In honor of college basketball’s annual “Big Dance” held in March in which approximately 68 men’s teams compete for the NCAA Championship and ultimately boils down to the “Final Four.” It is a good time to reflect on the Four C’s of Single Family loan underwriting. They are Capacity, Credit, Cash and Collateral. Outlined below is a brief description of…
There are quite a number of tools available to lenders and Quality Control firms these days to help identify and prevent fraud in the processing, underwriting and closing of mortgage loan transactions. Automated risk assessment reports, AVMs, Collateral Underwriter, backup credit reports, CAIVRS, Internet Searches, etc. are used on an ongoing basis by industry personnel in helping to identify possible…
According to Fitch Rating, investors may be a little too picky when it comes to denying loan purchases because of a TRID document not being prepared exactly per the new rules (TRIDSlips). The amount of data required to appear on each new disclosure, coupled with the requirements for how it should be reported, creates some major challenges for a lender.…
If you attended the recent Conference of Regional MBAs in Atlantic City, you heard Barry Habib, President of MBS Highway, talk about why he believes we may see another surge in refinances if/when the Fed raises short-term rates (Rates). Barry made a similar prediction last year of decreasing rates and was correct. We did see loan rates drop when the…
As we all well know, sometimes the headlines are written to grab our attention but the story reveals something a little different. Take the headline on this article appearing in last Tuesday’s MBA NEWSLINK; “Survey: Consumers Still Report Slower Closings, ‘Surprises’ Under TRID” (Survey). This headline would lead one to believe that closings are being delayed, and consumers are being…
They may not be one of the 68 teams that made it to the big dance for March Madness, but like each team in the NCAA tournament, the FED says it “ain’t gonna be one and done”. They want to play on…(Fed Rates). In the December FOMC meeting, Janet Yellen, and the Fed, raised the short terms slightly. No real surprise…
