Let’s talk FHA & self-employed borrowers!
One of the more challenging areas in building UberWriter is getting agreement from FHA DE’s on the details of determining self-employed income. I spent my career mainly working in the conventional, jumbo, and MI contractor worlds. In these positions, I have worked on numerous borrowers who have anything from a simple schedule C, up to […]
A better residual income calculator
A few weeks back I read a quote on LinkedIn that was brilliant… “The marketing draws your clients in, your craftsmanship keeps them” I personally have tried out many underwriting programs that have fantastic marketing, to only come to realize that the program itself did not quite live up to the hype of […]
Biggest mistake using primary residence rental income
Over the last few days we have been putting the final touches on our 2018 underwriting training courses launching March 2nd. While I was reviewing the rental income course I realized we did not provide enough information in one key area. There is a difference for rental income generated from a primary residence on a […]
FNMA does their own tax changes in 2018
Up til a few days ago working with a borrower on a conventional loan who has an active IRS repayment plan meant a decline was probably going to be the result from underwriting. From time to time people underestimate their tax liability when April 15th rolls around and must work out a payment plan to […]
Will the new tax laws affect mortgage underwriting?
Welcome to our first blog of 2018, this marks our fourth year of creating content focused on the topic of mortgage underwriting! There are many guideline changes already lined up at FHLMC alone, so this will be a busy first few weeks of 2018 with lots of topics to cover, so lets get started! <h2>New […]
Should we reconsider Santa?
Many people reading this might be asking, “where is the latest mortgage underwriting topic?” Since it is Christmas I am asking for a favor to take a blog-cation to share a Christmas thought I have had this year. The topic I have been thinking about this Christmas season is, should we reconsider Santa?
Exclude borrower debt paid by others on FHLMC loans?
Off and on for the last few years I have been a volunteer financial coach at my church using the Financial Peace University program created by Dave Ramsey. This is a fantastic program that provides all you need to know about how to keep a “peaceful” balance of money in your life.
#1 mistake for a cash out delayed financing loan!
The conventional (FNMA/FHLMC) cash out delayed financing exception program seems to carry a lot of misinformation with the program. I think the reason behind this top mistake is it isn’t a widely used program. Unless you work at a lender where the sales staff has a good clientele of rehabbers or investment property purchasers, you may not see this program.
Major changes to student loan rules for FHLMC
The challenge of estimating the effect student loans on a potential borrower’s ability to repay their mortgage still seems to be an issue at both Fannie Mae and Freddie Mac. With the rising cost of getting an education, making a wrong move now could be detrimental to the future of our industry.
The problem with “other” income
A question that has come up in our email box recently is “Can I use “other income” noted on the VOE”? I think the increase of this question in our in-box has to do with the increased use of Fannie Mae’s Day 1 Certainty program. When I reply and ask a few questions it goes something like this.