Good-News-Freddie-mac-modifies-policies
Mortgage Industry Trends

Good News! -Freddie Mac Modifies Policies on Borrower Funds, Reserves, & Contributions

Freddie Mac has modified some of its long-standing underwriting policies that should help reduce the paperwork burden for lenders in qualifying prospective borrowers, in their Guide Bulletin 2015-20, dated December 2, 2015. Outlined below is a summary of each of these changes: Borrower Funds/Reserves – if a borrower’s combined value of assets derived from stocks, bonds, mutual funds, US Government…

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LO-Comp-Motivation
Mortgage Compliance

It’s Not Only LO Comp Plans That May Cause You Trouble

In the past, we’ve heard and read about Lenders being fined and penalized for violations which relate to their LO compensation plan and/or for some method that they pay their loan originators. Based on recent DOJ settlements with FHA lenders, problems may also arise resulting from FHA Underwriter comp plans. In the case of Franklin American Mortgage, of Franklin, TN,…

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FHA-this-just-in-Mortgage-limits
Mortgage Compliance

FHA Mortgage Limits to Remain the Same – except 188 Counties

HUD/FHA announced that their FHA maximum mortgage limits will remain the same in 2016, in a press release dated December 9, 2015.  There will be no change in the national loan limit “ceiling” of $625,500 or the “floor” of $271,050. This announcement will end all speculation that the FHA ceiling and/or floor would be increasing due to rising home prices…

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FHA-Pre-Close-Post-Close
Mortgage Loan Quality

Pre-Closing (or Pre-Funding) Reviews Are Now Required on FHA Loans!

Most lenders are aware that Fannie Mae has an established policy that requires the processing of pre-funding (or pre-closing) reviews as part of a lender’s overall written Quality Control Plan.  These documented procedures must include (at a minimum) the timing of the reviews, the loan selection process, verification of data & documents and reporting. However, with the numerous policy &…

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