Non-Traditional Credit

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|

Fannie Mae HomeReady FAQ’s and HomeReady Product Matrix – Updated March 22, 2018 – New Fannie Mae Chart Added – HomeReady Matrix™

By: Lloyd Rutherford, Staff Writer Fannie Mae has added to their HomeReady™ FAQ document and issued a HomeReady™ Product Matrix.  If you work with the HomeReady™ program, be sure to read this update. Rule Synopsis: Fannie Mae updated their HomeReady™ FAQ document and their Product Matrix – the update really was to adapt the links [...]

2018-05-29T16:42:19-05:00May 9th, 2018|

Fannie Mae-HomeReady® FAQ’s – Updated January 24, 2018

By: Lloyd Rutherford, Staff Writer Fannie Mae expanded their HomeReady® FAQ document to assist more lenders in using the program.  This is a great program to know and understand, so take the time to read through this update and the materials referenced. Rule Synopsis This document has 39 total questions. Fannie Mae has not updated [...]

2018-05-31T09:18:04-05:00March 9th, 2018|