In addition, managers, processors, and sales professionals may approach underwriters throughout the work day for assistance on a variety of issues. Underwriting and processing must perform a final quality control check prior to releasing the loan to the closing department. This flooding could be worse if we have a rain storm, wind storm or tropical storm. Employing remote underwriters is a cost effective measure for many mortgage lenders that is also beneficial for the underwriter. 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. 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. Disclaimer: We are not owned, operated or affiliated with HUD, FHA or the Federal Government in any way. 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. 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. 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 theres one important topic I havent seen much if any press about and its an important one when were talking streamline refinances- important in particular for non-credit qualifying streamline refinances. The HAMP program is actually called the Home Affordable Modification Program. Sometimes borrowers are counseled by their mortgage loan officer and/or real estate broker to sell and close on that house. The MBA has created a detailed and comprehensive program that would be a substantial benefit to any mortgage professional that seeks to gain an enhanced knowledge of underwriting standards. The following is part 1 of a 2 part series covering the various updates. The information was included in an outgoing announcement from Jerrold Mayer to the HUD email subscription list. Freddie released the results of separate surveys of Generation Z and military veterans. 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. Fannie Mae and Freddie Mac seemingly passed their annual stress tests, with one independent analysis saying this years results demonstrates that the GSEs, combined, have undergone a surprisingly large de-risking during their years in conservatorship. Last week, the Federal Housing Finance Agency (FHFA) released the results of the annual stress tests that Fannie Mae and Freddie Mac are required to conduct under the Dodd-Frank Wall Street Reform and Consumer Protection Act. Borrowers submit recent checking and savings account statements to verify funds to close. The Federal Housing Finance Agency (FHFA) issued a final rule last week establishing multifamily housing goals for Fannie Mae and Freddie Mac over the next two years. Click to Download our PDF Course Catalog >>. Our mortgage underwriting training programs are designed to get you up-to-speed on FHA, VA, HUD, CFPB, DODD/FRANK, mortgage guidelines, regulations, etc. I know most people who do this crime I seldom caught. Revitalization Areas are intended to promote the revitalization, through expanded homeownership opportunities, of revitalization areas.. Learn more. There isn't a specific discipline (there's no degree in underwriting) but courses in mathematics, business, economics, and. I know Ive 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. Republican members of the House Subcommittee on Housing, Community Development, and Insurance, have asked the director of the Federal Housing Finance Agency (FHFA) to be more involved in the approval of new products issued by Fannie Mae and Freddie Mac. The benefits, Importance and Necessity of Cross Training. Answer: Yes. Guild Mortgage Company is an Equal Opportunity Employer. For those who have been underwriting and processing refinances for some time, there are some key differences to identify. Read More May 23, 2023 Most borrowers and lenders have heard of the acronym APR but most do not know what goes into the calculated APR. Over the years I have been asked by borrowers, loans officers and others how to calculate the amortization of a mortgage. As an FHA originator, processor or underwriter, its likely that in the ongoing foreclosure market youll run across a HUD REO loan at some point. 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. To become an underwriter, you typically need a bachelor's degree. 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. Find out about our approach to comprehensive "professional development" mortgage underwriting education. 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. 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. It showed that while sentiment is improving, it remains well below pre-pandemic levels. The mortgage industry is faced-paced, constantly changing, and sometimes uncertain. Once a file has been fully underwritten and all conditions are satisfactorily met, it is ready to be cleared to close (CTC). 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. This free mortgage training video discusses Title Commitment, Title ABC's, Examples of Schedule A & B, Example of Title Policy and more. 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. The press and public opinion on the mortgage industry has largely been negative due to mortgage fraud and the bursting of the housing bubble. The change to a percentage was part of a proposed rule change issued in August. The Federal Housing Finance Agency (FHFA) has published another final rule related to the Enterprise Regulatory Capital Framework (ERCF). Very recently, while teaching an FHA Underwriting class for FHA Online University, the history segment of the training made me stop and think. The new handbook will also include all rule changes based on regulation 7 CFR 3555. 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. 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. Thats 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. On December 11, 2013 HUD released their definition of a QM mortgage. Major Changes in Rapid Succession for Next 45 Days! During this time we had all kinds of exotic mortgage programs. If you lie on your mortgage application its mortgage fraud. And as an NAMU certificant, you'll get premium exposure within our online directory and more. Included with the new Mortgagee Letter are an attached Condominium Approval Implementation Schedule and 95 page Condominium Project Approval & Processing Guide. Certified Residential Underwriter (CRU) Designation Residential Certified Mortgage Servicer (RCMS) Designation Certified Mortgage Compliance Professional (CMCP) Designation The Path to Success The chart below shows the progression through MBA Education's certificates and designations. 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. So youve heard? Little has changed from previous economic and housing forecasts one month into the new year. Borrowers that complete the HAWK program are slated to save on their upfront and annual Mortgage Insurance Premiums (MIP). 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. It all starts with the loan application and quite frankly, if the 1003 isnt thorough and accurate from the get-go, it can stop your file dead in its tracks once it hits underwriting. 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! Continuing education can be earned by successfully completing any self-study course not previously taken or by attending MBA conferences and/or conventions. The Certified Residential Underwriter (CRU) designation program has allowed me to elevate my underwriting skills and knowledge. It led off by maintaining its forecast of a modest recession beginning in the first half of the year, despite signs of economic strength at the of last year. The option will be available on July 10 through the Freddie Mac Loan Product Advisor (LPA) automated underwriting system. Freddie Mac announced that it will consider on-time rent payments as part of its mortgage loan purchase decisions. 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. Recent VA circulars 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. Both of the enterprises released economic forecasts last week that continue previous warnings of declining mortgage volume. Every day more of us are becoming victims of fraud and of Identity Theft. 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. and give you the edge to help land that perfect mortgage underwriting job and more. I appreciated the self-paced nature of the program and thought the course content was appropriate and relevant. Earlier this week, someone asked my opinion as to if I thought there was any benefit in privatizing the GSEs. 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. 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. to the end of the two-year period, designees must complete the Recertification Form and pay a $100 recertification fee. 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. And no, it isnt VA.The USDA offers the Rural Housing Loan Program that is available to mid and low income persons in rural area. I have decided that it just does not pay to be nosy. 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. These changes, it was stated, would help FHA better manage risk while maintaining support for the housing market and access for qualified borrowers. The changes really clarify how everyone is to approach FHA loans that mare manually underwritten. Though all of todays 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. 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. All training offered is "professional development" and is for informational purposes only (not to serve as licensure training or legal advice). 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. Many senior citizens meaning anyone 62 years young and older want to down size from their current living arrangement. Recertification: Keeping Up Your CRU Underwriting Remotely: What are the Pros and Cons? This free mortgage training video discusses frequently asked questions that were submitted by various lenders on the closing disclosure & 3 day rule and more. The mortgage industry has been through quite a few ups and downs since 2007. Ideal for loan processors and mortgage underwriters. What happens when the fee that they were initially quoted differs. A borrowers loan has made it all the way through underwriting. By now, many of us already know the basic formulas for calculating income. Our company, LendSmart Mortgage, is currently undergoing a software change that will allow us to be virtually paperless. Ideal for loan processors and mortgage underwriters. All loan limits for 2013 remain unchanged from 2012. Ok, I know that everyone is thinking that all mortgages are QRMs 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. For one low annual price, you have unlimited access to our online self-study library, discounts on designations, two seats in specific online courses or the option to completely customize your curriculum. Fannie Mae economists expect increasing inflation and higher interest rates to further weigh on economic growth and home sales this year. As you can imagine, by that statement alone, I do have a tendency to stick my nose in places it really doesnt belong simply because its interesting and of course, because it doesnt belong there (call it my rebellious streak). 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. Fannie Maes latest monthly economic report has several positive pieces of information, however each one has a big but attached to it. CFPB contends that some companies may be in violation when they steer potential borrowers to lenders using pay-to-play tactics rather than providing objective information. WRITTEN BY: STACEY SPRAIN, SENIOR LOAN PROCESSOR, WRITTEN BY: GLENN MICHAELS, FHA DE UNDERWRITER. The Atlantic Oceans island of Bermuda was hit with a category III hurricane however this storm turned north and east and did not hit the United States. But just as they composed those fairy tales in the 1800s, 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. 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. The new handbook will house all previous administrative notices (ANs) and the existing rules in one comprehensive document. HUD has recently announced new lender requirements where quality control is concerned. FHA insures condominium loans for up to 30-year terms to purchase or refinance a unit in an FHA-approved condominium project or in a project that is not FHA-approved but meets the Single-Unit Approval requirements. The underwriter will review the statements for large deposits and insure the most recent balance is used to qualify. Last week, several products and proposed rules were announced that were specifically target to low-income and moderate-income homebuyers. So many folks understand that the APR is a cost but most do not know enough about the acronym called APR. This process will prevent errors at the closing table and delays in the post-closing process of selling the loan. Now some of the major center banks have announced layoffs due to minimal refinance activity. Economists at Fannie Mae are becoming increasingly pessimistic about home sales, mortgage origination volume and the overall economy over the next two years. With our online recorded mortgage underwriting and DE training classes, the classroom is brought to you. Many borrowers hedge a little there, often because they did not know any better or worse. Unfortunately, I was a little short on time and couldnt go into a great length as to if I thought it desirable or not and honestly up until the conversation occurred, I hadnt really given it a lot of thought. Multifamily housing goals for 2023 and 2024 will be based on a new percentage-based methodology rather than an absolute number. Real estate brokerage firm Redfin reported that the average sale-to-list ratio fell below 100 percent for the first time since March 2021. Obtaining the CRU designation was a great way to confirm my underwriting expertise to myself and others even though it had been several years since I had been in a frontline underwriting role. Underwriters are required to juggle new production, condition review, emails, and phone inquiries each day. Let me say this- Allied Home Mortgage. 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 borrowers credit profile to quickly determine whether or not they are worthy of repaying the loan for which they have applied. subscription-based training package that provides your organization with training and development programs your employees need to succeed and grow. The new underwriting bible for FHA has now come out. Even though some lies and omissions constitute mortgage fraud. Underwriting can seem mysterious and out of reach to some as they try to understand the duties and responsibilities associated with the title. When I first began underwriting in 1972 there was no such thing as credit scores. We are currently enjoying my favoritethe maple sap is flowing. The first place to reference when trying to determine whether you have the correct documents is your AUS findings. The Federal Register dated December 11, 2013 contained proposed changes to underwriting. Well maybe not the worst but it ran a very close second. Refinance activity has dried up as a result. I dont 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. 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. Fannie Mae and Freddie Mac delivered lower year-over-year financial results in the first quarter of 2023 in what both companies termed a volatile and uncertain market. 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. We have them! However, the loan to value is too high for the program parameters. 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%. Longevity in the Mortgage Industry: What does it Take? 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. In its November commentary, the ESR projects negative economic movement in the fourth quarter of this year, followed by a modest recession to begin in the first quarter of 2023. 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. The conversation had begun during a discussion with respect to city owned properties and the liquidation of the same. I was in the kitchen this morning having a conversation with a coworker. Is the Wild West of Mortgage Lending Coming Back? Mortgage Underwriting Training, Certification, Education The Official NAMU Underwriting Bootcamp Includes: Download our brochure to learn how to become a mortgage underwriter today with our mortgage loan underwriting training school. Are we heading for another housing bubble? It almost seems to be a sport, or at least a lively competition. As a result, underwriters must streamline their process flow as much as possible. Fannies Economic and Strategic Research Group released its May commentary last week, in which it significantly downgraded previous forecasts for GDP, home sales and mortgage originations. 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 clients personal rights. However, its quarterly income was comparable the previous three quarters and was 6 percent higher than the first quarter of this year. Mortgage rates soared in 2022 and home prices only recently began to moderate. Common Mortgage Programs That Do Not Require 20% Down, Demystifying Planned Unit Developments (PUDS), The 203(h) Home Mortgage Insurance for Disaster Victims Program. Periodically the United States Department of Housing and Urban Development (HUD) and other organizations keep tract of the housing industry. Calculating qualifying rental income is one of the more complex income calculations an underwriter can perform. Get answers to your policy and guide questions, straight from the source. WRITTEN BY: BONNIE WILT-HILD, FHA DE UNDERWRITER, WRITTEN BY: FRANKIE LACY, FHA DE UNDERWRITER, WRITTEN BY: THERESA FURZLAND, MORTGAGE SPECIALIST, National Association of Mortgage Underwriters (NAMU), MAILING ADDRESS: Presidential Circle - 4000 Hollywood Blvd. 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. Fannie now projects 2022 total year existing sales to decline 16.5 percent from 2021, followed by a further decline of 13.3 percent in 2023. Written By: Glenn Michaels,Op-Ed Ghost Writer. National Association of Mortgage Underwriters (NAMU) - Mortgage Underwriter Certification, Training Classes This Week's "Ask the Instructor" Videos May 23, 2023 When reviewing the appraisal, how would a processor or underwriter know if "functional obsolescence" exists? Before an underwriter can determine the correct calculation for computing income, she/he must determine if there is sufficient data within the documentation submitted. 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. 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. BMG offers In-depth online training for "Mortgage Professionals . Training solutionsinclude acomprehensive list of items to help like job aids, online learning courses, frequently asked questions, and more. 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! As of January 12, 2014 Freddie Mac Loan Prospector will issue new recommendations in response to the final CFPBs Ability to Repay and Qualified Mortgage rules. The two enterprises released their quarterly results last week. Part 5-Final FHA Updates to Condominium Approval Qualification Requirements and Process, 10 Reasons Why its Still Great to be in the Mortgage Business, Reading and Answering Consumer Questions about Mortgages, HUD Issues Formal Guidance for Disputed Credit Tradelines, Finally Some Long Overdue DU Updates for VA Lending, Evaluating Higher than Standard Housing and Debt Ratios. In most cases their children have married and left the home and they no longer desire the dwelling that they presently own. The Certified Mortgage Underwriter (NAMU-CMU) is a "professional development" training & certification program ideal for entry-level residential mortgage underwriters on the fast track. 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. The New Year brings new challenges to our industry. Assistance may be on the way to mortgage underwriters and processors to help offer mortgages to more potential borrowers. This free mortgage training video discusses individual steps on completing the 4506-T form prior to submitting to IRS and more. It has been a long time in the making.The new underwriting bible is dated September 30, 2014 and effective June 15, 2015. After reaping the benefits of an unexpected housing boom during the height of the COVID pandemic, mortgage underwriters and processors are witnessing more signs that a significant slowdown is imminent. 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. Mortgage Underwriting Career Resources: Click to learn how to become a mortgage underwriter, how to become a mortgage underwriter, what steps to be a mortgage underwriter, and what is a mortgage underwriter. The property description and parcel ID numbers on the contract should match the title report and the appraisal report. From online mortgage underwriter training classes, to thought-leader certifications, NAMU has the right mortgage training solution for you. 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. In its latest commentary released last week, Fannie Maes Economic and Strategic Research Group has lowered its existing home sales outlook through 2023, based on its mortgage application data. 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. mortgage loan underwriting. Covering the mortgage-lending industry since 1985, Scotsman Guide Media publishes the separate, monthly Scotsman Guide Commercial Edition and Scotsman Guide Residential Edition As the voice of today's mortgage underwriter, the National Association of Mortgage Underwriters (NAMU) offers a variety of "professional development" mortgage underwriting training webinars, certification programs, mortgage underwriter job postings, job search resources,and more.
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