NAMU® IN THE NEWS: March 7, 2012 - "Obama Will Make Taxpayers Guarantee Mortgages Without Checking Borrowers' Incomes or Employment"

By Fred Lucas

... Underwriting is generally done for both initial mortgages and refinancing, said Reed Piano, managing director of the National Association of Mortgage Underwriters. He said the normal mortgage underwriting process checks “employment verification, income verification, analysis or thorough examination of a borrower’s creditworthiness based on a lender’s requirements, any federal or state requirements.”

When an institution does the underwriting for a mortgage, it is "validating the entire process. They are validating the appraisal, the title, the credit, income verification, pretty much everything from A-to-Z and they’re seeing if the file is good and meets the requirements,” Piano told

The White House estimates 2 million to 3 million FHA borrowers are eligible. “While it is always difficult to estimate participation in these programs, this will result in significant monthly savings for hundreds of thousands of families,” a White House news release said.