U.S. housing markets are entering a more balanced phase: active listings are up sharply, but a rising number of pending sales are falling apart, signaling a disconnect between buyers and sellers amid continued affordability pressures. Active listings climbed to approximately 1.36 million in June, marking a double-digit increase from a year earlier and the highest level seen since late 2019.
The decades-old rivalry between credit scoring titans FICO and VantageScore has escalated dramatically, especially on the heels of a recent policy shift by the Federal Housing Finance Agency (FHFA). Mortgage lenders can now submit applications to Fannie Mae and Freddie Mac using either VantageScore 4.0 or the tried-and-tested Classic FICO model, triggering heated competition and scrutiny.
U.S. housing markets are undergoing a significant shift: inventory levels are climbing, and home sale cancellations are hitting historic highs, pointing to rising tension between buyers and sellers amid persistent affordability challenges. Active listings rose to 1.36 million in June, a 2.3% increase from May and a notable 17.2% jump compared to the same time last year.
The Federal Housing Finance Agency (FHFA) has sparked debate in the mortgage industry by directing Fannie Mae and Freddie Mac to explore whether cryptocurrency assets should be considered in loan underwriting. The potential move signals a significant shift in how digital assets might be evaluated in determining mortgage eligibility.
Shares of Fair Isaac Corp. (FICO), the company behind the widely used FICO credit score, fell sharply after a major shift in the credit scoring landscape. The drop came after Fannie Mae and Freddie Mac announced they would begin accepting the competing VantageScore 4.0 credit model, ending FICO's long-standing exclusivity in government-backed mortgage underwriting.
Typically the mortgage industry slows down after we move out of the holiday season and into the first few months of the year. Business may not start to pick up until mid-spring or early summer. We can utilize this time to clean house and sharpen our skills in preparation for the next busy season.
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.
There are many reasons each borrower’s identity must be verified. First, lenders must verify data integrity on the loan application, disclosures, credit, and automated underwriting findings.
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.
Often, asset review is a straightforward piece of the loan analysis process. Borrowers submit recent checking and savings account statements to verify funds to close. The underwriter will review the statements for large deposits and insure the most recent balance is used to qualify.
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.
The mortgage industry has been through quite a few ups and downs since 2007. We have experienced layoffs, sweeping regulatory changes and fluctuations in business. The press and public opinion on the mortgage industry has largely been negative due to mortgage fraud and the bursting of the housing bubble.
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.
When underwriting a file, there are several ways to make loan notations: -The comments section on the underwriting transmittal (1008) -The loan origination system (LOS) notes -A separate underwriter rationale write up
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.
Effective September 1, 2014, USDA will replace the 7 CFR 1980-D regulations with the 7 CFR 3555 regulations for its guaranteed rural housing program. The new handbook will house all previous administrative notices (AN’s) and the existing rules in one comprehensive document. The new handbook will also include all rule changes based on regulation 7 CFR 3555.
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.
Employing remote underwriters is a cost effective measure for many mortgage lenders that is also beneficial for the underwriter. Many correspondent lenders have slowly expanded their licensed territory to include multiple states in various time zones. Employing remote underwriters in these states creates a seamless interface with underwriting regardless of branch location.
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.
Before an underwriter can determine the correct calculation for computing income, she/he must determine if there is sufficient data within the documentation submitted. The first place to reference when trying to determine whether you have the correct documents is your AUS findings. However, some findings reports give vague messages such as “refer to Fannie Mae Selling Guide”.
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.
Underwriters are required to juggle new production, condition review, emails, and phone inquiries each day. In addition, managers, processors, and sales professionals may approach underwriters throughout the work day for assistance on a variety of issues. As a result, underwriters must streamline their process flow as much as possible.
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.
When underwriting a file, there are several ways to make loan notations: -The comments section on the underwriting transmittal (1008) -The loan origination system (LOS) notes -A separate underwriter rationale write up
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.