Why Underwriting to Guidelines Isn’t Enough

Why Underwriting to Guidelines Isn’t Enough

Written By: Bonnie Wilt-Hild

How many times have you suspended or possibly rejected a loan and then listened politely as the processor or loan officer provided a very long dissertation as to why the case should be approved which usually ended with one or both of them stating very strongly, “but it meets guidelines!” Yep me too, lots of times.


Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.

Using the Basics to Determine a Borrower’s Ability to Repay the Mortgage

Using the Basics to Determine a Borrower’s Ability to Repay the Mortgage

Written By: Stacey Sprain

You know, the more I’ve thought about things lately the more I have to admit I was wrong on one thing and I’m sure I’m not the only one in this category. For years we all frowned on having to do all of the extra processing and qualifying steps on VA loans. 


Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.

Basic Mortgage Application Data

Basic Mortgage Application Data

Written By: Joan Ewing

Hello Everybody – Hope everyone is staying busy. In my hunt for a topic every week, sometimes it is easy and other times, I haven’t a clue what I will write about until the last minute. This week was one of those last minute thoughts – so I hope this blog is helpful.


Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.

Fees and Charges on 203k’s

Fees and Charges on 203k’s

Written By: Bonnie Wilt-Hild

I received some pretty interesting news from one of my primary investor for 203k’s this week. It was regarding allowable fees on both streamline and standard 203k’s. Much to my surprise it was regarding what we could not charge which was somewhat of a surprise considering HUD’s removal of the cap on origination fees this year per ML 2009-53 as well as doing away with most of the non allowable closing cost per ML2006-4.


Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.

The Importance of Homebuyer Education and Where to Access It

The Importance of Homebuyer Education and Where to Access It

Written By: Stacey Sprain

I had to do some research last week to help a top producer put together presentation materials for a first time homebuyer workshop and I was reminded of how under-used and under-appreciated these valuable resources really are. 


Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.

No More Documentation Waivers?

No More Documentation Waivers?

Written By: Bonnie Wilt-Hild

That’s correct, it appears that documentation waivers are slowly beginning to disappear and I don’t mean by exercising due diligence, I mean they are less and less present on AUS findings. Now, I am sure that a lot of you are thinking that I have lost my mind but if you take a good look at your findings you will see what I am talking about, particularly on cases where the credit score is less than 700.


Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.

First time Homebuyers - preparing for the American Dream

First time Homebuyers - preparing for the American Dream

Written By: Joan Ewing

Hello Everybody - While I was thinking of a topic for this week’s blog, I could not dismiss in my mind the news reports of how many foreclosed homes are being sold at rock bottom prices. I think it is an absolute tragedy that so many people are losing their homes.


Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.

Important News- National Flood Insurance Program Set to Expire AGAIN!

Important News- National Flood Insurance Program Set to Expire AGAIN!

Written By: Stacey Sprain

As we all dealt with back in March, the National Flood Insurance Program (NFIP) is set to expire yet again at midnight on May 31st. With a holiday weekend looming, it’s somewhat doubtful congress will have this resolved by the forthcoming expiration date.


Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.

USDA Availability of Funds and Conditional Commitments

USDA Availability of Funds and Conditional Commitments

Written By: Stacey Sprain

On May 11th, USDA announced that they would continue to issue Conditional Commitments for Guaranteed Rural Housing loans until even after 2010 appropriated funds has been exhausted. Their bulletin stated that such Conditional Commitments would be issued with a condition stating “subject to the availability of funds and Congressional authority to charge a 3.5 percent guarantee fee for purchase loans and a 2.25 percent guarantee fee for refinance loans.”


Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.

Credit Reports Prior To Closing

Credit Reports Prior To Closing

Written By: Bonnie Wilt-Hild

Just when we think we have a handle on documentation requirements where mortgage underwriting is concerned, they go and change the rules and further complicate our lives. The past year has found us embracing due diligence in underwriting with all of the gusto we could muster, seriously limiting the use of documentation waivers provided by AUS as well as embracing all of the old school methodology of underwriting and still, beginning June 1, 2010 we will scrutinize our borrowers further.


Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.