PUD, Condo, or Co-op? Posted on April 5, 2019 As subject matter experts on Project Reviews, we have often been invited as guest speakers to discuss the topic of project types and how they differ. Being outside the scope of their usual credit review, this subject is always of interest to curious underwriters of all experience levels. PUDs, condos, and especially co-ops, are exotic and slightly mysterious. Even underwriters who review loans in these project types […]
#1 question about distributions for 1065 / 1120S K-1 borrowers Posted on March 14, 2019 Over the years we have done a few articles on how to determine the proper income for 1065 and 1120S borrowers. Some people nickname these borrowers “K-1” borrowers. As an industry we are getting used to the change from Fannie Mae and Freddie Mac that require us to now consider the distribution amount to support the K-1 income. I can remember that rule in place for a […]
Condo Review… Step by Step Posted on February 28, 2019 For those of us who have worked in the mortgage industry long enough to become comfortable and familiar with all the jargon and acronyms, it can be hard to remember what it was like to feel overwhelmed and uncertain about the mortgage process. We are modern-day alchemists who can turn a 1003 and some pay stubs into a new home for a family. The knowledge and processes […]
2018 Tax Reform and Alimony Income Calculations Posted on February 19, 2019 Our last blog we talked about how the changes to the 2018 1040 tax form affected mortgage underwriting requirements. The key topic in that blog was that mortgage calculations were the same, but the location on where to find the income has changed on the 2018 1040 form. Today’s topic is on Alimony, the new tax code has really “flipped the script” on the tax responsibilities dealing with alimony. The change we want to point out […]
2018 Tax Reform Act & Mortgage Underwriting Posted on February 6, 2019 I know if you are in the mortgage business and clicked this link you’re wondering how you’re affected by the changes to the 2018 1040 form, not to worry, we have your back. We have done the work at UberWriter to make sure our training and products are up to date, and that you can use these tools to calculate your borrower’s income with complete confidence. First let’s take the pressure and tell you… “These changes do […]
Zone of confusion Posted on January 19, 2019 If some of you have been following my blogs you know that outside of my “underwriting world” I am a new private pilot here in Michigan. One of the terms I have learned between my private pilot rating and my instrument training is when you get really close to a VOR (a ground navigation beacon) your instrument that detects the VOR’s location goes “crazy”. When that happens, […]
AGI vs SAM Income Calculation Methods Posted on January 9, 2019 One great thing about being involved with UberWriter is the chance to discuss different topics with mortgage professionals from different positions and companies. This allows quite a variety of questions and opinions to be shared. One question that does come up is “Does UberWriter use the AGI (Adjusted Gross Income) or SAM (Schedule Analysis Method) for income determination” The short answer is UberWriter uses SAM, just because […]
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. […]
