Home : Blogs : Fred Chamberlin - Eugene/Springfield's #1 Experienced FHA Mortgage Consultant : Fred's FHA Mortgage and Conventional Real Estate Loan Blog

Loan Qualification Standards have changed. Do you know the 3Cs?

Three major concerns in mortgage loan underwriting have again come to the forefront with underwriters. Those three items, Credit, Collateral and Capacity are the three legs of intelligent underwriting in todays Real Estate Mortgage industry. What are some of the things that effect these three legs and what changes are new (again) in the consideration of underwriters. You can read the entire post here in my post on Eugene Loan Guy.

I would have thought that some of these points were just common sense, but as is evident with the foreclosure rate and amount of defaulting mortgage loans, obviously, common sense didn't have a lot to do with underwriting in many cases in the past few years.

Posted by Fred Chamberlin - Eugene/Springfield's #1 Experienced FHA Mortgage Consultant on 01/23/2009 01:06 AM

Comments (12)

Underwriting Standards in the Mortgage / Finance Channel

bankruptcy, capacity, collateral, credit, eugenespringfield, lane county, mortgage loans, oregon

This post has been included in Oregon Information Lane County, OR Information Eugene, OR Information
Post is included in group: Internet Empowered Consumer
Post is included in group: First Time Homebuyer
Post is included in group: Consumer Mortgage Tips
Post is included in group: Club Chaos
Post is included in group: 1st Time Buyers

12 Comments on Loan Qualification Standards have changed. Do you know the 3Cs?

JAN

Fred - simply put, looking forward to your next installment on the Eugene Loan Guy.

Mike - I don't think you could have made a nicer comment. Thank you.

Fred great information. I find dealing with people some times the simplest concepts are the hardest to explain and get them to understand. Well done.

Hi Fred, Loved the link to your blog. Great idea! I always learn so much from reading your posts. You would think that common sense played a part in getting a loan, but as you indicated, that's why we're in the mess we're in today - no common sense in years past!

I like the new format - hope that works for you!

I had an underwriter tell me recently that she used to give the okay on folks with another "C" Caution, but that she no longer is doing that. I wonder how my "caution clients" failed to make their payments.

Sean - KISS is always a good way to go. Especially on those times that someone is really acting the stupid part.

Sandy - Thank you. I think I will probably do a lot more linking to my blog in the future. Unfortunately, common sense was totally lacking in a lot of the lending that went on.

Eleanor - Me too.

Tammy - I would bet a very high percentage.

Fred, what a great well written article. I know you must be a great loan officer to your clients as you truely have the ability to explain so very well. I am 33 years in the mortgage business and pride myself in my ability to educate the borrowers.

Would you believe I am brand new to AR and this is my first response I've posted. My first anything as I haven't even posted a blog yet.

I think I must join this group. I think I need to join the newbees group as well.

Fred, as a former Branch Manager of one of the largest lenders around, I can tell you that common sense got thrown out the window and it became a free for all. Today's Special "Pick your Loan Criteria"

Thanks Marlene - I hope you come back often. Let me know if you have any questions that I can help you with to get around the system.

Danny - You know, the stated income loan was a good product until it got used for wage earners and people that never paid anything on time in their life.

JAN

Fred, great outside post and same for this one. Many people do not realize how complicated getting an approval can be now. Throw a little hair into the mix and it maybe near impossible. I also used to work for Countrywide and fast and easy used to be so easy to do. If one had good mortgage credit, overall good credit, and in the heyday a 660 score well "fast and easy" here we come. It was not always a bad thing as it expedited the process for current customers. Goodness, how times have changed and lets hope for the better.

Yes Eric, I remember the "fast and easy." The last one I did with Countrywide was neither Fast nor Easy. Not all bad, but then not all good either.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?