christmas santa

Should we reconsider Santa?

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?

Read More »
Exclude co-signed debt

Exclude borrower debt paid by others on FHLMC loans?

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.

Read More »
delayed financing

#1 mistake for a cash out delayed financing loan!

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.

Read More »
FHLMC student loan

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.

Read More »
other income

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.

Read More »
property inspection waiver

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.

Read More »
appraisal waiver

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!

Read More »
FHLMC rental income

Big changes coming for FHLMC rental income

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.

Read More »