topic Re: Are all automated underwriting programs basically the same? in Mortgage Loans

Are all automated underwriting programs basically the same?

Anonymous — Sun, 10 May 2009 13:34:02 GMT

In otherwrods, if you get less than automated approval on one, will you likley see the same thing from everyone? How much can they vary?

Re: Are all automated underwriting programs basically the same?

Anonymous — Sun, 10 May 2009 16:53:48 GMT

I don't think there is any such thing as "automated underwriting" on a mortgage. You may get a "pre-approval" but this still is subject to full underwriting. And your preapproval is subject to the underwriting findings.

Re: Are all automated underwriting programs basically the same?

medicgrrl — Sun, 10 May 2009 17:06:16 GMT

Automated underwriting systems will vary slightly. It really depends on why you received a refer from the system as to whether you will get that from all lenders. The lenders can tweak they system based on their own internal guidelines in addition to fannie mae, freddie mac etc. guidelines.

Has the LO tried putting the loan in the system in different ways? Changing reserves, increasing the down payment slightly etc? Sometimes it can be the smallest of change that will get a loan to get an approve/eligible. What was the reasoning for the refer?

Re: Are all automated underwriting programs basically the same?

Anonymous — Sun, 10 May 2009 17:12:30 GMT

I was told with 1 lender I came up AE 3 in their auto underwrite system

Re: Are all automated underwriting programs basically the same?

medicgrrl — Mon, 11 May 2009 00:11:31 GMT

Did he tell you why you received that? Did he try to play with the numbers to see what it would take to get you an approve/eligible? You will probably continue to receive that with other lenders but you may be able to play with the numbers to see what exactly it will take to receive an approve/eligible. If it's ratios, do you have any debts you can pay off? Is this a purchase? Maybe buydown the rate? What are you trying to accomplish and maybe you will receive some feedback and suggestions on how to improve the loan to receive better findings.