Rental income and Form 8825 Posted on June 8, 2019 A popular asset to own as part of your retirement plan is real estate. With all the “fix it and flip it shows” that have been around for years, this pushes more and more people to try out real estate as an income source. Heck when I watch Chip and JoAnna tear up a house in Waco Texas and make it spectacular, I think “hey I can do […]
Can I Use Future Income To Qualify The Borrower? Posted on May 9, 2019 Most loan officers reading this blog have run across a loan that made them think… If only the borrower could wait an extra 30 days to close we could use their new pay raise to qualify! Sadly, I have had to decline loans that missed the DTI buy one or two percent because we were not allowed to use future income based on the loan program […]
FHLMC updates appraisal re-use rules Posted on May 1, 2019 A few years back I wrote a blog explaining the rules that allow a lender to re-use the borrower’s appraisal for an additional transaction. (See the blog here: Recycle Rules For Appraisals). Looking over that blog I found some interesting comments in 2016 ranging from “you are crazy, that is not possible and a few appraisers stating this was just another way to cut out their profession”. I was surprised by the feedback […]
PUD, Condo, or Co-op? Posted on April 5, 2019 As subject matter experts on Project Reviews, we have often been invited as guest speakers to discuss the topic of project types and how they differ. Being outside the scope of their usual credit review, this subject is always of interest to curious underwriters of all experience levels. PUDs, condos, and especially co-ops, are exotic and slightly mysterious. Even underwriters who review loans in these project types […]
Condo Review… Step by Step Posted on February 28, 2019 For those of us who have worked in the mortgage industry long enough to become comfortable and familiar with all the jargon and acronyms, it can be hard to remember what it was like to feel overwhelmed and uncertain about the mortgage process. We are modern-day alchemists who can turn a 1003 and some pay stubs into a new home for a family. The knowledge and processes […]
2018 Tax Reform and Alimony Income Calculations Posted on February 19, 2019 Our last blog we talked about how the changes to the 2018 1040 tax form affected mortgage underwriting requirements. The key topic in that blog was that mortgage calculations were the same, but the location on where to find the income has changed on the 2018 1040 form. Today’s topic is on Alimony, the new tax code has really “flipped the script” on the tax responsibilities dealing with alimony. The change we want to point out […]
2018 Tax Reform Act & Mortgage Underwriting Posted on February 6, 2019 I know if you are in the mortgage business and clicked this link you’re wondering how you’re affected by the changes to the 2018 1040 form, not to worry, we have your back. We have done the work at UberWriter to make sure our training and products are up to date, and that you can use these tools to calculate your borrower’s income with complete confidence. First let’s take the pressure and tell you… “These changes do […]
Borrowers January Income & The Zone Of Confusion Posted on January 19, 2019 If some of you have been following my blogs you know that outside of my “underwriting world” I am private pilot here in Michigan. One of the terms I have learned between my private pilot rating and my instrument training is when you get really close to a VOR (a ground navigation beacon) your instrument that detects the VOR’s location goes “crazy”. When that happens, you know […]
AGI vs SAM Income Calculation Methods Posted on January 9, 2019 One great thing about being involved with UberWriter is the chance to discuss different topics with mortgage professionals from different positions and companies. This allows quite a variety of questions and opinions to be shared. One question that does come up is “Does UberWriter use the AGI (Adjusted Gross Income) or SAM (Schedule Analysis Method) for income determination” The short answer is UberWriter uses SAM, just because […]
