What a change in the market we are seeing lately! On top of lenders going out of business and the Fed cutting rates and enforcing subprime legislation, the lenders that are still left are getting TIGHT!
Fannie Mae (DU) and Freddie Mac (LP) are the 2 standard automated underwriting engines we use to get an approval on a file. In the past, when we had an approval through one of those, the lender accepted it as-is (after validating the information we put into the underwriting engine) and we closed the loan. Not anymore!
In the last week we have had squeaky-clean files that we have run through LP where we have gotten Streamlined Approvals, which is better than a standard approval. Well, when we sent the files into the lender they have either added conditions ON TOP OF the automated findings OR they have rerun the files into their own systems and tried to supersede our findings, which has in effect lessened approvals. Both times we have been able to switch underwriting engines with that lender and get the file to approve as submitted, but it is very frustrating when you do everything exactly right on your end, you submit the file as called, and you are basically told you are wrong!
This is yet another attempt by lenders and secondary marketing to make it harder for even an excellent borrower to get a loan!
Craig Pollard is a mortgage professional and owner of Texas Mortgage Team. He specializes in the Dallas Fort Worth area and is a frequent voice on Texas Home Central’s blog. Craig can be reached at CPollard@Texasmt.com or 972-317-9900
This entry was posted on Thursday, December 20th, 2007 at 7:12 am and is filed under Housing Market, Money Matters, Mortgage. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.