Manual Underwriting

FHA – Manual Underwriting Requirements: I received an “Accept” from TOTAL, but now my underwriter is telling me the file must be manually underwritten. Is this correct? [NEW – FHA Manual Underwriting Class – NEW FHA Manual Underwriting Chart-MTP™ What Triggers a Manual Underwriting?]

Answer: I don’t have your specific file circumstances, but it is a definite possibility.  A lot of originators do not understand that there are file scenarios that require a loan to be manually underwritten despite what the AUS says. There are 10 conditions that we review in our New FHA Manual Underwriting Class that fit [...]

2019-04-19T20:03:00-05:00April 24th, 2019|

FHA Info # 19-07 – Managing Mortgage Risk Trends – FHA Changes to TOTAL Scorecard – March 14, 2019, Effective March 18, 2019

Written By:  Tracey Rumsey, Staff Writer FHA came out of nowhere and gave the industry a short day-and-a-half notice on changes in their automated underwriting system.  This update addresses those changes and what we are observing so far. Rule Synopsis: TOTAL Mortgage Scorecard is being updated to address the concerns with mortgages with higher-risk characteristics [...]

2019-04-09T11:49:38-05:00April 10th, 2019|

FHA – Debt Not Reported on Credit Report: Why will TOTAL not accept a debt that is not reported on the credit report? NEW MTP™ – What Triggers an FHA Manual Underwriting Requirement?

Answer: FHA requires a downgrade to manual underwriting when the mortgage file contains information or documentation that cannot be entered into or evaluated by TOTAL Mortgage Scorecard.  TOTAL can’t “read” a credit supplement. Reference: 4000.1, II, A, 4, a v. Accept Risk Classifications Requiring a Downgrade to Manual Underwriting (TOTAL) The Mortgagee must downgrade and [...]

2018-12-26T07:48:25-05:00December 25th, 2018|

Fannie Mae Fact Sheet – Underwriting Borrowers without Traditional Credit – “Automating a Manual Process” – Dated April 2018

By: Lloyd Rutherford, Staff Writer Non-Traditional credit does not mean “no mortgage”.  In fact, lenders who do not offer underwriting options for borrowers in this category significantly increase their risk for fair lending violations.  Read this update to learn what Fannie has to say about borrowers without traditional credit. Rule Synopsis: Fannie Mae created a [...]

2018-05-29T16:32:18-05:00May 9th, 2018|