2 new updates on FHLMC appraisal waiver program
The technology that has been leading the industry news over the last year has been Fannie Mae’s Day One Certainty program. This program’s goal is to give lenders immediate certainty that their income, assets, and value will be approved. This improvement allows sellers relief that loans sold to Fannie Mae will not return as a buy-backs costing thousands!
Big changes coming for FHLMC rental income
Coming in February 2018 underwriters will need to consider more information before using rental income to qualify a borrower. Agencies, banks, credit unions, and broker shops will adjust guidelines based on risk in their loan portfolio. So far I have not read any articles or reports that rentals have become an issue for FHLMC.
The ABCs of the income continuance rule for FHLMC
One of the basic requirements from both FNMA and FHLMC is for the underwriter to determine the stability of the income used to qualify. This is where the concept of continuance comes in.
7 Updated Guidelines Underwriters Need To Know – SEL 2017-06
Many people have heard the rumors and seen the blogs and articles about the DTI going up to 50% announced in the new DU 10.1 version now out in the market! Did you know there are other important updates in SEL 2017-06 that can help more credit worthy borrowers? Let’s review! Changes announced in SEL […]
Asset income can save your loan
When working with borrower’s just into retirement years they sometimes come with a unique challenge of FANTASIC credit, TONS of assets, but low-income due to being retired. Nothing more frustrating then telling a perfect borrower like this “sorry I can’t get you a mortgage due to your income” UGGGGG!!! Little used income tip Here is […]
Auction fee rules for purchases
Everyone wants a good deal when buying their next home. Some of the best deals are found on homes that have been foreclosed or purchased at an auction. However, these good deals can come with hidden problems both with the subject itself or getting the home financed. Most loan officers have been through the process of […]
Exclude mortgage, notes, and bonds from reducing your income
Mortgage, notes, and bonds due in under 1 year is a line item well known, but little discussed in the guidelines. This single item on a self employed borrower can take a deal from approved to declined in an instant! Even though this requirement for review has been around for years, yet I still find […]
How to underwrite a statutory employee?
One of the more unusual income types that you will run across is a statutory employee. You can spot them right away when you are looking at their pay stubs. They will have the normal SSA, Medicare, and health insurance deductions, but will have no deductions for federal, state, or local taxes. Generally they will […]
How to handle non occupant borrowers
We all can relate to those hard to find answers on questions about non occupant borrowers. This has a lot to do with how infrequent an application with these borrowers comes along. After all who wants to put their credit on the line for another person. Thus it causes questions in the underwriting emails boxes of the […]
Five most frequent questions about gift funds
Gift funds are still a top question I receive in underwriting, even though the rules have not really changed since I started in the mortgage business. I want to provide the answers to the most frequently asked questions I receive, and the supporting guidelines to help you! First things first, the answers below to the […]