes along. After all who wants to put their credit on the line for another person. Thus it causes questions in the underwriting emails boxes of the […]
Five most frequent questions about gift funds
Gift funds are still a top question I receive in underwriting, even though the rules have not really changed since I started in the mortgage business. I want to provide the answers to the most frequently asked questions I receive, and the supporting guidelines to help you! First things first, the answers below to the […]
Financed Properties: What Counts? | Blueprint
When you have a borrower that has taken rental properties a little more serious the average rental investor and has multiple rental properties, how many will FHLMC finance? Recent selling guide updates announced on March 16, 2017 (Bulletin 2017-2) provided some immediate clarification to this question. By now we are all familiar with the change […]
Variable Income & Job Change: What You Need to Know
A common question I get in underwriting is “my borrower works overtime at his new job he started “x” number of months ago, can I use it?” . Of course, I must respond with a very common phrase said by underwriters, “it depends!”. Video Lesson – Variable Income In the video lesson attached I answer […]
Forgotten income from vehicle depreciation
**updated 05/11/2019** Sometimes we have a borrower that is missing the AUS approval by a mere few dollars, nothing more heartbreaking than a 46% DTI approve/ineligible finding. But do not give up on the borrower that you have worked so hard to earn their business! Make sure you have checked every corner of the application […]
Underwriting for Statutory Employees | Blueprint
After years of working in underwriting when you look through enough loans it becomes easier over time to recognize a borrower’s income type. However there are those income types that are rare and when you run across them can take you out of your underwriting rhythm. One of those income types is the statutory employee. They stand […]
Can Business Funds Be Gifted for a Down Payment? | Blueprint
Sometimes when you are underwriting the same question seems to come in “three’s”. Maybe it is timing, maybe happenstance, or maybe different people are asking the same question about the same loan. A few weeks back I was helping out a loan officer to get a conventional loan ready to close, but the borrower ended up […]
FNMA large deposit rule on refinancing
A few days ago I received a question about how to handle large deposits when the transaction is a refinance on a FNMA conventional loan. The question specifically asked if it was okay just to “back out” the large deposit from the bank account and not ask about the source. I think the answer surprised […]
Four options for determining student loan payments
As a parent with two kids attending college the discussion of getting through college with minimal student debt (or none at all) has been a topic for the last 5-6 years around my household. I have tried to educate my kids on the pro’s and cons’ of student loans and making student loan payments. I […]