Unreimbursed Business Expenses change from FNMA Posted on December 13, 2018 When people ask me about my career in the mortgage business as an underwriter, the questions comes up “well what do you actually do?”. The best way I can describe the job is “jack of many trades, but master of none”! While working as an underwriter you learn to become good at topics such as title work, condo HOA’s, multiple forms of assets, basic CPA skills, and […]
Underwriting bad habit costs thousands in revenue Posted on November 28, 2018 One of the quotes I try to live by when developing blogs, training courses , or live seminars is: “If you can’t explain simply, you don’t understand it well enough” – Albert Einstein Talk about challenging yourself when designing training items. I am sure he had to explain much more complex items than I ever have on a 1008. In the day to day auditing review of […]
Two questions to ask if using business assets Posted on November 14, 2018 When I am teaching about underwriting topics, Allregs makes some guidelines very clear which leaves no room for any grey area. Then there are those guidelines that are just vague. They seem almost to have limitless interpretation. Using business funds as cash to close is high up on my list as the “leader of the grey area”! We all agree “money” is a large driver qualifying borrower. […]
Employment related assets guideline Posted on October 25, 2018 Today’s blog goes over one of the updates announced in SEL 2018-08 by Fannie Mae. I want to focus on the improvements for a borrower using “employment-related assets as income”. Before we get to that update, I have to mention the most asked question I get on this income type is: What are employment related assets? The short definition is any money you saved in a retirement […]
Union Worker FNMA Guideline Update Posted on October 16, 2018 Today we’re going over the Union Worker update published in Fannie Mae SEL 201A-08 posted 10/02/18. Now this is not a major update or change of policy. However, I wanted to blog about this because it brings a fair amount of questions during training sessions. Union workers tend to be confusing because they have multiple elements of income evaluation. Examples like temporary work assignments, multiple rates of […]
How to use FNMA 1084 and FHLMC Form 91 – Part 2 Posted on October 10, 2018 The cash flow forms such as the FHLMC Form 91 have been around for a very long time, with that being said if you do some research on mortgage industry thousands of people search every day looking for answers on how to use these forms. As I have written in the past these forms are very limited to the type of borrowers they work for, and I believe the […]
Freddie Mac’s Home Possible Streamlined and Improved Posted on September 18, 2018 The MBA projects that mortgage volume will be about 1.8 Trillion for 2019, which is stable compared to 2018 but down compared to 2017. The major reason for this downward change is less opportunities for refinances due to the current rates and other factors. That prediction means we need to stay focused on the primary mission of being a great (and long lasting) mortgage business. This means […]
How to calculate statutory employee pay Posted on August 21, 2018 Ever wonder why the IRS tax code is currently at 74,608 pages of information? (and yes, this is a rhetorical question). I am convinced it is a ploy to drive us nuts around tax time. I mean what did we do to the IRS to mess with us so much! So here is a twist, you review a borrower’s application, it seems that they are employed by […]
The power of teamwork Posted on August 6, 2018 We have been producing blogs since 2013. Over the years we have gained followers that are originators, processors, underwriters, and operations managers. So when I use the word team, lets use one of my favorite southern terms to describe who I am talking too……. All Y’All!!! We have a problem that the team needs to address. That is the perception that getting a mortgage is paperwork heavy, […]
