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Mortgage Topics

Complete Employer Address(es): Underwriting has asked me to remind the loan officers to complete the Employer Addresses on Section IV: Employment Information. The loans cannot be approved and sent to closing without this information in the application.

Cash Out Refinances: Any first mortgage loan that pays off anything but a first mortgage loan (i.e; payoff second mortgage HEQ, car loan,unsecured, credit cards,etc.) is considered a cash-out refinance per FHLMC guidelines. It is very important to categorize the loans correctly and price them as cash-out refinances if they are. Loan Prospector reviews a cash-out refinance more critically than a no cash-out refinance. So a loan may erroneously receive an ACCEPT rating when categorized as a no cash-out, but a CAUTION when underwriting changes it and considers it a cash-out refinance.

Copy Borrower Woes: The Copy Borrower functionality has been a hot topic lately. Rates continue to be low and clients just keep coming back. Please remember that you must review EVERY SCREEN if you copy a loan. The application date, officer name, and banking center must be changed on every loan that is copied. If not, the original loans application date will appear on the pipeline reports and the banking center and officer names will be incomplete.

Self-Employed Indicator: Just a reminder, if your client is self-employed, put an X in the Self-Employed indicator field in Section IV: Employment Information. A self-employed applicant will have different documentation requirements than an employed applicant (tax returns instead of W-2 forms). Again, this may critically impact a Loan Prospector decision. Try to get it right the first time through Loan Prospector by having it correct at the loan officer level, not underwriting.

Foreign Address: The FISERV easyLENDER systems cannot accept addresses from foreign countries. This has come up quite a bit lately, perhaps because of soldiers being overseas. If your applicant has a foreign country address, we will have to enter the city and state of the property in the present (or previous) address areas and leave off the foreign country information to pull credit. Then, attach a Note to the file to inform everyone of what the actual address is.

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