Today we are going to discuss the confusion surrounding the application of real estate tax credits to the borrower’s closing costs and (MRI) minimum required investment, when applicable. If you are just as confused, this blog is for you. In some state’s property taxes are paid in the arrears which means that the borrower is paying for “services” the municipality…
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…
In the first two parts of this series, I discussed the impact of a “purchase market” and “digital” on the fraud. Today, the last in the series, I want to outline some extra’s you can do to protect yourself and your borrowers. What can you do? You need to also ensure that any party with which you do business is…
Fraud has always been a problem for mortgage lenders, but now it’s starting to really get interesting, and expensive. With the home mortgage market turning from refi’s to purchases, rates rising and a housing shortage along comes an increase in loan defects, fraud, and misrepresentations. In the past, instances of fraud mainly centered on the consumer trying to get away…
It should come as no surprise to anyone in mortgage lending that the industry has been a little late in the adoption of new technologies to help streamline our business. Some of this may be because in the past several years, during the refi boom, business literally came walking through the door. It was all lenders could do to keep up…
With home prices rising, a limited inventory, and increased mortgage rates more home buyers are making offers on properties sight-unseen. Home inventories are shrinking and buyer demand increasing makes it more difficult for buyers to find a home. Nearly 20% of the homes recently sold were above their asking price. This trend is expected to continue with the number increasing.…
