Those looking for an indication when Fannie Mae and Freddie Mac may exit conservatorship did not receive one during recent Congressional testimony from the director of the Federal Housing Finance Agency (FHFA). Under the Donald Trump administration, the end of conservatorship was a matter of when, not if. That has changed somewhat during the Joe Biden administration.
Potential homebuyers are finding various ways of dealing with the new reality of higher mortgage rates that are closer to historic norms. During the recent pandemic, mortgage rates sank below 3 percent. In January 2021, the average 30-year rate hit an all-time low of 2.65, according to Freddie Mac. By October 2023, however, that rate was nearly at 8 percent.
Anybody who has bought a home, has tried to buy a home, or is involved in selling or financing real estate knows housing affordability has been an issue for some time. Last week, real estate brokerage Redfin released data showing the extent of how challenging it is for some consumers to buy a home.
As the first quarter of 2024 draws to a close, the latest news shows an industry in consolidation that may have expanded opportunities to finance this year while still dealing with the rising costs of homeownership. A recent report from Fitch Ratings shows that the largest U.S. non-bank mortgage lenders are gaining market share. This is largely due to consolidation and the exit of smaller lenders.
The Federal Housing Finance Agency (FHFA) expects to transition to new crediting reporting requirements and new credit score models in the fourth quarter of 2025. “Following extensive stakeholder engagement and input, FHFA is aligning the implementation date of the bi-merge credit reporting requirement with the transition from the Classic FICO credit score model,” the agency said in a statement.
Tax returns are used to determine a self-employed borrower’s cash flow. To determine the borrower’s cash flow, there are two common ways to calculate self-employed income: the Adjusted Gross Income (AGI) and the Schedule Analysis Method (SAM). The method you use will be determined by your investor's requirements or company policy. Schedule C is the profit and loss statement of a sole proprietorship.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
When a borrower purchase a home, the borrower gain the rights or ownership of the land and title of real property is transferred to borrower by a deed. If borrower obtained a mortgage to purchase the home, then the lender will require borrower to obtain Title Insurance which is a policy protecting the buyer or the lender from defects in title or claims that can arise regarding the condition of the title.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
As an Underwriter, you will need to know how to review a Tri Merge Credit Report. A Tri Merge Credit Report is a merge report that contains the three major credit bureaus detailed information bearing on credit-worthiness, including credit history and credit score. The borrower’s credit score and credit history determine he/she eligibility, interest rate and LTV on a mortgage loan.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
The new Loan Estimate is designed to help consumers make informed decisions when shopping for a mortgage and understanding the key features, costs, and risks of the mortgage loan for which they are applying for.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
The New Closing Disclosure form must be in loan file as of August 2015. The Closing Disclosure is a 5 pages long form that replace the final Truth in Lending disclosure and HUD-1 Settlement Statement and must be provided to borrowers three days before consummation or closing of their transaction.The Closing disclosure, is intended, to help consumers make informed decisions when shopping for a mortgage and avoid costly surprises at the closing table.Versions of the Closing Disclosure will vary depending upon the type of transaction. Home equity lines of credit and reverse mortgages will continue to use the HUD-1 form.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
Written By: Bonnie Wildt
I have said it before and I will say it again and that is, do not believe everything you hear or read for that matter. In this particular instance I am referring to AUS Findings. I have had countless conversations with processors and loan officer who want to know why I am asking for documentation that the AUS findings have clearly stated wasn’t needed or worse, they can’t believe I am turning a loan down that has an Approve/Eligible. So here it is again and pay particular attention to the details because just because you have an Approve/Eligible or Accept doesn’t necessarily mean you have a done deal.