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 […]
SEL 2015-10 Eases Restrictions on Non-Occupant Co-Borrowers
Both of the GSE’s continue to review and revamp their guidelines on a number of topics, today’s blog we will go over the changes that now make it easier for a non-occupant co-borrower to help out your borrower with Fannie. In the past when you had to use a non-occupant co-borrower (going forward lets call […]
Freddie opens up more room for investment properties
Over the last few weeks we have been talking about some big changes in the guidelines over at Fannie Mae, but Freddie Mac is also in the process of making some big changes to get more business. There are a pair of changes when put together are going to open up some new opportunities for […]
Time to re-read that FNMA student loan payment section
A few weeks back I was working on a purchase loan that was submitted to underwriting for review, nothing out of the ordinary at first, the borrowers had great credit, long term jobs, and a solid down payment. After review of the loan the borrower had one issue with a DTI that was over (48%) […]
Multiple Financed Properties – what does and does not count?
Video Overview – Multiple Financed Properties The FNMA Multi Property Loan can be intimidating if you have not yet had to originate or underwrite a borrower who is a little more complex than your first time investment property purchaser. The first thing you have to understand is how many properties that FNMA and FHLMC will […]
Part 4: Where is that box on the tax return
For the last installment we are going to look at the 1120S and 1120 corporation returns inside the lens of the cash flow analysis form. These two business entities really differ from sole proprietors and partnerships because they have the most legal separation between the shareholders and the business itself in terms of liability for […]
Where is that box on the tax return? – Part 1 of 4
Self employed income analysis… probably one of the harder things to get your mind around if you work on the mortgage industry. However once you get the hang of “the where, what, and why” on the common business return, it gets much easier. FNMA All Regs and FHLMC All Regs outline their expectations for calculating income […]
Warning: Borrowers Unemployed Long Term | Blueprint
It seems over the last few years FNMA and FHLMC are moving just a little further apart in how they look at lending. In my opinion FNMA seems to hold a bit of a lower barrier of entry than FHLMC in general. A few examples come to mind, first off FNMA will allow rental income for […]
Fannie Mae 1088: Two Decades of Misunderstanding | Blueprint
Updated 07/15/2018 to correct All Regs References For Freddie Mac One thing about the mortgage business you can count on is change, but not everything changes year by year! For example, the core principals of underwriting have always been the “4 C’s of underwriting” which are credit, capacity, capital, and collateral. Some could argue that […]
Self Employed Borrowers and Allowable Income
Regulation Change Update: The following blog was posted in January of 2013 and the regulations have changed since we posted. Question: When reviewing business tax returns such as 1165, 1120S, and 1120, should we treat any additional income derived from the business returns all the same regardless of FNMA or FHLMC? Answer: FNMA and FHLMC […]