underwriting: FHA's 1 Year Waiting Period After Short Sale Bankruptcy or Foreclosure
- 08/17/13 09:02 AM
Where was this three years ago? Better late than never I suppose. FHA is now insuring loans to homebuyers who have experienced an Economic Event (Short Sale, Bankruptcy, Deed in Lieu of Foreclosure or Foreclosure) in the past and can document that (1) their certain credit impairments were the result of a Loss of Employment or a significant loss of Household Income beyond the borrower’s control, (2) the homebuyer has demonstrated full Recovery from the event and, (3) the homebuyer has completed housing counseling. FYI, in the event of a short sale, this is for buyers who DID have late mortgage … (35 comments)
underwriting: Verifying & Sourcing Large Deposits for Mortgages – The Real Guidelines
- 03/29/13 06:37 AM
In the last 4 years, an effort has been made on the part of mortgage lenders to ensure precise accuracy on income, liabilities but also on making sure that their money is really their money. Consequently they look for “Indications of Borrowed Funds.” One such indicator of potential borrowed funds is a large and irregular deposit on a bank statement and, when found, they can lead to the Spanish Inquisition of Letters of Explanation and documenting the origins of these funds. When this guideline originally came out, it arrived without much clarity so naturally everyone took the strictest interpretation of what … (0 comments)
underwriting: Unsolicited Advice for a Loan Officer’s Evolution – Learn to Underwrite
- 05/30/10 09:26 AM
Since mid 2007, the mortgage originator as we know it has ceased to be. The requirements for technical knowledge, industry awareness and precision have skyrocketed to the extent that a modern day loan originator is more of an “Under-iginator.” He/she must be 50% loan officer, 15% customer service/sales rep, 5% appraisal reviewer and 30% underwriter to have any business talking to a customer about a mortgage. As well, the role of a processor has too changed. Some repetition-based duties have been replaced with technological automation. While those responsibilities have gone to the wayside, the secondary mortgage market has forced the … (7 comments)
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Where was this three years ago? Better late than never I suppose. FHA is now insuring loans to homebuyers who have experienced an Economic Event (Short Sale, Bankruptcy, Deed in Lieu of Foreclosure or Foreclosure) in the past and can document that (1) their certain credit impairments were the result of a Loss of Employment or a significant loss of Household Income beyond the borrower’s control, (2) the homebuyer has demonstrated full Recovery from the event and, (3) the homebuyer has completed housing counseling.
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