Underwriting bad habit costs thousands in revenue
One of the quotes I try to live by when developing content is: “If you can’t explain simply, you don’t understand it well enough” – Albert Einstein A good income report demonstrates knowledge and communicates complex details simply. In the day to day auditing review of loans I can tell you that many loans close without […]
Two questions to ask if using business assets
When I am teaching about underwriting topics, Allregs makes some guidelines very clear which leaves no room for any grey area. Then there are those guidelines that are just vague. They seem almost to have limitless interpretation. Using business funds as cash to close is high up on my list as the “leader of the […]
Employment related assets guideline
Today’s blog goes over one of the updates announced in SEL 2018-08 by Fannie Mae. I want to focus on the improvements for a borrower using “employment-related assets as income”. Before we get to that update, I have to mention the most asked question I get on this income type is: What are employment related […]
How to use FNMA 1084 and FHLMC Form 91 – Part 2
05/20/2019 Update We are updating our post on how to use the Form 91 from FHLMC. To confirm you are using the correct Form 91 form be sure that you are using the Form 91 dated 05/01/2019 which can be found here ! The cash flow forms such as the FHLMC Form 91 have been […]
Freddie Mac’s Home Possible Streamlined and Improved
The MBA projects that mortgage volume will be about 1.8 Trillion for 2019, which is stable compared to 2018 but down compared to 2017. The major reason for this downward change is less opportunities for refinances due to the current rates and other factors. That prediction means we need to stay focused on the primary […]
FHLMC changes student loan programs
On Freddie Mac’s home page, you will see the tag line “We Make Home Possible”, when I see changes in the guidelines as outlined on Selling Update 2018-13 I appreciate the effort to make the mortgage process easier on borrowers and live up to their tagline. Let’s face it, many younger borrowers are stuck between […]
How to calculate statutory employee pay
Ever wonder why the IRS tax code is currently at 74,608 pages of information? (and yes, this is a rhetorical question). I am convinced it is a ploy to drive us nuts around tax time. I mean what did we do to the IRS to mess with us so much! So here is a twist, […]
The power of teamwork
We have been producing blogs since 2013. Over the years we have gained followers that are originators, processors, underwriters, and operations managers. So when I use the word team, lets use one of my favorite southern terms to describe who I am talking too……. All Y’All!!! We have a problem that the team needs to […]
Is your borrower a “saver” but exceeded the maximum DTI?
If you have ever worked with a borrower who is an excellent saver but is coming up short on DTI ratio you might be able to use this extra trick to get them approved. This extra boost to income is following the Fannie Mae guideline under B3-3-.1-09 called Employment Related Assets as Qualifying Income. In […]
Avoid 3 major mistakes when using FHLMC Form 91
I would bet at one time or another you have Googled Freddie Mac Form 91 and gave it a try. The purpose of this form is to create a uniform way to evaluate self-employed income and other forms of income for your borrower outside of employment income. The form gives you an acceptable format to […]