My colleague ,Mike Vitali, discussed in his blog post on July 21st the CFPB’s action to extend the implementation date for TRID from August 1, 2015 to October 3, 2015. Today comes word that the House Financial Services Committee is expected to take up H.R. 3192 on July 28, 2015 which would provide a temporary safe harbor from enforcement of the…
At some point in your career − maybe even during a job interview − many in the mortgage lending industry have been asked: Are you a DE underwriter? Do you have a CHUMS number? What is your DE number? Essentially, these are all variations of the same question. In 1996, HUD/FHA delegated the responsibility of approving underwriters to process loans…
HUD/FHA’s Origination Through Post-Closing Handbook (4000.1) consolidates & supersedes numerous Mortgagee Letters, Notices, etc. that have been issued in past years and provides users with one, updated & consolidated document containing the current FHA underwriting policies. Lenders beware – this Handbook also enacts many changes to current FHA policies & procedures. Many of these changes will make it more difficult…
Answer: Fannie Mae recently announced several underwriting policy & procedural changes in their Selling Guide Announcement SEL-2015-07, dated June 30, 2015. One noteworthy change involves the topic of using vested stocks, bonds and mutual funds (including retirement accounts) when they are used for meeting a borrower’s minimum investment requirement, closing costs and reserves. Previously, a standard reduction in value was…
As previously reported, in an Announcement dated May 29, 2015, Freddie Mac has stated that beginning June 1, 2015 the use of Loan Prospector will be free for all new loan submissions. Loan Prospector is Freddie Mac’s automated underwriting system which provides feedback to lenders on loan eligibility as well as minimum documentation requirements for underwriting the loan transaction. Not…
What this means to Mortgage Lenders! In a June 18, 2015 News Release, HUD/FHA announced that it has further refined its risk management processes and has created a new “Defect Taxonomy”. The framework for this revised taxonomy centers on three core concepts: Identifying a defect Capturing sources and causes of a defect Assessing severity of a defect Just what does…
