For FHA, is manual underwriting applied to everyone?

[Anonymous]

Hi,

   For anyone with mortgage knowledge/expertise - is underwriting required even if you had automatic approval? Or is underwriting different between those who have had an approved or refer? Thanks for any responses.

[StartingOver10]

Yes, underwriting is required. It really isn't a big deal if your paperwork 'matches' the loan application in terms of income and debt. Sometimes the underwriter will have additional paperwork requirements, but if you are working with a good LO and good processor, it really should be seemless.

BTW, the file really only stays in underwriting a short time, 3 days is typical, but some lenders are backed up and u/w takes a little longer.  On some of the horror stories where people say its been in u/w for X weeks - it is unlikely. It usually is in processing the longest until the file is prepared with everything the u/w needs to see.

[Peter1142]

Underwriting is always required... however if you have an automated approval, it is not considered "manual underwriting" (you do not have to meet manual underwriting criteria) and your file will not be reviewed as stringently.

[DallasLoanGuy]

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@Anonymous wrote:

Hi,

   For anyone with mortgage knowledge/expertise - is underwriting required even if you had automatic approval? Or is underwriting different between those who have had an approved or refer? Thanks for any responses.

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1.  file approved thru automated underwriting.... human underwrite verifies all data and accepts DTI as per automated

2.  file approved thru automated underwriting.... but is downgraded to a manual underwrite per some guidelines.... like disputed accounts can get a file downgraded... human underwrite verifies all data and accepts DTI as per published guidelines

3.  file does not receive an approve/accept.... is manually underwritten to published guidelines

all files('automated approved' and 'manual underwrites') are seen by a human.... a human underwriter verifies things used to get the automated approval

There seems to be a confusion between human underwriting piece and what a manual underwrite is.

Most common downfalls to a manually underwritten file: 

1. stricter dti

2. rent payments varified

3. collections can be asked to be paid(automated issues guidance that says collections have been addressed by automated approval and do not need to be paid)

[StartingOver10]

DLG's post ought to be a stickie...

[Revelate]

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@StartingOver10 wrote:

DLG's post ought to be a stickie...

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I agree; DLG if you wish to repost this in a thread I'll be happy to do that, or I can break out later, change the title, and sticky that.  

[frugalQ]

DLG....thank you!!! I have been trying to find out what happens since I was DU approve/eligible through Fannie Mae.

[Anonymous]

Thank you so much for the replies!

[DallasLoanGuy]

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@Revelate wrote:

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@StartingOver10 wrote:

DLG's post ought to be a stickie...

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I agree; DLG if you wish to repost this in a thread I'll be happy to do that, or I can break out later, change the title, and sticky that.  

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It is a sticky now....... i expanded the copy a little.

fire away with questions