Mortgage Processing News in Mortgage Underwriting

Friday, April 18, 2014 - 4:02pm
Glenn Michaels
Typically mortgage payments are calculated on a monthly basis and a borrower is scheduled to make twelve (12) mortgage payments a year. However, borrowers that sign up for a Bi – weekly mortgage are scheduled to make thirteen (13) mortgage payments a year. Every mortgage has a specified interest rate that has a corresponding interest rate factor. The interest rate factor is always multiplied...
Saturday, March 29, 2014 - 8:23am
Glenn Michaels
Borrowers who reside in expensive markets may desire an Adjustable Rate Mortgage and/or an Interest Only Mortgage. Borrowers who obtained an Adjustable Rate Mortgage saw an interest rate and monthly payment reduction. In some cases the payments was 3o – 35% less than borrowers that obtained a fixed rate mortgage. Need Mortgage Training? CLICK HERE to Download Brochure --->> In the high value...
Saturday, March 22, 2014 - 6:13am
Frankie Lacy
Automated Underwriting System (AUS) findings have become more sophisticated as the mortgage industry has turned its focus to lending quality, transparency, and regulatory compliance. As a result, some are left wondering, do I still need to look things up in my guidelines? The answer is, YES! Now, more than ever, a heavy dependence on underwriting guidelines is appropriate for mortgage...
Saturday, March 15, 2014 - 9:55am
Glenn Michaels
The mortgage industry ended 2013 with no change in loan limits beginning in 2014. On January 10, 2014 Qualifying Mortgages begin, but there are still lenders out there that will do non – Qualifying Mortgages. The more things look like they change the more they do not. In 2013 HUD announced several different scenarios where the borrower now has to be qualified manually instead of utilizing Desk...
Saturday, March 1, 2014 - 9:59am
Glenn Michaels
When it comes to the appraisal it is extremely important that the underwriting and Quality Control efforts be present in every loan. Most lenders require the underwriter to review every appraisal report and a percentage of mortgage loans be reviewed by Quality Control. With most of the responsibility on the lender, lenders must do a better job at appraisal review. With that said, what should a...
Saturday, February 22, 2014 - 4:16am
Frankie Lacy
We all know that the mortgage industry is an ever-evolving, constantly changing business. Many mortgage lenders adjusted and restructured in 2013 as the refi boom wound down and volume was low. As a result, there is a bounty of mortgage talent available on the market. How can you prepare to be competitive in this employers’ market? Approach the Interview Process with Confidence: In this uncertain...
Friday, February 14, 2014 - 5:08pm
Glenn Michaels
Today almost every lender does automated underwriting and can furnish an applicant with an approval pretty quickly subject to underwriter validation. Rates move up and down or stay the same; normally an uptick in the rates will not invalidate a loan approval as most lenders will issue an approval with a maximum rate. The mortgage volatility is not here, so rates are not moving up or down quickly...
Friday, February 7, 2014 - 3:41pm
Frankie Lacy
Appraisal Quality As of Lender Letter LL-2013-10 dated December 10, 2013, Fannie Mae has instituted an appraisal quality review program. Fannie Mae will identify inaccuracies in appraisal reports and communicate with appraisers who display a pattern of consistently reporting unacceptable data. Fannie Mae will initially report their findings as a tool for training and educational purposes....
Friday, January 31, 2014 - 7:02pm
Glenn Michaels
Every time there is a flood somewhere in the United States people and businesses look to Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program (NFIP) for relief if they have flood insurance or to FEMA to obtain a non – repayable grant to assist in repairing their home or business. FEMA’s NFIP has been increasing flood insurance premiums significantly in areas recently hard...
Friday, January 24, 2014 - 4:35pm
Frankie Lacy
In response to the CFPB’s Ability to Repay (ATR) and Qualified Mortgage (QM) rules, leading investors have instituted a Debt, Income, and Asset Verification Worksheet. This worksheet was created to provide consistency and uniformity in the reporting of underwriter rationale in determining the borrower’s ability to repay. Some lenders are adding this form (or a screen) into their loan origination...
Friday, January 17, 2014 - 6:22pm
Glenn Michaels
The United States Department of Housing and Urban Development (HUD) has and is addressing the housing market’s “shadow inventory” and to target relief to communities experiencing high foreclosure activity. HUD announced that in the first quarter of 2013 10,000 to 15,000 distressed homes were sold by HUD through the DASP. These loans were from certain targeted areas in Georgia, California,...
Friday, January 10, 2014 - 4:52pm
Frankie Lacy
What are some things that come to mind when we think about the underwriting role? Do you think of the mysterious department in the back where everyone speaks in hushed tones? Do you picture a big, red denial stamp and a person with a maniacal gleam in their eye? If you do, then it’s time to examine the underwriting role more closely. As underwriters, we wear many hats in our day to day function...
Friday, January 3, 2014 - 10:44pm
Glenn Michaels
Many super jumbo loans, more than half took Libor (London Inter-Bank Rate) Arm and those that did are saving money as we read this. The borrower who took the Libor Arm normally starts out with a low initial rate often known as a “teaser rate”. Most Libor Arm loans have a margin of 2.25% which at adjustment is added to the index value to determine the new rate subject to adjustment caps. The most...
Friday, December 27, 2013 - 1:42pm
Frankie Lacy
The mortgage industry is a service industry that relies heavily on customer satisfaction for repeat business and referrals. There is no greater way to tarnish your company’s reputation with a customer than a poorly executed closing experience. From the customer’s perspective, they have been through an intrusive, uncomfortable process of obtaining their loan. Their greatest desire is to wrap up...
Friday, December 20, 2013 - 4:07pm
Glenn Michaels
It has always been the rule under the FHA 203(K) that if an existing foundation was removed the property no longer fits under the FHA 2039K0 program and the property would now fit as “new construction’. It has been the policy of the United States Department of Housing and Urban Development (HUD) to amend their guidelines as conditions and events take place in the United States. The department...


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