MC Process/Procedure

Question 1

What is DataVerify?

Answer 1

Used to analyze potentially fraudulent information being obtained during the loan process.
-Fraud risk score
-Alerts highlight areas of possible concern and rate the severity of said concern
-the risk score will determine which alert ratings need to be cleared.
*All loan participants must be verified

Question 2

What will the processor do to clear alerts?

Answer 2

Start retrieving supporting docs to clear alerts early in the process.
-Medium to high alerts and potential watchlist matches for scores 700 and below
-SSN and DOB alerts must always be reviewed and cleared regardless of alert level.

Question 3

What should a processor do to clear alerts?

Answer 3

Processors are only required to obtain proper docs to support UW ability to clear alerts once reviewed.
-upload docs and tag condition in Fraud doc holder

Question 4

When should eConsent be verified?

Answer 4

Right away.

Question 5

When is a good time to run AUS?

Answer 5

When milestone is “App out”. This will give you a feel for what docs need to be collected.

Question 6

What will the “show changes” switch do in DU?

Answer 6

Identify updates from previously run reports

Question 7

When do flood bots order the flood cert/zone?

Answer 7

Automatically when the loan is placed in “Sent to Processing” milestone.

Question 8

If flood cert indicates the property is in a flood zone, what should the MC do?

Answer 8

Call the borrower and ask:
What insurance company will be the policy provider?
We will need page 2 of flood cert signed and dated by borrower.

Question 9

What is LoanBeam used for?

Answer 9

Automated income calculation for tax returns.
-for lengthy and complex tax returns

Question 10

When do we use LoanBeam?

Answer 10

Rental properties
Self Employment Income

Question 11

What do we collect from self-employed borrowers?

Answer 11

-Personal tax returns
-2 years (or 1 year based on AUS)
-K1s
-when 1065 or 1120s income is shown on 1040
-1065 and/or 1120s
-2 years if K1 reflect more than or equal to 25% ownership
-(or one year based on AUS)

Question 12

For sole proprietorships, what should an MC look for?

Answer 12

-Multiple schedule Cs listed on the same tab
-entering add-backs (ex: business use of home w/ Fannie)
-If you complete a field, leave a note

Question 13

For rental properties, what is required to be completed by the processor?

Answer 13

-review the Schedule E Rental tab
-fill in blue fields manually to calculate net rental income
-form 1037: if rental is a primary residence or the subject property
-form 1038: non-subject investment property only > must fill out PITIA info

Question 14

For partnerships and SCorps, what method should we use if the investor allows it?

Answer 14

Net income method. This method will almost always result in more income for the borrower and should be used if allowed by the investor.

Question 15

If we do not have AUS income validation, we can still use the automated income report in place of W2s and pay stubs IF:

Answer 15

-As of date is within 35 days of the date pulled
-income is broken down
-borrower qualifies without the use of “other” income
-income on report is sufficient for qualifying

Question 16

If account number and account holder’s name is not on all pages of the automated asset report, what will need to be provided?

Answer 16

Traditional bank statements

Question 17

Auto Assets may still be used in place of borrower provided bank statements IF:

Answer 17

-sufficient assets for closing/reserves
-account owner name is on report
-account # on report
-balances listed on report

Question 18

What is the criteria for a loan restructure?

Answer 18

-LTV
-Property
-Jumbo Investor Switch
-Gov to Conv or vice versa
-loan structure changes

Question 19

What is required in order to collect fees from the borrower?

Answer 19

-Borrower signed LE (loan estimate)
-Intent to proceed (ITP) signed by borrower

Question 20

The fees listed on the LE will populate from where?

Answer 20

The 2015 itemization