With the firms Multifamily Positive Rent Payment Reporting program, eligible multifamily property owners can share timely rent payment data through a vendor network to the three major credit bureaus for incorporation in the renter's credit profile. When reviewing loan documentation, we often focus on the big things; making sure the debt ratio and LTV are correct, validating loan terms, and matching up names and addresses. I found a very interesting article regarding shipping containers on the USA Today website. Those packages are subsequently reviewed by the PMI companys underwriting team. However, do we really know anything about FHA, when they were created, why they were created and what they really do? The Federal Housing Administration (FHA) is seeking feedback not a requirements update it proposes for insuring mortgages on single family homes with Accessory Dwelling Units (ADUs). The fee is designed so that each enterprise can secure the collateral of the other enterprise in commingled securities, known as Supers and real estate mortgage conduit (REMIC) securities. I have spent a lot of time reading the new Single Family Handbook (SFH) 4000.1 over the last several weeks to primarily pick up the changes from the HUD 4155.1 and HUD 4155.2 and the many mortgagee letters (ML) in use. With so many credit-related businesses springing up everywhere, consumers are becoming more educated about the importance of maintaining good credit. Production standards will be revisited by management and rush requests will become the new normal. PDF Practical Guide to Processing As a result, all lenders have begun to re-learn USDA loan origination and processing. I had a situation come up this week from a loan officer that I feel is relevant for many in out industry because its something that can commonly occur. Many underwriters will also type their calculation on their underwriting transmittal. Appraisers when completing an appraisal report now place on every appraisal report the Quality Ratings on every appraisal report. 316 W. Edenton Street Raleigh, NC 27603 (919) 733-3016 North Carolina Commissioner of Banks licensed mortgage loan officers require 24 hours of pre-licensing education; The national 20-hour class and an additional 4 hours of NC state law. Efforts to make certain mortgages more affordable was the major trend last week. As I was going through some of my old paperwork the other day, getting ready to move my office, I came across this old gem. Residential mortgage underwriting is defined as the overall credit and valuation analysis of a particular borrower or borrowers with regard to overall financial health as well as the evaluation of collateral that might be used to secure the mortgage and as underwriters we relate this particular evaluation to calculation of housing to income and debt to income ratios, the evaluation of a borrowers credit history as well as the review of a property appraisal. Learn how we can help launch your mortgage loan processing career, and become a certified loan processor today. I know, it sound pretty elementary, we underwrite to see if the borrower qualifies, its that simple right? Call it portfolio retention or risk management, but as of Wednesday, I had several of my investors pull out of the market where non-credit qualifying (streamlines without appraisal) FHA streamline refinance transactions were concerned. This includes things like W2s, 1099s, bank statements, tax returns, etc. loan officer and assist with guidance. On March 16, 2016, the United States Department of Housing and Urban Developments FHA and the United States Veterans Administration (VA) have revised a joint form. 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We have been providing training materials and classes for loan officers since 1992. . The more I read the new Single Family Handbook (SFH) 4000.1 versus the old handbook HUD 4155.1 and previous Mortgagee Letters there are changes made and numerous clarifications made. 9 Best Loan Officer Certifications in 2023 As a result, some are left wondering, do I still need to look things up in my guidelines? The FHA has announced new standards for Energy Efficient Homes (EEH) with stretched ratios. Thats correct, Oil (AUS) and water (manual underwriting). The Federal Housing Finance Agency (FHFA) announced last week that it is delaying the implementation of a new upfront fee for certain borrowers with a debt-to-income ratio above 40 percent. Basics of Mortgage Processing. I myself have had staff from various brokers offices (which I do visit from time to time) say to me, We have heard about underwriters but have never really seen one. Based on the underwriter responses, I was able to establish a few items worth mentioning. The annual salary for loan officers/loan processor ranges from $36,000 to $60,000 per year. With the interagency review requiring reform, review of loan files and now the media attention brought by the Occupancy protests are all putting pressure on the large servicers to clean up their acts. I dont know about anyone else but I can honestly say this is the absolute busiest and most overwhelmed Ive personally felt in the near 25 years Ive been in this crazy business of ours! Oil and water, two things that we all know do not mix well do to incompatible molecular structures, have become the poster child for underwriting with AUS. The sad truth is that I am sure that he is, unfortunately. Some changes are minimal and some are not. The fee is currently 50 basis points. Are You Tired Of Hearing The Word Change? On Monday, May 1, new upfront fees for purchase and rate-term refinance loans went into effect on mortgages secured by Fannie Mae and Freddie Mac. Theyre also becoming more educated about their rights as consumers. The prior version had not been updated since 2004. Over four weeks I gave everyone the FHA changes effective September 14, 2015 unless HUD delays the implementation of the changes again. They are simply three more numerical values used by a computer model to recommend if a loan should be approved and just like its partner, the AUS, I think credit scoring as rule has outlived its usefulness. Part II: Calculating Student Loan Payments for USDA, FHA & VA, Part I: Calculating Student Loan Payments for Fannie Mae & Freddie Mac. We all know that the mortgage industry is an ever-evolving, constantly changing business. The Rural Housing Developments (RHD) Guaranteed Rural Housing Program (GRH) is designed to assist borrowers in obtaining safe, sanitary, and adequate housing in rural areas. Hello All - I understand that most persons who read this blog are loan processors, loan originators and others in the mortgage industry. According to Zippia, 61 percent of loan officers hold a bachelor's degree, while 17 percent hold an associate degree [ 3 ]. Hello to everybody and sorry for the mix-up of last weeks blog, I missed the deadline because my mind was still on a holiday mode. A new reporting date has not been announced. This is particularly true when the borrower owns multiple investment properties. Mortgage Lender Training for Washington - LoanOfficerSchool.com A complete application with the proper supporting documentation versus an inaccurate application can make all the difference in the world. Hello Everybody - What is this Blog title you ask - Well it got your attention, now I will explain. Hello I hope everyone had a very nice holiday and let us all look forward to the New Year with a positive attitude that it will be a GOOD YEAR!!!! 4.6 (709) It seems we may be seeing some positive progress in the form or realistic reform. Quickly refresh or expand your industry knowledge and skills with our new Magic Minutes training series, Evaluating & Calculating Borrowers' Income. Therefore, the borrowers ratio would be affected based on the mortgage product. How to Become a Loan Processor in 5 Steps Select your education level Business Management Financial Management Banking and Financial Support Select a location Popular Schools The listings below may include sponsored content but are popular choices among our users. Actually its not that simple nor is the task of underwriting a basic exercise in calculating ratios, cash to close and making sure the borrowers credit score is sufficient to meet investor criteria. Who is FHA? If Your Company Accepts Private Savings Club Money, do you know how to handle it? Whichever it may be I think we can be assured that it is going to be yet another year of change in our industry. Loan Processor & MLO Mortgage Math: Problems & Solutions How to Get a Mortgage Loan: Key Steps Homebuyers Should Know With our consumer loan and loan processor training courses, you will learn the basics of consumer lending and loan processing, including the various types of loans, the various lending requirements, and the requirements and best practices for loan processing. We continue this series by exploring USDA, FHA and VA rules. But, the facts are this. In a series of 12 two-hour webinars, the course explains how to originate compliant and quality-based mortgage loans to minimize risk of repurchase and reduce the number of "touches" on the file. All FHA mortgage loans are assumable.. All underwriters must know the rules to either approve or deny the assumptor of the mortgage loan being assumed. From a mortgage approval standpoint I still find that most mortgage professionals are still stuck in the wonderful world of AUS. FHFA proposed the rule change in November 2021 to include quarterly quantitative and annual qualitative disclosures related to risk management, corporate governance, capital structure, and capital requirements. As a result, when underwriting a file, I take the following steps: In December I promised to be giving updates on the new HARP refinance programs as details emerge, and so being good to my word I am returning to the subject. Mortgage Loan Processing 101 provides an exciting crash course in the basic principles of loan processing. Mortgage Loan Processor Training School - Loan Processing Training Classes With interest rates up and down, depending on the day and hour of the week refinances have been fluctuating as often. However, it is important to recognize all the pay-period types and know the correct calculations. But just as they composed those fairy tales in the 1800s, representing what might have been described as the capricious and cruel reality of daily life for most Europeans of that time, we to continue to face a housing and mortgage market that can also be described capricious. Produced by Ellie Mae/AllRegs. We will begin with Fannie Mae and Freddie Macs rules on this topic. 150 Israel Road SW Tumwater, WA 98501 To register for a Washington State NMLS licensing class phone 425-256-3949 Washington Department of Financial Institutions licensed mortgage loan officers require 22 hours of pre-licensing education; The national requirements and an additional 4 hours of WA state law. Online Mortgage Training Classes, Webinars, Seminars Offered:-Mortgage Underwriter Training Classes (LIVE WEBINARS)-FHA/VA Training Classes (LIVE WEBINARS)-Loan Processor Training (LIVE WEBINARS)-View All Loan Processor Training Classes, Other Related Courses:-Due Diligence - Manual Underwriting (LIVE WEBINAR)-Tax Returns Analysis Workshop (LIVE WEBINAR), Need NMLS Licensure Training? Basically HUD allows approved nonprofit agencies to act as a mortgagor utilizing FHA insured financing to purchase homes which will be designated for resale to low to moderate income families or in some instances rented to low moderate income families and as you can imagine where the affordable housing program concerned as it pertains to the rental units, the nonprofits may actually have more than one FHA insured mortgage. Many borrowers set up a Corporation to protect their personal assets in case of bankruptcy or lawsuits. Call us at 1-800-865-8550 Press 1, Certified Mortgage Servicing Specialist (NAMP-CMSS), Certified in Mortgage Regulatory Compliance (NAMU-CMRC), Buy 5 Classes & Get an iPad Mini for FREE. 2012 is here. Fannie Mae is updating its automated underwriting system to help potential borrowers who lack a credit score. Do You Know Any of the Changes? Fannie Mae has announced a program, which I feel is exciting and hopefully will help borrowers save their home. The low appraised value has a negative impact on the LTV causing the loan to require mortgage insurance, or the loan becomes a decline. FHA required each lender to process a prospective mortgagor on all HECM transaction type. Advanced Mortgage Loan Processor: Essential Skills Training This has caused the borrowers monthly income to be reduced based on the information noted in the two most current tax returns on schedule A or form 2106. The most frequently discussed is the credit report. FHA Loans are assumable DO you know how to work with the assumptor? Speculation about what this year is going to bring is of course a popular subject these days and the doomsday crowd is getting ready for a party. Be sure to read these requirements if you lend in East Coast areas recently affected by Hurricane Sandy. There are key areas that differ from Ginnie Maes proposed requirements released in August 2021, and FHFAs proposal from February 2022. Yes, it is, grim that is, and I am not referring to Wilhelm & Jacob Grimm. Freddie Mac launched an enhancement to its automated income assessment tool that enables lenders to use borrowers direct deposit digital paystub data to assess their income. As I stated I cannot image all the changes in the House Bill actually becoming law; I feel by the time it is chopped up and amended, we probably will not recognize it as it reads today. Corporate Tax Returns seem to be the most frightening to everyone. Compensations to the officers of the corporation are based on the percentage of ownership and are reflected on the shareholders personal tax return. Hello I hope everyone is holding on to their job. 34 Loan Officer Jobs in Broken Arrow, OK hiring now with salary from $30,000 to $69,000 hiring now. The Federal Housing Finance Agency (FHFA) announced last week that it will conduct a comprehensive review of the Federal Home Loan Bank (FHLBank) System this fall. The role of loan processors in the overall mortgage loan process, and strategies on how best to communicate with them are covered in this course. However, WVOEs should not be taken at face value. This computer-delivered exam is 190 minutes in length, and consists of 125 questions. In my opinion there are about one hundred (100) changes going to take place and effective September 14, 2015. This week, in part two of the series, youll find further explanation of the appraisers responsibilities in regards to the HUD REO appraisal requirements. Loan processing officer Calculating qualifying rental income is one of the more complex income calculations an underwriter can perform. Hello everybody hope you are keeping busy. We recommend downloading our Course Catalog by clicking the link below: However, supplementary documentation can be just as illuminating as the primary report when reviewing the borrowers credit profile. Those remaining are the die hards and they are working hard for their deals; which is all the more reason to do our due diligence prior to sending a package to the investor. The use of the FHA and VA mortgage insurance programs has been on the rise since the great implosion of 2007 and most recent us several lenders embracing Rural Housing programs as well. Ideal for loan processors and mortgage underwriters. I know what youre thinking already, Really Bonnie, we know all about them, but I say untrue, this based on a conversation I had yesterday with an underwriter friend at Philadelphia HOC. I hope they are all around to suffer the hangover in 2013 since that would mean they are wrong again.