The borrower co-owns a rental property with her sister. She is applying for a new mortgage and does not qualify with this rental payment. She is choosing to proceed with a property “buy-out”....

A self-employed borrower has just turned in his lease vehicle and opted to purchase rather than lease a new vehicle. This truck is used by the business and the payment is made by the....

Due to minimal credit usage, the borrower has to use non-traditional credit to qualify. He lives with his parents and pays utility bills in lieu of a formal rent payment. How should this....

The borrowers are currently living in an apartment and their lease does not expire until 6 months after closing. Do the remaining Lease payments or a “Lease Buy-out” fee have to be included as....

The borrowers bought new furniture for their home, but payments are deferred for one year. They are planning to pay the balance off before any payments begin. Does any payment need to be....

The borrower’s tax returns reflect that one of his businesses takes a significant loss annually. The processor has learned that this company is no longer in business. What documentation....

The borrower is working a full-time job now but is set to retire in two months when he turns 65. What income should be used to qualify?

When processing a loan, should overdrafts be reviewed and red-flagged just as NSF’s would be?

The borrower had previously been a seamstress in a clothing store for many years. They now have their own tailoring business but it has only been open for a year. Can this be used as....

The borrower’s credit report reflects a repossession of a vehicle that was caused by an ex-spouse’s non-payment. Will this debt be held against the borrower?

When reviewing the appraisal, how would a processor or underwriter know if “functional obsolescence” exists?

When reviewing the loan file, the underwriter noticed that the primary borrower has no source of income. All of the income used to support the loan qualification comes from the secondary....

If a borrower is shopping for a service, such as a title company, they are free to choose the most inexpensive one. What happens when the fee that they were initially quoted differs....

A borrower’s loan has made it all the way through underwriting. However, the loan to value is too high for the program parameters. What are the easiest things to do to cure a high LTV?

As a processor, one of my normal checkpoints is to review the appraisal, especially the commentary and notes by the appraiser. On the subject property, it is noted that....

When processing a refinance, It’s easy to get confused as to the requirements for a Texas Cash Out refinance 50(a)(6) as opposed to a Texas Cash Out 50 (a)(5) for home improvement. What is the....

As a newer processor, I know that each of the schedules of the title commitment are important and represent a “commitment” from the title company insurer. What does each schedule represent?

If the seller on the contract is in the name of an LLC or a business, how can the processor know that the signor is legitimate and can sign on behalf of the company?

Processing documentation for a construction loan requires “Builders Risk Insurance”. What does it cover and how is it different from hazard insurance?

As a processor, I know that I am to look for indications in the file that the property is in a PUD. Can you give some examples of identifiers that might help to recognize if the property is in....