alpha mortgage training: Mortgage Training Tips: Trust Agreements - 04/18/11 03:11 AM
Exceptions to the requirement that borrowers be natural persons are:
inter vivos revocable trusts,
land trusts in some states if the beneficiary is an individual. Contact the lead Fannie Mae regional office to determine acceptability of a land trust as a borrower, and
HomeStyle Renovation mortgages.

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D. Bass ~ Mortgage Underwriter … (0 comments)

alpha mortgage training: Ask The Underwriter Tip: DU RESERVES!!!!!! - 10/05/10 03:39 PM
Not sure is this is a tip or if I just want to vent...I'll let you guys decide.  Desk Top Underwriter® has a section at the very end of the findings called the Underwriting Anaysis report; this section mimics the 1008 (Transmittal Undewriting Summary).  In the reserves section of the Underwritings Anaysis report is the amount of cash the borrower will have left after they pay closing cost.  It does not matter what the asset section of the DU findings says ($1200 must be verfied, etc...).  The amount the borrower has left over after closing cost MUST be equal to or more than the amount … (0 comments)

alpha mortgage training: Mortgage Training: Tips from Underwriting Sense..into the mind of an Underwriter - 08/04/09 01:17 AM
Mortgage Training: Tips from the course: Underwriting Sense....into the mind of an Underwriter
WHY do you NEED the tax bill and hazard insurance dec page? Here's a question we get often!
I have had to go to bat with Brokers, Processors and Account Executives regarding this condition!  We don't ask for these documents to give you a hard time or to make you go back to your borrower!  There is actually a legitimate reason we ask for it.  When a schedule of Real Estate Owned is submitted with "free & clear" properties listed we have to have accurate verified taxes and insurance … (0 comments)

alpha mortgage training: Mortgage Training: Tips from Underwriting Sense..into the mind of an Underwriter - 07/28/09 03:14 AM
Mortgage Training: Tips from the course: Underwriting Sense....into the mind of an Underwriter

One 1003 Please!!! 
I'm going to be completely honest with you: 
Ask The Underwriter: D. Bass has actually denied a loan due to multiple 1003s.  Before you click unsubscribe...hear me out!  The loan had four (4) 1003s in it and every on every single 1003 the borrowers worked at different jobs and made a different amount of income!   
And.....No.... this was not during the stated income was actually quite recent.   
One thing you have to understand is all the underwriter has to go by is in … (0 comments)

alpha mortgage training: Upcoming Mortgage Training: FHA & Self-Employed Borrower - 07/12/09 03:31 PM

Mortgage Training from Alpha Mortgage Training
Here are the upcoming Live On-line Training Events for August:
FHA JUMP START August 18th-19th (Taught by a FHA Underwriter)
When just one mistake in your FHA loan file could cost you weeks in underwriting and thousands of lost dollars a month, you can't afford to miss this course
Stated Income is GONE and TAX RETURNS are BACK! How many times have you received your conditions back from the underwriter asking for schedules you've never even heard off!!!  This course teaches you how … (1 comments)

alpha mortgage training: Freddie Mac Score Requirements - 10/20/08 01:09 PM
Upcoming Changes to Freddie's Credit Requirements
These credit changes will be published in the November Guide Bulletin and will be will be effective for Freddie Mac settlements on and after February 2, 2009:
Revise requirements for minimum Indicator Scores by:
Establishing minimum Indicator Score requirements for manually underwritten mortgages secured by 1-unit primary residences as follows (Home Possible® Mortgages excluded): 620 for LTV/TLTV/HTLTV ratios less than or equal to 75 percent. 660 for LTV/TLTV/HTLTV ratios greater than 75 percent. Establishing a minimum Indicator Score of 620 for all mortgages unless otherwise specified for a particular mortgage product in our Guide. Loan Prospector … (2 comments)

alpha mortgage training: Freddie Mac Going back to 45% DTI - 10/19/08 12:50 PM
Upcoming Changes to Freddie's Credit Requirements
These credit changes will be published in the November Guide Bulletin and will be will be effective for Freddie Mac settlements on and after February 2, 2009:
Eliminate purchases of all mortgages originated with stated income and/or stated assets, including borrower selected programs, lender-branded and marketed programs, and system-selected programs such as Loan Prospector® Accept Plus. Establish a maximum debt-to-income ratio of 45 percent for all mortgages they purchase, except for Streamlined Refinance Mortgages. They made a few other changes I will talk about later this week, but we expected the DTI to go back down didn't … (9 comments)

alpha mortgage training: Mortgage Training: Ask The Underwriter - 03/24/08 06:44 AM
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.
Live FHA Training available in various states. Mortgage training … (9 comments)

alpha mortgage training: Ask The Underwriter: Incomplete File Series= Asset Documents - 03/17/08 12:19 AM
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 … (8 comments)

alpha mortgage training: Ask The Underwriter: Incomplete File Series= Income Documents - 03/12/08 08:32 PM
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 listedReal Estate owned, but no deductions taken for real estate taxes or mortgage interest paid.Borrower's application shows they are not self-employed, but … (8 comments)

alpha mortgage training: Ask The Underwriter: Incomplete File Series= Income Docs - 03/11/08 04:30 AM
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 … (9 comments)

alpha mortgage training: Ask The Underwriter: I'm going to start some trouble at the end of the month! - 02/26/08 01:12 PM
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 someone would admit it!) let it go.
Like I said....that's all I have for you. Any questions?
Check out … (13 comments)

alpha mortgage training: Ask The Underwriter: Desktop Underwriter Question - 02/25/08 02:51 AM
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?
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 … (17 comments)

alpha mortgage training: Ask The Underwriter: Fannie does stated income loans!!! - 02/21/08 05:45 AM
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 … (15 comments)

alpha mortgage training: Ask The Underwriter: The Credit Report (This one is short & sweet) - 02/20/08 08:24 AM
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 … (4 comments)

alpha mortgage training: Ask The Underwriter: Compensating Factors? - 02/19/08 12:56 AM

Compensating Factors: Information used to strengthen your mortgage loan file.  Not a definite, but definitely worth trying.
There are times to let sleeping dogs lie and there are times to let out the battle cry and bring on the: COMPENSATING FACTORS! When your borrower falls short you need HELP!
Here are some examples of Compensating Factors:
No adverse credit in past 24 months Credit Score is higher than required score for the programsCLTV (Combined Loan To Value) is below the max programs guidelinesReserves are greater than the required program guidelinesDebt Ratio is below industry standard 28/36No payment shockIncome stability Borrower has a history of … (6 comments)

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D. Bass

Blog: Ask The Underwriter

Atlanta, GA

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Ask The Underwriter

Address: 4302 Crossing Drive, Atlanta, Ga, 30305

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