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; in addition, statements must be audited if P&L income is greater than the two year average, and the higher income is needed for qualification purposes. If the two year average income is sufficient for qualification purposes, the P&L is still required, but does not need to be an audited one.
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.
First Mortgage Company
I take pride in the fact that the majority of my business is from clients and their referrals. I ask you to refer your family, friends and associates to me when they are ready to purchase, refinance or would like a complimentary Mortgage Consultation to make sure their mortgage is still working for them. The highest compliment I can receive is a referral from a friend.
You received this email as a result of your ongoing business relationship with Sterling Campbell. While beneficial to a wide audience, this information is also commercial in nature and it may contain advertising materials.
UNSUBSCRIBE: If you would like to stop receiving emails from Sterling Campbell, you can easily unsubscribe.
First Mortgage Company
1365 Garden of Gods, STE 200
Colorado Springs, CO 80907
Powered by DB Nuture
© Copyright 2012. All About News, Inc. Reply Forward
Click here to Reply or Forward
Stop Foreclosure NowAds – Why this ad?Learn Your Mortgage Options. Request a Free Consultation Today!
512Ads – Why these ads?
3 Bureau Credit Report
View your latest Credit Scores from All 3 bureaus in 60 seconds for $0!
Colorado Foreclosure List
Foreclosed Bank REO's For Sale No Payments for 3mths, Free List
3.25% Refi w/o Any Costs
No Closing Cost APR Refi. Quote As Seen on CNN News. Call Today!
Bad Credit Personal Loans
Fast Application No Credit Check Loans up to $25,000 Apply Now
Do You Qualify for FHA?
Eased Requirements Make Qualifying for Lower Rates a Snap. Lean More!
FHA Loan »
FHA Loan Program »
FHA Mortgage Loans »
Hud FHA Loan »
Using 304 MB of your 7700 MB ©2012 Google - Terms & Privacy
Last account activity: 17 minutes ago
DetailsYou have 2 new messages.Let people know what you're up to, or share links to photos, videos, and web pages.