Mortgage professionals can now access FICO’s Score Mortgage Simulator on the Xactus360 Verification Platform, the companies announced earlier this month. FICO announced the tool in October. It’s designed to simulate potential impacts to a consumer’s FICO score with hypothetical changes in credit report data. Examples include a potential borrower reducing their credit card balance or getting rid of a collection account.
Fannie Mae and Freddie Mac reported strong financial results for 2024, in what could be the last annual report for the enterprises under government conservatorship. Fannie Mae booked net income of just under $17 billion for the full year, about 2 percent below what it reported in 2023. In its statement, Fannie said last year’s performance was driven by guaranty fee income on its $4 trillion guaranty book of business, “consistent with the transformation of our business model that began well over a decade ago.”
Within days of the introduction of legislation to defund the Consumer Financial Protection Bureau (CFPB), the agency’s director was let go by President Donald Trump. Neither action was surprising to those paying attention to the new administration or the Republican-controlled Congress. The agency has been a point of contention in Congress since it was formed as part of Dodd-Frank in 2010.
As new President Donald Trump tapped a new director for the Federal Housing Finance Agency (FHFA), the agency has hit the brakes on a major initiative. Trump announced a few days before his January 20 inauguration that he was nominating Bill Pulte to lead FHFA. If confirmed by the Senate, he would replace Sandra Thompson, who resigned just prior to Inauguration Day.
The U.S. Treasury Department and the Federal Housing Finance Agency (FHFA) have amended the Preferred Stock Purchase Agreements (PSPAs) between Treasury and Fannie Mae and Freddie Mac. The move was made “to help ensure that the eventual release of the GSEs from conservatorship will be orderly.” The new agreement contained two key provisions.
I have said it before and I will say it again and that is, do not believe everything you hear or read for that matter. In this particular instance I am referring to AUS Findings. I have had countless conversations with processors and loan officer who want to know why I am asking for documentation that the AUS findings have clearly stated wasn’t needed or worse, they can’t believe I am turning a loan down that has an Approve/Eligible. So here it is again and pay particular attention to the details because just because you have an Approve/Eligible or Accept doesn’t necessarily mean you have a done deal.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® 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 NAMP®. Nothing contained in this article should be considered legal advice.
From a mortgage approval standpoint I still find that most mortgage professionals are still stuck in the wonderful world of AUS. As in bygone days, they believe that if a case receives an automated underwriting approval then the case will be approved, no questions asked, no additional documentation required. Well, I am here to tell you, that’s just not the case.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® 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 NAMP®. Nothing contained in this article should be considered legal advice.
I know, it doesn’t sound like something that any self respecting processor would engage in but it is happening all around us, it being meatball processing. Defining it is easy enough as well, just think processing on the fly and the end results as you can well imagine is a loan approval or more often, suspense, that resembles the collective works of Shakespeare, at least in page length and as we get busier, the items overlooked during processing continues to grow.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® 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 NAMP®. Nothing contained in this article should be considered legal advice.
As underwriters, many of us spend our days reviewing guidelines, interpreting guidelines, answering questions with regard to guidelines and applying the now never ending overlays from our investors with regard to guidelines. Underwriting guidelines apply to every loan product and differ depending on which type of product you are underwriting however there are many common sense areas that apply to underwriting that are not addressed in handbooks.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® 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 NAMP®. Nothing contained in this article should be considered legal advice.
A few days ago a friend and I were laughing over the fact that most people, including mortgage industry professionals, wonder if underwriters really exist. I myself have had staff from various brokers offices (which I do visit from time to time) say to me, “We have heard about underwriters but have never really seen one.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® 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 NAMP®. Nothing contained in this article should be considered legal advice.
Seems there have been a few issues lately with regard to Total Scorecard findings and validity as well as misconceptions with validity periods for both appraisals and credit documents (credit reports) on FHA insured mortgage types so I thought it not a bad idea to clear a couple of things up.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® 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 NAMP®. Nothing contained in this article should be considered legal advice.
Call it portfolio retention or risk management, but as of Wednesday, I had several of my investors pull out of the market where non-credit qualifying (streamline’s without appraisal) FHA streamline refinance transactions were concerned. Several have said they would only purchase them if they were currently servicing the loan and I now have one other who has changed guidelines on credit qualifying streamline refinance transaction to require a minimum median credit score of 700 for loan amounts less than 417,000 and 720 for loan amounts greater than 417. All of this just as everyone rev’s up for the reduction in UFMIP to .01%.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® 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 NAMP®. Nothing contained in this article should be considered legal advice.
Residential mortgage underwriting is defined as the overall credit and valuation analysis of a particular borrower or borrowers with regard to overall financial health as well as the evaluation of collateral that might be used to secure the mortgage and as underwriters we relate this particular evaluation to calculation of housing to income and debt to income ratio’s, the evaluation of a borrower’s credit history as well as the review of a property appraisal.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® 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 NAMP®. Nothing contained in this article should be considered legal advice.
Over the past 5 years I have had many conversations with people regarding the housing market which invariably becomes a discussion as to who is at fault for the collapse in 2007. Depending on who you are talking too, the blame is laid at the feet of big banks or mortgage brokers, Wall Street, FNMA or FHLMC and of course the diagnosis is generally that one or all of the aforementioned groups did it out of greed.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® 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 NAMP®. Nothing contained in this article should be considered legal advice.
FHA issued a bulletin on April 18, 2012 informing the industry about HUD approved nonprofit participation in FHA loan financing. Basically HUD allows approved nonprofit agencies to act as a mortgagor utilizing FHA insured financing to purchase homes which will be designated for resale to low to moderate income families or in some instances rented to low moderate income families and as you can imagine where the affordable housing program concerned as it pertains to the rental units, the nonprofits may actually have more than one FHA insured mortgage.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® 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 NAMP®. Nothing contained in this article should be considered legal advice.
Written By: Bonnie Wildt
I have said it before and I will say it again and that is, do not believe everything you hear or read for that matter. In this particular instance I am referring to AUS Findings. I have had countless conversations with processors and loan officer who want to know why I am asking for documentation that the AUS findings have clearly stated wasn’t needed or worse, they can’t believe I am turning a loan down that has an Approve/Eligible. So here it is again and pay particular attention to the details because just because you have an Approve/Eligible or Accept doesn’t necessarily mean you have a done deal.