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…
USDA Rural Development has recently introduced a new security role of “Lender Agent” to their participating lenders. This new role will enable lenders to provide Guaranteed Underwriting System (GUS) access to third party agents such as mortgage brokers and/or correspondent lenders. The USDA’s GUS was updated on December 9, 2015 to help facilitate this new functionality. Once officially designated as…
Innovations via Technology – Making the Loan Origination Process More Effective & Efficient On October 19th, Fannie Mae announced a series of innovations that will collectively have a positive impact on the loan origination process. The ultimate objectives of these innovations are to provide more access to mortgage financing to prospective home buyers and to help simplify current loan processing…
September & October 2015 will go down as an important period of time for the implementation of many substantial credit and compliance policy & procedural changes for the mortgage lending industry. Many of our past LoanLogics Blogs have focused on the roll-out of FHA’s 4000.1 Handbook and the numerous policy changes that became effective for transactions obtaining their FHA case…
To FHA Approved Lenders: are you hiring or terminating staff Underwriters? To DE Underwriters: are you thinking about changing jobs? What you both need to know! In my prior Blog Post, I discussed the current process by which prospective “Direct Endorsement” (DE) Underwriters obtain their FHA approval & DE number. Once someone has obtained this designation, it is important for…
As if you didn’t already know, a recent report (and chart) issued by MBA indicates that Underwriter productivity has been on the decline over the past ten years (UW Productivity). On average, for the larger lenders the number of loans reviewed per underwriter per month decreased from about 165 to 33; that’s a decrease daily from approximately 8 down to…
