Employment offers and contracts
When I read LinkedIn from time to time, I have seen some funny memes on why people’s loans have died during the underwriting process. You know the culprits such as buying a new car, taking a cash advance on a credit card, and getting a new job! I agree with mortgage sales leaders that teach […]
The new income on the block… Restricted Stocks (Part 2 of 2)
In my last blog, I set the stage on practical applications for the new RU/RSU income. I also went over some of the guidelines which outline when and how the income can be used. For this installment, let’s get down to the “how” to properly calculate income. In case you missed part 1 here is […]
Restricted Stock Units (RSU)
I was at a compliance conference a few weeks back in Pontiac, Michigan, it was a great event put on by FIC Conferences. I had a question come up about Restricted Stocks which to me is a “new” income! Restricted Stocks were added to FHLMC guidelines 09/14/2017 with Bulletin 2017-20. Not many people know of […]
Foreign Income – What, Why, & How to qualify
Let’s imagine you got lucky while you were on your vacation to Australia and won $10,000 at the Crown Melbourne Casino and want to use that income to help pay for your mortgage?? ..sorry Charlie! The foreign income we are going to talk about today is when a citizen earns income from a foreign corporation […]
Getting the correct income is more than just math
We have upgraded UberWriter with some new functionality. Read on in the blog as we weave some underwriting knowledge with some product update news. One of the lessons I learned during my underwriting career is that the most likely reason a borrower defaults is due to their DTI. The DTI either starts off to excessive […]
Profit and Loss Statements 101 for the Mortgage Business
I have been writing blogs for UberWriter since 2013 on many different underwriting topics. While putting together some training information I realized that I have zero blogs about P/L’s in all six years! I was pretty surprised by that statistic since the question of P/L’s comes up quite a bit between April and October mainly […]
FHLMC updates appraisal re-use rules
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 […]
PUD, Condo, or Co-op?
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 […]
Condo Review… Step by Step
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 […]
2018 Tax Reform and Alimony Income Calculations
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 […]