Digital Mortgage 2016 – what you missed
The National Mortgage News group (Source Media) just completed its first ever Digital Mortgage conference on Dec 8th & 9th in San Francisco CA. This conference was different than any other industry event I have attended. The speakers, vendors, and information provided was all focused on how new technology is disrupting the buying and lending experience. In […]
The biggest lesson learned
I have two young adult children, my oldest is a senior in college this year. During his high school days and throughout his college time I have repeated this same phrase a hundred times. “College is just the starting point; your biggest lessons will happen when you start to work your trade” When we founded […]
REO Showdown FNMA vs. FHLMC Calculations
I recently had a few discussions with some of our clients and blog followers about how different the REO calculations are between FNMA and FHLMC. Growing up in the business I was taught the FNMA method, and to be honest, I generally use the FNMA method since most of the time that number is more […]
How to use FNMA 1084 and FHLMC Form 91 – Part 1
The cash flow forms such as the FNMA 1084 have been around for a very long time, with that being said if you do some research on mortgage industry thousands of people search every day looking for answers on how to use these forms. As I have written in the past these forms are very limited […]
Forgotten income from vehicle depreciation
**updated 05/11/2019** Sometimes we have a borrower that is missing the AUS approval by a mere few dollars, nothing more heartbreaking than a 46% DTI approve/ineligible finding. But do not give up on the borrower that you have worked so hard to earn their business! Make sure you have checked every corner of the application […]
How in the heck do you underwrite for a statutory employee?
After years of working in underwriting when you look through enough loans it becomes easier over time to recognize a borrower’s income type. However there are those income types that are rare and when you run across them can take you out of your underwriting rhythm. One of those income types is the statutory employee. They stand […]
FNMA 1084 and FHLMC Form 91 are useless
Of the questions I have received is if I can make a training video or instructions for the 1084 & 91 forms. Generally speaking my first response would be no! Why would I say no? To be honest I am not a fan of the 1084/91 forms, here is my top 5 for not liking […]
Can gift money for a down payment come from a business?
Sometimes when you are underwriting the same question seems to come in “three’s”. Maybe it is timing, maybe happenstance, or maybe different people are asking the same question about the same loan. A few weeks back I was helping out a loan officer to get a conventional loan ready to close, but the borrower ended up […]
Who’s the boss in underwriting?
Most Popular Income Type in the US In the world of underwriting the self-employed borrower gets a ton of attention. If you ask for underwriting training, in most cases the majority of the time will be spent going over tax returns, 1088 forms, distributions, and cash flow analysis. The complexity of the income calculations can […]
FNMA large deposit rule on refinancing
A few days ago I received a question about how to handle large deposits when the transaction is a refinance on a FNMA conventional loan. The question specifically asked if it was okay just to “back out” the large deposit from the bank account and not ask about the source. I think the answer surprised […]