Oil & Water (Inside today's mortgage underwriter's head)

[ShanetheMortgageMan]

Oil and Water

Written By: Bonnie Wilt-Hild

Senior DE Underwriter & NAMP Instructor

Oil and water, two things that we all know do not mix well due to incompatible molecular structures, have become the poster child for underwriting with AUS. That’s correct, Oil (AUS) and water (manual underwriting). “How so”, you ask and the answer is a very simple one. We are still required to utilize automated underwriting on all cases that we underwrite. However, the findings don’t mean a thing where documentation waivers or loan approval is concerned. 

http://www.mortgageprocessor.org/mortgage-loan-processor/2010/03/oil-and-water.html

Great article written by someone who underwrites FHA loans every day.  Really gives insight on the process underwriters use today when approving mortgage applications (assuming that all minimum requirements from the printed guidelines have been met).  The automated underwriting approval that your loan officer initially receives after inputting your application information no longer holds water as it did before, careful scrutiny to make sure the borrower is credit worthy is being done on all applications.  Think manual underwriting with a bit of automated underwriting added in, and guidelines are tightening up monthly.

[MattH]

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@ShanetheMortgageMan wrote:

Oil and Water

Written By: Bonnie Wilt-Hild

Senior DE Underwriter & NAMP Instructor

Oil and water, two things that we all know do not mix well due to incompatible molecular structures, have become the poster child for underwriting with AUS. That’s correct, Oil (AUS) and water (manual underwriting). “How so”, you ask and the answer is a very simple one. We are still required to utilize automated underwriting on all cases that we underwrite. However, the findings don’t mean a thing where documentation waivers or loan approval is concerned. 

http://www.mortgageprocessor.org/mortgage-loan-processor/2010/03/oil-and-water.html

Great article written by someone who underwrites FHA loans every day.  Really gives insight on the process underwriters use today when approving mortgage applications (assuming that all minimum requirements from the printed guidelines have been met).  The automated underwriting approval that your loan officer initially receives after inputting your application information no longer holds water as it did before, careful scrutiny to make sure the borrower is credit worthy is being done on all applications.  Think manual underwriting with a bit of automated underwriting added in, and guidelines are tightening up monthly.

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Thanks for the link, fascinating article indeed.