Ask The Underwriter

First let me say this:Complete Tax Returns Include ALL SCHEDULES!   This is a heated debate between underwriters and mortgage brokers.  The 1040 is the summary of all the schedules.  We cannot analyze the tax returns if we don't have the information the 1040 is referring to.Here are a few items t...

Hello fellow Active Rain members...I'm sorry I haven't completed this series I partnered with Appalachian Technical College (in Jasper, Ga & Woodstock, Ga) last week.  It's been an exciting week!  My last post was about incomplete income documents. I wanted to continue on the subject of income.  ...

Most borrowers check stubs are issued by ADP or other well known pay check processing companies, but some borrowers (my husband included) have "different" check stubs.  When these "different" check stubs are submitted the underwriter often asks for additional documentation, but you can beat them ...

I received 2 phone calls today both after 7pm!  Both were very angry phone calls regarding conditions that were impossible to get.  It's the end of the month everyone's cranky, no one's closing the amount of loans they want to, etc....Okay 3 things and then I'm outta here before NO ONE lets me co...

Hi D. Bass,I have read quite a few of your blogs and I like the way you educate all of us on UW questions. I have a question that I would like to ask you:If DU findings come back as Refer/Eligible: Refer due to DTI at 67% but borrower has compensating factors (700+ score, 3 months reserves, 10% d...

I spoke to an underwriter buddy of mine today.  She reminded me of something I'd like bring to yourattention.  DU (FannieMae) and LP (Loan Prospector) still have the potential to be stated income loans!  Oh....... the findings that I received that showed no income verification was needed (talking...

The credit report has a wealth of information, but if you just glancing at you'll miss some very important information.  Refinances:  When you look at your borrower's credit report you are looking for a 12-24 month mortgage history (depending on your program guidelines) Make sure you look at the ...

Compensating Factors: Information used to strengthen your mortgage loan file.  Not a definite, but definitely worth trying.There are times to let sleeping dogs lie and there are times to let out the battle cry and bring on the: COMPENSATING FACTORS! When your borrower falls short you need HELP! H...

In some lender shops before the loan reaches the underwriter it has to go to the set up department/person (and sometimes another step!)  By the time it gets to the underwriter eithier 3-4 hours have passed or 24 hours (depending on the lenders turn time).Incomplete files slow down the mortgage pr...

Today's underwriting subject is Finger Pointing.  I know most of you are asking "What mortgage product is that? I've never seen or heard of that condition? Do you mean when the Underwriter is finger pointing?" I had a few good underwriting questions I wanted to share with you guys this week. I wi...