Ask The Underwriter

LoanAce FREE LOS (Loan Origination Software)!

2008-06-10T22:40:59Z

LoanAce is free mortgage loan origination software that can automate your loan origination process and encompass all your LOS needs in one mortgage loan system. LoanAce® debuted on August 1, 2006 as the Mortgage Industry's first Loan Origination Software available at no charge, and has quickly catapulted to the third largest LOS within the first year. LoanAce®, went beyond providing a fully functioning LOS and introduced industry-leading features such as EZorder^TM, TEAM and a user-friendly format. Everyone asks how can a professional LOS be available for FREE? LoanAce generates revenue through EZorder^TM by connecting users with the third-party services they already use to originate loans, grow their businesses, and serve customers.

TeraVendo developed LoanAce TEAM to allow employee activity management. TEAM allows brokers to see a real-time summary and detail view of all loans, across all branches, loan officers, processors and loan stages via a web based interface. It also offers two vital compliance functions that are currently unavailable in competing LOS products. TEAM records every version of a file that saved in LoanAce providing a complete audit trail that is accessible for pre and post funding audits. TEAM also tracks and date/time stamps the version of a file when it is printed allowing you to track disclosures, watch for fraud, and co-brokering. LoanAce allows users to attach and store all documents associated with a file within the program. In TEAM, these attachments are viewable online at anytime and TEAM automatically attaches a copy of the credit report. TEAM also allows the brokerage to have instant access to a web based electronic version of closed files and scanned images of all related documents for reports or audits. TEAM is offered free to any company that has 5+ loan officers/processors using LoanAce.

For more information on LoanAce please visit www.loanace.com and download the software for FREE.

Are lenders turning down your FHA Alternative Credit Files?

2008-06-04T08:38:28Z

I'm not going to say who the lenders are, but I've received several emails from brokers asking about FHA Alternative credit. FHA does accept Alternative Credit.....what I'm hearing is that the LENDERS ARE NOT ACCEPTING ALTERNATIVE CREDIT!!

Okay, now........That's not cool! FHA goal is "a home for everyone" (okay maybe not for everyone! but you know what I mean l.o.l.) I understand the lenders are a little paranoid, but come on!

I am including the link to Mortgagee Letter 2008-11: Nontraditional Credit Verification and Evaluation

http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/08-11ml.doc

I've sent out a few emails to a couple of lenders I know, I'll follow up with any information I receive.

Are you guys having this problem?

D.Bass

Mortgage Underwriter & Trainer

Check out our FHA Jump Start 3 Hour Workshop

www.alphamortgagetraining.net

Ask The Underwriter: Can the underwriter deny my loan if I rent out a room?

2008-06-03T14:33:37Z

Question from Borrower:

..........we will be living in our house No. 2. The house is close to university and accessible to public transportation. It has 4BR. We will have the 2Br to ourselves and the other 2 rooms to be rented out to students.

The loan consultant called me yesterday that the house would be treated as an investment property by the UW because I should not state that the purpose of our home loan is have 2 rooms to be rented out even though we will be occupying the property and that I would be committing fraud if I don't tell the truth.

Answer from Ask The Underwriter:

There is nothing wrong with you letting you rooms out to boarders (aka renting the rooms out). You cannot use this as projected income, because this is a Single Family Residence and not a multi-family.

I'm not sure why he/she thinks you are committing fraud. It's not unusaul for people with larger homes rent to boarders

Do you have questions regarding the underwriting process? Email me, I'll respond within 24 hours.

D. Bass

Mortgage Underwriter & Trainer

www.alphamortgagetraining.net

FHA Mortgage Training: Jump Start 3 Hour Workshop $99

2008-06-02T14:19:58Z

FHA Mortgage Training that fits in everyone's budget!

Spring into FHA with the information you need to get your loan approved. This course was designed for you to hit the ground running. A 3 hour course that goes over the information you need to get your FHA loan approved! June 10th's course filled up quick! Reserve your spot now.

~ Learn why your FHA loans are sitting or denied
~ Put a submission action plan together for future loans
~ Learn the calculations you need to pre-qualify your borrower

Who should take this course?
~ Loan Processors
~ Loan Originators
~ Real Estate Agents
~ Jr. Underwriters
~ DE Underwriter in need of quick refresher

The FHA Jump Start Program covers:
~ Most commonly used FHA Programs
~ Borrower eligibility
~ Disclosures
~ Calculations
~ Credit, Income, Asset Requirements
~ Packaging Tips

Register at: http://fhamortgagetraining.net/registration.aspx

The next available Online Live Training is June 17th

Live FHA Training available in various states. We also offer instructor led live on-line courses. If you are looking to learn technique and theory than contact Alpha Mortgage Training. Our Courses were written by a team of mortgage underwriters with a combined 58 years of conventional and government experience. Our courses will not only help you produce more effective loans, but they will also help you increase your closing ratio.

What Stated Income & Sub-Prime Programs are still around?

2008-04-29T10:39:20Z

I've received quite a few emails from brokers and processors asking for leads on stated income programs (and sub-prime programs!)

I also receive several emails a week from mortgage professionals needing help with stated income loans? (if your one of those mortgage professionals you missed a great free mini course I had on my website called Stated Income the Right Way!)

There was an article on Mortgage Implode today that say: Sub-prime Performance Stablizes (http://ml-implode.com/staticnews/2008-04-29_Subprimeloanperformancestabilizes.html)

Question: Who are you using for your Stated Income & Sub-Prime borrowers?

Live FHA Training available in various states. We also offer instructor led on-line courses. If you are looking to learn technique and theory than contact Alpha Mortgage Training. Our Courses were written by a team of mortgage underwriters with a combined 58 years of conventional and government experience. Our courses will not only help you produce more effective loans, but they will also help you increase your closing ratio.

FHA Training: Houston,Tx

2008-04-27T09:32:03Z

FHA Mortgage Training: Houston,TX May 14-15th 9am-4pm

We still have slots available! Join Alpha Mortgage Training in Houston,TX for a Live FHA Mortgage Training Course. This course was written by a Mortgage Underwriter to train Mortgage Professionals to work with FHA loans. This course is taught by seasoned D.E. Underwriters. The object of this course is: to learning the FHA mortgage process; so you can hit the ground running.

You can register for this courses at: http://www.alphamortgagetraining.net/courses.php?cat_id=4

Alpha Mortgage Training also offers Instructor Led On-line FHA Courses twice a month. You can register at: http://www.alphamortgagetraining.net/courses.php?cat_id=3. On-line course fill up quickly! Next On-line course is May 13-14th 9am-12pm.

We will also be in the following state:

Nashville, Tn
Charlotte, NC
Danbury, CT
Atlanta,Ga
Louisville, KY
......check back for additional states

Mortgage Training: Sub-Prime Revitilization!

2008-04-21T21:18:18Z

Join D.Bass from Alpha Mortgage Training & Jackie From P. C. Consultants, LLC for an afternoon of Revitalization!

We will discuss:

Authentic, Low Cost Ways to Fill Your Pipeline
Learn what the underwriter is thinking (please no egg throwing!)
How to effectively work with your processor
Discuss different techniques to make your stated income loan work (yes I'm talking about "liar loans!)
Review the appraisal from the underwriters point of view

Dates for various states will be posted within the next. Improve your production and turnaround time with up to date training.

P.C. Consultants, LLC: On-line Marketing, Secretarial, and I.T. Support services exclusively for Mortgage Professionals

Live FHA Training available in various states. If you are looking to learn technique and theory than contact Alpha Mortgage Training. Our Courses were written by a team of mortgage underwriters with a combined 58 years of conventional and government experience. Our courses will not only help you produce more effective loans, but they will also help you increase your closing ratio.

Calabash: Atlanta Vegan Cafe

2008-04-03T12:36:06Z

Calabash Vegan Cafe is by far the best restaurant I've been to. I've been going to this cafe for the past two months.

I have to confess: "I'm hooked".

Mind you I live in Canton, Ga (45 mintues and like 45 miles from downtown Atlanta!), but I find myself breaking speed limits at least once a week to grab a bite to eat.

This is "Island Inspired Vegan Cafe" is located at 233 Mitchell Street SW, Atlanta, Ga 30303. It offers Free WiFI AND GREAT FOOD!!!!

Menu Options include (but are not limited):

Jerk, Stewed & Curry Soya
Veggie Patties
Live/Raw Dishes (YUMMY vegan sushi & tacos!!!!)
Soups, Salads, Wraps
Tropical Juices, Smoothies
Vegan Muffins & Cakes

Okay, I know what your saying VEGAN FOOD! Let me say this: I am not a vegan. I had eggs, a whole wheat biscuit and turkey sausage for breakfast just this morning. So take it from someone who loves ALL food. This Vegan Cafe is WORLD CLASS!

Calabash Vegetarian Kitchen: An Island inspired Vegan Cafe

233 Mitchell Street, SW

Atlanta, Ga 30303

(Downtown between Spring & Forsyth Street)

Mortgage Training: Underwriting Sense...into the mind of an underwriter!

2008-03-31T11:12:09Z

Appalachian Technical College and Alpha Mortgage Training have partnered to offer Mortgage Training Courses. This course is taught by seasoned mortgage underwriters.

The Mortgage industry has shifted.....you need to shift with it! This is the course for you. Underwriting Sense will give you the information you need to get your loans to the CLOSING table.

HOW?..by telling you what you need to know:

What The Underwriter Is Looking For!

This course goes over:

Areas Commonly Missed on the 1003- we will go over the areas that slow your loan down in underwriting (you'll be very surprised!)
AUS Tips- the industry is moving back to DU (FannieMae) & LP (Loan Prospector) explains what areas you are overlooking and breaks down the conditions that are commonly misunderstood
Reviewing the Credit Report- goes over the credit report as an underwriter would
Income Calculation- examples of diffrent types of paystubs and calculations for income
Stated Income the Right Way!- discover diffrent techniques to make your income stronger
Asset Verification- assets will be shown and disclussed as well as tips on how to verify them
Title Issues- title issues will be discussed
Appraisal Review- the appraisal will be reviewed from the underwriters point of view

Jasper, Ga Campus

April 9 / Wednesday / 9:00am-3:00pm

June 11 / Wednesday / 9:00am-3:00pm

Woodstock,Ga Campus

April 10 / Thursday / 9:00am-3:00pm

June 12 / Thursday / 9:00am-3:00pm

****This course is also available online****

Live FHA Training available in various states. Mortgage training dates range from April-May. If you are looking to learn technique and theory than contact Alpha Mortgage Training. Our Courses were written by a team of mortgage underwriters with a combined 58 years of conventional and government experience. Our courses will not only help you produce more effective loans, but they will also help you increase your closing ratio.

FHA Mortgage Training in Georgia (Live)

2008-03-31T10:53:32Z

Live FHA Mortgage Training in Woodstock,Ga & Jasper,Ga at Appalachian Technical College.

Appalachian Technical College and Alpha Mortgage Training have partnered to offer Live FHA Mortgage Training Courses. This course was written by a Mortgage Underwriter to train Mortgage Professionals to work with FHA loans. This course is taught by seasoned FHA professionals. The focus of the training is learning the FHA mortgage process.

If you aren't currently doing FHA loans or need a refresher course, this is the course for you. We offer Live & Instructor Led On-line Training. This course is taught by seasoned DE Underwriters and breaks down the FHA mortgage process in a sensible, upbeat and interactive way!

Jasper,Ga Campus

April 14-15/Monday & Tues/ 9:00am-4:10pm

June 16-17/Monday & Tues/ 9:00am-4:10pm

Woodstock,Ga Campus

April 16-17/Wednesday & Thurs / 9:00am-4:10pm

June 18-19/Wednesday & Thurs / 9:00am-4:10pm

It's not too late! There is still space available for the April Course.

Mortgage Training: Ask The Underwriter=Sales Contract

2008-03-28T12:07:03Z

Mortgage Training Subject: Sales Contracts (Purchase Agreements)

It's Friday! It's the end of the month! ....and I think I'm going to start a little trouble again! Let's talk about Sales Contracts. Sales Contracts are not considered Fully Executed unless they are signed by all parties, have all the addendums attached and of course completed stipulations (if any).

...but there's something else: We have to be able to read it! In this era of paperless underwriting, faxed and emailed copies it gets a little tricky.

How many of you out there send underwriters sales contracts without all the addendums and contracts faxed so many times you get into a "heated discussion" with the underwriter because he/she can't read it?

Let me know!

Mortgage Training: Ask The Underwriter= More Questions!

2008-03-27T10:05:49Z

I've spoken to several loan processors and mortgage brokers regarding the Uniform Residential Loan Application (URLA or 1003). One of the hardest things to convince them is how important it is for them to complete the borrower's birthday and the Declarations section. The issue is most Automated Underwriting Systems (AUS) require the birth-date and the declaration information.

So here are my questions for you today:

Do you think asking the borrower for their birth-date is a waste of time?

Do you take the time to ask the borrower the questions in the Declarations section (see below) on the Application or do you complete it yourself after you pull credit?

Mortgage Training: Ask The Underwriter= Questions

2008-03-26T12:17:54Z

The Free Mortgage Training Course on my website this month is: Areas Commonly Missed on the 1003. I originally wrote this mini course out of frustration. Mortgage Professionals (Processors and Loan Officers) don't realise that an incomplete application can stall you loan for up to two days!

Once we recieve the loan in the underwriting department we are still left guessing because the person who called you about the incomplete application only asked you for what they needed to input the loan. Now in order to underwriter the loan I need more information.

It becomes a frustrating process for the lender and the mortgage professional.

This brings me to my questions:

When you take an application do you intend to complete the areas later?

If your borrower does not get back to you do you still submit the loan? Do you find that this slows your loan down?

Mortgage Training: Ask The Underwriter

2008-03-24T13:44:43Z

Mortgage Training; Income Calculations

Loan Originators,

I have a few questions for you:

How do you calculate Income? How do you do you document it? What do you ask the borrower when you take your application?

Loan Processors,

When you receive the file from the Loan Originator do you immediately verify the income? Do you make sure the income documents submitted match the application?

When the underwriter cuts your income do you find out why?

I've received a few questions regarding income and documentation. I was curious to know how people are handling their income calculation & documentation.

Mortgage Training: Incomplete Series: Assets Cont'd

2008-03-21T10:19:34Z

Mini-Mortgage Training Series

Underwriters look at monthly asset statements on a daily basis. The average processor and loan originator (I'm not talking about my seasoned LO's and processors) usually do not pay attention to the statements they submit. If the assets are on the 1003 (Uniform Residential Loan Application) the underwriter will have look at the loan again based on the correct amount of assets.

This is a quick list of a few things you can look for when providing the underwriter documentation for assets:

RETIREMENT FUNDS- Provide the most recent statement. Only use 70% of these funds. A few words to look for: vested, employer match, IRA and before tax.
CERTIFICATE OF DEPOSIT- Provide most recent statement from the institution. Some lenders will take an internet printout if the printout somehow connects back to the borrower (Acct #'s from statements in the file, borrower's name or last 4 digits of Social Security number)
STOCKS & BONDS- Provide the current months statement.

NOTE: I will be jumping back to Income for a brief moment next week for a day or two. I've had a couple of underwriting questions that I would write a blog. It may be 101 to some of you, but from the questions I've received I believe it will be a great help to a lot of people.

Good news for those in need of FHA Training

2008-03-20T14:57:32Z

Appalachian Technical College and Alpha Mortgage Training have partnered to offer Live FHA Mortgage Training Courses. This course was written by a Mortgage Underwriter to train Mortgage Professionals to work with FHA loans. This course is taught by seasoned FHA Underwriters. The focus of the training is "learning the FHA mortgage process". These courses will be taught at Appalachian Tech's Woodstock & Jasper Campus"

Alpha Mortgage Training also offers online Courses (instructor led and self-study). Our Live Training events for various states can be found at: http://www.alphamortgagetraining.net/courses.php?cat_id=4 .

The following states will be added within the next couple of weeks:

Ohio
Illinois
Michigan
Indiana
New York
New Jersey
Virginia
Washington
Missouri

Look for the Incomplete series to continue tomorrow.

If you are in need of mortgage training and you are looking to learn technique and theory than contact Alpha Mortgage Training. Our Courses were written by a team of mortgage underwriters with a combined 58 years of conventional and government experience. Our courses will not only help you produce more effective loans, but they will also help you increase your closing ratio.

Ask The Underwriter: Question regarding DO

2008-03-18T10:25:02Z

I have a DO accept with a back ratio over 43. The underwriter will not approve it without compensating factors. Is this standard industry practice?

First: Thanks for the Question!

This is not "really" standard industry practice. For government loans yes, but not for conventional. Also, for government loans the underwriter usually writes the compensating factors in the file (during the underwriting process) for HUD in case they have any questions later.

1. First I would talk to my Account Executive to find out if giving compensating factors is a new company policy or if this is a condition the underwriter "feels" will make the loan stronger. If it is not a company policy than DU (Fanniemae) made the decision when they gave your loan the Approve/Eligible.

2. If it is a company policy or you can't get your AE to help you; than here are a few questions you can ask yourself before you send in the compensating factors: Was the borrower already in that range of DTI before? What is the borrower's disposable income? What is the borrower's credit score? Does the borrower have over 2 months in reserves? How long has the borrower been on their job? Do they have any mortgage lates? Any positive answers to these questions can be used as compensating factors.

FYI...... I spoke to the person who asked this question and the underwriter was not using the borrower's overtime (the borrower had been employed with the same company for over 3 years), making DTI higer higher than it should have been. Make sure your income matches your lenders.

Ask The Underwriter: Incomplete File Series= Asset Documents

2008-03-17T07:19:18Z

Assets come in many forms and fashions (literally). You have the checking/savings, Certificate of Deposits, Retirement Accounts, Stocks, Bonds, etc... It's important to know what you're looking at so that you can submit the correct documentation. The goal is to receive the least amount of conditions as possible!

Here a few items to check for when looking at Bank Statements or Verification of Deposits:

1. Look for at least 2 months bank history when verifying "seasoned" funds to close or reserves - if the account only shows a month or they don't have another month they need to provide a paper trail for the money that was deposited.

2. The borrower only makes $2,000 dollars a month, but shows over $2,000 a month going into the bank- Provide a paper trail for these funds. Gifts, shared accounts, tax refunds, bonuses, etc... are pretty easy to trace. If it's a loan provide the documentation for the loan agreement (depending on what program your using), so that the payments can be counted in the DTI.

3. The VOD is not stamped, signed and date by a bank official

4. 2 month average needs to be completed

Retirement funds, Certificate of Deposits and Stocks & Bonds will be discussed tomorrow.

Ask The Underwriter: Incomplete File Series= Income Documents

2008-03-13T03:32:05Z

First let me say this:

Complete Tax Returns Include ALL SCHEDULES!

This is a heated debate between underwriters and mortgage brokers. The 1040 is the summary of all the schedules. We cannot analyze the tax returns if we don't have the information the 1040 is referring to.

Here are a few items to look for:

W-2 Information does not match the figures reported on the 1040's

Real Estate taxes or mortgage interest reported, but the Schedule of Real Estate owns shows no property listed
Real Estate owned, but no deductions taken for real estate taxes or mortgage interest paid.
Borrower's application shows they are not self-employed, but 1040's reflect income or loss under Schedule C.
Gross income does not agree with total income on Form 1099.

These are just a few things to look for before submitting your file. In the era of technology you'd be surprised at how fraud savvy some borrower's can be!

The next topic will be: Assets

Ask The Underwriter: Incomplete File Series= Income Docs

2008-03-11T11:30:07Z

Hello fellow Active Rain members...

I'm sorry I haven't completed this series I partnered with Appalachian Technical College (in Jasper, Ga & Woodstock, Ga) last week. It's been an exciting week!

My last post was about incomplete income documents. I wanted to continue on the subject of income. I was going to discuss the Verification of Employment and the weirdest thing happen last week..... Someone emailed me that very question!

I've actually had several questions regarding the Verification of Employment. I asked the last two mortgage professionals to email me a copy of the VOE (with the borrower's personal information blacked out). I wanted to see why the underwriter asked for additional information. I had an idea, but I wanted to be sure.

Here are a few things that will make your Verification of Employment "incomplete":

1. The Borrower's position/title on the 1003 doesn't match the present position on the Verification of Employment (see examples below)- This is a common red flag. Borrower's will sometimes "say" they are the manager, supervisor accountant, etc..., but when Verification of Employment is completed it shows a different title of position.

2. The applicant's date of employment doesn't add up to the Yrs on this job section of the 1003 (see examples below)- It's not uncommon for borrower's to give estimates of how long they have been on a job. If the borrower has given an incorrect amount of time and it doesn't equal to a two year employment history the underwriter will need an updated 1003 and the borrower's previous employer.

Part IV should have the title, signature and phone number of the person who completed the Verification of Employment (see examples below)- All documents sent to the lender are verified. The lender/underwriter/QC department needs a contact name and number to verify the document.

FAX LINES! - Most (I'm saying "most") Verification of Employments are faxed or they are ordered from the work number for everyone. There are times when the employer may require the Verification of Employment to be faxed, but I'm not talking about those times. Your verification of employment should have two fax lines on it, one from the brokers faxing it to the employer and the employer faxing it back (or an email printout if they emailed it back)

I'll end the income part to this series tomorrow with W-2's and Tax Returns.

D. Bass

Mortgage Underwriter & Trainer

If you are in need of mortgage training and you are looking to learn technique and theory than contact Alpha Mortgage Training. Our Courses were written by a team of mortgage underwriters with a combined 58 years of conventional and government experience. Our course will not only help you produce more effective loans, but they will also help you increase your closing ratio.

Ask The Underwriter: Incomplete File Series=Income documentation

2008-03-04T11:57:54Z

Most borrowers check stubs are issued by ADP or other well known pay check processing companies, but some borrowers (my husband included) have "different" check stubs.

When these "different" check stubs are submitted the underwriter often asks for additional documentation, but you can beat them to the punch by looking for a few things:

1. Does the pay stub have your borrower's full name and address on it?

2. Is the Year to Date (YTD) consistent with the number of months the borrower has been employed?

3. Does the Social Security Number (or last 4 digits of the number) match the check stub?

4. Are there any wage garnishments or loans on the check stub?

These are just a few of the questions you should ask yourself before you send in income documentation.

D. Bass

Mortgage Underwriter & Trainer

If you are in the need of mortgage training and you are looking to learn technique and theory than contact Alpha Mortgage Training. Our Courses were written by a team of mortgage underwriters with a combined 58 years of conventional and government experience. Our course will not only help you produce more effective loans, but they will also help you increase your closing ratio.

Ask The Underwriter: I'm going to start some trouble at the end of the month!

2008-02-26T21:12:26Z

I received 2 phone calls today both after 7pm! Both were very angry phone calls regarding conditions that were impossible to get. It's the end of the month everyone's cranky, no one's closing the amount of loans they want to, etc....

Okay 3 things and then I'm outta here before NO ONE lets me contract anymore!

1. What do the guidelines say?

2. Did you meet the guidelines?

3. Does the condition fall within the guidelines?

Now If your file is not strong (appraisal, job history, credit) or fraudulent (yea..I know....like someone would admit it!) let it go.

Like I said....that's all I have for you. Any questions?

Check out my website:

Ask The Underwriter: Desktop Underwriter Question

2008-02-25T10:51:25Z

Hi D. Bass,

I have read quite a few of your blogs and I like the way you educate all of us on UW questions. I have a question that I would like to ask you:

If DU findings come back as Refer/Eligible: Refer due to DTI at 67% but borrower has compensating factors (700+ score, 3 months reserves, 10% down payment etc). Have you seen UW's make an exception for such a borrower? Or they are just going to deny it?

Thanks

Answer from Ask the Underwriter:

First let me say: THANK YOU!! I'm glad you find my blogs helpful!

When running Desktop Underwriter Findings we have found that if you keep the DTI at 65% and under you may get an Approve/Eligible. We have never seen Desktop Underwriter approve a DTI over 65%. I suggest you review your loan to see how you can get your findings 65% or under.

I hope this helps

Ask The Underwriter: Fannie does stated income loans!!!

2008-02-21T13:45:22Z

I spoke to an underwriter buddy of mine today. She reminded me of something I'd like bring to yourattention. DU (FannieMae) and LP (Loan Prospector) still have the potential to be stated income loans! Oh....... the findings that I received that showed no income verification was needed (talking about an easy underwriter!)... just a verbal verification of employment from the employer and letter from an accountant or a phone listing (or active business lisc.) for the self-employed. Remember I said they have the potential: low ltv, mid to high fico, length of employment, length of time in home, assets, quality of credit, etc......

Okay, I know this is ANOTHER short one. BUT.... in my defense, I've gotten so many great marketing ideas form my fellow AR writers I've been busy putting those ideas to work. I promise next week will be better!

D. Bass (Mortgage Underwriter & Trainer)

Ask The Underwriter: The Credit Report (This one is short & sweet)

2008-02-20T16:24:04Z

The credit report has a wealth of information, but if you just glancing at you'll miss some very important information.

Refinances: When you look at your borrower's credit report you are looking for a 12-24 month mortgage history (depending on your program guidelines) Make sure you look at the number of months the account has been reported AND the dates. Sometimes they DON'T MATCH! See example below: The account was opened May of 2006, It was last active Sept of 2006....but it only shows 1 month reported.

If your loan has been ran thru DU (Fanniemae) or LP (Loan Prospector) make sure the mortgage has been paid of to date, if it hasn't get a supplement.

Just a short quick tip for today!!!!!!!

D. Bass

Mortgage Underwriter & Trainer