Michelle

VA – Co-Signed Car Loan: If my borrower can prove that he does not pay for a co-signed debt, am I able to ignore that debt?

Answer: VA does allow for debts to be ignored in certain cases. (See the guideline below.) Expect an underwriter to require at least a 12-month history of payments from the holder of the loan in order to consider ignoring the debt. Reference: VA Lenders Handbook Ch. 4, 5-d: Applicant as Co-obligor on Another’s Loan (04/10/09) […]

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FHA – Escrow Repair: Can the sales price be increased when there is a required repair for which the seller and buyer do not have the funds to complete?

Answer: FHA will allow the increase to the sales price for the repair escrow and FHA specifically allows repair escrows in this type of situation (see guideline below). However, I must warn you that many underwriters, and the investors they work for, believe that sales price increases after an appraisal has been completed are not […]

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Compliance – HMDA: We don’t presently collect GMI (Government Monitoring Information) for HELOC or Closed End Equity Loan applications. Will this change January 1, 2018?

Answer: With the new HMDA rules that go into effect January 1, 2018, HELOCs and Closed End Equity Loans will move from being optional when reporting data, to being required when reporting HMDA. This means you will need to gather all of the GMI information on these types of loans as well. Reference: Here is […]

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VA-Circular 26-17-34, Individual Condominium Loan Processing in the Department of Veterans Affairs (VA) WebLGY System-Dated-October 24, 2017

[Includes New MTP™, Condo Documents – VA Loans] Rule Synopsis: VA updates condo guidelines to require electronic documents list. I have a list of needed documents so call me! System changes occurred in WebLGY on October 6, 2017 that removed the fields for Condo IDs when ordering a VA Loan Identification Number (LIN)/Appraisal, as well […]

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Freddie Mac Issues Bulletin 2017-23 – Effective Immediately – May be delayed until January 18, 2018

[Updated Chart on 5/9/2018 – Student Loan Chart/Checklist- FHA/VA/USDA/Conventional Comparison] Rule Synopsis: Freddie Mac updates how they calculate Student loan payments when qualifying for a mortgage. Call me 1st for details. Freddie Mac makes changes to their selling guide. The topics in this bulletin that Mortgage Currentcy™ will cover are as follows: Calculating the DTI […]

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