Written by: Internal Analysis & Opinion Writers
Economists are raising red flags over former President Donald Trump’s aggressive trade policy, warning that the reintroduction of steep tariffs could undo decades of global economic integration and steer the U.S. economy back toward the protectionist practices of the early 20th century. Recent estimates suggest that average U.S. tariff levels are now approaching highs not seen since 1910—a period marked by isolationism and economic volatility.
Written by: Internal Analysis & Opinion Writers
Zillow has announced a sweeping policy shift that aims to clamp down on the widespread use of “pocket listings”—properties marketed privately without being listed on a Multiple Listing Service (MLS). Starting May 1, homes that have been publicly marketed outside the MLS will no longer be allowed on Zillow’s platform. The move is being positioned as a step toward greater transparency and equal opportunity in home buying.
Written by: Internal Analysis & Opinion Writers
Mortgage rates continued to climb last week despite the Trump administration’s decision to delay certain trade tariffs, adding fresh pressure to an already strained housing market. The increase in borrowing costs came as a surprise to many industry watchers who had expected rate relief following news that some of the proposed tariffs would be postponed. Instead, the rise underscores the persistent influence of broader economic forces—especially inflation expectations and bond market volatility—on the cost of home loans.
Written By: Joel Palmer, Op-Ed Writer
The new director of the Federal Housing Finance Agency (FHFA) spent much of last week issuing orders that rescinded or terminated policies put in place during the previous administration. FHFA Director William Pulte posted the series of orders on his X.com account last week.
Written By: Joel Palmer, Op-Ed Writer
The new director of the Federal Housing Finance Agency (FHFA) took the opportunity of his swearing in to echo the Trump administration’s emphasis on government efficiency. William J. Pulte was confirmed by a 56-43 vote of the U.S. Senate last week as FHFA Director for a five-year term. Three Democrats voted with the Republican majority to approve President Trump’s nomination.
Written By: Delores Weaver
Have you begun to memorize and master the 20-30 ID and passwords needed to access all of the mortgage technology or did you decide to use one password for all accounts? Believe me, I know it is overwhelming when you have to remember so many different pieces of information to access different portals and websites to perform your job.
Written By: Daniel Garcia
Last week we began discussing the importance of understanding how to read a credit report. As stated last week, no doubt we can all agree that as processors we need to know how to read and interpret information on a credit report. So let’s begin the second part:
Written By: Theresa Furzland
This week I’m looking through my originator eyes. I tend to think of myself more as a Mortgage Loan Advisor than a Loan Officer. As I have already mentioned, probably more than once, I never set out to be a loan originator and I am the first to admit that I am not a “salesman”. I do love this part of the process however and for one reason.
This free mortgage training video discusses how to obtain tax documents, validating Tax Transcripts, retaining the Tax Transcripts and more. Ideal for loan processors and mortgage underwriters.
This free mortgage training video discusses individual steps on completing the 4506-T form prior to submitting to IRS and more. Ideal for loan processors and mortgage underwriters.
This free mortgage training video discusses the request for Tax Transcript of Tax Return (IRS Form 4506-T), requirements to obtain tax transcripts, guidelines on completing the 4506-T and more. Ideal for loan processors and mortgage underwriters.
This free mortgage training video discusses change in the tax law, allowable deductions prior to 2018 tax year, 2017 and 2018 Schedule-A format changes, FHLMC change to commission income, FHLMC results to the tax law change and more. Ideal for loan processors and mortgage underwriters.
This free mortgage training video discusses unreimbursed employee expenses versus business expenses, FHLMC commission income requirements prior to 2018 tax year and more. Ideal for loan processors and mortgage underwriters.
This free mortgage training video discusses what is commission income, unreimbursed employee expenses, who can deduct unreimbursed employee expenses, allowable unreimbursed employee expenses and more. Ideal for loan processors and mortgage underwriters.
This free mortgage training video discusses frequently asked questions that were submitted by various lenders on the closing disclosure & 3 day rule and more. Ideal for loan processors and underwriters.
This free mortgage training video discusses rule responsibilities, new 3 day review, loan types that apply & does not apply to the 3 day rule and more. Ideal for loan processors and underwriters.
This free mortgage training video discusses definition of closing disclosure, closing disclosure requirements, what's inside the closing disclosure form and more. Ideal for loan processors and underwriters.
This free mortgage training video discusses Title Commitment, Title ABC's, Examples of Schedule A & B, Example of Title Policy and more. Ideal for loan processors and underwriters.
Written by: Internal Analysis & Opinion Writers
Economists are raising red flags over former President Donald Trump’s aggressive trade policy, warning that the reintroduction of steep tariffs could undo decades of global economic integration and steer the U.S. economy back toward the protectionist practices of the early 20th century. Recent estimates suggest that average U.S. tariff levels are now approaching highs not seen since 1910—a period marked by isolationism and economic volatility.
Written by: Internal Analysis & Opinion Writers
Zillow has announced a sweeping policy shift that aims to clamp down on the widespread use of “pocket listings”—properties marketed privately without being listed on a Multiple Listing Service (MLS). Starting May 1, homes that have been publicly marketed outside the MLS will no longer be allowed on Zillow’s platform. The move is being positioned as a step toward greater transparency and equal opportunity in home buying.
Written by: Internal Analysis & Opinion Writers
Mortgage rates continued to climb last week despite the Trump administration’s decision to delay certain trade tariffs, adding fresh pressure to an already strained housing market. The increase in borrowing costs came as a surprise to many industry watchers who had expected rate relief following news that some of the proposed tariffs would be postponed. Instead, the rise underscores the persistent influence of broader economic forces—especially inflation expectations and bond market volatility—on the cost of home loans.
Written By: Joel Palmer, Op-Ed Writer
The new director of the Federal Housing Finance Agency (FHFA) spent much of last week issuing orders that rescinded or terminated policies put in place during the previous administration. FHFA Director William Pulte posted the series of orders on his X.com account last week.
Written By: Joel Palmer, Op-Ed Writer
The new director of the Federal Housing Finance Agency (FHFA) took the opportunity of his swearing in to echo the Trump administration’s emphasis on government efficiency. William J. Pulte was confirmed by a 56-43 vote of the U.S. Senate last week as FHFA Director for a five-year term. Three Democrats voted with the Republican majority to approve President Trump’s nomination.
Written By: Joel Palmer, Op-Ed Writer
The likely next leader of the federal agency that oversees a key part of the mortgage industry testified told members of Congress last week he is prepared to lead the effort to “usher in the Golden Age of housing and mortgage accessibility.” William J. Pulte, President Donald Trump’s nominee for Director of the Federal Housing Finance Agency (FHFA), was one of four administration nominees to appear at a joint confirmation hearing before the Senate Committee on Banking, Housing and Urban Affairs.
Written By: Joel Palmer, Op-Ed Writer
Housing and mortgage experts are beginning to see a market shift in favor of buyers but remain cautious as to whether that will bring more originations for mortgage processors and underwriters. National real estate brokerage Redfin reported last week that the U.S. housing market tilted in favor of buyers for the first time this decade in January. The 3.7 months of for-sale inventory was the highest in six years.
Written By: Joel Palmer, Op-Ed Writer
Real estate brokerage Redfin reported that new listings of U.S. homes for sale rose 7.9 percent from a year earlier during the four weeks ending February 2. Meanwhile, pending sales are improving slightly, but still down 8.1 percent year over year. The uptick in new listings and lack of sales is contributing to a growing pool of supply for homebuyers to choose from.
Written By: Joel Palmer, Op-Ed Writer
Fannie Mae economists interpret a recent rise in the 10-year Treasury yield as a sign that home sales are far from rebounding from 30-year lows. In Fannie’s first monthly commentary of 2025, its Economic and Strategic Research Group raised its forecast on where 30-year mortgage rates will land by the end of the year. Fannie now sees rates closing this year at 6.5 percent instead of its previous forecast of 6.2 percent.
Written By: Joel Palmer, Op-Ed Writer
Later this month, Donald Trump will be inaugurated into his second term as President of the United States. Since his election victory two months ago, many have speculated what impact his administration will have on housing and the mortgage industry the next four years. Already, the transition to a second Trump administration has impacted a key federal agency.
Written By: Joel Palmer, Op-Ed Writer
The mortgage industry will face its share of challenges, opportunities and unknowns in 2025. Here are a few trends on the horizon: Perhaps the biggest unknown for mortgage underwriters and processors is the effect of a second Donald Trump administration on the industry. The Biden administration’s priority in the housing sector was making housing more affordable and accessible. Vice President Harris and Trump both indicated a desire to make housing more affordable using different approaches.
Written By: Joel Palmer, Op-Ed Writer
An analysis by the Congressional Budget Office (CBO) has concluded that Fannie Mae and Freddie Mac are in better financial position to repay the U.S. Treasury for its stake in the enterprises than they were four years ago. CBO conducted updated analysis on the effects of recapitalizing the GSEs at the request of the House Financial Services Committee. The original analysis was conducted in August 2020, while the CBO released its updated findings last week.
Written By: Joel Palmer, Op-Ed Writer
Mortgage underwriters and processors can offer larger FHA mortgage loans and loans that conform to FHFA limits next year. Both agencies announced higher loan limits last week. The Federal Housing Finance Agency (FHFA) announced that conforming loan limit values (CLLs) for mortgages acquired by Fannie Mae and Freddie Mac will be $806,500 for one-unit properties in most of the United States in 2025.
Written By: Joel Palmer, Op-Ed Writer
Fannie Mae and Freddie Mac have met or exceeded nearly all of their housing goals in the last several years, according to a report released this month by the Congressional Budget Office (CBO). Using data published by the Federal Housing Finance Agency (FHFA), the CBO concluded that the two GSEs met or exceeded yearly single-family housing goals from 2018 and 2022.
Written By: Joel Palmer, Op-Ed Writer
Fannie Mae and Freddie Mac produced profitable third quarter financial results consistent with recent trends. The government-sponsored enterprises released third-quarter results last week, with Fannie Mae reporting a $4 billion quarterly profit and Freddie Mac reporting $3.1 billion in net income.
Written By: Joel Palmer, Op-Ed Writer
Politicians and a mortgage industry group have expressed concern about Fair Isaac Corporation (FICO) this month, which coincided with the mere suggestion recently that FICO might raise the cost of credit reporting. A group of 34 Democrat U.S. senators and representatives, led by Senator Elizabeth Warren (D-Mass.) and Representative Jamaal Bowman (D-N.Y.), wrote a letter to President Joe Biden urging action on a number of initiatives to lower housing costs.
Written By: Joel Palmer, Op-Ed Writer
The headline is optimistic. “Redfin Reports Buying a Starter Home Is Now Cheaper Than It Was a Year Ago,” may lead somebody to think housing is becoming more affordable. Further down, however, one would discover the problem of housing affordability is far from solved.
Written By: Joel Palmer, Op-Ed Writer
Home sales are on the decline despite lower mortgage rates and increasing supply, with the latest projections indicating a 30-year low for this year. Real estate brokerage Redfin reported that existing home sales fell 3.1 percent year over year in August to their lowest mark since May 2020, when the pandemic brought the housing market to a standstill. Removing that month, August sales were the lowest since 2012.
Written By: Joel Palmer, Op-Ed Writer
Several reports released in the past week may give mortgage underwriters and processors a reason to feel more optimistic about the possibility of more potential borrowers in the near future. The bottom line in recent data is that buying a home is slowly becoming more affordable due to a combination of lower mortgage rates and slower growth in home values.
Written By: Joel Palmer, Op-Ed Writer
The Federal Housing Finance Agency (FHFA) issued housing goals for Fannie Mae and Freddie Mac over the next three years. The proposed rule would establish the following benchmark levels that Fannie and Freddie would be required to meet annually between 2025 and 2027:
Written By: Joel Palmer, Op-Ed Writer
An increase in tappable home equity and falling mortgage rates has many industry analysts optimistic about the potential refinance market. However, others caution that consumers are becoming more cautious about taking on more debt due to escalating costs of home ownership. Technology and data provider Intercontinental Exchange (ICE) Inc. reported in its latest ICE Mortgage Monitor Report that tappable home equity reached a new high of $11.5 trillion in June, more than 9 percent above the same period a year ago.
Written By: Joel Palmer, Op-Ed Writer
Fannie Mae economists expect home prices to moderate soon following a second quarter in which values grew higher than expected. Fannie’s latest economic commentary also includes more near-term optimism for mortgage rates, existing sales and purchase originations. But Fannie is downgrading its forecasts for new home sales, housing starts and refinance mortgages.
Written By: Joel Palmer, Op-Ed Writer
Fannie Mae and Freddie Mac have published historical VantageScore 4.0 credit scores to support the transition to updated credit score and credit report requirements. The historical credit scores are associated with single-family loans purchased by the two enterprises from April 2013 through March 2023.
Written By: Joel Palmer, Op-Ed Writer
The Consumer Financial Protection Bureau (CFPB) has approved a new rule to address the use of algorithms and artificial intelligence (AI) for real estate valuations and appraisals. The rule uses the term automated valuation models (AVMs) to describe the use of AI models for appraisals. It said the rule applies to mortgage originators and secondary market issuers.
Written By: Joel Palmer, Op-Ed Writer
The Federal Housing Finance Agency (FHFA) has issued a request for input (RFI) on the proposed 2025-2027 Underserved Markets Plans submitted by Fannie Mae and Freddie Mac under the Duty to Serve (DTS) program. By statute, the two enterprises are required to serve three specified underserved markets — manufactured housing, affordable housing preservation, and rural housing — by increasing the liquidity of mortgage financing for very low-, low-, and moderate-income families in those markets.
Written By: Joel Palmer, Op-Ed Writer
The Consumer Financial Protection Bureau (CFPB) is investigating what it terms “junk fees” related to mortgage closing costs. CFPB said its inquiry is motivated by understanding “why closing costs are increasing, who is benefiting, and how costs for borrowers and lenders could be lowered.”
Written By: Joel Palmer, Op-Ed Writer
VantageScore and Experian have announced new tools this month aimed at helping mortgage processors and underwriters. VantageScore is ready to pilot a new credit-scoring model, called VantageScore 4plus. The company said the new model “combines the power of alternative open banking data with traditional credit data,” which will result in a 10 percent predictive lift over its current VantageScore 4.0. VantageScore said that 4.0 offers an 8 percent predictive lift over conventional scoring models.
Written By: Joel Palmer, Op-Ed Writer
The mortgage industries two government sponsored enterprises opened 2024 with new solid first-quarter financial results. Fannie Mae and Freddie Mac reported their first-quarter earnings last week. Both continue to grow their revenues and profits in a market challenged by housing affordability issues.
Written By: Joel Palmer, Op-Ed Writer
The Federal Housing Finance Agency (FHFA) has proposed a new mortgage product it hopes will give homeowners a way to tap into home equity without surrendering the low rates they locked in the last several years. The agency sent a notice of a proposed new product to the Federal Register, which would enable Freddie Mac to purchase single-family closed-end second mortgages.
Written By: Joel Palmer, Op-Ed Writer
The transition from a three credit report requirement to two reports — known as bi-merge credit reporting — for single-family loans acquired by Fannie Mae and Freddie Mac has faced its share of obstacles. Another potential roadblock to this change was introduced last week.
Written By: Stacey Sprain
11/29/2012- Fannie Mae Lender Letter 2012-11 Confirmation of Conventional Loan Limits for 2013
The Federal Housing Finance Agency (FHFA) has issued the maximum loan limits that will apply for conventional loans to in 2013. All loan limits for 2013 remain unchanged from 2012.
Written By: Stacey Sprain
If only HUD would give me a job so I could revise their way of updating existing policies it would sure make a lot of our lives a whole lot easier so we could all work more efficiently! I don’t know about all of you but I sure get frustrated trying to sort through things like Mortgagee Letter 2012-18 while trying to compare it to the materials that were issued with Mortgagee Letter 2011-22.
Written By: Stacey Sprain
The following is part 2 of a multi-part article covering the upcoming changes that will be applied in DU over the weekend of October 20th when Fannie Mae completed an update. One correction to last week’s article: In the beginning paragraphs I incorrectly referenced DU version 8.3 instead of the correct version DU 8.2.
Written By: Stacey Sprain
For those of you who may not yet be aware, DU is planning a major update for the weekend of October 20th which will bring forth some significant changes. Because of the amount of changes, this is being presented in 2 parts. The following is part 1 of a 2 part series covering the various updates.
Written By: Stacey Sprain
As with any lending product, self-employment is always a topic that involves a lot of questions and uncertainty. The following FAQs represent a lot of the most common questions that FHA receives about self-employed borrowers and how to calculate self-employment income.
Written By: Stacey Sprain
This is part 2 of a multi-part series that provides helpful questions and answers about FHA appraisals, properties and valuations. I recently ran across this list as I was actually searching for something on a completely different topic. I found these FAQs so helpful and informative I felt the need to pass them on in hopes they will be useful to you as well!
Written By: Stacey Sprain
Much has been published lately about FHA streamline refinances particularly because of the recent drop to MIP rates for certain FHA to FHA streamline refinances but there’s one important topic I haven’t seen much if any press about and it’s an important one when we’re talking streamline refinances- important in particular for non-credit qualifying streamline refinances.
Written By: Stacey Sprain
Next Monday, June 11th marks the first day of FHA’s significant MIP/MI rate decrease for certain FHA streamline refinance transactions. The following FAQs are presented in order to provide you with the information you need to make the best of this extraordinary marketing opportunity for existing FHA borrowers.
Written By: Stacey Sprain
DU for government loans is updating during the weekend of July 21st to accommodate a number of messaging changes on topics such as bankruptcy and foreclosure for VA lending, 3-4 unit property reserve calculations for FHA lending. A summary of the changes follows below.
Written By: Stacey Sprain
With FHA announcing streamline refinance opportunities with record low MIP for borrowers whose current FHA loan was endorsed prior to June 1, 2009, we can expect to see a big pickup on FHA streamline refinance loans after the June 11th reduced MIP effective date.
Written By: Stacey Sprain
If you’re like me, you like to take FHA Mortgagee Letters and dissect them when they are released, put the content info format that makes most sense to you and completely re-create or break down the information that’s given. I often like to look at the information as if I am reading it from the point-of-view of someone who may not have many years of mortgage expertise so that I can take the info provided by FHA and re-present it in ways that prove the most helpful to those who rely on the information in day to day lending.
Written By: Stacey Sprain
Mortgagee Letter 2012-3 announces several key guideline changes on topics of self-employment, disputed credit, outstanding collections and identity of interest definitions. These changes are good from the perspective that they offer much clearer underwriting requirements on several key topics so not as much is left to interpretation or opinion.
Written By: Stacey Sprain
HUD formally announced upcoming changes to the FHA mortgage insurance structure in an email that went out to single family email subscribers on February 27th. A Mortgagee Letter is expected in the near future which will communicate final full details of the upcoming changes to the FHA mortgage insurance structure.
Written By: Stacey Sprain
Confusion is common when it comes to gift documentation requirements between conventional and government loan types. Below I’ve summarized donor, gift letter and documentation requirements for each conventional lending.
Written By: Stacey Sprain
Though all of today’s technological improvements allow lenders a better opportunity to validate loan application information for loan applicants, such advances have also increased the risk for identity theft with so much personal data moving through so many extra portals and moving through so many extra pairs of hands.
Written By: Stacey Sprain
There’s nothing an underwriter hates more than a sloppy, incomplete file that a processor is insisting be rushed through the system. Processors that make a habit of submitting poorly processed files often blow their reputation with underwriters who deserve quality loan files to review so that they can do the best possible job of analyzing the borrower’s credit profile to quickly determine whether or not they are worthy of repaying the loan for which they have applied.
Written By: Stacey Sprain
It all starts with the loan application and quite frankly, if the 1003 isn’t thorough and accurate from the get-go, it can stop your file dead in its tracks once it hits underwriting. From an underwriting standpoint, nothing is as important as a complete and accurate loan application because the 1003 is the window to the file; it’s the “book” that tells the story.
Written By: Stacey Sprain
It all starts with the loan application and quite frankly, if the 1003 isn’t thorough and accurate from the get-go, it can stop your file dead in its tracks once it hits underwriting. From an underwriting standpoint, nothing is as important as a complete and accurate loan application because the 1003 is the window to the file; it’s the “book” that tells the story.
Written By: Stacey Sprain
Something happened this week and it was big enough that I’m sure you’ve heard or read about it unless you’ve been camping out under a rock. Let me say this- Allied Home Mortgage. So you’ve heard?
Written By: Stacey Sprain
As you’re likely aware, USDA Guaranteed Rural Housing is changing guarantee fees from 3.5% to 2.0% for purchase transactions and implementing a new annual fee of .3% effective for all GRH loans that are not committed before October 1, 2011. This news was originally announced in RD AN 4551 which was issued February, 3rd.
Written By: Stacey Sprain
Buckle your seat belts everyone because the next 45 days are going to be bustling with a lot of major agency program changes that are very important for all of us to keep track of and plan ahead for. Because so much is happening so quickly and in such rapid succession, I myself had to start maintaining a chart just to stay on top of it all. I’ve found this to be very helpful so I hope it helps you too!
Written By: Stacey Sprain
Mortgagee Letter 2011-22 dated 6/30/2011 clarifies, expands, consolidates, and updates existing condominium approval guidance while also replacing Mortgagee Letters 2009-46b, 2009-46a and 2011-03. Included with the new Mortgagee Letter are an attached Condominium Approval Implementation Schedule and 95 page Condominium Project Approval & Processing Guide.
Written By: Stacey Sprain
Mortgagee Letter 2011-22 dated 6/30/2011 clarifies, expands, consolidates, and updates existing condominium approval guidance while also replacing Mortgagee Letters 2009-46b, 2009-46a and 2011-03. Included with the new Mortgagee Letter are an attached Condominium Approval Implementation Schedule and 95 page Condominium Project Approval & Processing Guide.
Written By: Stacey Sprain
For those of us who have been in the mortgage business through all of the various booms both positive and negative, one thing’s for certain: None of us have ever seen anything like the past few years of change in the industry.
Written By: Stacey Sprain
Appraiser regulations keep evolving, RESPA keeps reinventing itself, loan officer compensation is bringing forth major changes, FACTA has added what I consider to be ridiculous new disclosure requirements nobody really seems to fully grasp, licensing requirements continue expanding and evolving, credit rules continue to tighten, … when does it all end?
Written By: Stacey Sprain
I ran across a blog while I was I was doing some research on a regulatory interpretation this evening and it really got me fired up. It never ceases to amaze me how badly some of the people in our industry answer questions for people who wouldn’t be asking if they truly knew anything about mortgages.
Written By: Stacey Sprain
If you blinked you might have missed it but HUD recently communicated guidance to lenders on how to evaluate disputed credit accounts for FHA loans. The information was included in an outgoing announcement from Jerrold Mayer to the HUD email subscription list. The following guidance was not in the form of a Mortgagee Letter as one might expect:
Written By: Stacey Sprain
It’s been quite awhile since Desktop Underwriter was updated to coincide with VA program trends and changes but on the weekend of June 18th, a substantial list of updates will be added to create more comprehensive and effective messaging associated with DU for VA loans.
Written By: Stacey Sprain
One thing I continue to remind folks of in today’s world of credit risk is that an AUS approval isn’t always a sure thing. We still have an obligation to manually evaluate the layering of various credit risks in our loan files if we intend to consciously keep our overall risk and defaults to a minimum.
Written By: Op-Ed Writer Glenn Michaels
There are certain situations where the borrower must show that they have reserves after closing. Individuals purchasing or refinancing three and/or four family homes with FHA financing must provide evidence that they will have three (3) months of PITI reserves. The reserve does not include funds received from a gift. The reserves must be the borrower’s own money.
Written By: Glenn Michaels, Op-Ed Ghost Writer
Periodically the United States Department of Housing and Urban Development (HUD) and other organizations keep tract of the housing industry. When the numbers are up that is usually an indication that the mortgage industry will increase or decline.
Written By: Glenn Michaels, Opinion Editorial Contributor
As an old time underwriter, more than fourty years of mortgage underwriting I feel we are heading to another housing bubble. Conversations with other seasoned underwriters also feel that we are also going down the road to another housing bubble.
Written By: Glenn Michaels, Op-Ed Writer
For a long time under the Obama Administration mortgagor’s under certain conditions were able to apply for a mortgage loan modification. The HAMP program is actually called the Home Affordable Modification Program.
Written By: Glenn Michaels, Opinion Editorial Contributor
Super Storm Sandy also known as Hurricane Sandy hit the Northeastern United States on October 29, 2012. After the storm hit and the damage was done, all of the news media and politicians came out in mass to report on the storm and what has happened since.
Written By: Glenn Michaels
Revitalization Areas are HUD designated geographic areas authorized by Congress under provisions of the National Housing Act. Revitalization Areas are intended to promote “the revitalization, through expanded homeownership opportunities, of revitalization areas.”
Written By: Glenn Michaels
Today, virtually every FHA loan is put through an AUS underwriting system with TOTAL Scorecard for an automated underwriting decision.
Written By: Glenn Michaels
Anyone that has been in the mortgage industry for a long while remembers the “wild west” of mortgage lending. During this time we had all kinds of exotic mortgage programs. Literally, if a prospective borrower had a body pulse he was able to purchase a home.
Written By: Glenn Michaels
As I talk to more and more people it is amazing how much erroneous information is out whereby borrowers must put 20% down in order to buy a home. These people must have read all of the news articles referring to the QM (Qualifying Mortgage) and other press releases referring to the difficulty in obtaining mortgage financing.
Written By: Glenn Michaels
When reviewing a credit report for a mortgage loan where you find derogatory credit on the credit report always find out what contributed to the derogatory credit. Loan applicants that can provide evidence that the derogatory credit was due to loss of employment or other extenuating circumstances as defined in Mortgagee Letter 2013 – 26 can obtain mortgage financing sooner than later than other applicants with the same derogatory credit.
Written By: Glenn Michaels
In 2013 the United States Department of Housing and Urban Development (HUD) put forth several mortgagee letters how to treat borrowers that were out of work and now back to work.
Written By: Glenn Michaels
This past week there were two (2) hurricanes, one that missed the east coast of the United States and one that hit the State of Hawaii. The Atlantic Ocean’s island of Bermuda was hit with a category III hurricane however this storm turned north and east and did not hit the United States.
Written By: Glenn Michaels
The new underwriting bible for FHA has now come out. It has been a long time in the making.
The new underwriting bible is dated September 30, 2014 and effective June 15, 2015.
Written By: Glenn Michaels
When I first began underwriting in 1972 there was no such thing as credit scores. Underwriters used their best judgment when reviewing a credit report and after evaluating the history of the credit they made a decision whether or not to grant credit.
Written By: Glenn Michaels
Everyone knows what a condominium is, but for some reason not everyone knows what a Planned Unit Development is. In this article I will attempt to demystify what is Planned Unit Development (PUD).
Written By: Glenn Michaels
“HAWK”, that stands for Homeowners Armed with Knowledge is a new pilot program that begins October 1, 2014. Borrowers that complete the HAWK program are slated to save on their upfront and annual Mortgage Insurance Premiums (MIP).
Written By: Glenn Michaels
Living on Long Island, New York, which begins geographically in Queens, New York and then to Nassau and Suffolk Counties are prone to flooding due to a full moon. This flooding could be worse if we have a rain storm, wind storm or tropical storm. The National Weather Service has warned most of the East Coast of the United States that they may flood due to the full moon.
Written By: Glenn Michaels
Many senior citizens meaning anyone 62 years young and older want to down size from their current living arrangement. In most cases their children have married and left the home and they no longer desire the dwelling that they presently own.
Written By: Glenn Michaels
Whenever there is disaster somewhere in the United States and the President of the United States declares that area a "Federal Disaster Area”, FHA’s 203(h) program is available to all residents in the areas declared by the President as a federal disaster area.
Written By: Glenn Michaels
Over the years I have been asked by borrowers, loans officers and others how to calculate the amortization of a mortgage. The calculation on a monthly basis is not difficult utilizing a conventional mortgage as long as you know certain variables.
Written By: Glenn Michaels
As a New York State resident that had about $40,000.00 Super Storm Sandy damage you would think obtaining some of the HUD Community Block Grant Money would be easy. New York as well as other states that had significant damage caused by Super Storm Sandy received billions of dollars from The United State Department of Housing and Urban Development as a Community Block Grant.
Written By: Glenn Michaels
Every day more of us are becoming victims of fraud and of Identity Theft. I was once a victim of Identity Theft, the person who did the crime in my case served two and a half years in prison. I know most people who do this crime I seldom caught.
Written By: Glenn Michaels
All mortgage loans whether they fit under the Qualified Mortgage (QM) or fit under the Non – Qualified Mortgage now must fit under the so called “umbrella’ called Ability to Repay (ATR).
Written By: Glenn Michaels
The Federal Register dated December 11, 2013 contained proposed changes to underwriting. The changes really clarify how everyone is to approach FHA loans that mare manually underwritten. The FHA now has seven scenarios where the mortgage loan must be manually underwritten. In the near future a Mortgagee Letter will be written to further clarify this.
Written By: Glenn Michaels
As of January 10, 2014 the Qualified Mortgage (QM) rules become effective and HUD is no different. They too must have QM loans. On December 11, 2013 HUD released their definition of a QM mortgage. All FHA case numbers issued on or after January 10, 2014 will be issued with the understanding that the borrower(s) will fit under the QM rules and regulations.
Written By: Glenn Michaels
Most borrowers and lenders have heard of the acronym APR but most do not know what goes into the calculated APR. So many folks understand that the APR is a cost but most do not know enough about the acronym called APR.
Written By: Glenn Michaels
If you lie on your mortgage application it’s mortgage fraud. Even though some lies and omissions constitute mortgage fraud. Many borrower’s hedge a little there, often because they did not know any better or worse. Sometimes borrowers are counseled by their mortgage loan officer and/or real estate broker to sell and close on that house.
Written By: Glenn Michaels
In the forty (40) years that I have been in the mortgage industry the self – employed borrower has always been the borrower with the most difficulty in obtaining mortgage financing.
Written By: Glenn Michaels
The conventional mortgage market is changing as of November 16, 2013. Federal National Mortgage Association also known as Fannie Mae has announced that as of November 16, 2013 they will no longer purchase any mortgage with a loan to value higher than 95%.
Written By: Glenn Michaels
Over the last few years while rates were historically low, virtually everyone that could refinance their mortgage, did refinance. Now some of the major center banks have announced layoffs due to minimal refinance activity.
Written By: Bonnie Wilt-Hild
What measures should lenders take prior to loan closing or endorsement when a property is located within a FEMA designated disaster area?
Written By: Bonnie Wilt-Hild
I think anyone currently working in the mortgage lending industry will agree that at this particular time in history, we as lenders are more regulated than we have ever been. Further, under Dodd-Frank, more regulations are forth coming that will again determine how we disclose, what we disclose, when we disclose and in the not so far off future, how much a loan officer can actually charge for the origination service.
Written By: Bonnie Wilt-Hild
When I hear those words, they immediately evoke images of a world in which mortgage underwriting decisions are determined by AUS systems that have no capacity to either employ common sense underwriting principals or fairly or adequately assess overall risk.
Written By: Bonnie Wilt-Hild
Like myself, I am sure many underwriters in this fine nation of ours spend a fair amount of their time on conference calls or web based training with new investors that their employers have recently became associated.
Written By: Bonnie Wilt-Hild
I am going to share a story of very recent origin which involves someone quite close to me and unfortunately is entirely true. I am hoping that by sharing this, it will bring light to some of the seedier business practices occurring today while also making people aware that there is recourse against lenders who consistently leave behind ethical practices in favor for business practices that violate not only the law but also their client’s personal rights.
Written By: Bonnie Wilt-Hild
We all knew it was coming and it looks like it is here and that being the announcement in the Federal Register that HUD intends to reduce the amount a seller can contribute towards borrowers closing costs from the current 6% to 3% as indicated previously in a Federal Register publication in July, 2010.
Written By: Bonnie Wilt-Hild
In press release 12-010 dated Friday, January 20, 2012 FHA announced their intention to take additional steps to limit risk and strengthen the finances of the agency. These changes, it was stated, would help FHA better manage risk while maintaining support for the housing market and access for qualified borrowers. Included in these changes would be new regulations which strengthen the process by which FHA requires certain lenders to indemnify the U.S. Department of Housing and Urban development for insurance claims pain on mortgages that are found to be deficient where meeting the departments guidelines or contain misrepresentation and fraudulent documentation.
Written By: Bonnie Wilt-Hild
As if we didn’t already pay enough in the way of taxes, beginning January 16, 2012 we will have another to contend with, that being the G-fee hit ordered by Congress and the FHFA with respect to pricing adjustments.
Written By: Bonnie Wilt-Hild
It wasn’t long ago, or at least it doesn’t seem so, that people employed in the mortgage industry were considered mortgage bankers or mortgage professionals who possessed a certain skill set where banking and finance were concerned that labeled these individuals as professionals.
Written By: Bonnie Wilt-Hild
In a new twist to the never ending saga of new things to watch for in the mortgage industry is investor audits of older loans that have now gone into default. That’s right forget reps and warranties, it seems that every investor is now auditing any older loans that have since gone into default and to some degree inventing reasons why the loan should be repurchased my the original lender.
Written By: Bonnie Wilt-Hild
Once upon a time there lived young women who, during a down turn in employment, embarked upon a career adventure that would ultimately become a life changing event. Having limited job skills, she accepted employment as a loan processor for a small Savings & Loan in Maryland.
Written By: Bonnie Wilt-Hild
Does it ever cease to amaze you how people can twist the facts with regards to almost any situation in order to achieve the results that would most satisfy them even if those results achieve no end. In this day of mass media and the information highway, articles and blogs can be placed on the internet in a matter of minutes and unfortunately, many of the authors of this information have no real experience or responsibility where the content of their article is concerned and articles relating to the mortgage industry are no exception regardless of the type of media by which they conveyed.
Written By: Bonnie Wilt-Hild
I have had it, really. Yesterday I read the tweet from Chef Mario Batali regarding the banking industry which compared bankers to Hitler and Stalin. As one that would consider themselves a banker, credit officer and underwriter, I take extreme offense to the comment particularly when it comes from someone who during the normal course business, charges $300.00 for a truffle tasting menu at his own establishment Babbo.
Written By: Bonnie Wilt-Hild
Ok, so I have been in the mortgage industry for 25 years and I have to say, this end of the month has been the worst ever. Well maybe not the worst but it ran a very close second. More frightening is the fact that we didn’t close near the volume that we have closed in past months.
Written By: Bonnie Wilt-Hild
These days it seems as though the rules never stop changes where the preeminent mortgage programs are concerned, those of course being Conventional, FHA and VA, but it’s always nice when the change is something for the better and today I have the pleasure of delivering the good news. Recent VA circular’s issued on September 8, 2011, more specifically Circular 26-11-12 are indicating a reduction in the VA funding fee for loans closed on or after October 1, 2011.
Written By: Bonnie Wilt-Hild
When we think about government loan programs, most often the FHA and VA programs come to mind however there is another one, that being Rural Development. I know you have all heard of them but for some reason they seem to be a loan type that very few know anything about, so being in good form as I sometimes am, I thought I would share the specifics because these days, any program that a lender can offer with a maximum 100% LTV that will allow one to roll in closing costs, is a good one.
Written By: Bonnie Wilt-Hild
Pretty recently I was having a conversation regarding homeownership opportunities for low to moderate income borrowers with an employee of a department of housing and community development agency within the city that I live. The conversation had begun during a discussion with respect to city owned properties and the liquidation of the same.
Written By: Bonnie Wilt-Hild
Ok, so as I am sure most of you can imagine, I lay awake at night and think about mortgage programs, more particularly government lending programs because, quite simply put, they are the most useful.
Written By: Bonnie Wilt-Hild
Handling purchase transactions which involve bank owned foreclosure sales are not limited to merely standard bank owned properties, and as I am sure you will all agree, each of us have handled our fair share of FHA property disposition cases.
Written By: Bonnie Wilt-Hild
I have decided that it just does not pay to be nosy. As you can imagine, by that statement alone, I do have a tendency to stick my nose in places it really doesn’t belong simply because it’s interesting and of course, because it doesn’t belong there (call it my rebellious streak).
Written By: Bonnie Wilt-Hild
The 203k is a great program for any individual who wants to buy a handy man special or property being sold at foreclosure and fix it up, or a current homeowner who would like to complete some updates to their existing home however many lenders are still unwilling to offer the program.
Written By: Bonnie Wilt-Hild
I was in the kitchen this morning having a conversation with a coworker. We were reminiscing about the good old days of HUD field offices, case number assignment lines and of course processing and underwriting without the benefit of fax machines, AUS or even the internet for that matter. Those were the days when a final typed 1003 was exactly that, a document that you rolled into the typewriter and typed and carbon paper was an office necessity.
Written By: Bonnie Wilt-Hild
Very recently, while teaching an FHA Underwriting class for FHA Online University, the history segment of the training made me stop and think. It was unusual really, because I have taught this particular class at least once a month for the past four years and honestly, other than an occasional joke as to how students need to take notes because the historic information pertaining to the agency was on the “big” test, I never really thought much about it.
Written By: Bonnie Wilt-Hild
Yes, it is, grim that is, and I am not referring to Wilhelm & Jacob Grimm. But just as they composed those fairy tales in the 1800’s, representing what might have been described as the capricious and cruel reality of daily life for most Europeans of that time, we to continue to face a housing and mortgage market that can also be described capricious.
Written By: Bonnie Wilt-Hild
As if there are not enough acronyms in the mortgage industry, the federal government has moved forward in coining a new one, QRM, this being the acronym for the newly defined Qualified Residential Mortgage. Ok, I know that everyone is thinking that all mortgages are QRM’s if they meet guidelines but in this case, the guidelines or standards which will eventually define what a QRM or “Safe” mortgage is, will differ vastly from what defined a qualifying mortgage of the past.
Written By: Bonnie Wilt-Hild
The most recent past has seen the mortgage industry struggle with developing sound underwriting practices that serve to not only protect lenders against default, but to also promote affordable home ownership for all types of borrowers.
Written By: Bonnie Wilt-Hild
Earlier this week, someone asked my opinion as to if I thought there was any benefit in privatizing the GSE’s. Unfortunately, I was a little short on time and couldn’t go into a great length as to if I thought it desirable or not and honestly up until the conversation occurred, I hadn’t really given it a lot of thought.
Written By: Bonnie Wilt-Hild
These days, underwriters constantly stress the importance of collecting the appropriate documentation in order to complete acceptable due diligence on the cases intended for underwriting. Often times, these requests appear to be the result of ultra conservative underwriting practices and the documentation required nothing less than excessive particularly if the request for additional items is being made a few days prior to closing.
Written By: Bonnie Wilt-Hild
In today’s real estate environment, Purchase transactions that involve bank owned properties are pretty common. Often these cases are originated under the FHA 203k mortgage insurance program due to the overall condition of the property and the need for the completion of certain repairs which are required for the property to meet HUD minimum property standards.
Written By: Bonnie Wilt-Hild
HUD has recently announced new lender requirements where quality control is concerned. These requirements have been set forth in ML2011-02 and outlines for lenders what new provisions need to be added to their current QC plan.
Written By: Frankie Lacy
Typically the mortgage industry slows down after we move out of the holiday season and into the first few months of the year. Business may not start to pick up until mid-spring or early summer. We can utilize this time to clean house and sharpen our skills in preparation for the next busy season.
Written By: Frankie Lacy
There are many reasons each borrower’s identity must be verified. First, lenders must verify data integrity on the loan application, disclosures, credit, and automated underwriting findings.
Written By: Frankie Lacy
Often, asset review is a straightforward piece of the loan analysis process. Borrowers submit recent checking and savings account statements to verify funds to close. The underwriter will review the statements for large deposits and insure the most recent balance is used to qualify.
Written By: Frankie Lacy
The mortgage industry has been through quite a few ups and downs since 2007. We have experienced layoffs, sweeping regulatory changes and fluctuations in business. The press and public opinion on the mortgage industry has largely been negative due to mortgage fraud and the bursting of the housing bubble.
Written By: Frankie Lacy
When underwriting a file, there are several ways to make loan notations:
-The comments section on the underwriting transmittal (1008)
-The loan origination system (LOS) notes
-A separate underwriter rationale write up
Written By: Frankie Lacy
Effective September 1, 2014, USDA will replace the 7 CFR 1980-D regulations with the 7 CFR 3555 regulations for its guaranteed rural housing program. The new handbook will house all previous administrative notices (AN’s) and the existing rules in one comprehensive document. The new handbook will also include all rule changes based on regulation 7 CFR 3555.
Written By: Frankie Lacy
Employing remote underwriters is a cost effective measure for many mortgage lenders that is also beneficial for the underwriter. Many correspondent lenders have slowly expanded their licensed territory to include multiple states in various time zones. Employing remote underwriters in these states creates a seamless interface with underwriting regardless of branch location.
Written By: Frankie Lacy
Before an underwriter can determine the correct calculation for computing income, she/he must determine if there is sufficient data within the documentation submitted. The first place to reference when trying to determine whether you have the correct documents is your AUS findings. However, some findings reports give vague messages such as “refer to Fannie Mae Selling Guide”.
Written By: Frankie Lacy
Underwriters are required to juggle new production, condition review, emails, and phone inquiries each day. In addition, managers, processors, and sales professionals may approach underwriters throughout the work day for assistance on a variety of issues. As a result, underwriters must streamline their process flow as much as possible.
Written By: Frankie Lacy
When underwriting a file, there are several ways to make loan notations:
-The comments section on the underwriting transmittal (1008)
-The loan origination system (LOS) notes
-A separate underwriter rationale write up
Written By: Frankie Lacy
So you've taken classes, shown initiative, and communicated your desire to progress into higher positions. You want to expand your knowledge levels within your company’s organization. However, it seems like you have waited forever to get the green light and your manager keeps giving you the brush-off. What should you do next?
Written By: Frankie Lacy
By now, many of us already know the basic formulas for calculating income. We also know that, in addition to executing formulas, underwriters are called to perform an analysis of the stability and continuance of qualifying income. This can be a daunting task when analyzing multiple business structures over two years.
Written By: Frankie Lacy
Calculating qualifying rental income is one of the more complex income calculations an underwriter can perform. This is particularly true when the borrower owns multiple investment properties. The challenge is determining when rental income can be used to qualify and, once income is calculated, reconciling the total debt ratio.
Written By: Frankie Lacy
As many of us around the country desperately cling to the hope that spring will come sometime this year, we can also stop to think how the long, harsh winter may affect property conditions. Roof, gutter, and foundation damage from prolonged snow pile up, ice damming, and flooding is a very real possibility for homeowners in 2014.
Written By: Frankie Lacy
The mortgage industry has been through quite a few ups and downs since 2007. We have experienced layoffs, sweeping regulatory changes and fluctuations in business. The press and public opinion on the mortgage industry has largely been negative due to mortgage fraud and the bursting of the housing bubble.
Written By: Frankie Lacy
As of January 12, 2014 Freddie Mac Loan Prospector will issue new recommendations in response to the final CFPB’s Ability to Repay and Qualified Mortgage rules. The feedback messages will address the following loan types:
Written By: Frankie Lacy
Typically the mortgage industry slows down after we move out of the holiday season and into the first few months of the year. Business may not start to pick up until mid-spring or early summer. We can utilize this time to clean house and sharpen our skills in preparation for the next busy season.
Written By: Frankie Lacy
2013 brought major changes to mortgage lending with the introduction of new regulations, the end of the mini-refinance boom, and an intensified focus on quality. As we prepare to conduct business in the new year, we can reflect on how those changes will impact us as mortgage processors and underwriters.
Written By: Frankie Lacy
2013 saw the end of the mini-refinance boom as interest rates increased in late summer to early fall. As a result, it is important for mortgage processors and underwriters to reacclimatize themselves with executing purchase transactions. For those who have been underwriting and processing refinances for some time, there are some key differences to identify.
Written By: Frankie Lacy
Once a file has been fully underwritten and all conditions are satisfactorily met, it is ready to be cleared to close (CTC). Underwriting and processing must perform a final quality control check prior to releasing the loan to the closing department. This process will prevent errors at the closing table and delays in the post-closing process of selling the loan.
Written By: Frankie Lacy
The mortgage industry is faced-paced, constantly changing, and sometimes uncertain. There are cycles of “feast or famine” where we experience excessive loan volume, followed by a sudden and steep drop in loan volume.
Written By: Frankie Lacy
In response to policy changes relating to the Ability to Repay and Qualified Mortgage regulations, Freddie Mac (LP) and Fannie Mae (DU) have made updates to their AUS systems. LP’s changes were made effective October 27, 2013 and DU’s changes will be effective November 16, 2013.
Written By: Frankie Lacy
A thorough review of the purchase agreement (P/A) or sales contract is critical to the accuracy of your loan package. Some of the initial points of review are the property description, parcel identification numbers, and the seller and buyer names. The property description and parcel ID numbers on the contract should match the title report and the appraisal report.
Written By: Frankie Lacy
Recently several mortgage lenders across the U.S. have laid off staff or restructured in response to the end of the “mini-refi boom”. As a result, many of us are left wondering what we can do to create opportunities for ourselves despite a job market that is flooded with talent.
Written By: Frankie Lacy
There are two debt-to-income (DTI) ratios on every loan: housing or front-end ratio and total or back-end ratio. The housing ratio tells us what percentage of the borrower’s monthly gross income is allocated toward the monthly principal, interest, tax, and insurance (PITI) payment. The total ratio includes the monthly PITI and all other monthly debts including auto loans, credit cards, child support expenses, student loans and more.
Written By: Frankie Lacy
I am often asked this question by processors or other mortgage professionals that are looking to transition into underwriting. Underwriting can seem mysterious and out of reach to some as they try to understand the duties and responsibilities associated with the title.
Written By: Frankie Lacy
Mortgage education has become a vital tool for residential and commercial lending professionals in the current environment. Right now, there is a heightened emphasis on compliance with lending regulations and underwriting guidelines.
Written By: Frankie Lacy
Are you ever tempted to place a loan back into the underwriting queue before all conditions are in? Do you believe that submitting a “deal breaker” condition for underwriting review without all the other conditions will speed up the approval process? If so, this article is for you!
Written By: Frankie Lacy
Letters of Explanation (sometimes abbreviated to LOX or LOE) are a common condition on loan files. Underwriters request them to explain large deposits, residence histories, derogatory credit, credit inquiries, and much more. However, it is important to understand that in most cases, the LOX is just the beginning.
Written By: Theresa Furzland
My son and I have recently been having a recurring conversation regarding the benefits and down sides of technology. He is a music/computer science major and I find it interesting how it is a natural inclination for him to combine these two subjects.
Written By: Theresa Furzland
Are you aware that there is a zero down program available? And no, it isn’t VA.
The USDA offers the Rural Housing Loan Program that is available to mid and low income persons in rural area.
Written By: Theresa Furzland
Our company, LendSmart Mortgage, is currently undergoing a software change that will allow us to be virtually paperless. I am of course an old dog, but in this business you have to be used to learning new tricks on a daily basis so I’m not really flustered.
Written By: Theresa Furzland
I sat down at my computer tonight and thought I’d see how many acronyms I could rattle off the top of my head. Here is my 10 minute effort: (and if you know what they all stand for – you’ve been in this business too long!)
Written By: Theresa Furzland
I’ve been writing about the different perspectives of the mortgage industry and it has really been an interesting mental activity for me. Not only did I get the opportunity to appreciate the wide variety of experience I have had the fortune to acquire over the years, it also makes me feel old.
Written By: Theresa Furzland
Yes, I’m still receiving the rare refinance inquiry from my loyal past clients and referrals. These calls generally start like this – Hi Theresa, I’ve been seeing ads everywhere that interest rates are at record lows and I should refinance my mortgage now...or...I got a phone call saying I could get a great refinance deal and it won’t cost me anything and will lower my rate as low as 3.5%.
Written By: Theresa Furzland
This week I’m looking through my originator eyes. I tend to think of myself more as a Mortgage Loan Advisor than a Loan Officer. As I have already mentioned, probably more than once, I never set out to be a loan originator and I am the first to admit that I am not a “salesman”. I do love this part of the process however and for one reason.
Written By: Theresa Furzland
I really thought this would be the easiest of these views to write, and as I get down to it I realize that it is actually the hardest. Maybe this is because it is really impossible for me to separate myself from my lifetime in this business. I have been a mortgage professional longer than I’ve been a homeowner.
Written By: Theresa Furzland
It’s the time of year when we all start watching for those long awaited signs of spring, especially here in Northern Minnesota, where I live. It almost seems to be a sport, or at least a lively competition. We are currently enjoying my favorite...the maple sap is flowing. It means more work for us, and busy days and some late nights for the next few weeks as we will be making two trips into the woods daily to gather, then the process of “boiling” down.
Written By: Theresa Furzland
The New Year brings new challenges to our industry. Good, bad or just plain frustrating we all know that to work in this business is to continually adjust to changes and 2011 looks to be no different in this aspect.
Written By: Theresa Furzland
With the additional demands and ever changing rules and regulations that we are dealing with these days it is more important than ever to be as knowledgeable as possible in all aspects of our industry.
Written By: Theresa Furzland
I know I’ve brought this subject up before, but as we come to the end of another year and look back over the fiascos of 2010, it just seems to me that now more than ever we need to revisit the basics.
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Written By: Stacey Sprain
As an FHA originator, processor or underwriter, it’s likely that in the ongoing foreclosure market you’ll run across a HUD REO loan at some point. The purpose of this multi-part article is to provide you with some useful information to help in your endeavors.