Product Knowledge
This inspection is required for all purchase government (VA, RD & FHA) files.
What is a termite inspection?
Every Encompass file has this feature to place important notes for all to view/read.
What is the conversation log?
This is listed on the credit report and confirmed on the AUS in the file, that has to be addressed and/or documented to validate.
What is an authorized user tradeline?
The insurance limits must at least equal the higher of these.
What is the unpaid principal balance(loan amount) of the mortgage OR 80% of the full replacement cost value listed on the appraisal?
When you ask your borrower, they confirm they are married but the spouse is not on the loan, we need to collect this information.
What is a non-borrowing spouse's full name and last 4 of their social security number?
This product requires a special disclosure with a CHARM booklet and have special LNB guidelines.
What is our 7/1 ARM product?
This is how you insure your loan file to be submitted quickly or quicker.
What is having the file credit approval worthy to include: assets in the file (where FTC are coming from), credit documented in the file (all credit docs signed, credit issues address and credit report that wont expire 30 days after closing) and income documentation in the file (Paystubs, W2s & tax returns if applicable) and income note in the convo log?
These are not allowed on investment properties, manufactured homes, or second homes. Items not allowed with these are structural repairs, well or septic issues or mold remediation.
What are Escrow Holdbacks?
Conventional mortgage, deductibles for insurance
What is 2% of face amount of the policy?
DD: Double Jeopardy This is an exception that needs prior approval.
DD: What is up to 5% of face amount of the policy with exception approval with reserves required?
Need to ask the borrower what company to request this from, this is required for a CD to be issued, for both purchases and refinances.
What is the insurance/HOI company?
This product must be a purchase or a "no cash-out" refinance mortgage, secured by a 1-unit property where the borrower MUST occupy the property as their Primary Residence.
What is a No credit score mortgage?
These are online search tools that holds answers in regards to guidelines per product, investors, Freddie, Fannie, etc.
What is AllRegs or the Rule Tool?
If you have this property type, the comps from the appraisal, should show the non-residential portion floor area may not exceed 49%.
What is a Shouse?
FHA & VA mortgages, insurance deductible.
What is greater of $2500 or 2% of face amount of the policy, with exceptions allowed up to 2.5% with approval and reserves required?
Loan officers are to ask if all borrowers & their spouses will be present at closing or we will need to request one of these.
What is a POA or marital waiver?
This product is can be added to Conventional, FHA, RD and VA mortgages per it's guidelines, that doesn't require buyers to be first time buyers, non-occupant borrowers or co-signers are not permitted and borrowers must occupy the property within 60 days of closing.
What is KHAP?
This tool/service is within Encompass that is ran on every file at most milestones, that ensures the loan complies with federal and state regulatory requirements, as well as investor requirements.
What is the Mavent/Compliance Report?
What are Union Employees?
USDA RD mortgage, insurance deductible.
What is the greater of either $1,000 or 1% of face amount of the policy - NO EXCEPTIONS?
This is information is entered into the conversation log by the Loan officer that is reviewed & confirmed by the processor and underwriter on all files.
What is income calculation note?
LO's should be asking upfront for documentation of current income or having the conversation upfront of what income will be used for qualification.
This Freddie product has qualifying income limits to 80% of Area Median Income (AMI), with maximum LTV of 97% for 1-Unit properties.
What is Home possible?
If this exceeds the prepaid amount & financed into the new mortgage are subject to the maximum disbursement of cash-out proceeds up to the greater of 1% of the new refinance Mortgage or $2,000.
What are Real Estate taxes?
This may require a 2nd appraisal.
What are flipped properties (sold within 180 days of last sale)?
This is the contact person who you reach out to for exception approvals for higher insurance deductible.
Who is Nancy Moss?
We need this information to order questionnaires, insurance/master policy, proof of paid & current dues.