The presence of one or more red flags is not necessarily indicative of fraudulent intent, but it does point out the need for additional review. Red flags must be documented in the loan file, including red flags identified through various underwriting engines like Fannie Mae (DU), Freddie Mac (LPA). The following are just some examples of red flags related…
FHA guidelines state that their recommendation is not an absolute approval as “The Mortgagee may not accept or deny an FHA-insured Mortgage based solely on a risk assessment generated by TOTAL Mortgage Scorecard.” There still needs to be a determination that the borrower has the ability to repay the debt. One of the areas left up to underwriters, regarding FHA…
Who hasn’t experienced this situation? You go to assemble a piece of furniture armed with a dozen screwdrivers, wrenches and hammers and you discover the job requires the one Allen wrench size you do not own! What does this have to do with technology and the mortgage industry? Imagine the same situation when it comes to solving tough questions concerning…
Retail lenders and industry vendors alike will tell you they are investing in improving the customer experience to capture and retain new business. A result of a competitive market, choosing which lender to go with has become less about price and more about the experience borrowers have engaging with a lender’s brand. To deliver, retail lenders are focused on: Online…
Often, underwriters are faced with a borrower, especially a self-employed borrower, whose income has declined year over year. I wanted to provide a quick review regarding declining income for self-employed borrower(s) specifically for FHA loans. There are a few paths a loan can follow. When income is declining year over year, it affects how the borrower’s income is calculated as…
Modern businesses are fueled by data. Data drives the decision making in every facet of the business cycle. But, data is not always accessible or easy to attain. In the mortgage industry, data is often ‘locked’ away in scanned paper documents or PDF documents. The data exists, but not in a form that is useful. Think of a diamond embedded…
