More Education is Needed

More Education is Needed

Written By: Gail Foster

Economic times are difficult. Home sales are down. There are many sellers and few buyers. In fact, when you discuss the opportunities for home ownership, most just shake their heads and say they doubt they’ll qualify. We live in the land of opportunity and the American Dream is becoming a nightmare. 


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 Pitfalls of HVCC

The Pitfalls of HVCC

Written By: Bonnie Wilt-Hild

Over the past year or so we have all implemented policies concerning the Home Valuation Code of Conduct which the agencies implemented in April, 2009 with the Federal Housing Administration following suit shortly after.


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.

Stop the Insanity

Stop the Insanity

Written By: Gail Foster

I had a closing about a month ago on a Friday morning. We didn’t leave the title company until 6 hours later! We sat six hours at the settlement table waiting for settlement sheet adjustments to be approved. What can take six hours? I can write out bills, make deposits, clean my kitchen, hit the yard sales, get my hair done and walk my dog in less than six hours.


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.

Documentation Requirements for Retirement Reserves

Documentation Requirements for Retirement Reserves

Written By: Stacey Sprain

In the past before the market changed, it was common practice to list retirement funds on the 1003 at either 70% of the vested account value for conventional loans or 60% of the vested value if a government loan. As long as the borrower wasn’t utilizing the account funds for their downpayment or closing costs, we didn’t need to document the terms of withdrawal. However, dependent upon the type of retirement account in question, we may need documentation in our file justifying the amount of funds listed for reserve.


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.

Underwriting: Psychic Ability or Financial Psychology

Underwriting: Psychic Ability or Financial Psychology

Written By: Bonnie Wilt-Hild

Recently, I have noticed that there are few misconceptions about how we underwriters go about determining if a borrower is qualified for the mortgage for which they have applied. Now I know there are several loan officers, not to mention realtors who would swear that we underwriters rely solely on our psychic abilities to determine if a borrower is approvable and I’m sure that a lot of the processing staff would also agree that we are proficient at this sort of thing, I base this assumption on the quality of file we usually get from an underwriting standpoint, by this I mean no employment information filled in on the 1003


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.

Adversaries R Us

Adversaries R Us

Written By: Gail Foster

I read Bonnie’s blog from Monday and just burst out laughing. Bonnie and I have been friends for about six years and have spent many a night sitting across the table with a beer, discussing the mortgage industry. She was an underwriter and then, I was a loan officer. 


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.

Part Three of Multi-Part Series: Documentation Requirements for FHA New Construction Properties

Part Three of Multi-Part Series: Documentation Requirements for FHA New Construction Properties

Written By: Stacey Sprain

Definition: Proposed Construction 
These are properties pre-approved for mortgage insurance prior to the beginning of construction, defined as the first placement of concrete or other permanent materials. 


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.

Untangling the AUS & Underwriting Mystery

Untangling the AUS & Underwriting Mystery

Written By: Bonnie Wilt-Hild

As we continue to become a lending industry mitigated with financial reform, we continue to question the usefulness of technology tools that perpetuated the abandonment of underwriting and lender responsibility, where overall mortgage risk assessment is concerned. 


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.

Just Venting

Just Venting

Written By: Gail Foster

I don’t know about you but it just seems to go from bad to worse. May home sales statistics were the slowest ever and June doesn’t seem much better. I have seller’s listing their homes hoping that low interest rates will give pop to the market and buyers are just taking their time.


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.

Part Two of Multi-Part Series: Documentation Requirements for FHA New Construction Properties

Part Two of Multi-Part Series: Documentation Requirements for FHA New Construction Properties

Written By: Stacey Sprain

Definition "Under Construction" Property. These are properties in which the first placement of concrete or other permanent materials has begun, but construction is not yet 100% complete.


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.