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…
The current Administration seems to have a soft spot when it comes to those who have violated the rules. In a speech at the current NAACP Conference in Philadelphia, President Obama mentioned that, among other things, employers should not be allowed to ask an applicant if they had been previously convicted of a crime. Also, he said that once they…
As if you didn’t already know, a recent report (and chart) issued by MBA indicates that Underwriter productivity has been on the decline over the past ten years (UW Productivity). On average, for the larger lenders the number of loans reviewed per underwriter per month decreased from about 165 to 33; that’s a decrease daily from approximately 8 down to…
Here’s one that might have you scratching your head. According to a recent FHFA report, mortgages made to first-time homebuyers tend to perform worse than those made to repeat buyers. That would seem to indicate that first-time homebuyers are riskier than established homebuyers. Fannie Mae doesn’t agree (FHFA View). Fannie says it’s like comparing apples to oranges. Although they’re both…
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…
As a Turtle would say, “You bet your sweet …” it can! (Ancient and Honorable Order of Turtles) CFPB started a pilot program with several lenders about a year ago to explore the possibilities of a totally electronic closing. Not closing that uses static images of paper documents that are signed electronically but rather a process that is totally electronic;…
