Q&A - December 25, 2018

Compliance – Policy on Credit Report Name Errors: When should we re-run a credit report when we discover minor issues such as name misspellings, nicknames vs. formal name or missing addresses?

Answer: In most cases you can resolve credit report variables for the borrower’s name, by an aka statement.  However, if there is an issue with a married name vs. maiden name you will likely need a new credit report. In some cases, addresses can be resolved with an LOE, but for a DOB or SSN [...]

2018-12-26T07:48:51-05:00December 25th, 2018|

Fannie Mae – PERS Approval: Does a PUD single-wide manufactured home need to be PERS approved?

Answer: Yes, they do. See highlighted text below from Fannie selling guide. Reference: B4-2.3-01, Eligibility Requirements for Units in PUD Projects (06/05/2018) Introduction This topic contains information on PUD projects, including: PUD Project Definition Eligibility Requirements for Units in PUD Projects PUD Project Definition A PUD is a project or subdivision that consists of common [...]

2018-12-26T07:48:39-05:00December 25th, 2018|

Fannie Mae & Freddie Mac-Co-Signor on Deed: Does Fannie Mae or Freddie Mac require a cosigner to be on the deed?

Answer: Fannie Mae guidance is clear that they would sign the deed, but Freddie guidance is less informative.  If you are trying to avoid the co-signer signing the deed, Freddie may be an option, subject to lender interpretation, but as mentioned, Fannie would require them to be on the deed. Reference:  Fannie Mae B2-2-04, Guarantors, [...]

2018-12-26T07:48:32-05:00December 25th, 2018|

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|