Fannie Mae and Freddie Mac have recently increased the amount of information they share about condominium developments—particularly those classified as ineligible for financing. While the move has been praised as a step in the right direction, many lenders say the enhancements still leave major gaps in transparency and usability.
Mortgage rates dipped to their lowest level since late April, driven by a rally in mortgage-backed securities (MBS) and a softer-than-expected tone from the Federal Reserve. Bond markets responded positively to Fed Chair Jerome Powell’s latest comments, which hinted at growing openness to rate cuts amid signs of labor market cooling.
As affordability challenges mount and the average U.S. down payment surpasses \$30,000, down payment assistance (DPA) programs are stepping into a critical role—particularly as federal housing support faces potential rollbacks. For first-time buyers and low-to-moderate income households, these programs are emerging as a vital tool in bridging the homeownership gap.
Momentum is building in Washington to privatize Fannie Mae and Freddie Mac, the two mortgage giants that support the bulk of America’s housing finance system. For a select group of hedge funds that scooped up their shares years ago, the political shift could deliver staggering returns. But housing advocates warn the move may come at the expense of affordability and long-term market stability.
Senate Republicans have introduced legislation that would eliminate the Consumer Financial Protection Bureau’s (CFPB) primary funding source, a move that could significantly reshape the agency’s future. The proposal seeks to end the CFPB’s access to funding from the Federal Reserve’s operating budget—cutting it from 12% to zero—and instead subject the bureau to the traditional congressional appropriations process.
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.
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.
Very often while teaching underwriting courses I am often asked by students if the course will lead them to obtaining a CHUMS number or “DE” designation. I always say “no”. My classes always state that an employer must nominate an employee to be a FHA DE underwriter.
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.
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!
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.
In most of the country property values are increasing after a period of property values being stable or declining. The only area not increasing dramatically at the moment is in the Northeast. Who knows how long that will last?
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.
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.
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.
For many years credit scoring was not present and the analysis of an applicant’s credit report was very subjective. The review was often loaded with cultural biases and had no rhyme or reason.
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.
As a seasoned mortgage professional I am often asked where a person can obtain real estate for less money and where they can obtain financing easily. I often answer, go to www.homepath.com where Fannie Mae lists properties that they have foreclosed and have taken back (REO).
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.
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.
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.
On February 7, 2013 Senators Menendez and Boxer introduced a bill called “The Responsible Homeowners Act of 2013.” At the present moment this bill is in committee. If the bill comes out of committee and if it passes the full Senate and the House of Representatives in its present form, HARP refinances will be extended for at least another year.
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.
For many years all FHA mortgage loans were manually underwritten and then with artificial intelligence and automation, FHA shifted to automated underwriting. The FHA developed “TOTAL” to be used in conjunction with Fannie Mae’s Desk Top Underwriter (DU) or Freddie Mac’s Loan Prospector (LP) to underwrite FHA mortgage loan s except for FHA Streamline refinances and for borrowers with no credit history.
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.
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.