Mortgage Underwriter-Mortgage Analysis Tool

Example

Reviewing a borrower's credit report to assess credit history and scores against lender requirements for a conventional loan.

Scenario

In a scenario where a borrower applies for a conventional mortgage, the underwriter examines the credit score, payment history, and existing debt obligations to ensure they meet specific lender and Fannie Mae/Freddie Mac guidelines.

Example

Calculating the ratio of a borrower's monthly debt obligations to their gross monthly income to determine eligibility for a USDA loan.

Scenario

For an applicant seeking a USDA loan, the underwriter assesses if the applicant's debt-to-income ratio aligns with USDA's guidelines, ensuring it does not exceed the maximum allowable percentage, thus affirming the applicant's ability to afford the mortgage.

Example

Confirming the stability and sufficiency of an applicant's income through W-2s, pay stubs, and employment verification letters for an FHA loan.

Scenario

When processing an FHA loan application, the underwriter verifies the borrower's employment history and income stability over the past two years, ensuring the borrower has a reliable source of income to cover monthly mortgage payments.

Example

Ordering and reviewing an appraisal report to confirm the value and condition of the property being financed meets VA loan requirements.

Scenario

In a VA loan application process, the underwriter ensures the property's appraised value justifies the loan amount and complies with VA's Minimum Property Requirements (MPRs), safeguarding both the lender's and borrower's interests.

Example

Calculating the LTV ratio by dividing the loan amount by the appraised property value for a Conventional loan to assess lending risk.

Scenario

For a borrower applying for a Conventional loan, the underwriter evaluates whether the LTV ratio is within permissible limits, which helps in determining the need for Private Mortgage Insurance (PMI) and assessing the loan's risk level.