Q&A - December 25, 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|

Fannie Mae – Voluntary Debt: A non-occupant co-signor disclosed that she voluntarily pays half of a mortgage for the home she lives in, even though she is not obligated on the mortgage. Does this debt need to be counted?

Answer: Because this expense is voluntary and not actually a debt for which your non-occupant co-borrower is liable, it is not necessary to list any housing expense on the 1003.  [Article Published in Question & Answer Issue – December 25, 2018] Copyright © 2018 – Mortgage Currentcy – All Rights ReservedA subscription is required to [...]

2018-12-26T07:48:11-05:00December 25th, 2018|

USDA – Credit Lines – Deferred Student Loans: Will USDA allow deferred student loan debts to be counted as a tradeline? NEW MTP™ – USDA – What Counts as a Non-Traditional Tradeline?

Answer: Unfortunately, deferred student loans without 12 months of repayment history are not eligible tradelines to validate credit. Here is what the regulations state… Confirm the applicant has at least two eligible tradelines reported to the credit bureau.  The tradeline may be open, closed and/or paid in full by the applicant. Eligible tradelines include: Loan [...]

2018-12-26T07:48:04-05:00December 25th, 2018|

FHA – FHA Expected Income – Relocation: Can we use the income when a client is transferring with the same company, but different job, and will not have a paycheck prior to closing?

Answer: FHA would allow the new income to be used for qualifying per their Expected Income guideline below.  If you can comply with this guideline, then the income should be acceptable. Reference: 4000.1, II, A, 4, c xii (L) Expected Income (TOTAL) (1) Definition:  Expected Income refers to income from cost-of-living adjustments, performance raises, a new job, [...]

2018-12-26T07:47:59-05:00December 25th, 2018|