The “Safe” Mortgage

The “Safe” Mortgage

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.


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.

Evaluating Higher than Standard Housing and Debt Ratios

Evaluating Higher than Standard Housing and Debt Ratios

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.


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.

Considerations While Underwriting The Low to Moderate Income Borrower

Considerations While Underwriting The Low to Moderate Income Borrower

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.


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.

Signs of Spring

Signs of Spring

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. 


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.

April is the Magic Month for FHA Changes

April is the Magic Month for FHA Changes

Written By: Stacey Sprain

April showers bring Spring flowers and this year April also brings forth a list of significant FHA program changes that we all need to be aware of.


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.

Submission Tips for Processor

Submission Tips for Processor

Written By: Stacey Sprain

After a long, hard Winter in many areas of the U.S., Spring is on the horizon which means business is about to pick up again for many of us with the start of construction season. This means NOW is the time to take a look at your loan processing and submission habits to seek out areas of improvement. Below are some standard processor submission tips to help you submit high quality, complete loan files to your underwriters.


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.

Helpful Tips When Submitting FHA Loans for Manual Underwriting

Helpful Tips When Submitting FHA Loans for Manual Underwriting

Written By: Stacey Sprain

• Manual ratio guideline is 31/43. If going higher, make sure you present the necessary compensating factors to justify! (See list of HUD-recognized compensating factors below)


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.

Privatizing FNMA and FHLMC

Privatizing FNMA and FHLMC

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. 


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.

Lenders Beware: Clever New Disguises for Seller-Funded Downpayment Assistance

Lenders Beware: Clever New Disguises for Seller-Funded Downpayment Assistance

Written By: Stacey Sprain

If you were active in the industry just a few years back you likely recall the days of easier lending when property values were high enough to jack up purchase prices to incorporate the use of your favorite downpayment assistance program like Nehemiah or Ameridream so that buyers had a source of funds for their required downpayment. Those days were plentiful until HUD stepped into battle to eliminate the use of seller-funded downpayment assistance programs. 


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.

Processing Due Diligence

Processing Due Diligence

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. 


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.