This free mortgage training video discusses important Fannie Mae reminder on prohibited refinancing practices, lender solicitation, prearranged refinancing agreements and agreements to advance borrower payments and more. Ideal for mortgage loan processors & loan officers.
This free mortgage training video discusses goal of obtaining verbal verification of employment, requirements on employment income and self-employed income and more. Ideal for mortgage loan processors & loan officers.
This free mortgage training video discusses verbal verification of employment on hourly, salary, and commission, important things to remember on processing, VOE process on self-employed, military and more. Ideal for mortgage loan processors & loan officers.
This free mortgage training video discusses the borrowers minimum required investment, sources where borrower's fund cannot be obtained from, minimum investment exception to the 3.5 % of the adjusted value of the property and more. Ideal for underwriters, mortgage loan processors & loan officers.
This free mortgage training video discusses required documentation for funds coming from gifts, where those gifts can come from, the documents should it includes, requirements if the gift is coming from funds from government entity and more. Ideal for underwriters, mortgage loan processors & loan officers.
This free mortgage training video discusses definition of Super Conforming Mortgage, 2018 Super Conforming Mortgage Loan Limits, in depth discussion of the requirements, and more. Ideal for mortgage loan officers & underwriters.
This free mortgage training video discusses generalities of analyzing credit like applicants willingness to repay and its basis, overall payment patterns versus unsatisfactory repayment, rent and mortgage history, what to do if there's no credit history and more.
This free mortgage training video discusses the changes on 1003 Form, when it will be available, and more. Ideal for mortgage loan processors wishing to learn more details about mortgage loan processing.
Mortgage processors, mortgage underwriters and other industry stakeholders have another month to submit input to the Federal Housing Finance Agency (FHFA) regarding potential changes to Fannie Mae and Freddie Mac’s credit score requirements.
With a new presidential administration, a number of regulatory developments, and a strong housing market, 2017 was an eventful year for the mortgage industry. A number of these developments will carry over into the new year. Here are five things that could impact mortgage processors, mortgage underwriters and the rest of the industry in 2018.
Enjoy it while it lasts.It’s been a better-than-expected year for mortgage processors and underwriters. While there isn’t concern about a repeat of 2007-2008, the mortgage and housing industries are preparing for an eventual slowdown in activity.
When Donald Trump was elected president of the United States a year ago, the mortgage industry was hopeful his administration would alleviate the regulatory burden that intensified under the Obama Administration.
The National Flood Insurance Program (NFIP), set to expire in the coming weeks, was extended by President Trump earlier this month. But its future is as challenging to forecast as the path of an Atlantic hurricane.
Mortgage refinance activity is expected to drop off considerably this year and next due to rising mortgage rates. But a new program set to launch could create refinance opportunities for certain homeowners.
Last month, the Consumer Financial Protection Bureau (CFPB) finalized amendments to the “Know Before You Owe” mortgage disclosure rule. Formally known as the as the TILA-RESPA Integrated Disclosure rule (TRID), the regulation requires mandatory compliance beginning Oct. 1, 2018, about three years after it first took effect.
It passed the House along party lines last month. The likelihood it gets through the Senate is dicey at best. But key parts of the Financial CHOICE Act may be enacted after they were included in the House Appropriations Committee’s Financial Services Subcommittee’s appropriations bill at the end of June.
Midway through its 120-page annual Report to Congress, the Federal Housing Finance Agency dedicated one page to making three legislative recommendations. One of those recommendations drew a strong objection from the Mortgage Bankers Association (MBA).
Economists at both Fannie Mae and Freddie Mac forecast housing market growth in 2017 from last year. But the rate of growth will be slower this year and it will moderate even more in 2018, according to those forecasts.
While regulators and legislators debate the current and future structure of Fannie Mae, the agency has been spending much of 2017 talking about its focus on customers. In the last month, executives from Executive VP Andrew Bon Salle to Chief Financial Officer David Benson have given interviews on the subject of Fannie’s customer-centric initiatives.
The Consumer Financial Protection Bureau (CFPB) will be increasing its focus in the next year on ensuring that certain mortgage borrowers don’t face credit discrimination. The CFPB recently released its fifth Fair Lending Report, which summarizes its supervision and enforcement activity in the past year as well as its priorities for the coming year.
The Consumer Financial Protection Bureau (CFPB) wants to give mortgage lenders more flexibility in complying with the Equal Credit Opportunity Act (ECOA) while also clarifying their obligations under the law.
Mortgage underwriters and processors may have to be more diligent in combatting fraud. A mortgage market that encourages more purchases than refinances and enables higher loan-to-value (LTV) ratios will lead to higher incidence of mortgage fraud, according to industry analysts.
One of the most significant operational changes of the government-sponsored enterprises of Fannie Mae and Freddie Mac since the federal government assumed ownership is the strategic transfer of credit risk.
A program that started five years ago has quickly evolved into a significant market for credit risk transfer securities.
The news from Fannie Mae’s fourth-quarter and full-year results for 2016 was mostly positive. But the mortgage giant’s earnings report released last week indicated that several risks could prevent it from paying future dividends to the U.S. Treasury.
Will mortgage processors and underwriters see less volume without FHA insurance rate cut? On the day he took office, President Donald Trump rescinded a cut on the insurance premiums charged on Federal Housing Administration mortgages. Opinions vary on how much the reversal will impact mortgage processing and mortgage underwriting.
Living on an island, long but still an island, there are still restorations of various types going on. If you lived in the New York Tri – state metropolitan area there is a good chance that you are restoring your property and/or infrastructure near you.
2016 has seen numerous changes in guidelines for reviewing student loan qualifying payments. In this two part series, N.A.M.P. and N.A.M.U. will provide tools for processors and underwriters to use when determining which calculation should be used for qualifying student loan payments. Part I reviewed Fannie Mae and Freddie Mac’s guidelines. We continue this series by exploring USDA, FHA and VA rules.
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.
From a mortgage approval standpoint I still find that most mortgage professionals are still stuck in the wonderful world of AUS. As in bygone days, they believe that if a case receives an automated underwriting approval then the case will be approved, no questions asked, no additional documentation required. Well, I am here to tell you, that’s just not the case.
I know, it doesn’t sound like something that any self respecting processor would engage in but it is happening all around us, it being meatball processing. Defining it is easy enough as well, just think processing on the fly and the end results as you can well imagine is a loan approval or more often, suspense, that resembles the collective works of Shakespeare, at least in page length and as we get busier, the items overlooked during processing continues to grow.
As underwriters, many of us spend our days reviewing guidelines, interpreting guidelines, answering questions with regard to guidelines and applying the now never ending overlays from our investors with regard to guidelines. Underwriting guidelines apply to every loan product and differ depending on which type of product you are underwriting however there are many common sense areas that apply to underwriting that are not addressed in handbooks.
A few days ago a friend and I were laughing over the fact that most people, including mortgage industry professionals, wonder if underwriters really exist. I myself have had staff from various brokers offices (which I do visit from time to time) say to me, “We have heard about underwriters but have never really seen one.
Seems there have been a few issues lately with regard to Total Scorecard findings and validity as well as misconceptions with validity periods for both appraisals and credit documents (credit reports) on FHA insured mortgage types so I thought it not a bad idea to clear a couple of things up.
Call it portfolio retention or risk management, but as of Wednesday, I had several of my investors pull out of the market where non-credit qualifying (streamline’s without appraisal) FHA streamline refinance transactions were concerned. Several have said they would only purchase them if they were currently servicing the loan and I now have one other who has changed guidelines on credit qualifying streamline refinance transaction to require a minimum median credit score of 700 for loan amounts less than 417,000 and 720 for loan amounts greater than 417. All of this just as everyone rev’s up for the reduction in UFMIP to .01%.
Residential mortgage underwriting is defined as the overall credit and valuation analysis of a particular borrower or borrowers with regard to overall financial health as well as the evaluation of collateral that might be used to secure the mortgage and as underwriters we relate this particular evaluation to calculation of housing to income and debt to income ratio’s, the evaluation of a borrower’s credit history as well as the review of a property appraisal.
Over the past 5 years I have had many conversations with people regarding the housing market which invariably becomes a discussion as to who is at fault for the collapse in 2007. Depending on who you are talking too, the blame is laid at the feet of big banks or mortgage brokers, Wall Street, FNMA or FHLMC and of course the diagnosis is generally that one or all of the aforementioned groups did it out of greed.
FHA issued a bulletin on April 18, 2012 informing the industry about HUD approved nonprofit participation in FHA loan financing. Basically HUD allows approved nonprofit agencies to act as a mortgagor utilizing FHA insured financing to purchase homes which will be designated for resale to low to moderate income families or in some instances rented to low moderate income families and as you can imagine where the affordable housing program concerned as it pertains to the rental units, the nonprofits may actually have more than one FHA insured mortgage.
Every lender operation is different. Some are operations friendly and others sales friendly and fortunately some are in between. As an industry educator as well as underwriter, I have many opportunities to talk to be originators and underwriters and as you can well imagine, many of those conversations end up being discussions about unreasonable underwriters asking for unnecessary file documentation and if I am speaking with underwriters, they always go in the direction of how management does not support them as underwriters and that they
I could be wrong but I don’t think I am when I say this program is a bad idea. To substantiate that statement I will quote one that I read on a LinkedIn post a couple days whereas one blogger posted the question “Is HARP 2.0 real, is anyone really closing them?” just to be answered by another blogger who posted, “yes, laughing all the way to the bank”. The sad truth is that I am sure that he is, unfortunately.
I know, it sound pretty elementary, we underwrite to see if the borrower qualifies, it’s that simple right? Actually it’s not that simple nor is the task of underwriting a basic exercise in calculating ratio’s, cash to close and making sure the borrower’s credit score is sufficient to meet investor criteria.
I know this statement will be relatively unpopular but I am going to say it anyway, thank goodness for the return of the FHA mortgage insurance program” In a HUD Public Affairs publication, No. 12-037, issued on February 27, 2012, HUD announced its intentions of again raising the UFMIP and MMI premiums to not only protect their capital reserves but also to encourage the return of private capital into the residential mortgage market.
The past few weeks have been quite interesting around the office for me, not because I have had opportunity to learn new things or underwriting interesting cases, but because I have had to endure a whole new level of customer complaints. It seems like more and more these days, when I pick up the phone it’s my boss saying to bring some loan officer to her office because again, she had just gotten chewed by another customer or real estate agent and in a time of dwindling business not to mention fees, this is never a good thing.
When I hear those words, they immediately evoke images of a world in which mortgage underwriting decisions are determined by AUS systems that have no capacity to either employ common sense underwriting principals or fairly or adequately assess overall risk. They are simply three more numerical values used by a computer model to “recommend” if a loan should be approved and just like its partner, the AUS, I think credit scoring as rule has outlived its usefulness.
I know what you’re thinking already, “Really Bonnie, we know all about them”, but I say untrue, this based on a conversation I had yesterday with an underwriter friend at Philadelphia HOC. It is always nice to talk to her, catching up with friends is always a good thing and as you can image, she will sometimes share with me some of the most common disastrous mistakes lenders make where various loan types are concerned.
When we say homeownership counseling, many of think of traditional counseling that a borrower might receive prior to the purchase of a new home, in many instances to receive grant funds, or perhaps homeownership retention counseling that a homeowner might seek should they be facing foreclosure but very seldom do loan originators consider homeownership or “credit counseling” as a means to generate new business.
Oil and water, two things that we all know do not mix well do to incompatible molecular structures, have become the poster child for underwriting with AUS. That’s correct, Oil (AUS) and water (manual underwriting). “How so”, you ask and the answer is a very simple one. We are still required to utilize automated underwriting on all cases that we underwrite however the findings don’t mean a thing where documentation waivers or loan approval is concerned.
Yes, it is important to know the guidelines and I am sure many of you who are underwriters are thinking that you do or you know them at least sufficiently to underwrite a case with the assistance or guidance from your AUS. We I am here to tell you that these days it’s a little trickier than that and I can prove that statement by way of buy backs just last month.
The use of the FHA and VA mortgage insurance programs has been on the rise since the great implosion of 2007 and most recent us several lenders embracing Rural Housing programs as well. As a mortgage underwriting employed on a full time basis by a bank as well as an industry educator who teaches program guidelines for these products for FHA Online University, I have seen literally thousands of people, industry professionals, government agencies and lender groups sign up for and participate in training for these programs in order to become proficient with the government lending product types.
I have been working in the mortgage industry for the past 25 years and have seen a lot of highs and lows. When I began, the GSE’s were just gearing up and the secondary market as we know it today was still in its infancy.
I know everyone has read an article or two in which I have stated the importance of the social aspect of why we underwriters do what we do. Homeownership or the preverbal roof over our heads is one of the most important aspects of human civilization and over the past couple of weeks I learned from a personal standpoint just how much this and a few other things that we often seem to take for granted mean to us as people and to our families.
Wow, talk about an increase in volume. With interest rates down there seems to be a renewal of interest in the FHA Streamline refinance program. It actually makes sense really, considering that many mortgages were refinanced into FHA mortgage types during 2008 and 2009 to relieve borrowers who had previously been placed in subprime mortgage types, the burden of excessive interest rates or adjustable rate features.
As volume continues to grow where overall originations of the FHA 203k program is concerned, so of course do errors. I realize that many of the lenders currently underwriting the program are proficient where policy and procedure for this program is concerned, however there are those lenders that are still somewhat new to the program and I thought I would share a little insight as to a few things to keep in mind while underwriting and servicing the program which hopefully spare some of you later issues with both HUD and your investors.
Before I begin, I just want to say that I left my flying monkeys home this morning so for those of you that enjoy my occasional black rant, you will be disappointed. However I will say overall sarcasm is not out of the question because here of lately whenever a discussion takes place that includes the federal government, excluding HUD of course, that relates to the real estate market, well it’s just impossible to not be sarcastic, they make it too easy.
The 203k is a great program for any individual who wants to buy a handy man special or property being sold at foreclosure and fix it up, or a current homeowner who would like to complete some updates to their existing home however many lenders are still unwilling to offer the program.
I was in the kitchen this morning having a conversation with a coworker. We were reminiscing about the good old days of HUD field offices, case number assignment lines and of course processing and underwriting without the benefit of fax machines, AUS or even the internet for that matter.
We have been listening to the gossip (most of which I started), since November, 2010 about how HUD has discussed lifting the moratorium on the 203k program designed for investors. Believe it not, the program actually did exist at one point and was quite successful from a utilization standpoint, but do to program abuse which included mass property flip schemes in the 1990’s, HUD was forced to eliminate the program for use in 1996.
Yes, it is, grim that is, and I am not referring to Wilhelm & Jacob Grimm. But just as they composed those fairy tales in the 1800’s, representing what might have been described as the capricious and cruel reality of daily life for most Europeans of that time, we to continue to face a housing and mortgage market that can also be described capricious. Unlike the tales of Brothers Grimm however, the ails of the current housing market do not seem to be getting softer or sweeter with time.
Understanding HUD REO- Part One: Overview of the REO Process. Last week, I presented Part One in a series of articles to help expand your knowledge and understanding of HUD REO (Real Estate Owned) Sales for purposes of FHA lending. This week, in part two of the series, you’ll find further explanation of the appraiser’s responsibilities in regards to the HUD REO appraisal requirements.
FHA recently released Mortgagee Letter 2012-13 which clarifies disaster area inspection requirements for determining whether or not the loan is eligible to close as well as if the loan qualifies for endorsement/insuring. Be sure to read these requirements if you lend in East Coast areas recently affected by Hurricane Sandy.
For the past two weeks, I have offered a series on private mortgage insurance cancellation, have explained the regulations involved and have offered some tips and tools to help consumers understand their rights regarding cancelling private mortgage insurance coverage for conventional loans.
You may have noticed in the past several months that the agencies have been updating long-known employment and income documentation requirements. These recent guideline updates and changes are likely in response to a discrimination lawsuit that was waged against Bank of America earlier this year claiming that Bank of America imposed ”unnecessary and burdensome requirements” on borrowers who received income because of a disability.
This is part 3 of a multi-part series that provides helpful questions and answers about FHA appraisals, properties and valuations. I recently ran across this list as I was actually searching for something on a completely different topic. I found these FAQs so helpful and informative I felt the need to pass them on in hopes they will be useful to you as well!
I recently ran across a list of FHA appraisal and valuation questions and answers from HUD as I was actually searching for something on a completely different topic. I found these FAQs so helpful and informative I feel the need to pass them on in hopes they will be useful to you as well!
This week I asked a few underwriters what their top gripes are lately with the files they receive for underwriting. Based on the underwriter responses, I was able to establish a few items worth mentioning.
There seems to be confusion out there in regards to a few of the recent changes announced by FHA in Mortgagee Letters 2012-3 and Mortgagee Letter 2012-4. The purpose of this week’s article is to provide you with further clarity on a few of the recent changes here.
I don’t know about anyone else but I can honestly say this is the absolute busiest and most overwhelmed I’ve personally felt in the near 25 years I’ve been in this crazy business of ours! I’ve never seen so many products changing and being added, so many differences between lender product overlays, so many crackdowns on compliance or so many major regulatory changes as we’ve been experiencing recently.
Last week I outlined upcoming changes to FHA’s mortgage insurance premium structure based on preliminary communication from HUD but subject to the release of an official Mortgagee Letter. Since then Mortgagee Letter 2012-4 has been issued which communicates the finalized changes to FHA’s mortgage insurance premium structure.
Anyone who is familiar with my article writing over the past several years probably knows I am a huge advocate for training and education in our industry whether it be for those coming in to the lending environment fresh with no prior experience or for the most seasoned veteran such as myself who have been working in the lending environment for well over 20 years or more.
At the end of 2011, HUD finally released a long-awaited current version of the TOTAL Scorecard User Guide. The prior version had not been updated since 2004. FHA requires that all loans be scored through TOTAL except for those transactions involving borrower’s with no traditional credit scores and streamline refinance transactions.
The Federal Trade Commission website is a resource I refer people to fairly often because of the informative and educational materials available for consumer distribution. The FTC offers a lot of great information available in web format, PDF format and some materials are even available to order in bulk quantities for free which makes this a great resource for seminar materials and overall distribution to homebuyers and homeowners.
One of the things I like to do at the start of each New Year is provide what I refer to as my lists of “freebies.” These are lists of websites and resources that have helped me over the years in one way or another and that often provide ongoing information that is helpful and informative on an ongoing basis.
I had a loan officer ask me this week “how does a borrower check the status on her MIP refund?” I informed the loan that HUD no longer automatically issues a refund check to borrowers whose FHA loans are paid off with non-FHA refinances. I was actually quite surprised the loan officer wasn’t aware that HUD’s prior stance regarding MIP refunds had gone by the wayside years ago.
If you’re like me, you can’t wait to be done with September and into October so that we can implement all of the major changes we’ve known have been coming for quite some time. In case you’ve forgotten or misplaced your list, here are some reminders:
As anticipated for quite some time, VA finally formally announced changes to VA funding fee structure that will be effective for VA loans not closed on and after 10/01/2011-See VA Circular 26-11-12. On the positive side is that the funding fees are decreasing which is great news for our U.S. veterans!
For those of us in the upper Midwest, we are fortunate not to deal much with Mother Nature’s unpredictable hiccups. We get occasional tornado outbreaks, some nasty thunderstorms, we deal with wind damage, hail damage and occasional flooding in low lying areas but for the most part, aside from our sometimes unbearable winters, we’re pretty fortunate up in these parts.
Right now we all have much to be grateful for. Record low interest rates have brought us record numbers of refinances which are boosting business for all of us in the industry. But while business is plentiful, so also can be the frustrations that come along with it.
This week I thought I’d take a break from the ongoing condominium articles that summarize HUD’s recently issued 95 page condominium processing guide and cover another topic that came up this week. I had a situation come up this week from a loan officer that I feel is relevant for many in out industry because it’s something that can commonly occur.
It is pretty common in my office to hear me say to one of my underwriters, “That is why you should always look for a way to turn it down first, it saves time and you won’t be force to have ridiculous conversations over conditions”, and needless to say I’m generally joking when I throw it out there.
Mortgagee Letter 2011-22 dated 6/30/2011 clarifies, expands, consolidates, and updates existing condominium approval guidance while also replacing Mortgagee Letters 2009-46b, 2009-46a and 2011-03. Included with the new Mortgagee Letter are an attached Condominium Approval Implementation Schedule and 95 page Condominium Project Approval & Processing Guide.
"OFAC" is the abbreviation for Office of Foreign Assets Control. It is the specific branch of the United States Department of the Treasury that administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the United States.
With so many credit-related businesses springing up everywhere, consumers are becoming more educated about the importance of maintaining good credit. They’re also becoming more educated about their rights as consumers.
Appraiser regulations keep evolving, RESPA keeps reinventing itself, loan officer compensation is bringing forth major changes, FACTA has added what I consider to be ridiculous new disclosure requirements nobody really seems to fully grasp, licensing requirements continue expanding and evolving, credit rules continue to tighten, … when does it all end?
When a credit account owner permits another person, typically a family member who is managing credit for the first time, to have access to and use of an account, the user is referred to as an authorized user of the account. This practice is intended to assist related individuals in legitimately establishing a credit history and credit score based on the account and payment history of the account owner, even though the authorized user is not the account owner.
I ran across a blog while I was I was doing some research on a regulatory interpretation this evening and it really got me fired up. It never ceases to amaze me how badly some of the people in our industry answer questions for people who wouldn’t be asking if they truly knew anything about mortgages.
We’re all familiar with many of the components of LQI because most of them have been effective for quite some time now. We’ve become accustomed to checking interested parties against various exclusionary lists, validating each borrower’s social security number, assuring we’re including unit numbers in property addresses for condominium units, rounding the LTV calculations properly, following policies to detect and uncover undisclosed debts etc.
Very recently, while teaching an FHA Underwriting class for FHA Online University, the history segment of the training made me stop and think. It was unusual really, because I have taught this particular class at least once a month for the past four years and honestly, other than an occasional joke as to how students need to take notes because the historic information pertaining to the agency was on the “big” test, I never really thought much about it.
Hello – I hope everyone had a very nice holiday and let us all look forward to the New Year with a positive attitude that it will be a GOOD YEAR!!!! Let’s all Toast to 2009! Before, we can look forward to the New Year; I think we need to look back one more time – then LET IT GO.
I initially titled this article, “HUD Sues Lenders over Omission of Manufactured Housing Engineering Certificates,” but I decided that it might be a little over the top. But, the facts are this. A letter issued by the HUD Inspector General (MEMORANDUM NO: 2007-KC-0801) dated September 2007 recommended just that.
Hello Everybody – Another week in the mortgage industry is here and I am sure everyone uses the acronym FHA quite a few times a week. However, do we really know anything about FHA, when they were created, why they were created and what they really do? Who is FHA?
Everyone is getting back to their normal routine – it is important that we work together this year to help homeowners save their home, if possible. Fannie Mae has announced a program, which I feel is exciting and hopefully will help borrowers save their home.
There is confusion over just who can certify that a manufactured home foundation is permanent per HUD requirements. The simple answer is this. Only a professional engineer or registered architect can certify permanent foundations on existing manufactured homes whether under the September 1996 Permanent Foundation Guide for Manufactured Homes or the newer HUD Model Installation Rules.
Hello Everybody – Hope you are keeping busy. With interest rates up and down, depending on the day and hour of the week – refinances have been fluctuating as often. However, there seems to be a trend that home sales are on the rise and many lenders are keeping busy.
Hello Everyone - Are you currently processing loans for a small broker, processing loans on a contract basis, or perhaps working for a direct lender - Do you feel you are always one step behind the latest FHA Updates? While you believe you are processing your loans correctly – only after submission to underwriting you learn that FHA has changed the guidelines and you were not aware.
Hello Everybody – I feel the housing market is finally going to take a turn for the better. Although I have no crystal ball – I feel the questions, I have been fielding and the number of underwriting and processing jobs posted on CareerBuilder has soared.
Hello everybody – hope you are keeping busy. I see business definitely picking up and some processors and underwriters are getting swamped with new job offers. Recently I have received several e-mails from the readers of NAMP Blogs about how to get into underwriting.
Hello – There may be a glimmer of light for loan processors and underwriters as FHA rates and conventional rates, as well, continue to drop. The spark of increased could be FHA Streamline Refinances – which is what we will write about today.
Hello everybody – Keeping busy? I feel the market is definitely picking up; however, there are still many people out of work and needing help to avoid foreclosure on their home. So this week, we are going to go through the process of how to try and avoid foreclosure.
Hello Everybody – Hope everyone is staying busy. In my hunt for a topic every week, sometimes it is easy and other times, I haven’t a clue what I will write about until the last minute. This week was one of those last minute thoughts – so I hope this blog is helpful.
Hello Everybody – Hope everyone is doing well and staying busy. In my quest to find a topic for this week’s blog and in the interest of the economy and everyone looking for extra money – I have an idea – Look on the FHA Refunds web site.
Hello Everybody – Another week in the mortgage industry is here and I am sure everyone uses the acronym FHA quite a few times a week. However, do we really know anything about FHA, when they were created, why they were created and what they really do? Who is FHA?
Hello Everybody – I hope everybody is keeping busy these days. The refi market is definitely picking up and I see many more processor and underwriting jobs on CareerBuilder and Monster. In fact, I received calls from four headhunters in the past week asking if I were interested in a FHA Underwriting job; however, since I am currently employed and I am currently happy in my job, I decided to pass; however, I asked they please keep me in mind – because you never know.
Corporate Tax Returns seem to be the most frightening to everyone. I do not know one processor or underwriter who likes Corporate Tax Returns. Many borrowers set up a Corporation to protect their personal assets in case of bankruptcy or lawsuits. A Corporation is a state-chartered business that is owned by the shareholders. The shareholders could be as few as 1 or as many as millions. Compensations to the officers of the corporation are based on the percentage of ownership and are reflected on the shareholder’s personal tax return. If the percentage of ownership of is not shown on the tax returns, this information must be obtained from the corporation’s accountant. After the adjusted business income is obtained, it should be multiplied by the borrower’s percentage of ownership.
Hello All – Last week I covered the basic guidelines for the HECMs (Home Equity Conversion Mortgage). As outlined the guidelines are very basic since there is no credit qualifying; and could make an excellent source of additional income for seniors on fixed income. However, there are many questions that seniors as well as their heirs need answered before deciding to commit to the HECM.
Hello Readers! I would like to say that I am most anxious to share with you some of my experiences in the real estate industry. As an FHA DE Underwriter for the past 15 years, there has been instances when an initial 1003 and the final 1003 had so many discrepancies, I was not sure it was the same person. As the loan processor, you are the first person after the loan officer to review the 1003. Review the information to verify it makes sense.
Hello – This is the 2nd part of a series of 5 that will alert all loan processors, as well as loan officers and underwriters to “RED FLAGS” on the original application (1003). This week we will cover the income/employment section of the 1003.
Hello – I hope everyone is holding on to their job. In this economy it is frightening to say the least with the downturn of the real estate market. As the market gets tighter and banks are again tightening guidelines, it is important that good quality loans be submitted for underwriting and even more important that the borrowers are qualified to purchase and given instructions not to make any changes in their job or credit report prior to closing.
to its “slow” time of the year!! In my opinion if this entire year would have been any slower there would virtually be no one left in the industry. As it is – the downturn of the market has caused brokers and lenders to flea in massive numbers. Those remaining are the die hards and they are working hard for their deals; which is all the more reason to do our due diligence prior to sending a package to the investor.
Hello to everybody and sorry for the mix-up of last week’s blog, I missed the deadline because my mind was still on a holiday mode. Well this will be the final blog for this series on Mortgage Fraud and Red Flags.
Hello All – I hope the blog on Self-Employment is informative and it is helping to answer questions you may have. This week we will discuss Corporate Tax Returns, “S” Corp Tax Returns and Partnerships.