michelle m

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So far Michelle has created 7 blog entries.

Fannie Mae – Business Paid Debt: Can I ignore debt for a borrower if I can prove that the business pays the debt? If so, what type of documentation is needed?

Answer: Technically, you do not need to count the debt provided you meet the guidelines I’ve highlighted below. Regarding the documentation, that decision will rest with the lender or underwriter because you are dealing with proving the business paid for the debt and cash flow on the company. To establish sufficient cash flow, a CPA [...]

2017-12-28T12:41:46-05:00December 28th, 2017|

Fannie and Freddie-Self Employed Documentation: For a self-employed borrower, is a Year-to-Date Profit and Loss always required?

Answer: Freddie states that it is required when the borrower has been self-employed for less than two years. Fannie does not specifically require one. Remember though that the lender/underwriter can ask for one at any time they choose, to help support the income approach they took. See highlighted text below to help you draw these [...]

2017-12-28T12:40:56-05:00December 28th, 2017|

Fannie Mae & Freddie Mac-Calculation of Hazard Insurance: Is there an agency requirement for 80% coverage on the appraiser value of the property vs. the loan amount?

Answer: Fannie Mae has a very specific section regarding how to determine the amount of hazard insurance coverage, complete with steps and an example. Please see below. It should answer all your questions. Freddie follows the same requirements. I believe, based on your scenario, that you would follow steps 2, 2A and 2B. Reference: B7-3-03, [...]

2017-12-28T12:38:41-05:00December 28th, 2017|

Fannie-FHA-VA-Bitcoins: My Millennial borrowers are asking if they can use Bitcoin for down payment or closing costs. Have the agencies addressed this?

Answer: Fannie Says: We had to go straight to Fannie Mae with this question. Following is their response: Fannie Mae’s current position is that Bitcoins and other types of digital currency are not eligible assets because the statements used to document these funds do not provide the information required per our Guide (B3-4.2-01) and they [...]

2017-12-28T12:36:08-05:00December 28th, 2017|

Other – New Tax Laws: Is there anything available that will help me explain the tax implications for homeowners to my consumers?

[New MTP™, How Tax Reform Compares to Current Law] Answer: Yes, we have a new MTP that will help you explain some of the major points to your consumers. New MTP™ – How Tax Reform Compares to Current Law Copyright – 2017 – MortgageCurrentcy.com A subscription is required to access this content—please view our available subscription [...]

2018-09-25T19:10:42-05:00December 28th, 2017|