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…
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 &…
Should a lender ask an FHA loan applicant the nature of their disability and how long they expect to be receiving any benefits? Be careful. A Michigan lender had to enter into an agreement with HUD to settle alleged discrimination against an applicant with a disability. Under this agreement the lender, Mortgage One, is required to make a monetary settlement…
Recently, it was reported that many consumers still believe they need at least 20% down to buy a home. Although that may be true, a recent Freddie Mac survey finds that most renters do not have savings for this down payment as their top priority. In fact, it’s not one of their top 3 goals (Renters). The Freddie survey found…
Fannie Mae and Equifax have announced that Fannie will be incorporating credit trending information, provided by Equifax, into Desktop Underwriter. In addition, lenders will be able to verify an applicant’s income and employment through DU using either Equifax’s “The Work Number” product or through a manual verification service offered by Equifax (Verifications). Both Fannie Mae and Equifax tout this as…
The Department of Justice (DOJ) is awaiting court approval for a settlement agreement with Sage Bank of Lowell Mass., to the tune of almost $1.2 million. Sweet music to the DOJ. This action was brought about for alleged discrimination in lending to minority home buyers or owners. The alleged discriminatory lending practices were brought to DOJ’s attention under a referral…
