Fannie Mae and Freddie Mac Underwriting Guidelines

The underwriting guidelines from Freddie Mac and Fannie Mae form the cornerstone of the mortgage underwriting process. It is important for lenders to strictly adhere to these guidelines because they form the foundation of the rules that govern mortgage loans. With changing economic conditions, both the government agencies change the underwriting guidelines to ensure borrowing and lending are carried out…

Why Credit Unions Must Outsource Underwriting Requirements in 2018

Credit unions face an upfront challenge in 2018. While on the one hand, rising mortgage rates combined with higher home prices is shrinking profits, on the other, bearing the brunt of the continuous increase in financial regulations, is leading to backlogs and delays. In the face of these two challenges, credit unions need an alternative business model – one that…

Mortgage Underwriting: Time to Allow Common Sense Over-Ride Algorithms

Mortgage, Underwriting Feb 20, 2018

The effectiveness of legacy scoring methodologies to determine a borrower’s ability to repay has for long been on the wane. Its rigid approach to categorize borrower eligibility or reliability based on scores has been its biggest failure, as it has effectively put a large number number of credible and reliable borrowers out of reach of lenders. Today, lenders are desperate…