Section I | Property
1. Dont submit loans that have patio conversions or converted bonus rooms with closets and appraisal says, “room count differs from tax rolls” unless, no permit required if a bonus room was modified with a closet as closets dont require permits.
2. Dont submit loans that have structural, foundation issues in the home. Cracks in fascia or foundation, sagging walls or sunken fireplace NOT GOOD ! ( ask upfront ).
3. Dont submit loans that have any rental income on subject or sectioned off piece of the home used for a tenant. ( basements etc )
4. A non permitted room addition/ pool/ covered patio or other structure on parcel ( check Title Profile ) If you get the "enclosed" patio, have the appraiser call it a covered patio.
5. A below grade unfinished basement that owner claims inside estimated value. ( no-go )
6. That need a FHA loan and has any deferred maintenance or unpermitted rooms/additions/ or converted garage.
7. That needs cash out for home improvements and the improvements are to fix the roof or sagging walls ( roof cert )
8. That have security bars on windows without emergency releases
9. That have any delinquent property or personal income taxe liens with LTV maxed out w/ no cash in bank to pay them or no desire no pay them. Sell it
10. Thats have extra DOT’s, or misc weird liens on title.
11. That recently built a pool, moved a wall or added a room and didn’t get a new property survey!!
12. That is a condo with < than 70% owner occupancy in development..ASK
13. That is s rental property > 75% LTV ( unless DU REFI PLUS )
14. That is a Doublewide or a funky do-it-yourself built home, Qualify the home upfront ( ZONED AG??) Kill it
15. That has an empty pool or an empty in ground spa, cracks in the plaster or coping
16. When you need a 1004 ( Full Appraisal ) on a CALIFORNIA HOME and you don't have Carbon Monoxide sensors installed...doh
17. Thats was or is listed on MLS < 6mos ( Get listing Cancellation Letter and LOE ) no cashout though!
18. Thats held in a leasehold estate ( indian leased land etc..? ) You can do it BUT...
19. That has Insufficient insurance @ docs or no insurance at all. ( Review your HUD and DEC PAGE ) souce cash to close if needed
20. That is inside an HOA involved in litigation or you forgot to request the MASTER POLICY for the development if applicable ( PUDs ) ...always ask about PUDS...Especially in your newer communities
21. When UWr is requiring permits on a room addition or expansion when WELLS FARGO doesn’t require them. (Especially on a WFB payoff!)
22. When the subject property is a rental and you didn’t request and sell the 2.0 - 3.75 LLPA fees upfront . You will need Appraisal Forms 216 too! Includes loans with a PIW or 2075 exterior recommendations, so be sure to order these upfront and tell the client about added ( $$$ ) HARP Loans may have additional adjusters. Condo???..look & see. If its a condo, get the Master policy for the development and HOA Bill to orde the HOA Cert. ( $100-200 )
Section II | Income
1. Thats has a separate address on paystub or bank account, assets ect, get LOEs and ask them.
2. That has 401K loan or misc deductions on paystub not factored into DTI, source all
3. When the brr works two jobs but not for 24 mos for both
4. When the borrower has a side business, rentals and Schedule C losses /2106 expenses. Get 2 yrs taxes, all schedules!!
5. When the DTI is tight+ pushed LTV 75% and has random collections or liabilities or student loans.
6. When the loan has not filed 1040s, ( get extensions if possible )
7. That has large deposits and transfers on bank statements 3 mos ago. Use the recent statements only & or source them ALLLLLLLLL )
8. That has random undocmented atomatic withdrawals or transfers from bank account, paychecks!!!
9. THat owns 25% of a business and no tax returns requested or filed ( may be okay bt ask for the rest of teh docs!! ( is it an S Corp? )
10. That owns a side business /another entity or person pays debts and not having 12 months consecutive cancelled checks
11. When you need overtime income to qualify and not consistent or need perm disability/alimony/child supp and won't continue for >3yrs
12. When your dti is 44% and grossed up SSI or PENSION INCOME TO 125% and its really 100% taxable at some level. Super slick move but costly!
13. When your loan needs rental income to qualify and not reported on 1040s!!!
14. When you have inconsistent non paycheck deposit amounts on bank statements that appear to be possible rental income or other side business 1099 income ( LOE and source )
15. When ou have major gaps in employment, current maternity pay, FMLA, disability income periods in < 12 mos ( usually not a big deal BUT...make sure she's back to work and get HW VOE!!
16. If you have teachers that dont have paystubs in summertime!! ...................potential loan killer ( Get the VOE ordered as soon as you pull credit!! )
17. UWrs work in their own system, not YOURS so don’t use your DTI when suspended for DTI, ( Get 1008 from your UWr
18. FOREIGN INCOME
Foreign income (income generated from non-U.S. sources) may be used only if its stability and continuance can be verified, and is supported by U.S. Federal Tax Returns for the most recent two years. If the income is paid in a foreign currency the file must contain a printout evidencing the source used for the conversion of the foreign currency into U.S. dollars. The income must also be verified in the same manner as U.S. income sources
Section III | Credit Report
1. When you have multiple or recent reported addresses or AKAs on credit report ( get LOEs and Letters ASAP )
2. Anytime you have open disputes on credit report, open CR pdf, hit “CTRL, F” enter "dispute", then search ( dispues need to be removed ) see processing tips !!
3. When you have recent loans not calculated in DTI like cars or new credit lines & shit!!
4. When having more than a 1X30 day late in last 12mos ( especially on a lon with a recent BK )
5. Having <640 fico for FHA and 620 for Conforming!!!
6. Having a non disclosed non owner short sale or foreclosure < 7 yrs ago. They'll catch it! ( FHA 3yrs B )
7. Having a credit report and it doesn’t match the correct spelling and vesting on prelim, no issue, just takes time to resolve....sucks tho!!!! run the Title Profile upront ( Terry, Terrie, Tery )...
8. That has a current judgment or lien and no paper trailing its satisfaction..
Section IV | Personal Issues
1. Thats needs an FHA streamline loan and ex -spouse wont deed off title!!
2. When 411.com shows different address for our borrowers...
3. When 411.com shows different dwellers at our subject while being Owner Occupied
4. When your Brr was married and has current child support or Alimony payments on CR or PRELIM.. ( get the court order and divorce decree!!! )
5. That had a BK and any other debt still owing and not discharged ( STUDENT LOANS are non dischargeable in CH7 or 13 )
6. That has any non-disclosed rental property OR LAND ( OUR FORENSICS UNIT/ UWRS WILL FIND IT!! )
7. That has any non reported student loan payments not factored in DTI!!! POssible killer ( Get the contracts )
8. Whan you have a borrower thats leaving to country for a few months.
9. When using 401K cash to close and not getting all terms and conditions to factor in DTI. ( get the 401K contract/terms and have the UW bless the file )
10. When you have WET DOCS and NOT signed on specific date. ( re-draw ) HUGE PINTA!!!
11. When your NOW short to close and all you didn’t source enough cash to close. ( Get the gift letter, BK stmt from acceptable donor ie FAM + bank statement from donor ) NOT BOYFRIEND OR FIANCEE!!!!!
12. When you have a joint bank account with another that’s not on our loan and needing cash to close ( request the full 100% access/ permission LOE )
13. When you can't get LOE’s in general i.e.any late pays on credit cards or mortgages, address or name variations, cash out etc
14. When you need HUDS from 12 month or less real estate acquisitions.and cant get tem. DIGG Around and snoop!!..you can usually find them
15. When your borrower sent a personal Check in with the cash to close. If the borrowers funds due are under $1500 then a personal check to Title is acceptable. If $1500-$5000 they will need to bring in a cashier’s check to Title. When the CASH TO CLOSE IS $5000, funds will have to be wired in.
16. When you have any misspelled names for example: THOMAS, TOMAS, ANDERSON or ANDERSEN or JEFFERY or JEFFREY, always ask correct spellings.!!! crappy delay!!! losing money on this issue!!
17. If you sent out loan disclosures with a mistyped address. MUST rerun credit, new DU, new Disclosures! HUGE ISSUE POST SUBMISSION! I DID IT!!!
Section V | Misc Loan Particulars
1. When you waived escrows on a REFI PLUS over 80% out of state
2. When you waived escrows on a REFI PLUS over 90% in CA
3. When desiring a cash out loan< $115K in Texas, 3% max fees on CASHOUT, we have .875 add to TX cash out. The Max fee in TX on cashout limits you to L/A at about $135K...Sell the 20, 25 0r 30 MORE REBATE!!
4. When looking to omit a debt or payment in DTI and NOT HAVING a full 12 month history with cancelled checks from business or person that pays the debt!
5. When looking to get cash out or consolidate a 2nd in TX and already got cash out < 12 ago
6. If doing a REFI PLUS’s and it was listed < 6 mos ago… ( Need to be off the market for > 6 mos!! )
7. Trying to have LENDER PAID MI on a DJ REFI PLUS!!! MI TRANSFERS TAKE 8 days wih Radian!
8. When paying off a 2nd on a REFI PLUS, cant do it, get subordination. (Collect $200 don’t pass GO. )
9. If trying to sell a 5-31 and after FHA Streamline < $200 to $300K ( New P&I/PMI needs to meet 5% Net tangible benefit ) new PMI rate kills benefit on most stremliners. Unless FHA guarantee before 5/31/2009
10. If having more than $250.00 cash back on a REFI PLUS, lower L/A, re-run DU! (check transfer taxes !! )
11. When having a REFI PLUS with < 620 fico on primary or < 680 for N/O/O ( 660 for ARMS )
12. When looking to do rate and term and paying off a 2nd with recent advances/draws from 2nd <12 months
13. If the DU approval has a different lower appraised value than your schedule of R/E post submission on a REFI PLUS w/ waiver. Re-run DU or get the AVM. ( Check my favorites page for the AVM I use )
14. When having a VA Refi w/ appraisal and didn’t order termite report ( I.R.R.R.L.S. don’t need ) FORM 33+ clearance needed. See and get specific verbiage on the form!! ( REMEBER PAGE 2)
15. When originating a streamline FHA or VA , IRRRLs and ex-wife/cobrr won't deed off ( no-go)
16. If you didn’t add and disclose the non tangible taxes!!! ( Sell it and DU Over )
17. When you didn’t get your loan CTC in time even if you had all the docs in the system. Upload it and trail it! ( Especially on FHA ) Time is money and money is time!!
18. When having rate lock extensions/negotiations and reselling the loan!
19. When you sold a 10 yr REFI PLUS, DU will give it to you BUT we don’t offer it ( sell the 15 w/ 10 yr am schedule) > 20% P&I PMT increase will kill your loan!!
20. When the final loans docs went out BEFORE you sold the FINAL HUD! Review page 2 and review all items and PAYOFF!! ( Make sure borrower is current on all mortgages and CCs at COE ) ...review box #303!!!...review your lock, approval and payoff(s)! Makes sure they dont write a check to the house if short to close!!. Make sure they go down and wire or get a cashiers chack in the amount on the final HUD made payable to the escrow firm, NOT YOU!! OR THE LENDER!!!
21. If running a DU REFI PLUS < 80 LTV, Stay about 83% or 88% ( look for the waiver at higher LTVS) loose the waiver? Don’t submit to UW yet and see your manager.
22. When having a TEXAS loan from OCTOBER THROUGH JANUARY! ( Texas pays taxes once a year from Dec 31 to Jan 31) if BofA or Wells, get the escrow credit! Most lenders like GMAC or small ones in TX won't release the escrow credit EVEN on FHA/VA Streamlines
23. Your HUD doesn’t reflect the correct REBATE. Always double check the HUD with the LOCK and make sure you have enough time on your lock!!
24. If you think you have a nice DURP, make sure the findings look about like this and you execute the PIW.
17 Based on the standardized address, Desktop Underwriter estimates the value of the property at $594000.00. This estimated value was developed by internal proprietary models to help determine eligibility for a DU Refi Plus property fieldwork waiver. It is not the result of an appraisal, nor was it developed by a state licensed or certified appraiser. This estimate is intended to be used solely by the lender to underwrite the refinance of the borrower's mortgage loan.
19 Desktop Underwriter accepts the value submitted as the market value for this subject property on this limited cash-out refinance transaction where the borrower's existing loan is identified as a Fannie Mae loan. This loan is eligible for delivery to Fannie Mae without an appraisal or exterior-only property inspection if the DU Refi Plus property fieldwork waiver is exercised by the lender at the time of loan delivery to Fannie Mae. To exercise this waiver and be eligible for representation and warranty relief on the value, condition and marketability of the subject property, Special Feature Code 807 and the DU Casefile ID must be included in the loan delivery file. A fee will be charged to exercise this waiver. If the waiver is not exercised, at least the minimum level of fieldwork recommended for this transaction must be obtained.
DON'T TRY TO PAYOFF/CONSOLIDATE A 2ND MORTGAGE ON DURP OR A FREDDIE OPEN ACCESS!!
If you want to find out why a loan is not eligible for DURP you can contact Fannie Mae at the number below:
FANNIE MAE SUPPORT @ 1-877-722-6757