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

By Dionne Bass

Education & Training with Ask The Underwriter Mentor/ Mtg. Underwriter

February 21, 2008 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 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)

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Clint Haynes

Peoples Home Equity, Inc. - Mount Juliet, TN

If you can stay below 90% ltv with good scores then it's definitely possible to be able to still go stated

Feb 21, 2008 05:52 AM

Matt Ratcliffe, REALTOR

Keller Williams Realty Brazos Valley - College Station, TX

The more down t he better...we just have to find the equity in todays market.

Feb 21, 2008 05:57 AM

Matthew Rosov

Amerisave Mortgage Corporation - Laurel, MD

Certified Mortgage Planning Specialist

I've have heard of these - just haven't seen one yet!

Feb 21, 2008 06:04 AM

Matthew J Blum - (retired from the business)

Palm Beach Gardens, FL

This is funny. I wrote a post about this a few weeks back. So many people are being given the wrong information about these type of documentation loans. Fast and easy is still here

Feb 21, 2008 06:10 AM

Dionne Bass

Ask The Underwriter - Atlanta, GA

Blog: Ask The Underwriter

Okay this is funny....I have three Matthew's commenting within 15 minutes of each other! Did you guys call each other?

Clint, Matthew R. & Matthew B.~ I wrote this post because from what I'm hearing there are a lot of these findings out there! Maybe when the rates go down again more of the 90% and under borrowers will crawl from under their rocks!

Matt R~ Your right....makes me wonder how hard those 2nd mortgage holders are going to fight? Now thats going to be the tough one.

I hope you guys come back around, my blogs are usually a little longer and more informative than this.....

Feb 21, 2008 06:38 AM

Christopher Ohlsen

Credit Werx, LLC. - Malone, NY

hmmm, I was just trying to comment and the screen reset and I lost my paragraph. I was just mentioning how I have come accross a few of these. I like to call them GoFast (got the term from GMAC). They are full doc loans without the income documentation requirment.

Feb 21, 2008 06:46 AM

Tony Grego, 317-663-4173 #1 Trade Association for Alternative Inv

REISA - 317-663-4173 - Indianapolis, IN

Nothing wrong with short. What counts is the information.

I ran a DU yesterday with a 791 mid, R&T, 75% LTV and came back with both income and asset waivers along with just a drive by vs. a full apprasial.

Thanks again for the post

Happy Selling!
Tony Grego - Indiana Mortgage Broker

Feb 21, 2008 08:51 AM

Steven Odierno

Mahwah, NJ

NJ Mortgage & Marketing Professional

Your blogs are extremely informative, so there is no need to worry about their length. There is nothing better than when the findings come back with income or asset waivers. It sounds like Tony hit the jackpot with his client mentioned above. Congratulations to him, and thanks for the post.

Feb 21, 2008 09:08 AM

Jackie - computer-training-atlanta.com

770.498.7333 - Atlanta, GA

Learn to leverage technology to get more done.

D, it doesn't matter if the post is short - it is very valuable. I'm willing to bet that a lot of originators have no idea FM does stated.

Feb 21, 2008 10:25 AM

Whitney Yasso

Sliva Captial - Honolulu, HI

Great Information.

Feb 21, 2008 10:33 AM

Dionne Bass

Ask The Underwriter - Atlanta, GA

Blog: Ask The Underwriter

Christopher~ Underwriters call it: Cherry picking!

Tony~ Your welcome! I'll go back to being long winded next week!

Steven~ Thanks for the compliment Steven, I try and keep my ear to ground and address what Bokers are Realtors are going thru on a daily basis.

Jackie~ Thanks!, I try and tell brokers to run it thru DU & LP. You never know what they'll come up with.

Whitney~ Thanks Whitney.

I hope you guys continue visiting me!

Feb 21, 2008 11:09 AM

George Souto

George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT

Your Connecticut Mortgage Expert

D. Bass blogs that are short and to the point are the best blogs in my opinion, so do not apologies for the length of this one. Yes on occasion we do get a DU Finding that does not ask for Income Verification and that is great. But I hope people do not get these mixed up with the so called "Stated Loan Programs"

Feb 21, 2008 11:26 AM

Christopher Hills

North Andover, MA

Managing Dir. Lending

it is a little more tricky in massachusetts. the State has put restriction on these loans. Make sure you know the guidelines before you qoute your client

Feb 22, 2008 12:56 AM

Katrina Madewell

Charles Rutenberg Rlty- More than 5,000 agents(813) 777-1196 - Tampa, FL

Tampa FL Homes for sale | Tampa Bay - (813) 777-1196

D - I have seen these before, but not all that often, and LESS and LESS these days... what are the major contributing factor (or common denominator) in these loans? LOW LTV? or combo of this w pretty good credit and some reserves?...

Very great post, I will be subscribing to your blog, I LOVE IT, something a bit different.

Feb 25, 2008 04:22 PM

sandy bridges

06/29/12 Client has home for sale is buying another to be used as primry residence. He has applied and been approved for convential 80/20. He is going to have to supplement his income for a period of 3 yrs according to underwriting . He has a benificary IRA that has 40+k and a ROTH he candraw on with out being taxed with 50K. He needs 60+K for the 3 yrs.Underwriting is requiring 2 months of deposits into has account from resource. 2days ago we were advised by underwriting that he does not have enough reserve because Freddie and Fannie guidelines will not allow depletion of on source and roll into the other for balance. We are suppose to close Monday 07/02/2012. Help

Jun 29, 2012 12:33 AM