Mortgage Processing News in Mortgage Underwriting

Friday, July 25, 2014 - 1:57pm
Glenn Michaels
Three states have an unusually high inventory of foreclosures. They are New Jersey, New York and Florida. In the United States during the month of May 2014 there were 47,000 homes where the foreclosures were completed. This figure is down from a year ago where we had 52,000 homes foreclosed. Nationally there is a back log of foreclosures totaling 660,000 homes. Nationally foreclosures are up 3....
Friday, June 20, 2014 - 1:27pm
Frankie Lacy
Underwriters that work for mortgage shops that are non-delegated with private mortgage insurance (PMI) vendors must submit loan packages for review. Those packages are subsequently reviewed by the PMI company’s underwriting team. These packages may also be reviewed by PMI management, sales professionals, and auditors. As a result, it is important to put your best foot forward and present as clean...
Friday, May 23, 2014 - 11:17am
Frankie Lacy
Appraisal rebuttals occur when the appraised value comes in lower than expected. The low appraised value has a negative impact on the LTV causing the loan to require mortgage insurance, or the loan becomes a decline. In an effort to avoid this, loan originators will often seek out additional comparable sales data from realtors and the Multiple Listing Service (MLS). This data can then be...
Friday, May 9, 2014 - 2:13pm
Frankie Lacy
There are several forms of credit documentation that underwriters examine to determine creditworthiness of the applicant. The most frequently discussed is the credit report. However, supplementary documentation can be just as illuminating as the primary report when reviewing the borrower’s credit profile. Many times, the credit report has erroneous or incomplete information reporting. For example...
Friday, May 2, 2014 - 2:05pm
Glenn Michaels
Every year millions of American tax payers must file their federal and state tax return forms by April 15. As I look at my calendar tax filers have two more weeks to file unless they go on extension. Over the years my home has been my cash cow to enable my wife and I to get back a bundle of dollars from both the Internal Revenue Service and from the state (New York) where I reside. In fact my...
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...


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