The Underwriting Process

Outline

Loan
to Value Ratio (LTV)

Qualifying
a Borrower

1. Credit
2. Ability to repay
3. Property Eligibility
4. Assess Risks

Analyzing
Borrower and Property

1. Capacity
2. Credit
3. Collateral

Analyzing
assets

1. Down payment
2. Reserves
3. Third Party Verification
4. Gifts

Automated
Underwriting Systems

1. Desktop Underwriter DU – Fannie Mae
2. Loan Product Advisor LP – Freddie Mac

Calculating
Debt to Income Ratios

1. Income Components
2. Debt Components

Employment
and Income Requirements

1. Computing Monthly Income
2. Credit
   Scores and Credit Scoring

Learning Objectives       

1.       Calculating
   LTV
2.       Identify
   criteria used to evaluate ability to repay
3.       Discuss
   Automated Underwriting Systems
4.       Complete
   simple income calculations
5.       Calculate
   debt-to-income ratios.
6.       Calculate
   maximum mortgage payments
7.       Calculate
   maximum loan amount

Teaching Methods:

Power Points, Video PowerPoint Presentation and Quiz