The recent decision in California in favor of Irvine-based, Mount Olympus Mortgage against Guaranteed Mortgage and a former Loan Originator, for corporate espionage (stealing loans) has lenders reviewing their contracts and employment agreements with their LOs. These contracts need to cover more than just compensation. They should also specifically spell out who “owns” the customer and what happens if, and…
The good news is that FHA has amended their policy, which I outlined in an August 2015 blog post. That post, was about the GSE’s underwriting policy with respect to borrowers with outstanding student loan debt and highlighted the proposed HUD/FHA new policy (upon implementation of Handbook 4000.1). The policy in August required lenders to calculate a monthly payment for…
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…
No, it’s not a new undersea adventure to raise the Titanic or find some long lost sunken treasures, it’s the movement by the Agencies and FHA to provide low down payment financing to first-time and low-to-moderate income home buyers. About a year ago, both Fannie and Freddie announced the reinstatement of their 3% down payment loan programs. This was done…
It’s that time of year. Pitchers and catchers are reporting for spring training and a new baseball season is about ready to get underway. Each team is preparing for what is to come and looking forward to competing for an appearance in the playoffs with the ultimate goal of winning the World Series. Spring training is here and with it…
With all the attention being paid to TRID compliance and changes, it seems that lenders have loosened some their credit standards in some areas to help make more loans. Maybe, this is the result of more independent mortgage bankers doing more FHA lending. Whatever it is, Equifax recently reported that loans made to consumers with an Equifax Risk Score of…
