LoanLogics is often asked for specific examples of where machine learning can make impact along the mortgage value chain and of course, as a regtech provider, we have found practical application in loan quality management. Early application of machine learning technologies are being used for the creation of verified, validated data (or what we’ve termed “purified data”), that powers…
In today’s mortgage industry, loan quality is best assured throughout the process, not after the fact. The reason the regtech solutions are taking off is because lenders are slowly realizing they need to tackle loan quality issues as they happen, from the point they begin gathering information to create a loan file through closing. The business risk of producing bad…
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…
Often, underwriters are faced with a borrower, especially a self-employed borrower, whose income has declined year over year. I wanted to provide a quick review regarding declining income for self-employed borrower(s) specifically for FHA loans. There are a few paths a loan can follow. When income is declining year over year, it affects how the borrower’s income is calculated as…
Last July, Fannie Mae began accepting loans with debt to income (DTI) ratios up to 50%. This is much higher than that allowable under the Truth Lending Act (TILA) for a Qualified Mortgage (QM). However, TILA offers an exception to the QM rules for loans that get approved by Fannie’s Automated Underwriting System (AUS). For now, as long as the…
With the mortgage business projected to be a little tougher in 2018, the industry needs to find ways to produce and close loans more efficiently. The obvious answer is through the increased use of technology. But, are lenders prepared to invest the time and money needed to implement such technology? Lenders can continue to do business as they’ve done in…
