Misc Loan Flashcards

Question

Why is a trimerge credit report score different from a consumer credit report pull score

Answer 1

it is a different algorythm , they are pulling a consumer credit score and we are pulling a mortgage credit report.

Answer 2

Freddie max 90% Fannie 95% FHA can go 100%

Answer 3

Management company to manage if no prior managment experience and 1 year lease

Answer 4

2 years tax returns to make sure no ownership in company and to validate receipt of income/ accomany w'2. Freddie requires as well for 1 year i belieeve aus dependent on number of years.

Answer 5

You can use with FNMA or fhlmc via homepath or homeready. outside of that it fannie can use for When a borrower with disabilities receives rental income from a live-in personal assistant, whether or not that individual is a relative of the borrower, the rental payments can be considered as acceptable stable income in an amount up to 30% of the total gross income that is used to qualify the borrower for the mortgage loan. Personal assistants typically are paid by Medicaid Waiver funds and include room and board, from which rental payments are made to the borrower.

Answer 6

Only on jumbo.

Answer 7

either freddie or fannie can be run Ginnie mae is investor 1.75 no Most cases, 47 front/57 back dti

Answer 8

Mortgage Note on past loan

Answer 9

Application fee

Answer 10

Transfer Tax. Transfer taxes don't apply to primary residence, Transfer taxes are 0 tolerance fees so need to disclose or eat em.

Answer 11

foreclosures etc we will get off trustees deed B.k's we look at Bk discharge papers. Credit report doesn't give the exact date of discharge but just idea of date/month.

Answer 12

High cost areas, Hawaii: $822,375 mainland is $548,250

Answer 13

Freddie requires a 12 month lease. Fannie doesn't state, but they too, as well as GRI, would require a signed 12 month lease. I hope this helps

Answer 14

A. No , covid not allowing as of 11/16/2020

Answer 15

False. Fannie is okay with accounts in dispute. Freddie is not okay with accounts in dispute as when an account is put in dispute it is not being consideredd in credit scores. It doesn't matter what kind of account. If you must go Freddie then you have to get letter from credit holder stating account is not in dispute and you have to do a rapid rescore. We can do rapids on certain things and this is one of them.

Answer 16

120 days 60 days If within 12 mo's usually good for review

Answer 17

Zeros would be fees to GR/ and GR affiliates, transfer taxes, appraisal fees (if complex or excessive property we have 3 days to redisclose), condo q's and subordination fees 10% are recording fees and svcs borrowers can shop for unlimited would be interest, escrows and svcs borrowers can shop for.

Answer 18

C corps don't have k1's and are filed on 1120 forms

Answer 19

When you are above the conforming loan limit

Answer 20

No, only if you are removing a borrower after disclosure do you have to withdrawal. YOu can just add new borrower, pull credit and merge.

Answer 21

in Hawaii: new developements In nevada buyers pay and maybe some other states but Pull fees should list that as needed.

Answer 22

WVOE's order on all transactions unless SE. Work number same which can take place of WVOE.

Answer 23

Rental income from an ADU can't be used on any product or program with the exception of Freddie's Home Possible and Fannie's Home Ready. If the VA appraiser determines it's highest and best use is a two-unit and it's legally acceptable as that, then you can use the rental income, but if not, then you can't.

Answer 24

See attached POA for a purchase. The name has to match the proposed deed so it is recordable. A written LOX signed & dated by borrower is also required stating who the signor will be, their relationship, and the reason they need to use the POA. (deployment etc…. ) These are sent to our GR POA dept for approval once executed AND the title/escrow company has to approve. You will also need a local contact person and their easy contact # to do an Alive and Well Contact the day docs are signed. (Commanding officer or Supervisor)

Answer 25

Mom is staying on and son is coming on? OK, as long as mom is also a borrower on our loan and providing she has owned the property for at least 6 months, you can do a cash out. Remember, it has to be a "borrower" that satisfied the ownership seasoning requirements - being on title is only part of it - the other part is being a borrower ;)

Answer 26

the borrower has to sign the VA escape clause, although MC will jam this. if just chagning properties we will also need , escrow cancellation, transfer of escrow deposit to new escrow etc.

Answer 27

cap gains 3 years average, Div and interest income is 2 year average Can't use RSU's.

Answer 28

I think you're going to have difficulty using this income. Generally, employment with less than a 12 month history is not considered stable with VA. Does she have prior employment is the same or similar field that you can verify? Can you go back that far? Dues she have training or education in her current field? The underwriter will need to justify using income with less than a 12 month employment history.

Answer 29

When over 1 million value or investmnet property

Answer 30

yes as long as no managment company. Lets say a client is renting out a property when they are not at the property. That is okay if these conditions are met, no mngmt co and less fair market days than 365 on Sch E

Answer 31

We take gross rents , subtract total expenses, add back deprec, , mtg interest tax, insur, hoa then with that next we subtract out the mortgage payment, as applicable

Answer 32

someone wants to buy a new place before selling currrent, usually they do them because qualification is not possible Do them all day long, take them to keenan at finance factors Up to 70% loan to value both props Appraisal on both required

Answer 33

subject zip and last 4 of social

Answer 34

Depends on what type of account you're using. Retirement accounts require the borrower to be able to access the fund without the early withdrawal penalty, or 59 1/2. For brokerage and deposit accounts, they have to be 62. If it's a joint account, both have to be on the loan, but only one needs to be 62 yrs old.

Answer 35

10.01% minimal down/ o/o you can waive Non warrantable adder. No mi is required, enabling clients to qualfy at higher sales price Note: 2 mo's reserves needed, min fico 700, has to take Homebuyer education Can;t be offered to clients with adequate assets to cover 20% more or down , okay if in retirement but not checking/ savings. Yes we run DU or LP on 1st step

Answer 36

Funds from a Borrower's business account may be used to qualify the Borrower for the Mortgage transaction, provided they meet the requirements of this chapter, except as stated below. Reviews a minimum of the most recent two months of the business account statements, and Determines the deposits are typical for the Borrower's business

Answer 37

**A:** Yes, provided the payment is not considered “significant” (\> 2% of the borrower’s monthly income) and provided it won’t impact the borrower ability to make the payment during that time.

Answer 38

Freddie 2 years, fannie 1 year is acceptable, better if positive factors to offset shorter history.

Answer 39

We only care if HOA delinquency of 15% or more is over 60 days. Only care on Full review Shows up on RR105C

Answer 40

Yes this is fine per FHB, i believe we just need to make sure title is remaining similiar and of course property type same kine

Answer 41

Use normal can address and list ca for state and 00000 for the zip code

Answer 42

AGency cares most about guaranteed income, so guaranteed salary or full time hourly. will most likely need to be prepared to prove past experience. FHA and govy would definelty need to show the history's

Answer 43

295$ pud questionairre, add in 820 range line item County tax, if says SUBD Trick question, no hoa fees or transfer fees added on puds

Answer 44

X is good, A and V are not eligible

Answer 45

On 2 unit property we can go off of what the appraiser notes on appraisal. So we can order as SFR with accessory dwelling and as long as that is how appraiser sees then we can jam. All good with full kitchens in both. Only concerned if additional kitchen making 3, that would be an issue and need stove removal.

Answer 46

FHB Appraisal fee is not charged upfront. It is charged at the end but the application fee is charged upfront.

Answer 47

Anytime but you will be on the hook if borrower doesn't consent. we cannot charge the borrower or accept payment information until the Loan Estimate is delivered and an intent to proceed has been obtained. I guess its just that the VP is in the hook for the fee until the intent is signed then we can charge the fee to clients card

Answer 48

Unless you can show paid rent checks for 12 mo's hsitory you won't be able to use rents on investment property No fannie and freddie both will not allow to use income to qualify, have to hit for full liablity of subject property Or Show paid rent checks for 12 mo's,

Answer 49

1.75% funding fee, doesn't drop off at all Funding Fee and monthly are included in the apr which is craziness

Answer 50

FHB won't do asset depletion, if client can do like 60 ltv we could do an asset depletion loan, just take asset and divide by 60 mo's with Hawaii USA and can jam.

Answer 51

We would contact customercare@guaranteedrate.com. They will have client look for email named Complete GR Identity Verification” and he should click finish my application to proceed and create an account.

Answer 52

Can go Freddie but not fannie. Insurance has to be available and jamming. Good contacts for lava insurance are Joe Marsh jmarsh@bisihi.com

Answer 53

6 mo's no breaks.

Answer 54

You can with Fannie and use positive income without landlord history. Fannie only cares about landlord history when it's the subject property. With Freddie, without a year landlord history, you can only offset the payment with the leases at 75%. They will also want an appraisers rent survey (not available on commercial properties) or receipt of two months rent for each lease.

Answer 55

We can use gross, will need to verify employemnt/income, so may require translation. 2 years returns required

Answer 56

no clients have to be back at work and working , can't use Tdi.

Answer 57

* If the net rental income exceeds the full monthly payment of the new rental property or the converted Primary Residence, as applicable, the excess rental income cannot be added to the Borrower's gross monthly income to qualify unless the file documentation demonstrates the Borrower has a minimum of one-year investment property management experience. \*\*\*\*If client doesnt have a current Primary then you can't use any of it!!!! LLC: if they have a primary but rental managment history is in LLC, you can use as proof of that history to use excess rental income above subjecct mortgage liability. ...Although the above still applies, if no primary, no can use any

Answer 58

Depends on Financed property count. 1 to 6 financed properties require 2 mo's of each 2nd home or 1-4 unit inv props. 7 to 10 financed props require 8 mo's for each so big diff.

Answer 59

Can use trust income but becomes calculated, can't be calc'd off tax returns, will need copy of Trust agreement , show 12 mo's reciept and will need to verify 3 year continuance Can't ever use Estate income as it is 1 time thing.

Answer 60

F is for Farm, we just need to make sure not our subject property cause we can't finance hobby farms, If someone sells veggies and what not off farm it is legally supposed to be filed as self employed.

Answer 61

Client needs to have 12 mo's of history to use any production based . if salary it is all good but if no gurantee in place then no can

Answer 62

We need to make sure if tenants currently, that they will be out within 60 days as needs to have ability to occupy by that time , or would have to be investor

Answer 63

Hawaii now requires Budget , CCR's for all hawaii loans. for limited also RR105C , , legal docs, escrow will provide. Ltd review, 90% or under for Primary, 2nd and inv is 75% or under Full review docs are RR105c or Lenders Disclosure, Budget, Legal docs aka Bylaws and Decs (escrow provides legals) Master insurance

Answer 64

no real 1st time home buyer benefits, in hawaii homepath/homeready mtgs are great and all but the issue is the income restrictions are so low that it makes it super difficult to qualifty for anything.

Answer 65

not if declining, then we look at last 12 mo's /ytd avg. We do need to see 2 years for work history

Answer 66

Depends on Trust origination state.. If Conn, Hi, Lousianna, Ny, Oklahoma or Rhode island, need full copy trust, attorney opinion letter All other states require either: Cert of Trust (not older than 90 days) and Attorney opin letter Or Cert of Trust and all relevant Trust pages cert of Trust for all other states is from upload to internal in encompass with GR

Answer 67

no can waive impounds with less than 20% down

Answer 68

Yes combined ownership will require biz tax returns

Answer 69

When 2020 returns have not been filed, the P&L must cover 1/1 to 12/31, 2020 through the most recent month preceding application. For example, if the application is dated February 15, 2021, then the P&L must cover January 1, 2020 through January 31, 2021 and bank statements would be required for November 2020, December 2020 and January 2021 When 2020 returns have been filed, the P&L must cover a minimum of 3 months, including YTD through the most recent month preceding application. Depending on application date, P&L may require 2020 P&L information. Refer to chart below for "2020 Taxes Filed" For example, if the application is dated February 15, 2021, then the P&L and bank statements must cover November 2020, December 2020 and January 2021

Answer 70

We only use ordinary income calc when Distributions are more than ordinary income or if we have done a liquidity test on ordinary income.

Answer 71

_{Distribution income is money already paid to the borrower where K1 is not. That is why the business must pass liquidity to use ordinary income, but not distribution income.} _{We need to know the business is in a financial position to pay out the K1 income. Liquidity is not needed to use distribution as this income has already been paid to the borrower.} _{If a business fails the liquidity test, that means there may not be sufficient assets to pay the borrower the K1 income, so it cannot be used and Loan beam will automatically flip to the distribution method. If there is no distributions on the K1, this means there is no viable income unless you use the Excel worksheet and obtain 3 months business statements to do another "test" with more recent assets than what the balance sheet shows} _{2 If a K1 shows both ordinary and distribution income, if distribution is less you must use that. You can never use both. If distribution exceeds ordinary, you may use ordinary even if the business fails liquidity}

Answer 72

No LLC is only investmnet properties

Answer 73

29% front end

Answer 74

If the agent is on mortgage and title they can use agent credit towards cc and pp's. _{Gift funds cannot come from anyone with an interest in the transaction, including a spouse. Please see below (replace sister with wife)} _{Q: My borrower's realtor is his sister. Can he receive a gift from her or her husband?} _{A: No, neither FNMA nor FHLMC permit gifts from the real estate agent or allow funds from the realtor’s commission to be applied towards down payment. The realtor on the transaction, in this case a family member, can contribute a concession towards borrower’s closing costs. However, the concession that is given from the realtor will be subject to the transaction’s Interested Party Contribution limits.}

Answer 75

Yes Fannie and FHB will allow for this. We will just have to show was not a gift, 2 mo's statement from the spouse providing the funds and letter confirming is not a gift.

Answer 76

Fha requires paid off or in satisfactory repayment plan, and payment used in dti. Fannie requires past due be made current Freddie is all good , just goes off findings

Answer 77

What ever account we like use, Divide by 60 mo's show 2 mo's reciept Usually around 75% ltv required

Answer 78

depends on when but for feb, it would be nov, dec and jan profit/loss Bank sttms for those mos as well Jumbo unless chase no need stability calc so would just be p/L nov/dec/jan

Answer 79

GR does not have a specific policy in regards to incomplete repairs/updates, etc. We would rely on the appraiser as to any property issues - If there are any issues affecting the safety or marketability, these of course would need to be repaired/completed prior to close. But there is no hard and fast set of rules... minor conditions may be allowed to be completed ASIS, as the appraiser would take these minor conditions into the total valuation. Below is from Fannie - Freddie would be the same - _{In what situations should a property be appraised as-is versus as-repaired?} _{Share this answer} _{In what situations should a property be appraised as-is versus as-repaired?} _{Fannie Mae permits an appraisal to be based on the as-is condition of the property as long as any minor conditions, such as deferred maintenance, do not affect the safety, soundness, or structural integrity of the property, and the appraiser’s opinion of value reflects the existence of these conditions. Minor conditions and deferred maintenance items include worn floor finishes or carpet, minor plumbing leaks, holes in window screens, or cracked window glass. Minor conditions and deferred maintenance typically are due to normal wear and tear from the aging process and the occupancy of the property. Such conditions generally do not rise to the level of a “required repair.” Nevertheless, they must be reported.} _{The appraiser must identify physical deficiencies that could affect the safety, soundness, or structural integrity of the property as part of his or her description of the physical condition of the property. These may include cracks or settlement in the foundation, water seepage, active roof leaks, curled or cupped roof shingles, inadequate electrical service or plumbing fixtures, etc. If the appraiser has identified any of these deficiencies, the property must be appraised subject to completion of the specific repairs or alterations. In these instances, the property condition and quality ratings must reflect the condition and quality of the property based on the hypothetical condition that the repairs or alterations have been completed.} _{GR does not have a specific policy in regards to incomplete repairs/updates, etc.} _{We would rely on the appraiser as to any property issues -} _{If there are any issues affecting the safety or marketability, these of course would need to be repaired/completed prior to close.} _{But there is no hard and fast set of rules... minor conditions may be allowed to be completed ASIS, as the appraiser would take these minor conditions into the total valuation.} _{Below is from Fannie - Freddie would be the same -} _{In what situations should a property be appraised as-is versus as-repaired?} _{Share this answer} _{In what situations should a property be appraised as-is versus as-repaired?} _{Fannie Mae permits an appraisal to be based on the as-is condition of the property as long as any minor conditions, such as deferred maintenance, do not affect the safety, soundness, or structural integrity of the property, and the appraiser’s opinion of value reflects the existence of these conditions. Minor conditions and deferred maintenance items include worn floor finishes or carpet, minor plumbing leaks, holes in window screens, or cracked window glass. Minor conditions and deferred maintenance typically are due to normal wear and tear from the aging process and the occupancy of the property. Such conditions generally do not rise to the level of a “required repair.” Nevertheless, they must be reported.} _{The appraiser must identify physical deficiencies that could affect the safety, soundness, or structural integrity of the property as part of his or her description of the physical condition of the property. These may include cracks or settlement in the foundation, water seepage, active roof leaks, curled or cupped roof shingles, inadequate electrical service or plumbing fixtures, etc. If the appraiser has identified any of these deficiencies, the property must be appraised subject to completion of the specific repairs or alterations. In these instances, the property condition and quality ratings must reflect the condition and quality of the property based on the hypothetical condition that the repairs or alterations have been completed.}

Answer 80

if they qualify in the tight income guides, best things are low mi factor, can get the 10% mi factor on smaller down amounts, also lower rates. Further can use border income in some cases.

Answer 81

No they can't, we dont have ability to choose

Answer 82

_Conv: _{must pass liquidity to use ordinary income} _{If a K1 shows both ordinary and distribution income, if distribution is less you must use that. if Distribution is more you can use as this is income actually paid to borrower} _{FHA / VA / USDA} * _{Government loans may only use the Net S-Corp Income Method} * _{Liquidity is not required}

Answer 83

kids can do a loan for parents that are unable to qualify on their own. Parent can occupy property , kids dont need to and can be primary residence with just the kids income LOX from parent confirming they are doing this as they can't qualify on there own. Pretty much nothing else different in Encompass

Answer 84

822,375, 1,053,000

Answer 85

on short term properties and there I no vesting requirement if you pay cash for a property and want to do a cashout refinance down the line. The value at that time will be based off of lesser of the appraised value and property purchase price.

Answer 86

1 million 1..5 mill max loan amount

Answer 87

We don't need to even look at self employed income, Brady mentioned no need but also made mention of something of if it offsets losses all good but then backtracked and said no need at all.. so run with that. No dont have to show any funds setup/distributions made.

Answer 88

must put 15% down , however if buyer was living in property for 6 mo's can be waived. OR if they are buying from a family member who held this as their primary residence.

Answer 89

^{no in hawaii indiv units can buyout leases making them fee siimple where other units could be leasehold.} ^{Fannie is strict on requiring the client to then make sure leasehold guidelines are met even if you are in a leasehold unit. i.e. if a leashold is up within 5 years of end of loan , the fee simple financing has to adhere to this as well.} ^{Or have to get hoa docs to state that all unit owners/hoa/common areas will be buying lease at end of term or extending once lease is up. this seem difficult but an option} ^{Freddie doesn't require this and will allow financing as fee simple.}

Answer 90

What you will need to do is average the income she will be receiving throughout her leave excluding any PTO. Once you have that established, you show they have that in cash reserves up to the amount of her regular employment income for the time between the first payment due date and the return to employment. will need to have confirmation she will be going back

Answer 91

YOu have to qualify 2% over the note rate.

Answer 92

No we can do as one transaction as long as the adjoining parcel is vacant lot can.

Answer 93

NO it must be removed, can't honor future rental bookings

Answer 94

no arm i/o's unless jumbo, Chase offers up to 2 mill delegated or up to 3 mill non delegated, 70% max ltv. We do have 30 year i/o options as well

Answer 95

no only if legal 2 unit property

Answer 96

Non taxable income, SS, child support, Disability and maybe alimony Child support can be grossed up because it was never taxable to the person receiving it. Alimony was up till 2018, so to gross this up, the divorce agreement would have to be signed after 12/31/2018. If not it cannot be grossed up.

Answer 97

Can only do on DU/LP exception basis _{Financing Requirements:} * _{Full credit documentation} * _{Must be a Fixed Rate product} * _{Must be ATR/QM compliant} * _{Written statement from the Borrower must be in the file at submission to explain current residency situation.} * _{Compliance to agency written guidelines (must follow standard eligibility requirements)} * _{Fannie Mae has reduced LTVs for manually underwritten loans and requires full documentation (click here for the eligiblity matrix)} * _{Freddie Mac does not have reduced LTVs for manually underwritten loans, but requires full documentation (i.e. two months bank statements, W2s, etc.)}

Answer 98

You can use if seasonal..

Answer 99

prim/2nd-- 120/mos inv--184/mos Mark adj-- Stocks/bonds, mutuaal funds use 70% Retirmenet ira 60% unless over 59 1/2 then 70% check/sav/ liquid can use 100%.

Answer 100

40% buyer, 60% seller for owners title Escrow fee is 50/50. these will always be the case unless P/C dictates otherwise

Answer 101

Fannie and Freddie treat properties held in an S-Corp differently. Freddie treats it like any other self-employment. if 1065 and no 8825 avail then cpa letter breaking down props under biz. Fannie treats it more like a Sch E on a 1040 with cashflowing method

Answer 102

Yes always have to hit for market adjustments on distributions.

Answer 103

distributions--always hit 30% market, divide by 38 mos Hi/usa;;; O/O and 2nd--120/mo inv--- 84 mo's. , hit retirement, stocks etc 70%, cash using 100%.

Answer 104

we can use FHB and FAnnie only, it won't be a gift will just need a letter stating not a gift, doesn't need to be repaid.

Answer 105

CAnt use with FHB, Can use Freddie , need 2 year avg and be vested.

Answer 106

RATE jumbo you can't setup distributions without history, below from cc For Rate-if no distributions have been on the tax returns and there is no history of receipt, distribution needs to be set up 6 months prior to the note date since they can't be set up only for loan qualification purposes. If there is history, you need 60 days of receipt. JP requires 60 days of receipt and does not require any additional history. PENFED and Chase require 30 days. Can use AUS express with 30 days receipt

Answer 107

low credit, low down combined, or if foreclosure or deed in lieu of, 3 years from completion date per trustees deed, whereas conventional is 4 years from completion Also some BK benefits at 2 years since, VA same, but conventional is 4 years.

Answer 108

Jumbo looks at most recent year liquidity. Government products do not require liquidity nor can we use distribution. We have to use ordinary income on line 1, 2 or 3 😊 **FHA / VA / USDA** * Government loans may only use the Net S-Corp Income Method * Liquidity is not required

Answer 109

yes to just go on note , yes they have to be on pc

Answer 110

All 3 unless one is not reporting, if just frozen or something we need all.

Answer 111

Promissory note is the iou that doesnt get recorded with county but is held by lender until satisfied, like an iou The mortgage is the deed of trust that is recorded with the county, Clients can be on note and note title but if on mortgage then must be on title. if they are on the mortgage they need to be on title, but, if they are only on the note – then they do not need to be on title

Answer 112

29/41 yes condos are fine as long as meeting agency guides

Answer 113

Main guides, must be adjoining vacant lot, house next to empty lot works. Cross Collateralized but priced as one normal transaction, same agency ltv guides, Value off gross appraised values The vacant lot and house lot must be under the same legal description and Vacant lot can't be buildable. Title can advise on if poth parcels are under same legal description. If not you would have to have the lot lines adjusted and legally combined. Buildable Land means **land that is suitable for residential development**, not encumbered by easements, sublots, water, wetlands, utilities, isolation or restricted areas, topography (greater than 25% slope), or street right-of-way.

Answer 114

False on 6 mo's, can be less than 6 mo's , the delayed financing exception makes this possilbe. True Considered and priced as cashout refi yes to agency and FHB