FHA Announces Several Underwriting Changes

FHA recently announced several changes that will impact  underwriting in several areas. These changes are effective April 1, 2012.
Here’s a quick summary of these changes:
For self-employed borrowers: P&L statements are now required if the last business  tax return is more than 3 months old; statements must be audited if P&L  income is greater than the two year average.
For loans with disputed  accounts that receive an “Accept” by TOTAL: These are not  required to be referred to a DE underwriter for review as long as the total  amount of combined balances (1) does not exceed $1,000 and (2) the dates of  last activity are older than 2 years. If singular or combined balances total  more than $1,000 they must be paid in full at or prior to closing, or provide  proof of payment arrangements with 3 months of payments verified.
For collection accounts: If the total balances of all collection accounts are less than $1,000,  the borrower is not required to pay them off as a condition of approval. If  singular or combined balances total more than $1,000 they must be paid in full  at or prior to closing, or provide proof of payment arrangements with 3 months  of payments verified. Judgments must be paid unless payment arrangements have  been made and 3 months of payments are verified.
For definitions: The  following are now included in the definition of family member for the purposes of  Identity of Interest transactions: Brother, Stepbrother, Sister, Stepsister,  Uncle, and Aunt.
If you have any questions about these updates, and what  they might mean, give me a call or send me an email and I’ll be happy to  discuss this or any other pertinent matters with you.

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About Best Florida Mortgage Company! Jim Marcinkowski

Mission Statement Our mission is to be the home financing partner that you trust to serve your family, friends and community. Through our family of dedicated mortgage professionals, our commitment is to deliver an exceptional experience. Our unwavering dedication to integrity, honesty and ethics is the foundation of all of our relationships. NMLS 182565, NMLS 1016
This entry was posted in Credit Score, FHA 203k, Loan, Mortgage, Mortgage Financing, Refinance. Bookmark the permalink.

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