Mortgage Origination Cycle

Loan Requirement >> Origination >> Processing >> Underwriting >> Closing >> Post Closing >> Servicing A typical loan cycle starts with borrower shopping for mortgage loan. Borrower might be seeking loan to refinance with better rate or term or a cash out or might be for purchase of new property. If its purchase he might [...]

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Mortgage Underwriting Quality Control

Post Recession, agencies like Fannie, Freddie and FHA has a mandate for quality control reviews to be done and reported by lenders. This requirement opened up new avenues for mortgage service providers, specifically at offshore facilities, since this activity is preferably outsourced to third party vendor. Quality reviews involves verification of accuracy and integrity of [...]

Verbal Verification of Employment

Borrower is suppose to disclose most recent 2 years employment history in a mortgage application. While doing so borrower does provide lender with his employment details including his employer name, employment span, current designation and employer contact number. The details as provided are validated by the lender and documented in the loan file as verbal [...]

Calculating Base Income through Pay-stub

Base Income (Fix Income) from employment is one of the most stable form of income considered for qualifying purpose. In an application borrower is expected to provide details on his employment for most recent two years. A two years employment history can be through one employer or in few scenarios it can be through multiple [...]

Qualifying Income

Borrower's Capacity to make mortgage payment is one of the key component reviewed by underwriter while dealing with mortgage application. Borrower's capacity is analysed and is directly based on his gross monthly income. Income to be used for qualifying purpose can be from different sources. Majority of the application which are approved are for salaried [...]

DTI – Debt to Income Ratio

Debt to Income Ratio of borrower is a most important factor to approve mortgage application by lender. DTI is nothing but ratio of total Monthly Debt Payment against total Gross Monthly Income. If for a given borrower committed monthly payment if $500 and that his monthly gross income is $1000 then the DTI ratio is [...]

TRID – TILA-RESPA Integrated Disclosure

With earlier mortgage we might have seen and signed GFE - Good Faith Estimate and TIL - Truth in Lending documents. However you will no longer see these documents being disclosed on new mortgage loans that you might apply in future. On mortgage loan applications received on or after October 3 2015 TIL and GFE [...]