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!
The ABCs of the income continuance rule 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 […]
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 […]
What properties count towards number of financed properties?
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 […]
Can you use variable income with a recent job change?
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 […]
Dividend income tactics to get over a DTI hump
Sometimes you need that extra income to get your borrower over the DTI hump to move them from declined to qualified. One item that many loan officers want to turn to is dividend and interest income found on the borrowers 1040s. The big question out there is “what is interest and dividend income and […]