Fannie Mae introduced their new Day 1 Certainty program for relief from the reps and warrants related to the verification and reverification of employment, income, and assets. Good news for lenders. To obtain the relief, lenders need to validate information through Fannie approved vendors. At present those are limited to; The Work Number for employment and income Equifax for tax…
Tag: Verification of Income
The Devil Made Me Do It
Welcome to America; land of opportunity. That includes the opportunity to defraud mortgage lenders and banks when getting a loan. (Chicago Tribune article on Liar Loans) Individuals found guilty of participating in the creation of fraudulent loans say they shouldn’t have to pay any restitution to the BofA for losses because the bank should have known better. After all, the…
Walking a Thin Line on Disability Income Verification
Should a lender ask an FHA loan applicant the nature of their disability and how long they expect to be receiving any benefits? Be careful. A Michigan lender had to enter into an agreement with HUD to settle alleged discrimination against an applicant with a disability. Under this agreement the lender, Mortgage One, is required to make a monetary settlement…
Question: Can Stocks, Bonds and Mutual Funds be counted towards a borrower’s available assets when obtaining a mortgage?
Answer: Fannie Mae recently announced several underwriting policy & procedural changes in their Selling Guide Announcement SEL-2015-07, dated June 30, 2015. One noteworthy change involves the topic of using vested stocks, bonds and mutual funds (including retirement accounts) when they are used for meeting a borrower’s minimum investment requirement, closing costs and reserves. Previously, a standard reduction in value was…