Christian Ruiz

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  • Active Member Since: March 31, 2016

  • Membership Expires: March 31, 2021

  • NAMU®-CMMU Certification Issue Date: July 19, 2019

  • NAMU®-CMMU Certification Expiration Date: July 19, 2020

  • NAMU®-CMMU Certification Re-Certification Date: N/A



PLEASE NOTE: We do not participate in certificant complaint resolution. Furthermore, due to confidentiality and privacy considerations, we are unable to provide any additional information regarding a certificant, including—but not limited to—contact information, certification progress, or exam results.
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NAMU® Customer Reviews & Testimonials
NAMU® Customer Review: Bob, Connecticut, Certified Master Mortgage Underwriter (NAMU®-CMMU)
NAMU® CUSTOMER REVIEW: Tamisha, Underwriter Bootcamp
NAMU® CUSTOMER REVIEW: Melody, Underwriter Bootcamp
NAMU® CUSTOMER REVIEW: Kelvie, Certified in Mortgage Regulatory Compliance (NAMU®-CMRC)
NAMU® CUSTOMER REVIEW: Felix, Underwriter Bootcamp
NAMU® CUSTOMER REVIEW: SUSAN, FLORIDA, NON-QM TRAINING
NAMU® CUSTOMER REVIEW: Twanna, Certified Master Mortgage Underwriter (CMMU)
NAMU® Customer Review: Jessica, Vancouver, Washington, Certified Master Mortgage Underwriter (NAMU®-CMMU)
NAMU® Customer Review: Faith, Certified Mortgage Underwriter (NAMU®-CMU)
NAMP® CUSTOMER REVIEW: Michelle, California - The Official NAMU® Underwriter Bootcamp
NAMU® CUSTOMER REVIEW: Michelle, Pennsylvania - Certified Master Mortgage Underwriter (NAMU®-CMMU)®
NAMP® CUSTOMER REVIEW: Ivan S., Alaska - Certified Master Mortgage Underwriter (NAMU®-CMMU)®
NAMU® CUSTOMER REVIEW: Don, Certified Master Mortgage Underwriter (NAMU®-CMMU)®
 
 
 
 
Featured
IRS Form 4506-T - Part 3

This free mortgage training video discusses how to obtain tax documents, validating Tax Transcripts, retaining the Tax Transcripts and more. Ideal for loan processors and mortgage underwriters.

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IRS Form 4506-T - Part 2

This free mortgage training video discusses individual steps on completing the 4506-T form prior to submitting to IRS and more. Ideal for loan processors and mortgage underwriters.

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IRS Form 4506-T - Part 1

This free mortgage training video discusses the request for Tax Transcript of Tax Return (IRS Form 4506-T), requirements to obtain tax transcripts, guidelines on completing the 4506-T and more. Ideal for loan processors and mortgage underwriters.

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FHLMC Commission Income Updates - Part 3

This free mortgage training video discusses change in the tax law, allowable deductions prior to 2018 tax year, 2017 and 2018 Schedule-A format changes, FHLMC change to commission income, FHLMC results to the tax law change and more. Ideal for loan processors and mortgage underwriters.

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FHLMC Commission Income Updates - Part 2

This free mortgage training video discusses unreimbursed employee expenses versus business expenses, FHLMC commission income requirements prior to 2018 tax year and more. Ideal for loan processors and mortgage underwriters.

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FHLMC Commission Income Updates - Part 1

This free mortgage training video discusses what is commission income, unreimbursed employee expenses, who can deduct unreimbursed employee expenses, allowable unreimbursed employee expenses and more. Ideal for loan processors and mortgage underwriters.

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Review of the Closing Disclosure - Part 3

This free mortgage training video discusses frequently asked questions that were submitted by various lenders on the closing disclosure & 3 day rule and more. Ideal for loan processors and underwriters.

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Review of the Closing Disclosure - Part 2

This free mortgage training video discusses rule responsibilities, new 3 day review, loan types that apply & does not apply to the 3 day rule and more. Ideal for loan processors and underwriters.

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Review of the Closing Disclosure - Part 1

This free mortgage training video discusses definition of closing disclosure, closing disclosure requirements, what's inside the closing disclosure form and more. Ideal for loan processors and underwriters.

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Title Report 101 - Part 3

This free mortgage training video discusses Title Commitment, Title ABC's, Examples of Schedule A & B, Example of Title Policy and more. Ideal for loan processors and underwriters.

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Featured
Fed Signals Greater Willingness to Ease Policy as Economic Risks Come Into Sharper Focus

Written by: Internal Analysis & Opinion Writers

A senior Federal Reserve official has signaled growing openness to additional interest rate cuts this year, adding momentum to market expectations that monetary policy may shift more decisively toward easing if economic conditions continue to soften. The remarks, delivered amid ongoing debate over inflation progress and labor market resilience, suggest that policymakers are increasingly comfortable with the idea that restrictive rates may no longer be necessary for as long as previously assumed.

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Non-QM Lending Poised for a More Disciplined Expansion in 2026

Written by: Internal Analysis & Opinion Writers

The non-qualified mortgage market is expected to enter a more mature and disciplined phase in 2026, as issuers and originators adjust to shifting capital markets, evolving borrower demand, and heightened scrutiny around credit performance. After several years of rapid growth followed by volatility, industry participants say the next chapter for non-QM lending will likely emphasize consistency, credit quality, and sustainable execution rather than aggressive expansion.

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Measured Expansion Expected to Define the Housing Market’s Next Phase in 2026

Written by: Internal Analysis & Opinion Writers

After several years marked by volatility, affordability strain, and sharp shifts in demand, the U.S. housing market is expected to enter a period of steadier, more deliberate growth in 2026. Economists and housing industry analysts say the coming year is likely to reflect a transition away from extreme conditions and toward a market shaped by moderation, where price growth, sales activity, and construction all move at a more sustainable pace.

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Trump Pledges Sweeping Housing Policy Overhaul as Affordability Pressures Intensify

Written by: Internal Analysis & Opinion Writers

Former President Donald Trump has renewed his focus on housing affordability, outlining a series of aggressive policy proposals aimed at reshaping the U.S. housing market if he returns to the White House. Framing housing costs as a central economic issue for American families, Trump has promised to pursue reforms that would expand supply, reduce regulatory barriers, and overhaul federal housing policies that he argues have contributed to rising prices and limited access to homeownership.

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Understanding Fannie Mae’s Unusual Stock Story and Its Place in the Housing Finance System

Written by: Internal Analysis & Opinion Writers

Fannie Mae remains one of the most closely watched — and widely misunderstood — names in U.S. housing finance, particularly among individual investors scanning ticker symbols and price movements. Though the company’s shares trade on over-the-counter markets rather than a major exchange, interest in the stock continues to surge whenever speculation grows about housing policy reform or a potential exit from government conservatorship.

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Why Privatizing Fannie Mae and Freddie Mac Could Reshape Housing Finance — and Not for the Better

Written by: Internal Analysis & Opinion Writers

Renewed discussion around privatizing Fannie Mae and Freddie Mac has resurfaced as policymakers revisit the long-term structure of the U.S. housing finance system. While proponents of privatization argue that removing government control could reduce taxpayer exposure and encourage private capital, housing economists and policy experts warn that such a shift carries significant risks — particularly for affordability, market stability, and access to mortgage credit.

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FHFA Establishes Updated Housing Goals to Expand GSE Support for Affordable Lending

Written by: Internal Analysis & Opinion Writers

The Federal Housing Finance Agency has formally set updated housing goals for Fannie Mae and Freddie Mac, outlining expectations for how the government-sponsored enterprises will continue to support affordable housing access over the coming years. The goals, which apply to single-family and multifamily lending, are intended to reinforce the GSEs’ role in serving low- and moderate-income households while maintaining safety and soundness in a housing market shaped by affordability pressures and uneven supply.

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Mortgage Rates Drift Higher as Markets Weigh Inflation Risks and Fed Outlook

Written by: Internal Analysis & Opinion Writers

Mortgage rates moved modestly higher this week, extending a pattern of volatility that has defined the market in recent months. While the increase was not dramatic, it underscored the fragile balance between optimism for eventual rate relief and persistent concerns about inflation, economic resilience, and the Federal Reserve’s path forward. For borrowers and lenders alike, the latest movement reinforces how sensitive mortgage pricing remains to shifting market expectations.

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Soaring Home Insurance Costs Create New Obstacles for Mortgage Lending

Written by: Internal Analysis & Opinion Writers

Rising home insurance costs are becoming an increasingly disruptive force in the U.S. mortgage market, adding a new layer of complexity to an already strained housing finance system. As premiums climb sharply in many parts of the country, lenders and borrowers alike are confronting last-minute loan disruptions, higher monthly housing payments, and unexpected qualification hurdles that threaten to derail transactions late in the process.

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Suspension of Public Data by Fannie Mae and Freddie Mac Sparks Transparency Concerns

Written by: Internal Analysis & Opinion Writers

The major mortgage backers, Fannie Mae and Freddie Mac, have recently curtailed publication of several of their longstanding public housing-market surveys and economic forecasts. This marks a sharp shift away from a history of openly sharing data that many lenders, analysts, and policymakers have relied on to gauge market sentiment and make informed decisions.

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Major Listings Platforms Predict Flat Mortgage Rate Trends for 2026

Written by: Internal Analysis & Opinion Writers

Several of the largest U.S. real estate platforms are predicting that mortgage rates will see minimal movement in 2026, maintaining a pattern of stability rather than dramatic shifts. Despite hopes for a significant drop, most forecasts suggest rates will remain anchored in the low-6% range throughout the year.

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Refinance Surge Takes Off as Rates Fall — Servicers See Highest Retention in Years

Written by: Internal Analysis & Opinion Writers

As mortgage rates have dipped recently, refinancing activity has surged — and servicers are holding onto more of those refinanced loans than at any time in the past three and a half years. According to Q3 2025 data from ICE Mortgage Technology, refinance-loan retention rose to 28%, the highest figure recorded since early 2022.

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FHFA Raises 2026 Conforming Loan Limits to Reflect Rising Home Prices

Written by: Internal Analysis & Opinion Writers

The Federal Housing Finance Agency (FHFA) has announced that the baseline conforming loan limit (CLL) for one-unit properties will increase to $832,750 in 2026, up from $806,500 in 2025. This adjustment reflects the annual rise in U.S. home prices. The increase is mandated by the Housing and Economic Recovery Act (HERA), which requires that the loan limits be recalculated each year based on the change in the national average home price.

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Multifamily Loan Caps for Fannie Mae & Freddie Mac Raised to $88 B per Entity for 2026

Written by: Internal Analysis & Opinion Writers

The Federal Housing Finance Agency (FHFA) has announced that the loan‑purchase cap for multifamily mortgages for each of its regulated entities — Fannie Mae and Freddie Mac — will be $88 billion in 2026, marking a combined cap of $176 billion for both enterprises. This represents a significant increase from 2025, when the cap for each entity was set at $73 billion (combined $146 billion). The increase is more than 20 percent year‑over‑year.

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Inflation Continues to Outpace U.S. Home Price Growth

Written by: Internal Analysis & Opinion Writers

National home price appreciation remained in the slow lane in September, as overall gains barely registered and inflation continued to erode real housing‑wealth growth. The S&P CoreLogic Case‑Shiller U.S. National Home Price Index reported an annual increase of just 1.3% in September—slightly down from 1.4% in August. Meanwhile, monthly figures show outright declines in many metros, underscoring how elevated mortgage rates are weighing on affordability and demand.

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Fannie Mae Drops Minimum FICO Score Requirement, Reshaping Credit Standard

Written by: Internal Analysis & Opinion Writers

Fannie Mae has announced a significant change to its underwriting criteria: the removal of the minimum FICO® credit‑score requirement from its Selling Guide for loans submitted to Desktop Underwriter beginning November 15. Previously, Fannie Mae mandated a minimum credit‑score threshold for every loan delivered to the secondary market, with borrowers required to meet specific FICO® ranges as part of eligibility.

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Proposal for 50‑Year Mortgages Surfaces in Housing Affordability Push

Written by: Internal Analysis & Opinion Writers

The administration has floated a proposal to allow 50‑year fixed‑rate mortgages as a tool to help reduce monthly payments for homebuyers, particularly younger households struggling with elevated housing costs. The concept re‑emerged after posts on social media from the Donald Trump and Bill Pulte, Director of the Federal Housing Finance Agency (FHFA), signaling that longer amortization terms are under active consideration.

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Assumable and Portable Loan Options on the Table at Fannie & Freddie

Written by: Internal Analysis & Opinion Writers

Federal Housing Finance Agency (FHFA) Director Bill Pulte has signaled that Fannie Mae and Freddie Mac are exploring major changes to conventional‑mortgage offerings by evaluating assumable and portable loan structures. According to Pulte, the goal is to make these options available “in a safe and sound manner” under the GSEs’ oversight.

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White House Budget Director Seeks to Shut Down CFPB

Written by: Internal Analysis & Opinion Writers

Russell Vought, Director of the Office of Management and Budget, has revealed plans to completely shut down the Consumer Financial Protection Bureau (CFPB) within the coming months—an announcement that has sent ripples through the financial services industry and consumer advocacy circles. Vought, a longtime critic of the CFPB, previously led efforts to cut nearly 90% of the agency’s staff and freeze its funding. Now, he has laid out a more definitive objective: to bring the bureau’s operations to a close by 2026.

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End of the Fed’s Balance Sheet Run‑off Could Ease Mortgage Rates—but Not Overnight

Written by: Internal Analysis & Opinion Writers

The Federal Reserve’s move toward ending quantitative tightening (QT)—its large‑scale reduction of Treasury and mortgage‑backed security holdings—is sparking interest in how the housing finance market might respond. According to commentary in the industry, the conclusion of QT could potentially pave the way for lower mortgage rates, though timing and magnitude remain uncertain.

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Is Fannie Mae’s Stock Surge Justified or Overstated? A Valuation Checkup

Written by: Internal Analysis & Opinion Writers

Fannie Mae (FNMA) has captured investor attention with a dramatic stock price surge, climbing over 600% year-over-year. The rally has reignited debate about the company’s true valuation and whether its recent momentum is rooted in fundamentals or speculative optimism.

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Fannie’s Recent Volatility Spurs Fresh Valuation Debate

Written by: Internal Analysis & Opinion Writers

Fannie Mae’s (FNMA) stock has endured a turbulent stretch, falling nearly 15% over the past month after soaring earlier in the year. While year‑to‑date gains still look strong, the recent pullback has captured investor attention and reignited questions about how the company’s equity should be valued going forward.

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Shutdown Jeopardizes Thousands of Flood-Zone Home Sales Across the U.S

Written by: Internal Analysis & Opinion Writers

The ongoing U.S. government shutdown is casting a shadow over the housing market, particularly in flood-prone areas where federally backed flood insurance is essential for mortgage approvals. Without legislative action to renew funding, thousands of home sales could stall each day, costing the real estate market billions in lost transactions.

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Rates Eased Slightly This Week — But Big Drops Likely Still Months Away

Written by: Internal Analysis & Opinion Writers

Mortgage rates edged lower this week, but the moves were modest, offering only a sliver of relief for would‑be homebuyers and refinance seekers. Analysts warn that meaningful rate declines are still tied to broader economic shifts — not just a few basis points here and there.

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Fannie, Freddie’s VantageScore Shift Rocks the Credit Score Landscape

Written by: Internal Analysis & Opinion Writers

A little‑publicized policy update could reshape the dynamics of mortgage lending: Fannie Mae and Freddie Mac will now accept VantageScore 4.0 in place of—or alongside—traditional FICO scoring. The change, delivered via social media and internal guidance, finally gives formal approval to a credit model that has long been positioned as an alternative to FICO.

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Fed Rate Cut Brings Modest Relief, but Borrowers Should Temper Expectations

Written by: Internal Analysis & Opinion Writers

The Federal Reserve’s recent decision to lower its benchmark federal funds rate by a quarter point to a range of 4.00%–4.25% marks its first rate cut since December—an effort to stimulate economic activity amid a cooling job market and fading inflationary pressures.

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Lock‑In Effect Softens While Rate Gap Persists

Written by: Internal Analysis & Opinion Writers

Mortgage rates, which began 2025 near 7%, have gradually slid into the 6.25%–6.50% range—a shift that’s slowly loosening the so-called “lock‑in” effect that has kept many homeowners in place. As rates fall, more borrowers with mortgages above 6% are reconsidering whether now is the time to refinance or make a move.

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CFPB Moves to Clarify Supervision Criteria for Nonbanks

Written by: Internal Analysis & Opinion Writers

The Consumer Financial Protection Bureau has proposed a new rule aiming to create a standardized definition of what it means for a nonbank financial company to pose “risks to consumers.” The goal is to make supervision clearer, more consistent, and limited to significant threats rather than being applied on an ad‑hoc basis.

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FHA Tightens Loan Caps, Impacting Buyers in High‑Cost Areas

Written by: Internal Analysis & Opinion Writers

The Federal Housing Administration (FHA) has reduced its national loan limits for the first time in over a decade, reshaping the landscape for prospective homebuyers in expensive markets. The change means many borrowers who expected to qualify under former thresholds may now fall short—and could face fewer options.

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Fed Rate Cut Looms—But Mortgage Rates May Not Drop Much

Written by: Internal Analysis & Opinion Writers

A 25‑basis‑point cut from the Federal Reserve is widely anticipated, but economists and bond‑market experts caution that the effect on mortgage rates could be limited or even counterintuitive in the near term. Markets are almost certain that the Fed will reduce its short‑term rate target from 4.25‑4.50% by a quarter point.

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WRITTEN BY: STACEY SPRAIN, SENIOR LOAN PROCESSOR
Understanding HUD REO- Part One: Overview of the REO Process

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.

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Recent Agency Announcements of Importance

Written By: Stacey Sprain

11/29/2012- Fannie Mae Lender Letter 2012-11 Confirmation of Conventional Loan Limits for 2013
The Federal Housing Finance Agency (FHFA) has issued the maximum loan limits that will apply for conventional loans to in 2013. All loan limits for 2013 remain unchanged from 2012.

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Deciphering the Recent FHA Condominium Changes Announced in Mortgagee Letter 2012-18

Written By: Stacey Sprain

If only HUD would give me a job so I could revise their way of updating existing policies it would sure make a lot of our lives a whole lot easier so we could all work more efficiently! I don’t know about all of you but I sure get frustrated trying to sort through things like Mortgagee Letter 2012-18 while trying to compare it to the materials that were issued with Mortgagee Letter 2011-22. 

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DU 9.0 Brings Significant Updates for Conventional Automated Underwriting- Part 2

Written By: Stacey Sprain

The following is part 2 of a multi-part article covering the upcoming changes that will be applied in DU over the weekend of October 20th when Fannie Mae completed an update. One correction to last week’s article: In the beginning paragraphs I incorrectly referenced DU version 8.3 instead of the correct version DU 8.2.

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DU 9.0 Brings Significant Updates for Conventional Automated Underwriting- Part 1

Written By: Stacey Sprain

For those of you who may not yet be aware, DU is planning a major update for the weekend of October 20th which will bring forth some significant changes. Because of the amount of changes, this is being presented in 2 parts. The following is part 1 of a 2 part series covering the various updates.

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FHA Self-Employed Borrower FAQs

Written By: Stacey Sprain

As with any lending product, self-employment is always a topic that involves a lot of questions and uncertainty. The following FAQs represent a lot of the most common questions that FHA receives about self-employed borrowers and how to calculate self-employment income. 

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FHA Appraisal & Valuation Part 2- Inspections & Certification FAQs

Written By: Stacey Sprain

This is part 2 of a multi-part series that provides helpful questions and answers about FHA appraisals, properties and valuations. I recently ran across this list as I was actually searching for something on a completely different topic. I found these FAQs so helpful and informative I felt the need to pass them on in hopes they will be useful to you as well!

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Ability to Repay Requirements for Streamline Refinances

Written By: Stacey Sprain

Much has been published lately about FHA streamline refinances particularly because of the recent drop to MIP rates for certain FHA to FHA streamline refinances but there’s one important topic I haven’t seen much if any press about and it’s an important one when we’re talking streamline refinances- important in particular for non-credit qualifying streamline refinances.

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FHA Streamline Refinance- FAQs

Written By: Stacey Sprain

Next Monday, June 11th marks the first day of FHA’s significant MIP/MI rate decrease for certain FHA streamline refinance transactions. The following FAQs are presented in order to provide you with the information you need to make the best of this extraordinary marketing opportunity for existing FHA borrowers.

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DU Updates for Government Loans- Expected Weekend of July 21, 2012

Written By: Stacey Sprain

DU for government loans is updating during the weekend of July 21st to accommodate a number of messaging changes on topics such as bankruptcy and foreclosure for VA lending, 3-4 unit property reserve calculations for FHA lending. A summary of the changes follows below.

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FHA Streamline Refinances- About to Make a Big Comeback

Written By: Stacey Sprain

With FHA announcing streamline refinance opportunities with record low MIP for borrowers whose current FHA loan was endorsed prior to June 1, 2009, we can expect to see a big pickup on FHA streamline refinance loans after the June 11th reduced MIP effective date. 

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Questions from FHA’s Recent Mortgagee Letters

Written By: Stacey Sprain

If you’re like me, you like to take FHA Mortgagee Letters and dissect them when they are released, put the content info format that makes most sense to you and completely re-create or break down the information that’s given. I often like to look at the information as if I am reading it from the point-of-view of someone who may not have many years of mortgage expertise so that I can take the info provided by FHA and re-present it in ways that prove the most helpful to those who rely on the information in day to day lending. 

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FHA Announces Important Guideline Changes

Written By: Stacey Sprain

Mortgagee Letter 2012-3 announces several key guideline changes on topics of self-employment, disputed credit, outstanding collections and identity of interest definitions. These changes are good from the perspective that they offer much clearer underwriting requirements on several key topics so not as much is left to interpretation or opinion. 

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Changes to FHA Mortgage Insurance April and June 1st

Written By: Stacey Sprain

HUD formally announced upcoming changes to the FHA mortgage insurance structure in an email that went out to single family email subscribers on February 27th. A Mortgagee Letter is expected in the near future which will communicate final full details of the upcoming changes to the FHA mortgage insurance structure.

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Gift Funds for Conventional Lending

Written By: Stacey Sprain

Confusion is common when it comes to gift documentation requirements between conventional and government loan types. Below I’ve summarized donor, gift letter and documentation requirements for each conventional lending.

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Important Info for Lenders re: IRS Transcripts and 2012 Concerns for Identity Theft

Written By: Stacey Sprain

Though all of today’s technological improvements allow lenders a better opportunity to validate loan application information for loan applicants, such advances have also increased the risk for identity theft with so much personal data moving through so many extra portals and moving through so many extra pairs of hands. 

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Little Things that Make a BIG Difference in Underwriting

Written By: Stacey Sprain

There’s nothing an underwriter hates more than a sloppy, incomplete file that a processor is insisting be rushed through the system. Processors that make a habit of submitting poorly processed files often blow their reputation with underwriters who deserve quality loan files to review so that they can do the best possible job of analyzing the borrower’s credit profile to quickly determine whether or not they are worthy of repaying the loan for which they have applied.

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The Importance of a Thorough 1003- Part Two of Three Part Series

Written By: Stacey Sprain

It all starts with the loan application and quite frankly, if the 1003 isn’t thorough and accurate from the get-go, it can stop your file dead in its tracks once it hits underwriting. From an underwriting standpoint, nothing is as important as a complete and accurate loan application because the 1003 is the window to the file; it’s the “book” that tells the story.

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The Importance of a Thorough 1003- Part One of Three Part Series

Written By: Stacey Sprain

It all starts with the loan application and quite frankly, if the 1003 isn’t thorough and accurate from the get-go, it can stop your file dead in its tracks once it hits underwriting. From an underwriting standpoint, nothing is as important as a complete and accurate loan application because the 1003 is the window to the file; it’s the “book” that tells the story.

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Something Positive from the Allied Mortgage Debacle

Written By: Stacey Sprain

Something happened this week and it was big enough that I’m sure you’ve heard or read about it unless you’ve been camping out under a rock. Let me say this- Allied Home Mortgage. So you’ve heard?

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Rural Housing Guarantee & Annual Fee Requirements Effective 10/01/2011

Written By: Stacey Sprain

As you’re likely aware, USDA Guaranteed Rural Housing is changing guarantee fees from 3.5% to 2.0% for purchase transactions and implementing a new annual fee of .3% effective for all GRH loans that are not committed before October 1, 2011. This news was originally announced in RD AN 4551 which was issued February, 3rd.

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Major Changes in Rapid Succession for Next 45 Days!

Written By: Stacey Sprain

Buckle your seat belts everyone because the next 45 days are going to be bustling with a lot of major agency program changes that are very important for all of us to keep track of and plan ahead for. Because so much is happening so quickly and in such rapid succession, I myself had to start maintaining a chart just to stay on top of it all. I’ve found this to be very helpful so I hope it helps you too!

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Part 5-Final FHA Updates to Condominium Approval Qualification Requirements and Process

Written By: Stacey Sprain

Mortgagee Letter 2011-22 dated 6/30/2011 clarifies, expands, consolidates, and updates existing condominium approval guidance while also replacing Mortgagee Letters 2009-46b, 2009-46a and 2011-03. Included with the new Mortgagee Letter are an attached Condominium Approval Implementation Schedule and 95 page Condominium Project Approval & Processing Guide.

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Part 5-Final FHA Updates to Condominium Approval Qualification Requirements and Process

Written By: Stacey Sprain

Mortgagee Letter 2011-22 dated 6/30/2011 clarifies, expands, consolidates, and updates existing condominium approval guidance while also replacing Mortgagee Letters 2009-46b, 2009-46a and 2011-03. Included with the new Mortgagee Letter are an attached Condominium Approval Implementation Schedule and 95 page Condominium Project Approval & Processing Guide. 

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10 Reasons Why it’s Still Great to be in the Mortgage Business

Written By: Stacey Sprain

For those of us who have been in the mortgage business through all of the various booms both positive and negative, one thing’s for certain: None of us have ever seen anything like the past few years of change in the industry.

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Ethics when Consumer Credit is Involved

Written By: Stacey Sprain

Appraiser regulations keep evolving, RESPA keeps reinventing itself, loan officer compensation is bringing forth major changes, FACTA has added what I consider to be ridiculous new disclosure requirements nobody really seems to fully grasp, licensing requirements continue expanding and evolving, credit rules continue to tighten, … when does it all end?

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Reading and Answering Consumer Questions about Mortgages

Written By: Stacey Sprain

I ran across a blog while I was I was doing some research on a regulatory interpretation this evening and it really got me fired up. It never ceases to amaze me how badly some of the people in our industry answer questions for people who wouldn’t be asking if they truly knew anything about mortgages.

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HUD Issues Formal Guidance for Disputed Credit Tradelines

 

Written By: Stacey Sprain

If you blinked you might have missed it but HUD recently communicated guidance to lenders on how to evaluate disputed credit accounts for FHA loans. The information was included in an outgoing announcement from Jerrold Mayer to the HUD email subscription list. The following guidance was not in the form of a Mortgagee Letter as one might expect:

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Finally Some Long Overdue DU Updates for VA Lending

Written By: Stacey Sprain

It’s been quite awhile since Desktop Underwriter was updated to coincide with VA program trends and changes but on the weekend of June 18th, a substantial list of updates will be added to create more comprehensive and effective messaging associated with DU for VA loans.

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Evaluating Higher than Standard Housing and Debt Ratios

Written By: Stacey Sprain

One thing I continue to remind folks of in today’s world of credit risk is that an AUS approval isn’t always a sure thing. We still have an obligation to manually evaluate the layering of various credit risks in our loan files if we intend to consciously keep our overall risk and defaults to a minimum.

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WRITTEN BY: GLENN MICHAELS, FHA DE UNDERWRITER
Keep Your Eye on the Borrower’s Reserves!

Written By: Op-Ed Writer Glenn Michaels

There are certain situations where the borrower must show that they have reserves after closing. Individuals purchasing or refinancing three and/or four family homes with FHA financing must provide evidence that they will have three (3) months of PITI reserves. The reserve does not include funds received from a gift. The reserves must be the borrower’s own money. 

 

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The Numbers Are In!

Written By: Glenn Michaels, Op-Ed Ghost Writer

Periodically the United States Department of Housing and Urban Development (HUD) and other organizations keep tract of the housing industry. When the numbers are up that is usually an indication that the mortgage industry will increase or decline.

 

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Are we heading for another housing bubble?

Written By: Glenn Michaels, Opinion Editorial Contributor

As an old time underwriter, more than fourty years of mortgage underwriting I feel we are heading to another housing bubble. Conversations with other seasoned underwriters also feel that we are also going down the road to another housing bubble.

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Loan Modifications

Written By: Glenn Michaels, Op-Ed Writer

For a long time under the Obama Administration mortgagor’s under certain conditions were able to apply for a mortgage loan modification. The HAMP program is actually called the Home Affordable Modification Program. 

 

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Super Storm Sandy Problems are Still Ongoing

Written By: Glenn Michaels, Opinion Editorial Contributor

Super Storm Sandy also known as Hurricane Sandy hit the Northeastern United States on October 29, 2012. After the storm hit and the damage was done, all of the news media and politicians came out in mass to report on the storm and what has happened since.

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FHA Revitalization Area Sales Program

Written By: Glenn Michaels

Revitalization Areas are HUD designated geographic areas authorized by Congress under provisions of the National Housing Act. Revitalization Areas are intended to promote “the revitalization, through expanded homeownership opportunities, of revitalization areas.”

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Manual Loans vs. AUS Underwriting

Written By: Glenn Michaels

Today, virtually every FHA loan is put through an AUS underwriting system with TOTAL Scorecard for an automated underwriting decision.

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Is the Wild West of Mortgage Lending Coming Back?

Written By: Glenn Michaels

Anyone that has been in the mortgage industry for a long while remembers the “wild west” of mortgage lending. During this time we had all kinds of exotic mortgage programs. Literally, if a prospective borrower had a body pulse he was able to purchase a home.

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Common Mortgage Programs That Do Not Require 20% Down

Written By: Glenn Michaels

As I talk to more and more people it is amazing how much erroneous information is out whereby borrowers must put 20% down in order to buy a home. These people must have read all of the news articles referring to the QM (Qualifying Mortgage) and other press releases referring to the difficulty in obtaining mortgage financing.

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Back to Work – Extenuating Cirumstances

Written By: Glenn Michaels

When reviewing a credit report for a mortgage loan where you find derogatory credit on the credit report always find out what contributed to the derogatory credit. Loan applicants that can provide evidence that the derogatory credit was due to loss of employment or other extenuating circumstances as defined in Mortgagee Letter 2013 – 26 can obtain mortgage financing sooner than later than other applicants with the same derogatory credit.

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Underwriters Beware

Written By: Glenn Michaels

In 2013 the United States Department of Housing and Urban Development (HUD) put forth several mortgagee letters how to treat borrowers that were out of work and now back to work.

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Coastal Barrier Resources Act (CBRA)

Written By: Glenn Michaels

This past week there were two (2) hurricanes, one that missed the east coast of the United States and one that hit the State of Hawaii. The Atlantic Ocean’s island of Bermuda was hit with a category III hurricane however this storm turned north and east and did not hit the United States.

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It’s Out!

Written By: Glenn Michaels

The new underwriting bible for FHA has now come out. It has been a long time in the making.
The new underwriting bible is dated September 30, 2014 and effective June 15, 2015.

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Is Credit Scoring Important?

Written By: Glenn Michaels

When I first began underwriting in 1972 there was no such thing as credit scores. Underwriters used their best judgment when reviewing a credit report and after evaluating the history of the credit they made a decision whether or not to grant credit.

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Demystifying Planned Unit Developments (PUDS)

Written By: Glenn Michaels

Everyone knows what a condominium is, but for some reason not everyone knows what a Planned Unit Development is. In this article I will attempt to demystify what is Planned Unit Development (PUD).

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Is there a “HAWK” in your future?

Written By: Glenn Michaels

“HAWK”, that stands for Homeowners Armed with Knowledge is a new pilot program that begins October 1, 2014. Borrowers that complete the HAWK program are slated to save on their upfront and annual Mortgage Insurance Premiums (MIP).

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It’s a full moon, does your area flood?

Written By: Glenn Michaels

Living on Long Island, New York, which begins geographically in Queens, New York and then to Nassau and Suffolk Counties are prone to flooding due to a full moon. This flooding could be worse if we have a rain storm, wind storm or tropical storm. The National Weather Service has warned most of the East Coast of the United States that they may flood due to the full moon.

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HECMS for Purchases

Written By: Glenn Michaels

Many senior citizens meaning anyone 62 years young and older want to down size from their current living arrangement. In most cases their children have married and left the home and they no longer desire the dwelling that they presently own. 

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The 203(h) Home Mortgage Insurance for Disaster Victims Program

Written By: Glenn Michaels

Whenever there is disaster somewhere in the United States and the President of the United States declares that area a "Federal Disaster Area”, FHA’s 203(h) program is available to all residents in the areas declared by the President as a federal disaster area.

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Using the Monthly Interest Rate Factor

Written By: Glenn Michaels

Over the years I have been asked by borrowers, loans officers and others how to calculate the amortization of a mortgage. The calculation on a monthly basis is not difficult utilizing a conventional mortgage as long as you know certain variables.

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Obtaining a HUD Community Block Grant is loaded with paperwork.

Written By: Glenn Michaels

As a New York State resident that had about $40,000.00 Super Storm Sandy damage you would think obtaining some of the HUD Community Block Grant Money would be easy. New York as well as other states that had significant damage caused by Super Storm Sandy received billions of dollars from The United State Department of Housing and Urban Development as a Community Block Grant.

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Do Not Ignore that Fraud Alert

Written By: Glenn Michaels

Every day more of us are becoming victims of fraud and of Identity Theft. I was once a victim of Identity Theft, the person who did the crime in my case served two and a half years in prison. I know most people who do this crime I seldom caught.

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The Ability to Repay (ATR) for Non – QM Loans

Written By: Glenn Michaels

All mortgage loans whether they fit under the Qualified Mortgage (QM) or fit under the Non – Qualified Mortgage now must fit under the so called “umbrella’ called Ability to Repay (ATR).

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Changes coming to FHA

Written By: Glenn Michaels

The Federal Register dated December 11, 2013 contained proposed changes to underwriting. The changes really clarify how everyone is to approach FHA loans that mare manually underwritten. The FHA now has seven scenarios where the mortgage loan must be manually underwritten. In the near future a Mortgagee Letter will be written to further clarify this.

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HUD Releases Qualified Mortgage Definition

Written By: Glenn Michaels

As of January 10, 2014 the Qualified Mortgage (QM) rules become effective and HUD is no different. They too must have QM loans. On December 11, 2013 HUD released their definition of a QM mortgage. All FHA case numbers issued on or after January 10, 2014 will be issued with the understanding that the borrower(s) will fit under the QM rules and regulations.

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Annual Percentage Rate

Written By: Glenn Michaels

Most borrowers and lenders have heard of the acronym APR but most do not know what goes into the calculated APR. So many folks understand that the APR is a cost but most do not know enough about the acronym called APR.

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Mortgage Fraud – How to Avoid Mortgage Fraud

Written By: Glenn Michaels

If you lie on your mortgage application it’s mortgage fraud. Even though some lies and omissions constitute mortgage fraud. Many borrower’s hedge a little there, often because they did not know any better or worse. Sometimes borrowers are counseled by their mortgage loan officer and/or real estate broker to sell and close on that house.

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Getting a mortgage for the Self – employed!

Written By: Glenn Michaels

In the forty (40) years that I have been in the mortgage industry the self – employed borrower has always been the borrower with the most difficulty in obtaining mortgage financing.

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Will Government Mortgage Financing Grow in Popularity?

Written By: Glenn Michaels

The conventional mortgage market is changing as of November 16, 2013. Federal National Mortgage Association also known as Fannie Mae has announced that as of November 16, 2013 they will no longer purchase any mortgage with a loan to value higher than 95%.

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Are there any Refinances left?

Written By: Glenn Michaels

Over the last few years while rates were historically low, virtually everyone that could refinance their mortgage, did refinance. Now some of the major center banks have announced layoffs due to minimal refinance activity.

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WRITTEN BY: BONNIE WILT-HILD, FHA DE UNDERWRITER
FAQ: Natural Disaster Protocols

Written By: Bonnie Wilt-Hild

What measures should lenders take prior to loan closing or endorsement when a property is located within a FEMA designated disaster area?

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Regulating Consumer Credit Companies

Written By: Bonnie Wilt-Hild

I think anyone currently working in the mortgage lending industry will agree that at this particular time in history, we as lenders are more regulated than we have ever been. Further, under Dodd-Frank, more regulations are forth coming that will again determine how we disclose, what we disclose, when we disclose and in the not so far off future, how much a loan officer can actually charge for the origination service. 

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Credit Scores

Written By: Bonnie Wilt-Hild

When I hear those words, they immediately evoke images of a world in which mortgage underwriting decisions are determined by AUS systems that have no capacity to either employ common sense underwriting principals or fairly or adequately assess overall risk.

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Selling Manual Underwrites on the Secondary Market

Written By: Bonnie Wilt-Hild

Like myself, I am sure many underwriters in this fine nation of ours spend a fair amount of their time on conference calls or web based training with new investors that their employers have recently became associated. 

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Business Practices and Borrower Rights

Written By: Bonnie Wilt-Hild

I am going to share a story of very recent origin which involves someone quite close to me and unfortunately is entirely true. I am hoping that by sharing this, it will bring light to some of the seedier business practices occurring today while also making people aware that there is recourse against lenders who consistently leave behind ethical practices in favor for business practices that violate not only the law but also their client’s personal rights.

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Reduction in Seller Contribution towards Closing

Written By: Bonnie Wilt-Hild

We all knew it was coming and it looks like it is here and that being the announcement in the Federal Register that HUD intends to reduce the amount a seller can contribute towards borrowers closing costs from the current 6% to 3% as indicated previously in a Federal Register publication in July, 2010. 

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Reducing Risk and Opportunity

Written By: Bonnie Wilt-Hild

In press release 12-010 dated Friday, January 20, 2012 FHA announced their intention to take additional steps to limit risk and strengthen the finances of the agency. These changes, it was stated, would help FHA better manage risk while maintaining support for the housing market and access for qualified borrowers. Included in these changes would be new regulations which strengthen the process by which FHA requires certain lenders to indemnify the U.S. Department of Housing and Urban development for insurance claims pain on mortgages that are found to be deficient where meeting the departments guidelines or contain misrepresentation and fraudulent documentation.

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The G-fee Hit

Written By: Bonnie Wilt-Hild

As if we didn’t already pay enough in the way of taxes, beginning January 16, 2012 we will have another to contend with, that being the G-fee hit ordered by Congress and the FHFA with respect to pricing adjustments. 

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Professionalism

Written By: Bonnie Wilt-Hild

It wasn’t long ago, or at least it doesn’t seem so, that people employed in the mortgage industry were considered mortgage bankers or mortgage professionals who possessed a certain skill set where banking and finance were concerned that labeled these individuals as professionals. 

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Repurchase Request

 

Written By: Bonnie Wilt-Hild

In a new twist to the never ending saga of new things to watch for in the mortgage industry is investor audits of older loans that have now gone into default. That’s right forget reps and warranties, it seems that every investor is now auditing any older loans that have since gone into default and to some degree inventing reasons why the loan should be repurchased my the original lender. 

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Shelving Broken Concepts

Written By: Bonnie Wilt-Hild

Once upon a time there lived young women who, during a down turn in employment, embarked upon a career adventure that would ultimately become a life changing event. Having limited job skills, she accepted employment as a loan processor for a small Savings & Loan in Maryland. 

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Just the Truth Please

Written By: Bonnie Wilt-Hild

Does it ever cease to amaze you how people can twist the facts with regards to almost any situation in order to achieve the results that would most satisfy them even if those results achieve no end. In this day of mass media and the information highway, articles and blogs can be placed on the internet in a matter of minutes and unfortunately, many of the authors of this information have no real experience or responsibility where the content of their article is concerned and articles relating to the mortgage industry are no exception regardless of the type of media by which they conveyed.

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Personal Responsibility

Written By: Bonnie Wilt-Hild

I have had it, really. Yesterday I read the tweet from Chef Mario Batali regarding the banking industry which compared bankers to Hitler and Stalin. As one that would consider themselves a banker, credit officer and underwriter, I take extreme offense to the comment particularly when it comes from someone who during the normal course business, charges $300.00 for a truffle tasting menu at his own establishment Babbo.

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Getting Files Closed

Written By: Bonnie Wilt-Hild

Ok, so I have been in the mortgage industry for 25 years and I have to say, this end of the month has been the worst ever. Well maybe not the worst but it ran a very close second. More frightening is the fact that we didn’t close near the volume that we have closed in past months. 

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A Few Changes for VA Loan Types

Written By: Bonnie Wilt-Hild

These days it seems as though the rules never stop changes where the preeminent mortgage programs are concerned, those of course being Conventional, FHA and VA, but it’s always nice when the change is something for the better and today I have the pleasure of delivering the good news. Recent VA circular’s issued on September 8, 2011, more specifically Circular 26-11-12 are indicating a reduction in the VA funding fee for loans closed on or after October 1, 2011.

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Rural Development Loans

Written By: Bonnie Wilt-Hild

When we think about government loan programs, most often the FHA and VA programs come to mind however there is another one, that being Rural Development. I know you have all heard of them but for some reason they seem to be a loan type that very few know anything about, so being in good form as I sometimes am, I thought I would share the specifics because these days, any program that a lender can offer with a maximum 100% LTV that will allow one to roll in closing costs, is a good one.

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Something to Believe In

Written By: Bonnie Wilt-Hild

Pretty recently I was having a conversation regarding homeownership opportunities for low to moderate income borrowers with an employee of a department of housing and community development agency within the city that I live. The conversation had begun during a discussion with respect to city owned properties and the liquidation of the same. 

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The 203k within the Public Sector

Written By: Bonnie Wilt-Hild

Ok, so as I am sure most of you can imagine, I lay awake at night and think about mortgage programs, more particularly government lending programs because, quite simply put, they are the most useful. 

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Handling HUD REO Sales

Written By: Bonnie Wilt-Hild

Handling purchase transactions which involve bank owned foreclosure sales are not limited to merely standard bank owned properties, and as I am sure you will all agree, each of us have handled our fair share of FHA property disposition cases. 

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The Plot Thickens

Written By: Bonnie Wilt-Hild

I have decided that it just does not pay to be nosy. As you can imagine, by that statement alone, I do have a tendency to stick my nose in places it really doesn’t belong simply because it’s interesting and of course, because it doesn’t belong there (call it my rebellious streak).

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The 203k Underwriting Checklist

Written By: Bonnie Wilt-Hild

The 203k is a great program for any individual who wants to buy a handy man special or property being sold at foreclosure and fix it up, or a current homeowner who would like to complete some updates to their existing home however many lenders are still unwilling to offer the program.

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The Spirit of Underwriting

Written By: Bonnie Wilt-Hild

I was in the kitchen this morning having a conversation with a coworker. We were reminiscing about the good old days of HUD field offices, case number assignment lines and of course processing and underwriting without the benefit of fax machines, AUS or even the internet for that matter. Those were the days when a final typed 1003 was exactly that, a document that you rolled into the typewriter and typed and carbon paper was an office necessity.

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FHA Then and Now

Written By: Bonnie Wilt-Hild

Very recently, while teaching an FHA Underwriting class for FHA Online University, the history segment of the training made me stop and think. It was unusual really, because I have taught this particular class at least once a month for the past four years and honestly, other than an occasional joke as to how students need to take notes because the historic information pertaining to the agency was on the “big” test, I never really thought much about it.

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Grim

Written By: Bonnie Wilt-Hild

Yes, it is, grim that is, and I am not referring to Wilhelm & Jacob Grimm. But just as they composed those fairy tales in the 1800’s, representing what might have been described as the capricious and cruel reality of daily life for most Europeans of that time, we to continue to face a housing and mortgage market that can also be described capricious. 

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The “Safe” Mortgage

Written By: Bonnie Wilt-Hild

As if there are not enough acronyms in the mortgage industry, the federal government has moved forward in coining a new one, QRM, this being the acronym for the newly defined Qualified Residential Mortgage. Ok, I know that everyone is thinking that all mortgages are QRM’s if they meet guidelines but in this case, the guidelines or standards which will eventually define what a QRM or “Safe” mortgage is, will differ vastly from what defined a qualifying mortgage of the past.

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Considerations While Underwriting The Low to Moderate Income Borrower

Written By: Bonnie Wilt-Hild

The most recent past has seen the mortgage industry struggle with developing sound underwriting practices that serve to not only protect lenders against default, but to also promote affordable home ownership for all types of borrowers.

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Privatizing FNMA and FHLMC

Written By: Bonnie Wilt-Hild

Earlier this week, someone asked my opinion as to if I thought there was any benefit in privatizing the GSE’s. Unfortunately, I was a little short on time and couldn’t go into a great length as to if I thought it desirable or not and honestly up until the conversation occurred, I hadn’t really given it a lot of thought. 

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Processing Due Diligence

Written By: Bonnie Wilt-Hild

These days, underwriters constantly stress the importance of collecting the appropriate documentation in order to complete acceptable due diligence on the cases intended for underwriting. Often times, these requests appear to be the result of ultra conservative underwriting practices and the documentation required nothing less than excessive particularly if the request for additional items is being made a few days prior to closing. 

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When Costs of Repairs Can Be Rolled Into the Loan

Written By: Bonnie Wilt-Hild

In today’s real estate environment, Purchase transactions that involve bank owned properties are pretty common. Often these cases are originated under the FHA 203k mortgage insurance program due to the overall condition of the property and the need for the completion of certain repairs which are required for the property to meet HUD minimum property standards.

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New Quality Control Measures

Written By: Bonnie Wilt-Hild

HUD has recently announced new lender requirements where quality control is concerned. These requirements have been set forth in ML2011-02 and outlines for lenders what new provisions need to be added to their current QC plan. 

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WRITTEN BY: FRANKIE LACY, FHA DE UNDERWRITER
Maximizing the Slow Season

Written By: Frankie Lacy

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.

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Verifying Borrower Identity

Written By: Frankie Lacy

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. 

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What Kind of Asset Is This Anyway?

Written By: Frankie Lacy

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. 

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The Mortgage Industry: What’s In It For Me?

Written By: Frankie Lacy

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.

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File Notation Best Practices

Written By: Frankie Lacy

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

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USDA New Regulations: 7 CFR 3555

Written By: Frankie Lacy

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.

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Underwriting Remotely: What are the Pros and Cons?

Written By: Frankie Lacy

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.

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Do You Have Enough Information to Calculate Income?

Written By: Frankie Lacy

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”.

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Underwriter’s Toolbox: A List of Must-Have Resources

Written By: Frankie Lacy

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.

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File Notation Best Practices

Written By: Frankie Lacy

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

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Career Progression in the Mortgage Industry

Written By: Frankie Lacy

So you've taken classes, shown initiative, and communicated your desire to progress into higher positions. You want to expand your knowledge levels within your company’s organization. However, it seems like you have waited forever to get the green light and your manager keeps giving you the brush-off. What should you do next? 

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Income Analysis Forms and Formulas

Written By: Frankie Lacy

By now, many of us already know the basic formulas for calculating income. We also know that, in addition to executing formulas, underwriters are called to perform an analysis of the stability and continuance of qualifying income. This can be a daunting task when analyzing multiple business structures over two years. 

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Underwriting Rental Income

Written By: Frankie Lacy

Calculating qualifying rental income is one of the more complex income calculations an underwriter can perform. This is particularly true when the borrower owns multiple investment properties. The challenge is determining when rental income can be used to qualify and, once income is calculated, reconciling the total debt ratio.

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Property Condition Considerations

Written By: Frankie Lacy

As many of us around the country desperately cling to the hope that spring will come sometime this year, we can also stop to think how the long, harsh winter may affect property conditions. Roof, gutter, and foundation damage from prolonged snow pile up, ice damming, and flooding is a very real possibility for homeowners in 2014. 

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The Mortgage Industry: What’s In It For Me?

Written By: Frankie Lacy

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. 

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Freddie Mac Updates

Written By: Frankie Lacy

As of January 12, 2014 Freddie Mac Loan Prospector will issue new recommendations in response to the final CFPB’s Ability to Repay and Qualified Mortgage rules. The feedback messages will address the following loan types:

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Maximizing the Slow Season

Written By: Frankie Lacy

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.

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2013 Wrap-Up: Looking Forward into 2014

Written By: Frankie Lacy

2013 brought major changes to mortgage lending with the introduction of new regulations, the end of the mini-refinance boom, and an intensified focus on quality. As we prepare to conduct business in the new year, we can reflect on how those changes will impact us as mortgage processors and underwriters.

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Refinance vs. Purchase Transactions

Written By: Frankie Lacy

2013 saw the end of the mini-refinance boom as interest rates increased in late summer to early fall. As a result, it is important for mortgage processors and underwriters to reacclimatize themselves with executing purchase transactions. For those who have been underwriting and processing refinances for some time, there are some key differences to identify.

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Preparing a File for Clear to Close

Written By: Frankie Lacy

Once a file has been fully underwritten and all conditions are satisfactorily met, it is ready to be cleared to close (CTC). Underwriting and processing must perform a final quality control check prior to releasing the loan to the closing department. This process will prevent errors at the closing table and delays in the post-closing process of selling the loan.

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Longevity in the Mortgage Industry: What does it Take?

Written By: Frankie Lacy

The mortgage industry is faced-paced, constantly changing, and sometimes uncertain. There are cycles of “feast or famine” where we experience excessive loan volume, followed by a sudden and steep drop in loan volume. 

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DU & LP Changes

Written By: Frankie Lacy

In response to policy changes relating to the Ability to Repay and Qualified Mortgage regulations, Freddie Mac (LP) and Fannie Mae (DU) have made updates to their AUS systems. LP’s changes were made effective October 27, 2013 and DU’s changes will be effective November 16, 2013.

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Reviewing Purchase Agreements

Written By: Frankie Lacy

A thorough review of the purchase agreement (P/A) or sales contract is critical to the accuracy of your loan package. Some of the initial points of review are the property description, parcel identification numbers, and the seller and buyer names. The property description and parcel ID numbers on the contract should match the title report and the appraisal report.

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Networking in the Mortgage Industry

Written By: Frankie Lacy

Recently several mortgage lenders across the U.S. have laid off staff or restructured in response to the end of the “mini-refi boom”. As a result, many of us are left wondering what we can do to create opportunities for ourselves despite a job market that is flooded with talent.

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Debt to Income Ratios

Written By: Frankie Lacy

There are two debt-to-income (DTI) ratios on every loan: housing or front-end ratio and total or back-end ratio. The housing ratio tells us what percentage of the borrower’s monthly gross income is allocated toward the monthly principal, interest, tax, and insurance (PITI) payment. The total ratio includes the monthly PITI and all other monthly debts including auto loans, credit cards, child support expenses, student loans and more.

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What Are the Characteristics of a Good Underwriter?

Written By: Frankie Lacy

I am often asked this question by processors or other mortgage professionals that are looking to transition into underwriting. Underwriting can seem mysterious and out of reach to some as they try to understand the duties and responsibilities associated with the title.

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The Value of Mortgage Education

Written By: Frankie Lacy

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. 

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The Perils of Piece-Mailing

Written By: Frankie Lacy

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!

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Best Practices: Letters of Explanation

Written By: Frankie Lacy

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.

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WRITTEN BY: THERESA FURZLAND, MORTGAGE SPECIALIST
From Fax to Facebook

Written By: Theresa Furzland

My son and I have recently been having a recurring conversation regarding the benefits and down sides of technology. He is a music/computer science major and I find it interesting how it is a natural inclination for him to combine these two subjects.

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A Hidden Gem

Written By: Theresa Furzland

Are you aware that there is a zero down program available? And no, it isn’t VA.
The USDA offers the Rural Housing Loan Program that is available to mid and low income persons in rural area. 

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Paperless Power – Pros and Cons

Written By: Theresa Furzland

Our company, LendSmart Mortgage, is currently undergoing a software change that will allow us to be virtually paperless. I am of course an old dog, but in this business you have to be used to learning new tricks on a daily basis so I’m not really flustered. 

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Shortcuts

Written By: Theresa Furzland

I sat down at my computer tonight and thought I’d see how many acronyms I could rattle off the top of my head. Here is my 10 minute effort: (and if you know what they all stand for – you’ve been in this business too long!)

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Looking Around

Written By: Theresa Furzland

I’ve been writing about the different perspectives of the mortgage industry and it has really been an interesting mental activity for me. Not only did I get the opportunity to appreciate the wide variety of experience I have had the fortune to acquire over the years, it also makes me feel old.

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Refi whys?

Written By: Theresa Furzland

Yes, I’m still receiving the rare refinance inquiry from my loyal past clients and referrals. These calls generally start like this – Hi Theresa, I’ve been seeing ads everywhere that interest rates are at record lows and I should refinance my mortgage now...or...I got a phone call saying I could get a great refinance deal and it won’t cost me anything and will lower my rate as low as 3.5%.

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Perspectives – Origination

Written By: Theresa Furzland

This week I’m looking through my originator eyes. I tend to think of myself more as a Mortgage Loan Advisor than a Loan Officer. As I have already mentioned, probably more than once, I never set out to be a loan originator and I am the first to admit that I am not a “salesman”. I do love this part of the process however and for one reason.

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Perspectives – Homeowner

Written By: Theresa Furzland

I really thought this would be the easiest of these views to write, and as I get down to it I realize that it is actually the hardest. Maybe this is because it is really impossible for me to separate myself from my lifetime in this business. I have been a mortgage professional longer than I’ve been a homeowner.

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Signs of Spring

Written By: Theresa Furzland

It’s the time of year when we all start watching for those long awaited signs of spring, especially here in Northern Minnesota, where I live. It almost seems to be a sport, or at least a lively competition. We are currently enjoying my favorite...the maple sap is flowing. It means more work for us, and busy days and some late nights for the next few weeks as we will be making two trips into the woods daily to gather, then the process of “boiling” down. 

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Roll with the changes....

Written By: Theresa Furzland

The New Year brings new challenges to our industry. Good, bad or just plain frustrating we all know that to work in this business is to continually adjust to changes and 2011 looks to be no different in this aspect.

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The benefits, Importance and Necessity of Cross Training

Written By: Theresa Furzland

With the additional demands and ever changing rules and regulations that we are dealing with these days it is more important than ever to be as knowledgeable as possible in all aspects of our industry.

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Beating the Basics

Written By: Theresa Furzland

I know I’ve brought this subject up before, but as we come to the end of another year and look back over the fiascos of 2010, it just seems to me that now more than ever we need to revisit the basics.

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“NAMU is truly the voice of today’s mortgage underwriter. As such, we aligned ourselves with NAMU to offer our NMLS training classes to those mortgage professionals wishing to also get NMLS licensed.” ”
— Kevin Pasch, Hondros Education Group, Business Development Manager
Hondros Education Group
“... a professional certification can increase an employee’s salary by five to 10 percent. In the United States, the National Association of Mortgage Underwriters (NAMU) is the primary institution for mortgage underwriters seeking certification.”
— WikiHow.com
“5-STAR RATING”
— Careebliss.com, Career Community
“Requirements and Qualifications: Certification as a Mortgage Underwriter (e.g., NAMP or NAMU certification) is a plus.”
— ZipRecruiter.com (Rated #1 Job Site in the U.S.)
 
 
Student Testimonial by Bob, Loan Investor QC

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