Category Archives: Mortgage guidelines

Thursday’s Trick – LE Fee’s and Tolerance trick

Great time to remind everyone what has a 10% tolerance, what has zero tolerance and what has no tolerance.  Fee’s are important, very important!  And I am fan of over-disclosure.  I encourage you to make sure you are over estimating fee’s, especially the one’s that “change” the most.  No offense to title and escrow companies, but I’m calling you all out.  lol.  Across the Nation I do loans for Broker’s that send them to my awesome underwriting team to be completed.  And the biggest thing I see in fee variance is the title/escrow fees changing from what is said (in writing) to be charged for those services on a mortgage loan.

Trust me I get it.  Loan amounts can change, and yeah I realize the cost of the title/escrow fee’s are ultimately associated with that.  However, I’m not talking about 5 dollar differences.  I’m talking about a couple hundred or in some cases over 1k difference in fee’s on mortgage loans that are disclosed upfront, and then in the end the costs go up.

Here’s a guide today on a way to combat that problem, as sometimes a LO may not know “all the fee’s” that particular company is going to charge on that “specific file” until later in the transaction.  Well, 1st off, as an LO, you should be over disclosing those fee’s as a whole.  If you know in your area, that what is usual and customary on a loan (say 200k), that should be rounded up on your LE and SSPL.  For those Broker’s/Lenders thinking of expanding in ownership/affiliation with a title company, you should know that those title fee’s then become a ZERO tolerance item.  (actually spells out = not a good business idea)!  For those of you that place the exact company on the SSPL and LE to match (in section C) and the borrower “chooses” them, then those fees have a 10% tolerance.  So what you disclose in the beginning can vary only 10% all the way to the end.  Whereas, if the specific company said on the LE & SSPL for title fee’s is actually NOT chosen by the borrower…Well those new fee’s from a different title/escrow company can be completely different than what was disclosed.  With no reproccussion (tolerance cure) by the LO.  #ThursdaysTrick

Check out the video and the chart below.  I didn’t make it, I just use things like this as “bible” to getting transactions done.  🙂  #knowledgeispower #disclosecorrectly #SellWell

Here’s the cheat sheet that spells it all out.  One fee can be in either of the 3 categories, depends on your business and how you disclose.  (And what the “borrower” chooses) 🙂

FeeTolerance

As always, Share, Interact, Like, Repeat! #SellWell

-The Mortgage JUICEman (Join Us In Creating Excitement)

 

Work Wednesday – Putting together the file

#WorkWednesday – This weeks series has been about best practices in all stages of getting a mortgage done.  Monday we talked about prospecting, yesterday we did two best practices for taking a 1003.  Today we are all about the act of submitting.  Every file is put together and submitted to an underwriter, whom in turn conditions out according to the information given.

It all starts with the 1003, the info on it needs to be verified.  So if correctly input, the DU/DO/LP/GUS findings will tell you how to “underwrite” the file yourself.  How to put the file together to submit information to the underwriter.  All the basic needs are itemized on AUS findings on any system.  All you have to do is #Readthem.

Only submit what the DU is asking for upfront.  Then of course read the information the client gives you to make sure it matches the 1003 information PRIOR to turning it in.  “Good Idea”.  ☻♥  #SellWell

Two for Tuesday – New owner cash out guidelines! *Fannie Mae’s new cash out loan too!!

Well how long does someone need to own the property to take cash out?  FHA and Conventional guides are a little different.  Plus, Fannie Mae came out with a new cash out loan, well it’s more like a rate and term, but great option for you to advertise.  #Checkitout #SellWell #TwoforTuesday

Thrive’in Thursday – It’s HOT, and Fannie and Freddie are making changes!

#Checkitout – Fannie and Freddie are making changes to help the mortgage industry THRIVE!  Prayers to any and all that are affected by the tropical storm Cindy this summer.  Two new guideline changes announced.  #Thriveon #SellWell

Weekend Call to Action – Delayed Financing

As we swing into high gear for the “purchase season” don’t forget to ask about those homes being bought ALL CASH!  You could still present a viable option to help the new homeowner’s replenish the cash they used to buy the home.  Maybe do home improvements?  #youjusthavetoask