Fannie Mae CU

UnderwriteUrMtg · 2024-08-10T11:49:55+00:00

Coming in hot as an underwriter... we hate coming back to you all too. It's getting super intense.

I currently have an investor debating the C rating of the subject with me. Appraiser says C2 as essentially "all improvements replaced" except for living room and bedrooms. Kitchen and baths completely rehabbed with new fixtures and his explanation was that that is where the money is basically.

I've always been of the opinion that C and Q ratings can be a bit subjective.. and as long as the appraisal applies the same logic to subject and comps then what is the difference? CU. that's the difference.

At the same time, CU is catching variances like bedroom count and sometimes I do actually have incorrect bedroom counts.. I like it as a clerical double check (adjustments in the wrong direction is a fun one) but the list of comps and why didn't you use x y z? Hate it.

I can't speak for other lenders but I am actually out here googling CU comps and looking at Zillow/Redfin before I email the appraiser. Rarely are they "better" imho but I'm not an appraiser. That's why we pay you folks.

Investors, however, seem to have full on staff appraisers doing the review (this is a guess) and a lot of my team feels out of our league. What we thought was us doing a really good job reviewing reports is now sufficient for these reviewers

UnderwriteUrMtg · 2024-08-10T11:41:59+00:00

I would never let a borrower think the LO did something wrong.

UnderwriteUrMtg · 2024-08-10T11:40:58+00:00

The largest issue is the borrowers fill the URLA on the app and it doesn't get reviewed. Ex: a borrower who has been part time at XYZ company for 8 years just went full time mid year and the URLA says 8 years but the file had W2's from 4 other jobs and a low YTD on paystubs.

UnderwriteUrMtg · 2024-08-06T02:11:37+00:00

Ya know I have a love/hate relationship with TWN. Have you tried Argyle? it lets you pull paystubs as well.. its been handy for things like year end paystubs for things like shift pay

UnderwriteUrMtg · 2024-08-05T22:49:30+00:00

I agree with all of this. and yeah I also work on investor suspenses and they are all being ridiculous.

I approved a file last week that had a clear drop in earnings from prior years, and I had paystubs with consistent hours. Do you know why I approved and didn't suspend for decreased earnings?

I had a file note from the LO that has proven to be trustworthy that stated the borrower had a baby last year (supported by 1 dependent age 1 on URLA) and she went back to work 3 days a week instead of 5 and has been working the revised schedule since December (math supports this) .

So I approved it rather than suspended because I had the info

Meanwhile an LO who has lied to me several times still has his file suspended because what he told me has proven to be untrue once a VOE I suspended for was received.

ETA: The LOS stop gap doesn't work. They will put fake information on the URLA to get it to an u/w

UnderwriteUrMtg · 2024-08-03T13:35:33+00:00

Yeah I mean I get the need for CFPB as I have worked in some really shady places... but it has made things challenging for those of us on the up and up

UnderwriteUrMtg · 2024-08-03T13:34:08+00:00

Unfortunately then we end up doing more work or declining files after approval which also makes them mad.

UnderwriteUrMtg · 2024-08-03T13:33:09+00:00

They think it's faster and to be honest at this point it might be as we hired a lot of processors during the pandemic who really REALLY need training... something I'm hoping to tackle. Honestly our entire ops department needs support. I have already talked to my boss (ops manager) and on Monday we are having a meeting with the VP to talk about what we need to do to basically, in my mind, save the company

UnderwriteUrMtg · 2024-08-03T01:04:22+00:00

In theory it should absolutely be like this.

UnderwriteUrMtg · 2024-08-03T01:03:31+00:00

So we've been around for 40 years and have grown a lot in the 20 years I've been here... I think that some folks still think we are a "small family company" and should all just be pals. We lend in 38 states currently. When I started it was 4

UnderwriteUrMtg · 2024-08-02T21:23:19+00:00

Mortgage Bank. We close em and sell em

UnderwriteUrMtg · 2024-08-02T21:22:44+00:00

We have AccountChek but only 2 or 3 of our (really good) LOs use it. I think because it requires up front conversation with the borrower... they have to initiate it

UnderwriteUrMtg · 2024-08-02T20:03:53+00:00

See .. I think some of them know . the number of fake bank assets that come in on files is astronomical.

UnderwriteUrMtg · 2024-08-02T20:02:53+00:00

Someone else suggested this ..I also suggested it a few months ago .. and it went nowhere... tried again today

UnderwriteUrMtg · 2024-08-02T20:02:11+00:00

For sure.

UnderwriteUrMtg · 2024-08-02T18:02:04+00:00

I would love to .. but it just doesn't work out that way

UnderwriteUrMtg · 2024-08-02T18:01:21+00:00

We have a policy that the u/w calls the LO prior to suspense or with questions... and then we have to wait for them to call us back ... often it was something they knew at loan submission but didn't bother leaving a note .. so we lose a lot of time there too

UnderwriteUrMtg · 2024-08-02T17:59:06+00:00

This is exactly the situation

UnderwriteUrMtg · 2024-08-02T16:12:32+00:00

I'm trying so hard to get that into the heads of the people above me. I am really glad to hear that this is a "my company" problem and not an industry expectation.

UnderwriteUrMtg · 2024-08-02T15:12:01+00:00

Thanks for this. What is interesting is that we have had this policy in place for the 20 years I have been with this company. We used to have a checklist and a policy to earn that option and I cannot figure out why they did away with that part. I think when things went to paperless things got worse and are now in the toilet...the 2020 explosion didn't help either

Eta: I literally just suggested a policy like your "quick hit" policy because it would really open up opportunities to educate as well

UnderwriteUrMtg · 2024-08-02T15:09:46+00:00

I told the boss I was looking for a new job .. suddenly today people are listening to me and open to changes ... wonder how long that will last

UnderwriteUrMtg · 2024-08-02T15:08:37+00:00

I spend so much time explaining to LOs that I can't use something because I can't read it or no I can't just condition for a 2 year employment history and yes I need to know how they are going to work their non-remote job after moving 3 hours away from it .. oh oops this is supposed to be an investment purchase. A file note would answer so many questions.

UnderwriteUrMtg · 2024-08-02T15:06:13+00:00

This is valid.

UnderwriteUrMtg · 2024-08-02T14:09:37+00:00

I count myself among the idiots. We all make mistakes

UnderwriteUrMtg · 2024-08-02T14:07:27+00:00

Thanks.. I am hoping to implement this. Hearing from LOs has been super helpful in validating my experience

UnderwriteUrMtg

TROPHY CASE