Issue: Q&A – September 25, 2020

When Do Collections Need to Be Paid Off?

Question: I have a conventional loan borrower with a $60,000 collection.  It is not a charge off or a lien.  When I ran DU the loan was approved.  Does the collection need to be paid off?  Your chart says it does not need to be paid off, so I am verifying this.  MC Chart – […]

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Can a Veteran Apply for an IRRRL Prior to the Seasoning Date?

Question: Is a Veteran able to apply for an IRRRL prior to the seasoning date and then close after the seasoning date requirement? MC Chart – VA Refinance Comparison Answer: VA determines seasoning by date of loan closing, not application date. So, application could be taken prior to the 6th payment being made, but the […]

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Which Agency Programs Allow Non-Permanent Residents?

Question: What mortgage programs are available for non-permanent residents? Answer: All agencies [Fannie Mae, Freddie Mac, FHA, VA, and USDA] will accept non-permanent residents with a valid EAD [Employment Authorization Document]. Your client should also have a document showing their type of Visa. If they do not, they can get proof of their status online […]

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Calculating a Student Loan Payment for Graduated Payments

Question: My client’s student loan repayment plan is graduated payments that start lower and get higher every couple of years until the loan is fully amortized.  How do I count a payment for this scenario?  MC Chart – Student Loan Repayment Answer: The current graduated payment amount does not fully amortize the loan if it […]

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Refinance – Title Reporting Judgment Due to Past Due HOA Fees

Question: The title report shows a judgment for past due HOA fees. Can this be satisfied through the cash-out refinance proceeds or does it need to be paid off prior to closing? Answer: There is no real direction in the Fannie or Freddie selling guide that prevents you from using the cash-out proceeds to pay […]

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