Many things have changed in the mortgage lending world over the past 3 years; some occurred subtly and other suddenly.
Why are ALL loans now so accurately and completely documented? This is the subject of my Blog post today.
EVEN PERFECT borrowers with walking on water credit scores, several retirements worth of reserve income on deposit, and no obvious reason for concern regarding their ability to repay the mortgage debt are paying the price of Mortgage regulation.
WHY all the scrutiny?
Why do loans need to be FULLY Documented with NO Exceptions?
Here's the short list?
- Initial Loan Application Accuracy
- NEW Mortgage Lending Laws since 2008
- EASE of information gathering (in quality control from Underwriting to pre-investor purchase to post investor purchase) NOW requires the information to be as accurate as ever!
- Need for appraisal quality
The upcoming appraisal changes are the next step on the continuum of technological advances in our business. I have 3 files in process which required-for different reasons-a 2nd appraisal, which in turn necessitated more processing time, more expense to the lender (the cost of the additional appraisal can't be charged to the borrower if not disclosed on the initial Good Faith Estimate), and delayed closing times. The present appraisal rules are just another beginning to more changes.