Underwriting
The 3 C's
The 1003
The Credit Report
Income Calculations
100
The process a lender uses to determine if the risk of offering a mortgage loan to a particular borrower is acceptable
What is underwriting
100
Does the borrower have a good history of repaying debts?
What is Credit
100
3 items listed in the Borrower Information section that is required
What is borrower name, ss#, dob, marital status, dependents, phone #, yrs in school, present/former/mailing address
100
Credit report expiration date
What is 120 days
100
Bi-weekly Calculation
What is x 26 / 12
200
3 skills of a good underwriter
What are positive can-do attitude, uses common sense, delivers a saleable loan to the investor each and every time, strong communications skills – written and verbal, display tremendous attention to detail, ability to excel in a fast paced work environment, troubleshooting skills and openness for discussion, willingness to go above and beyond on a daily basis, dedication to ensure the job gets done timely and work long hours when needed, delivers top notch customer service all day every day, confidence and ability to make decisions independently
200
Assets and employment relate to which C
What is capacity
200
3 documents required to confirm information in the Employment section
What is paystubs, W2s, tax returns, VOEs
200
Credit Score used to qualify
What is the middle score
200
Weekly Calculation
What is x 52 / 12
300
2 important tools/sources to help the underwriter make a decision on a loan
What are guidelines and AUS
300
Most important capacity criteria
What is employment
300
3 documents required for the assets and liabilities section
What are asset statements, sales contract, credit report, child agreement, divorce decree, mortgage statements, lease agreements
300
Mos Rev
What is number of payments made on the acct aka months reviewed
300
Commission Calculation
What is lowest of the 3 common averages
400
Separates Movement Mortgage from other lenders
What is 7 day CTC
400
Security for the loan
What is collateral
400
The sections where the underwriter would find if the down payment would be from borrowed funds
What are the declarations section and Source of Down payment
400
Public Records
What is debt that must be paid, satisfied or released prior to closing
400
Semi-Monthly Caluculation
What is x 2
500
Makes the final decision on a loan
Who is the underwriter
500
Name all 3 C's
What are credit, capacity and collateral
500
Responsible for review all the supporting documentation to verify the accuracy of the 1003
Who is the underwriter
500
Requires a letter of explanation from the borrower confirming if new was obtained
What is inquires reporting on the credit report
500
Self-Employment Calculation
What is average of the last two years based on tax returns
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