In fact, its kind of a vote of confidence in you. This is nothing to be alarmed about. If Freddie Mac owns your mortgage, then your lender must have sold it to Freddie Mac - or sold it to an investor that eventually did. Types Of Jumbo Mortgage Loan Programs For HomebuyersFreddie Mac Owns Your Mortgage. Under the HARP program, a person can not have any lates in the last 6. Income that does not have a defined expiration date (long term disability, interest and dividend income and social security retirement income) no longer requires documentation of three-year continuance Income that DOES have an expiration date, lenders must document a three-year continuance (see Fannie Mae Seller Guide) Calculating Income 23This will allow homeowners with loans owned by Fannie Mae and Freddie Mac to.Jerry l spence on VA Guidelines On Charge Offs And Collections On VA Home LoansSearch It! Search for: Search Button ResourcesThis Blog On Should I Use Fannie Mae Or Freddie Mac Automated Underwriting System Was Written By Gustan Cho NMLS 873293 There are two separate types of Automated Underwriting Systems: Abby on FHA Loan With Judgment Mortgage Guidelines And Requirements Gustan Cho on FHA Loan With Judgment Mortgage Guidelines And Requirements Gustan Cho on VA Guidelines On Charge Offs And Collections On VA Home Loans Jeannine Rutledge on Why is GCA Different Than Other Lenders Gustan Cho on Why is GCA Different Than Other Lenders Loan amount limit listed may exceed the maximum Fannie/Freddie Conforming Loan Limits The borrower may have a debt to income ratios that exceed the maximum DU/LP Guidelines The borrower may not have enough down payment But the automated system is warning that the file cannot be issued an automated approvalThis is because the AUS cannot render a solid automated approval due to one or more reasons listed below: Automated Underwriting SystemOn both DU and LP FINDINGS, an approve/eligible per automated findings means that the file has an automated approval:Automated Findings of referred/eligiblemeans that the file is eligible for DU/LP approve/eligible: Loan originators use two different systems to get Automated Approval via Automated Underwriting SystemFannie Mae Automated Underwriting System:It is referred to as DU, or Desktop Underwriter and the findings are:Freddie Mac Automated Underwriting System:It is referred to as LP, or Loan Prospector and the findings are:In this article, we will discuss and cover the differences between DU versus LP AUS.Multiple mortgage late payments in the past 12 monthsLower credit scores that the borrower does not meet the minimum credit score requirements. The borrower does not meet the mandatory waiting period after bankruptcy, deed in lieu of foreclosure, foreclosure, or short sale Too many derogatory tradelines and late payments in the past 12 months Here is a list of some of many reasons why a mortgage file will render a refer/with caution with Fannie Mae and/or Freddie Mac Automated Underwriting System: Referred Eligible Per AUS FindingsReferred/Eligible per AUS Findings may be eligible for Manual Underwriting with FHA Loans.Whether applying for an FHA, VA, USDA, or Conventional Loan, the loan application needs to be entered into the Automated Underwriting System for an automated underwriting approval via Fannie Mae and/or Freddie Mac.If you get a referred./with caution, that means that you do not qualify for a mortgage and that something is wrong with your credit profile.
Does Your Loan Have To Be With Fannie Mae Or Freddie For Harp Program Mac Owns YourThere are data that Fannie Mae will not like that Freddie Mac has no issues with Freddie Mac Versus Fannie Mae AUSOne key important fact that loan officers need to realize is that Freddie Mac can do mortgage loans that Fannie Mae cannot do. Most of the time when borrowers do not get an automated underwriting system automated approval with an FHA Loan, the chances are that the particular lender used Fannie Mae DU AUS to run the FHA file throughOne important factor loan originators do not realize is that just because Fannie Mae automated underwriting system denies the file does not mean that Freddie Mac LP AUS will not grant approval. Common word on the street is that is it easier to get an approval with Fannie Mae than Freddie Mac Not all mortgage lenders are Freddie Mac approved Fannie Mae and Freddie Mac does not restrict non-occupant co-borrowers like HUD does with FHA Loans Fannie Mae and Freddie Mac allow non-occupant co-borrowers Benefits Of Conforming LoansHere are the major bullet points on both Fannie Mae and/or Freddie Mac on Conventional Loans: Mac os x emulator for android apkHowever, each individual lender can impose a front end DTI cap as part of their overlays There is no front end debt to income ratio requirements per both FANNIE/FREDDIE Guidelines Mortgage Guidelines On Conforming LoansFannie Mae and Freddie both have capped Debt to Income Ratios up to 50% DTI to get an approve/eligible per DU/LP FINDINGS: Fannie Mae will require two years of tax returns on all self-employed borrowersFreddie Mac will accept one-year tax returns from self-employed borrowers if LP renders an approve/eligible per LP FINDINGS. All Conventional Loans are eligible for W-2 Income Only Mortgages Fannie Mae and Freddie Mac will allow for W-2 Income Only Conventional Loan Programs Bottom line is that FHA will allow debt to income ratios up to 56.9% DTI on borrowers who have credit scores of 620 FICO or higher Gift Funds For The Down Payment And Closing CostsFannie Mae is notorious in not rendering approve/eligible DU FINDINGS on borrowers who have gift funds as part of their down payment but have a higher debt to income ratios. Fannie Mae is known not to view gift funds favorable for borrowers with lower credit scoresEspecially with borrowers with credit scores of under 640 FICO. Warning: DO NOT RUN FANNIE MAE IF YOU PLAN ON GOING WITH FREDDIE MAC AUS Fannie Mae does not like gifted funds for the down payment on borrowers who do not have strongly seasoned credit tradelinesAgain, if you do not think your file will fly with Fannie Mae Automated Underwriting System, submit it to Freddie Mac and chances are that you will get an automated underwriting approval. The trick is to make sure that you do not list that you are getting gift funds for the down payment if you have a higher debt to income ratios If you get a borrower that got turned down via DU FANNIE MAE FINDINGS, then review the file and see if you can run it Freddie Mac, LP AUS Should I Use Fannie Or Freddie With Bad CreditHere are higher risk mortgage files that you should question should I use Fannie or Freddie AUS? Loan officers should carefully think about whether asking themselves the question should I use Fannie Mae or Freddie Mac?Follow your mortgage companies’ policy prior to running a borrower through the automated underwriting system, especially with files that are considered higher risks. However, they will allow you to run LP Freddie Mac AUS first and then run it through DU Fannie Mae AUS Many lenders WILL NOT ALLOW a Fannie Mae referred/eligible and/or Fannie Mae referred/caution to rerun into LP Freddie Mac Automated Underwriting System Freddie Mac LP Automated Underwriting System is much more aggressive with borrowers with late payments in the past 12 monthsFreddie Mac LP Automated Underwriting System is much more aggressive with borrowers with 3 or fewer credit tradelines that have not been seasoned for a long time. Freddie Mac LP Automated Underwriting System is much more aggressive with borrowers with late payments after bankruptcy and foreclosure Freddie Mac LP Automated Underwriting System is much more aggressive with borrowers with higher debt to income ratios
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