FHLMC Allregs – new format & new content
A few years back FNMA updated their website to include a well designed, searchable, web based version of Allregs. In 2015 for the FHA program HUD created a sleek new all-inclusive guideline book that no longer requires DE underwriters to keep an extensive list of mortgagee letters. New look for FHLMC Allregs Now FHLMC is […]
Time’s up on distributions
NOTICE: Due to regulation changes the content of this article is no longer current. For years FNMA’s guidelines for self-employed borrowers who receive income on the K-1 form (either 1065 or 1120S business types) was at best loosely followed. The guidelines required that if you were using income from lines 1, 2, 3 and […]
Kudos on new FNMA 1084 form
FNMA Form 1084 Is Better, But Not Perfect If you have been following my blogs a recurring theme is how both agencies have made many updates to their guidelines and programs. Some of these changes have been on guidelines that have been the same since the days I started in the mortgage business in 1994. One […]
January problems hold you up in underwriting
We are one month into the New Year, many people are a few weeks into progress on their plans for 2016, if one of your resolutions was for smoother loan approvals and fewer problems then I have a few reminders for you to help January and February applications. When getting your income document verification, the […]
FNMA Rule – Less can be more
During 2015 FNMA had notified users in a few of the SEL’s about guideline clarifications on self employed borrowers that felt a bit like a seesaw. As you remember there was a big change announced early in 2015 that dramatically shifted the way we calculated income for borrowers who are self-employed using a partnership, LLC, or […]
Not all tax preparers are created equal
Is your CPA Getting it Wrong? Recently I was working on a purchase loan for a borrower who is self-employed and owns three different businesses. In reviewing the borrower’s two 1120S and one 1065 tax returns I noticed something interesting. I notice this in about ten percent of all tax returns I review. What has […]
HomeReady – FNMA Rebuilds the 97% LTV Program
Over the last few blogs I have been reviewing the recent guideline changes from both FNMA and FHLMC. In this blog I want to move outside of the detail points of underwriting to make sure you are ready for a great new program just completed by FNMA. FNMA is replacing the My Community Mortgage with new […]
Common oversight on loans secured by assets
Have you ever completed a process at work over and over, so much so that you don’t even think of the action when you are doing it? For example, your brain goes on autopilot when punching in, then your autopilot turns to get some coffee in the break room. Next thing you know you are […]
SEL 2015-10 Eases Restrictions on Non-Occupant Co-Borrowers
Both of the GSE’s continue to review and revamp their guidelines on a number of topics, today’s blog we will go over the changes that now make it easier for a non-occupant co-borrower to help out your borrower with Fannie. In the past when you had to use a non-occupant co-borrower (going forward lets call […]
Freddie opens up more room for investment properties
Over the last few weeks we have been talking about some big changes in the guidelines over at Fannie Mae, but Freddie Mac is also in the process of making some big changes to get more business. There are a pair of changes when put together are going to open up some new opportunities for […]