Preparing the 1003 (Part I of III)

Written by:
Angelina Johnson,
NAMP Volunteer Writer

Part I (of 3):1003 - Importance of a completed form.

When an underwriter opens a file, the first thing they look for is the 1003. This gives them a broad general idea of the type of risk associated with the whole file. The 1003 is the summary of the file where underwriters determine if the information is logically possible.

Incomplete data generally probe underwriters to search 3rd party sources which may lead to longer underwriting turntime. A disadvantage to the broker maybe that underwriters tend to look deeper than necessary. As underwriters generally would love to make each loan fund, they must also justify the risk. If there are multiple layered risks involve and minimal compensating factor, chances are... they will decline the loan.

The statement above should not be misconstrude as an independent thought. Equally as important as a completed form is the accuracy of the data within, especially the real estate schedule with affects ratios. As most loans nowadays are stated income and verified assets(SIVA), information pertaining to Schedule of Real Esate such as impounds may vastly affect ratio. In part II, Deal Maker or Breaker. Stay tuned...
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About the Writer. As one of NAMP's volunteer writers, Angelina Johnson is currently a NAMP member in good standing and has applied for her CMLP certification with NAMP. Feel free to email Angelina at: angelina@mortgageprocessor.org. Or, if you would like to become a volunteer writer for NAMP, please email us at: blog@mortgageprocessor.org.