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.
The problem with “other” income
A question that has come up in our email box recently is “Can I use “other income” noted on the VOE”? I think the increase of this question in our in-box has to do with the increased use of Fannie Mae’s Day 1 Certainty program. When I reply and ask a few questions it goes something like this.
Property inspection waiver now on purchase deals
Good news for borrowers in the purchase market! Fannie Mae added to a lender announcement on 09/26 that it had expanded its PIW (property inspection waiver) program to include purchases! Even better, you won’t have to wait to use this new option as it was included with the DU 10.1 release dated 08/19.
Must Borrowers Pay Off Tax Liens or Judgments? | Blueprint
Credit reporting agencies have changed the rules. The question of judgments and tax lien payoffs has come up at multiple lenders. Multiple different lenders have contacted me with questions from their team, here is the main question I receive.
2 new updates on FHLMC appraisal waiver program
The technology that has been leading the industry news over the last year has been Fannie Mae’s Day One Certainty program. This program’s goal is to give lenders immediate certainty that their income, assets, and value will be approved. This improvement allows sellers relief that loans sold to Fannie Mae will not return as a buy-backs costing thousands!
Income Continuance Rule: The ABCs for FHLMC
One of the basic requirements from both FNMA and FHLMC is for the underwriter to determine the stability of the income used to qualify. This is where the concept of continuance comes in.
Auction fee rules for purchases
Everyone wants a good deal when buying their next home. Some of the best deals are found on homes that have been foreclosed or purchased at an auction. However, these good deals can come with hidden problems both with the subject itself or getting the home financed. Most loan officers have been through the process of […]
Exclude mortgage, notes, and bonds from reducing your income
Mortgage, notes, and bonds due in under 1 year is a line item well known, but little discussed in the guidelines. This single item on a self employed borrower can take a deal from approved to declined in an instant! Even though this requirement for review has been around for years, yet I still find […]
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 […]