A few weeks back I read a quote on LinkedIn that was brilliant…    “The marketing draws your clients in, your craftsmanship keeps them”  

Over the last few days we have been putting the final touches on our 2018 underwriting training courses launching March 2nd.  While I was reviewing

Up til a few days ago working with a borrower on a conventional loan who has an active IRS repayment plan meant a decline was

Welcome to our first blog of 2018, this marks our fourth year of creating content focused on the topic of mortgage underwriting!  There are many

Many people reading this might be asking, “where is the latest mortgage underwriting topic?”   Since it is Christmas I am asking for a favor to take a blog-cation to share a Christmas thought I have had this year.   The topic I have been thinking about this Christmas season is, should we reconsider Santa?

Off and on for the last few years I have been a volunteer financial coach at my church using the Financial Peace University program created by Dave Ramsey. This is a fantastic program that provides all you need to know about how to keep a “peaceful” balance of money in your life.

The conventional (FNMA/FHLMC) cash out delayed financing exception program seems to carry a lot of misinformation with the program.  I think the reason behind this top mistake is it isn’t a widely used program.  Unless you work at a lender where the sales staff has a good clientele of rehabbers or investment property purchasers, you may not see this program.

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.

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.

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.

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.

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!

Coming in February 2018 underwriters will need to consider more information before using rental income to qualify a borrower.  Agencies, banks, credit unions, and broker shops will adjust guidelines based on risk in their loan portfolio.  So far I have not read any articles or reports that rentals have become an issue 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.

Many people have heard the rumors and seen the blogs and articles about the DTI going up to 50% announced in the new DU 10.1