DOCSLIB.ORG

Fha Sf Handbook Excerpts

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Fha Sf Handbook Excerpts Office of Single Family Housing FHA SF HANDBOOK EXCERPTS FHA Single Family Housing Policy Handbook (HUD Handbook 4000.1) “A Live Webinar: The Single Family Housing Policy Handbook In-Depth” August 20, 2015 and August 25, 2015 CREDIT (MANUAL UNDERWRITING) CHAPTER 4. EXCERPTS FROM PRIOR HANDBOOK 4155.1 II. ORIGINATION EXCERPTS FROM NEW FHA SINGLE FAMILY BORROWER MORTGAGE CREDIT ANALYSIS FOR MORTGAGE THROUGH POST- HOUSING POLICY HANDBOOK (HUD HANDBOOK ELIGIBILITY AND INSURANCE ON ONE- TO FOUR-UNIT MORTGAGE CLOSING/ENDORSEMENT 4000.1) CREDIT ANALYSIS LOANS (4155.1) A. Title II Insured Housing http://portal.hud.gov/hudportal/documents/huddoc Section C. http://portal.hud.gov/hudportal/documents/huddo Programs Forward ?id=40001HSGH.pdf Borrower Credit c?id=4155-1_4_secC.pdf Mortgages Analysis 2. Guidelines for Evaluating credit involves reviewing payment 5. Manual Underwriting iii. Evaluating Credit History (Manual) Credit Report histories in the following of the Borrower Review order: a. Credit Requirements (A) General Credit (Manual) first: previous housing expenses, including (Manual) The underwriter must examine the Borrower's 4155.1 4.C.2.a utilities, overall pattern of credit behavior, not just isolated Hierarchy of second: installment debts, PAGE 204 unsatisfactory or slow payments, to determine the Credit Review third: revolving accounts. Borrower's creditworthiness. The Mortgagee must not consider the credit history (PAGE 167, 4-C-7) Generally, a borrower is considered to have an of a non-borrowing spouse. acceptable credit history if he/she does not have late housing or installment debt payments, unless there is (B) Types of Payment Histories (Manual) major derogatory credit on his/her revolving The underwriter must evaluate the Borrower's accounts. payment histories in the following order: (1) previous housing expenses and related expenses, 4155.1 4.C.2.b The borrower’s housing obligation payment history including utilities; (2) installment debts; and (3) 1 Office of Single Family Housing Reviewing holds significant importance when evaluating credit. revolving accounts. Previous Rental The lender must determine the borrower’s housing or Mortgage obligation payment history through the (1) Satisfactory Credit Payment credit report verification of rent received directly from the The underwriter may consider a Borrower to have an (PAGE 168, 4-C-8) landlord (for landlords with no identity-of- acceptable payment history if the Borrower has interest with the borrower) made all housing and installment debt payments on verification of mortgage received directly time for the previous 12 months and has no more from the mortgage servicer, or than two 30-Day late Mortgage Payments or review of canceled checks that cover the installment payments in the previous 24 months. most recent 12-month period. The underwriter may approve the Borrower with an Note: The lender must verify and document the acceptable payment history if the Borrower has no previous 12 months’ housing history even if the major derogatory credit on revolving accounts in the borrower states he/she was living rent-free. previous 12 months. TOTAL Scorecard Accept/Approve Recommendation Major derogatory credit on revolving accounts must If the loan receives an Accept/Approve include any payments made more than 90 Days after recommendation from the Technology the due date, or three or more payments more than Open To Approved Lenders (TOTAL) Scorecard, the 60 Days after the due date. housing/rental history requirement stated above is waived. (2) Payment History Requiring Additional Analysis Reference: For more information on the TOTAL If a Borrower’s credit history does not reflect Scorecard recommendations, see the TOTAL satisfactory credit as stated above, the Borrower’s Mortgage Scorecard User Guide. payment history requires additional analysis. The Mortgagee must analyze the Borrower’s delinquent accounts to determine whether late payments were based on a disregard for financial obligations, an inability to manage debt, or 2 Office of Single Family Housing extenuating circumstances. The Mortgagee must document this analysis in the mortgage file. Any explanation or documentation of delinquent accounts must be consistent with other information in the file. The underwriter may only approve a Borrower with a credit history not meeting the satisfactory credit history above if the underwriter has documented the delinquency was related to extenuating circumstances. (C) Payment History on Housing Obligations (Manual) The Mortgagee must determine the Borrower’s Housing Obligation payment history through: the credit report; verification of rent received directly from the landlord (for landlords with no Identity of Interest with the Borrower); verification of Mortgage received directly from the mortgage servicer; or a review of canceled checks that cover the most recent 12-month period. The Mortgagee must verify and document the previous 12 months’ housing history. For Borrowers who indicate they are living rent-free, the Mortgagee must obtain verification from the property owner where they are residing that the 3 Office of Single Family Housing Borrower has been living rent-free and the amount of time the Borrower has been living rent free. A Mortgage that has been modified must utilize the payment history in accordance with the modification agreement for the time period of modification in determining late housing payments. 4 Office of Single Family Housing LIABILITIES/PROJECTED OBLIGATIONS CHAPTER 4. EXCERPTS FROM PRIOR HANDBOOK 4155.1 II. ORIGINATION EXCERPTS FROM NEW FHA SINGLE FAMILY BORROWER MORTGAGE CREDIT ANALYSIS FOR MORTGAGE THROUGH POST- HOUSING POLICY HANDBOOK (HUD HANDBOOK ELIGIBILITY AND INSURANCE ON ONE- TO FOUR-UNIT MORTGAGE CLOSING/ENDORSEMENT 4000.1) CREDIT ANALYSIS LOANS (4155.1) A. Title II Insured Housing http://portal.hud.gov/hudportal/documents/huddoc Section C. http://portal.hud.gov/hudportal/documents/huddo Programs Forward ?id=40001HSGH.pdf Borrower Credit c?id=4155-1_4_secC.pdf Mortgages Analysis 6. Borrower This topic contains information on borrower 4. Underwriting the (G) Deferred Obligations (TOTAL) Liabilities: • projected obligations, and Borrower Using the (1) Definition Projected • obligations not considered debt. TOTAL Mortgage Obligations and Scorecard (TOTAL) Deferred Obligations refer to liabilities that have Obligations Not b. Credit Requirements been incurred but where payment is deferred or has Considered Debt (TOTAL) not yet commenced, including accounts in iv. Evaluating Liabilities forbearance. Introduction and Debts (TOTAL) (2) Standard 4.C.6.a Debt payments such as a student loan or balloon note PAGE 142 Projected scheduled to begin or come due within 12 months of The Mortgagee must include deferred obligations in Obligations the mortgage loan closing must be included by the the Borrower’s liabilities. lender as anticipated monthly obligations during the (PAGE 183, 4-C-23) underwriting analysis. (3) Required Documentation Debt payments do not have to be classified as The Mortgagee must obtain written documentation projected obligations if the borrower provides of the deferral of the liability from the creditor and written evidence that the debt will be deferred to a evidence of the outstanding balance and terms of period outside the 12-month timeframe. the deferred liability. The Mortgagee must obtain evidence of the anticipated monthly payment obligation, if available. 5 Office of Single Family Housing (4) Calculation of Monthly Obligation The Mortgagee must use the actual monthly payment to be paid on a deferred liability, whenever available. If the actual monthly payment is not available for installment debt, the Mortgagee must utilize the terms of the debt or 5 percent of the outstanding balance to establish the monthly payment. For a student loan, if the actual monthly payment is zero or is not available, the Mortgagee must utilize 2 percent of the outstanding balance to establish the monthly payment. 5. Manual Underwriting PREVIOUSLY REFERENCED of the Borrower 4. Borrower This topic contains information on the borrower’s 4. Underwriting the (H) Installment Loans (TOTAL) Liabilities: recurring obligations, Borrower Using the (1) Definition Recurring including TOTAL Mortgage Obligations types of recurring obligations Scorecard (TOTAL) Installment Loans refer to loans, not secured by real recurring obligations in debt-to-income ratio b. Credit Requirements estate, that require the periodic payment of P&I. A Introduction calculation (TOTAL) loan secured by an interest in a timeshare must be revolving account minimum monthly iv. Evaluating Liabilities considered an Installment Loan. payment, and and Debts (TOTAL) (2) Standard alimony payments in qualifying ratio calculations. PAGE 144 The Mortgagee must include the monthly payment shown on the credit report, loan agreement or 6 Office of Single Family Housing 4.C.4.a Recurring obligations include payment statement to calculate the Borrower’s Types of all installment loans debts. Recurring revolving charge accounts If the credit report does not include a monthly Obligations real estate loans payment for the loan, the Mortgagee must use the alimony amount of the monthly payment shown in the loan (PAGE 178, 4-C-18) child support, and agreement or payment statement and enter it into other continuing obligations. TOTAL Mortgage Scorecard. 4.C.4.b When computing the debt-to-income (DTI) ratio, the (3) Required Documentation Recurring lender must include the Obligations
Load more

Recommended publications
  • The Incentives of Mortgage Servicers: Myths and Realities
    Finance and Economics Discussion Series Divisions of Research & Statistics and Monetary Affairs Federal Reserve Board, Washington, D.C. The Incentives of Mortgage Servicers: Myths and Realities Larry Cordell, Karen Dynan, Andreas Lehnert, Nellie Liang, and Eileen Mauskopf 2008-46 NOTE: Staff working papers in the Finance and Economics Discussion Series (FEDS) are preliminary materials circulated to stimulate discussion and critical comment. The analysis and conclusions set forth are those of the authors and do not indicate concurrence by other members of the research staff or the Board of Governors. References in publications to the Finance and Economics Discussion Series (other than acknowledgement) should be cleared with the author(s) to protect the tentative character of these papers. The Incentives of Mortgage Servicers: Myths and Realities by Larry Cordell, Karen Dynan, Andreas Lehnert, Nellie Liang, and Eileen Mauskopf October 13, 2008 (revised) Cordell is from the Federal Reserve Bank of Philadelphia. Dynan, Lehnert, Liang, and Mauskopf are from the Board of Governors of the Federal Reserve System. We thank David Buchholz, Richard Buttimer, Philip Comeau, Amy Crews Cutts, Kieran Fallon, Jack Guttentag, Madeline Henry, Paul Mondor, Michael Palumbo, Karen Pence, Edward Prescott, Peter Sack, David Wilcox, staff at Neighborworks America, and many market participants from servicers, investors, Freddie Mac, mortgage insurance companies, rating agencies, and legal and tax counsel for helpful discussions and comments. We are also grateful to Erik Hembre and Christina Pinkston for excellent research assistance. The views expressed in this paper are those of the authors and do not necessarily represent the views of the Federal Reserve Board, the Federal Reserve Bank of Philadelphia, or their staffs.
    [Show full text]
  • Your Step-By-Step Mortgage Guide
    Your Step-by-Step Mortgage Guide From Application to Closing Table of Contents In this Guide, you will learn about one of the most important steps in the homebuying process — obtaining a mortgage. The materials in this Guide will take you from application to closing and they’ll even address the first months of homeownership to show you the kinds of things you need to do to keep your home. Knowing what to expect will give you the confidence you need to make the best decisions about your home purchase. 1. Overview of the Mortgage Process ...................................................................Page 1 2. Understanding the People and Their Services ...................................................Page 3 3. What You Should Know About Your Mortgage Loan Application .......................Page 5 4. Understanding Your Costs Through Estimates, Disclosures and More ...............Page 8 5. What You Should Know About Your Closing .....................................................Page 11 6. Owning and Keeping Your Home ......................................................................Page 13 7. Glossary of Mortgage Terms .............................................................................Page 15 Your Step-by-Step Mortgage Guide your financial readiness. Or you can contact a Freddie Mac 1. Overview of the Borrower Help Center or Network which are trusted non- profit intermediaries with HUD-certified counselors on staff Mortgage Process that offer prepurchase homebuyer education as well as financial literacy using tools such as the Freddie Mac CreditSmart® curriculum to help achieve successful and Taking the Right Steps sustainable homeownership. Visit http://myhome.fred- diemac.com/resources/borrowerhelpcenters.html for a to Buy Your New Home directory and more information on their services. Next, Buying a home is an exciting experience, but it can be talk to a loan officer to review your income and expenses, one of the most challenging if you don’t understand which can be used to determine the type and amount of the mortgage process.
    [Show full text]
  • Oversight by Fannie Mae and Freddie Mac of Compliance with Forbearance Requirements Under the CARES Act and Implementing Guidance by Mortgage Servicers
    Federal Housing Finance Agency Office of Inspector General Oversight by Fannie Mae and Freddie Mac of Compliance with Forbearance Requirements Under the CARES Act and Implementing Guidance by Mortgage Servicers Special Report • OIG-2020-004 • July 27, 2020 Executive Summary Fannie Mae and Freddie Mac (collectively, the Enterprises) perform an important role in the nation’s housing finance system by providing liquidity, stability, and affordability to the mortgage market. The Enterprises purchase single-family mortgages from lenders and either hold these mortgages in their portfolios or package them into mortgage-backed securities that can be sold. OIG-2020-004 Mortgage servicers perform a variety of tasks on behalf of the Enterprises. July 27, 2020 These tasks include: collecting payments from homeowners; remitting principal and interest to investors for securitized loans; paying property tax and insurance premiums from escrow funds; and performing collection, loss mitigation, and foreclosure activities with respect to delinquent homeowners under the terms of the Enterprises’ selling and servicing guides. The Federal Housing Finance Agency (FHFA or Agency), as conservator, has delegated to the Enterprises responsibility for managing their relationships with their servicers. Typically, FHFA has the ability to examine the Enterprises’ execution of delegated responsibilities through supervisory activities. FHFA, however, lacks statutory authority to supervise activities by mortgage servicers. To meet the critical need for oversight of these counterparties, FHFA issued three advisory bulletins which set forth its supervisory expectations for the Enterprises’ oversight of their servicers. Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which was signed into law on March 27, 2020, to address some of the economic effects of the COVID-19 pandemic.
    [Show full text]
  • Why Servicers Foreclose When They Should Modify and Other Puzzles of Servicer Behavior
    Why Servicers Foreclose When They Should Modify and Other Puzzles of Servicer Behavior Servicer Compensation and its Consequences October 2009 NATIONAL CONSUM ER LAW CENTER INC ———————▲——————— Why Servicers Foreclose Written by When They Should Modify Diane E. Thompson and Other Puzzles of Of Counsel Servicer Behavior: National Consumer Law Center Servicer Compensation and its Consequences ABOUT THE AUTHOR Diane E. Thompson is Of Counsel at the National Consumer Law Center. She writes and trains extensively on mortgage issues, particularly credit math and loan modifications. Prior to coming to NCLC, she worked as a legal services attorney in East St. Louis, Illinois, where she negotiated dozens of loan modifications in the course of representing hundreds of homeowners facing foreclosure. She received her B.A. from Cornell University and her J.D. from New York University. ABOUT THE NATIONAL CONSUMER LAW CENTER The National Consumer Law Center®, a nonprofit corporation founded in 1969, assists con- sumers, advocates, and public policy makers nationwide on consumer law issues. NCLC works toward the goal of consumer justice and fair treatment, particularly for those whose poverty renders them powerless to demand accountability from the economic marketplace. NCLC has provided model language and testimony on numerous consumer law issues be- fore federal and state policy makers. NCLC publishes an 18-volume series of treatises on consumer law, and a number of publications for consumers. ACKNOWLEDGEMENTS My colleagues at NCLC provided, as always, generous and substantive support for this piece. Carolyn Carter, John Rao, Margot Saunders, Tara Twomey, and Andrew Pizor all made sig- nificant contributions to the form and content of this paper.
    [Show full text]
  • Mortgage Market Q&A with Portfolio Manager Ken Shinoda
    9 - 201 00 9 2 10 Mortgage Market Q&A YEARS D O E U IN with Portfolio Manager Ken Shinoda BLEL Season 8 Episode 10 of The Sherman Show featuring Ken Shinoda originally aired on April 29, 2020. Outlined version (no font) What is mortgage forbearance and how do borrowers requestOutlined version forbearance? (no font) All Gray Mortgage forbearance is an agreement between the borrower and the mortgage servicer to temporarily suspend mortgage payments for a period of time. Missed payments are not forgiven Ken Shinoda, CFA and the borrower must make those payments back in the future. Portfolio Manager Forbearance is not a new relief mechanism for struggling mortgagors and has been part of the Mr. Shinoda joined DoubleLine mortgage market for quite some time. For example, the Federal Housing Administration (FHA) has at its inception in 2009. He is guidelines in place that provide forbearance relief to affected homeowners after certain natural the Chairman of the Structured disasters. Products Committee and Port- folio Manager overseeing the A borrower requesting forbearance would call their servicer. The servicer would initially work with non-Agency RMBS team which the borrower for a specified forbearance period. At the end of the forbearance period, the borrower specializes in investing in non- has different options to make up missed payments: Agency mortgage-backed secu- rities, residential whole loans • Reinstatement: full repayment immediately following the forbearance period and other mortgage-related • Repayment plan: catch up payments in addition to normal monthly payment opportunities. Mr. Shinoda is also a permanent member of the • Payment deferral: add payments to the end of the mortgage term Fixed Income Asset Allocation • Modification: may involve extending the number of years to repay the loan, reducing the and participates in the Global interest rate, and/or reducing the principal balance Asset Allocation Committee.
    [Show full text]
  • Fannie Mae CLT Rider Compliance Guidance Issued September 26, 2014
    Fannie Mae CLT Rider Compliance Guidance Issued September 26, 2014 This guidance applies to residential properties in community land trusts, where the homeowner’s first mortgage loan was originated to be sold to Fannie Mae. These properties can be identified by those with an executed Fannie Mae Form 2100 “Community Land Trust Ground Lease Rider” (the Rider) between the CLT (the “Lessor”) and homeowner (the “Lessee”). The Lender (the “Specified Mortgagee” or its successors or assignees) is defined as the entity that has an interest secured by a mortgage or deed of trust in the leased land and the improvements (the “Leased Premises”). This guidance intends to provide practitioners with easy-to-understand answers to common questions or events that may arise post-purchase in order to ensure compliance with the Rider. NOTE: This guidance does not comprehensively review the Rider, nor does it replace the potential need to seek legal assistance or interpretation of the Rider. Key of Terms: Rider Fannie Mae Form 2100: Community Land Trust Ground Lease Rider CLT Lessor Homeowner Lessee Lender Specified Mortgagee, its successors or assignees Leased Land + Improvements Leased Premises Glossary of Questions: 1. My CLT plans to increase the ground lease payment on the property. What do I need to do? 2. My CLT wants to modify the ground lease for an existing homeowner. What do I need to do? 3. Who needs to be listed on insurance policies? 4. The homeowner wants to sublet the home. What can the CLT allow? 5. The homeowner wants to make an addition or improvement to the property.
    [Show full text]
  • Mortgage Servicers
    Illinois Department of Financial and Professional Regulation Division of Financial Institutions JB PRITZKER DEBORAH HAGAN Governor Secretary CHASSE REHWINKEL Director Division of Banking March 30, 2020 Guidance to Illinois-Licensed Mortgage Servicers and Exempt Mortgage Servicers Urging Support for Borrowers Impacted by COVID-19, Including 90-Day Forbearance The COVID-19 pandemic presents many challenges for mortgage servicers and borrowers. The pandemic will continue to cause serious financial hardship for borrowers and their families, especially for those who do not have access to paid leave, have their hours reduced, or lose their jobs during this time of economic dislocation. During this challenging period, the Illinois Department of Financial and Professional Regulation, Division of Banking and Division of Financial Institutions (the “Department”) is urging all mortgage servicers, including those licensed under the Illinois Residential Mortgage License Act of 1987 (the “Act”) and those exempt from licensing under the Act (such as banks and credit unions), to take concrete steps to alleviate the direct and indirect adverse impacts of the COVID-19 pandemic on mortgage borrowers. Servicers should identify and implement fair and prudent actions, subject to the requirements of any guarantee or insurance programs, to support those mortgage borrowers unable to make timely mortgage payments as a result of the pandemic. Federal Guidance Servicers should check regularly for updates from the federal housing agencies and government- sponsored enterprises and quickly implement any available programs to help eligible borrowers. In addition, the Department reminds servicers that they must comply with all relevant loss mitigation requirements, including, but not limited to, those contained in Regulation X under the Real Estate Settlement Procedures Act.
    [Show full text]
  • Mortgage Servicers Are Getting the Short End of the Stick Under the CARES Act
    [PULSE] Mortgage servicers are getting the short end of the stick under the CARES Act Has the federal government essentially imposed the Defense Production Act on residential mortgage servicers without just compensation? June 5, 2020, 3:10 pm By Laurence Platt Many of you have read about the power of the president to invoke the Defense Production Act to acquire products or direct the activities of suppliers based on a finding that it is necessary for the federal government to intrude into the commercial market for national security reasons. When the federal government uses this authority to acquire, or direct the production of, supplies (such as ventilators, N95 masks, and pharmaceuticals in the COVID- 19 pandemic context), it uses contracts and negotiates, on an expedited basis, prices and terms. In other words, the president can force a seller to disrupt its other customers’ orders to fill a government order as a priority. But the power is not absolute. It must pay for the products it procures on a priority basis. The federal government does not have to pay a premium, and the supplier may not seek to charge unjustifiably higher prices, but the federal government must negotiate the price and terms for the purchased products or supplies. Laurence Platt Guest Author 1 Mortgage servicers perhaps would fare better if their services were subjected to the Defense Production Act in order to address the global pandemic’s adverse impact on residential mortgage borrowers. At least then, servicers could seek to negotiate fair and timely compensation and reimbursement of advances in connection with their necessary role in implementing the Congressional mandate to provide forbearance for up to one year to residential mortgage borrowers with “federally backed mortgage loans.” This term is defined in the Act to include residential mortgage loans purchased by Fannie Mae and Freddie Mac, as well as residential mortgage loans insured or guaranteed by the FHA, VA or the USDA’s Rural Housing Service.
    [Show full text]
  • CARES Act, Which Includes a Foreclosure Moratorium for Certain Loans on Single-Family Properties
    Last Updated: March 30, 2020 COVID-19 Crisis FORECLOSURE PROTECTION AND MORTGAGE PAYMENT RELIEF FOR HOMEOWNERS Since March 18, 2020, there have been a series of official actions relating to relief for mortgage borrowers, and we expect further actions in coming days and weeks. This informational sheet summarizes the most current information about these measures available as of the date listed above. Please note that this document only covers actions taken with regard to mortgages on single-family (1-4 unit) properties and does not cover actions taken with regard to mortgages on multifamily (i.e., more than 4-unit) properties or the details of the federal eviction moratorium. First, it is important to know that the federal actions taken so far do not apply to all mortgages on single-family properties. Of all outstanding single-family mortgages, roughly 70% are owned or backed by a federal agency, and about 30% (roughly 14.5 million loans) are privately owned and not backed by any federal agency. The federal actions so far only apply to federally-owned or -backed loans. Some financial institutions and some states have announced different types of mortgage relief for homeowners that do apply to borrowers with privately- owned mortgages, but those measures are not necessarily consistent with the new federal measures.1 It is therefore very important to determine what type of a loan a borrower has in order to understand what protections and options are available. Tools for Determining What Type of Loan a Borrower Has Fannie Mae/Freddie Mac ("GSE") - use loan look-up tools for Fannie Mae here or for Freddie Mac here.
    [Show full text]
  • Wyoming Emergency Housing Assistance Program
    WYOMING EMERGENCY HOUSING ASSISTANCE PROGRAM A household must meet 4 eligibility criteria to receive assistance under the Wyoming Emergency Housing Assistance Program (WEHAP). They are: • The members of the household must live in the state of Wyoming and be seeking housing assistance for a 1-unit single family home or apartment unit that is the primary residence. • The household must have suffered a financial hardship due to COVID-19 and lack sufficient income or resources to pay rent, a mortgage payment, a security deposit or hazard insurance payment due on or after April 1, 2020. • Households who receive other rental assistance, such as a Housing Choice Voucher (Section 8), Project-Based Rental Assistance (RD/USDA Voucher), Emergency Solutions Grant or other similar federal or state rental assistance that is paid to a landlord on the household’s behalf, are not eligible for WEHAP. • Monthly gross household income must be equal to or less than $20,833.00. Before you begin, please note that you will need to gather copies of the following documents to be mailed back with your application to WCDA for review. If you have questions, please call us at (307) 253-1086 to reach someone for help with your application. • Income documentation from each member of the household for the following income sources: A. Federal stimulus or Economic Impact Payments do not count toward your income for this application. B. Pay stub(s) documenting wage earnings for the month in which assistance is needed; C. Social Security Statement; D. Pension/Retirement Statement; E. Public Assistance Statement; F.
    [Show full text]
  • Mortgage Closing Checklist
    Your mortgage closing checklist Closing is the final and likely most important stage of your homebuying journey. This checklist will help you prepare and learn what to expect so you can close with confidence. Be a savvy homebuyer § Prepare in advance. Your closing is when you legally commit to your mortgage loan. Know what to plan for so everything goes smoothly. § Don’t rush. Make sure you’re getting what you expected. CFPB’s Buying a House tool § When in doubt, ask! Ask questions until you feel comfortable with every detail. www.consumerfinance.gov/buying-a-house § Beware of mortgage closing scams. Protect your life savings by knowing what to look for and how to avoid it happening to you. § Trust your gut. If something feels wrong, speak up and know that walking away may be better than signing a bad deal. Consumer Financial Learn more at consumerfinance.gov/buying-a-house. 1 of 6 Protection Bureau MORTGAGE CLOSING CHECKLIST Before closing Taking a few key actions can make your home closing go more smoothly. Use this worksheet to prepare in advance. 1. Determine who will Who will be conducting my closing? What is their title? conduct your closing, Name: where it will be, and Phone: when. ¨ Title agent ¨ Escrow agent Although the type of ¨ Closing attorney ¨ Other company conducting your closing can vary based on When is my closing? Where is my closing? where you live, you can shop for the company of Date: Time: your choice. Address: 2. Ask the person who What do I need to bring to my closing? will conduct your ¨ Review the list on page 4 and make any necessary changes.
    [Show full text]
  • MORTGAGE FRAUD FACT SHEET for Victims
    MORTGAGE FRAUD FACT SHEET For Victims NATIONAL CRIME PREVENTION COUNCIL Introduction various resources available to assist victims. Mortgage fraud is a crime that hurts homeowners, families, communities, businesses, and the What Is Mortgage Fraud? economy. According to the FBI’s 2010 Mortgage Fraud Report Year The FBI describes mortgage fraud in Review (August 2011), mortgage as the employment of “some fraud schemes continue to escalate. type of material misstatement, Although new laws and protections misrepresentation, or omission have been enacted to address these relating to a real estate transaction, scams, mortgage fraud schemes which is relied on by one or more have been particularly resilient and parties to the transaction.” Mortgage have adapted to economic changes fraud schemes are varied, but and modifications in lending include practices. While total losses directly attributable to mortgage fraud are 77 Foreclosure rescue schemes unknown, there is no doubt actual 77 Loan modification schemes damages are significant. CoreLogic 77 Illegal property flipping estimates reported by the FBI 77 Builder bailout/condo conversion indicate annual losses more than 77 Equity skimming $10 billion. In 2011 alone the FBI 77 Silent second received 93,508 suspicious activity 77 Home equity conversion reports relating to mortgage fraud, mortgage totaling more than $3 billion in 77 Commercial real estate loans losses (www.fbi.gov). 77 Air loans An individual who knows or is a victim of mortgage fraud should The perpetrators of mortgage understand what mortgage fraud fraud schemes include licensed/ entails, strategies victims should registered and non-licensed/ employ to protect themselves registered mortgage brokers, from further harm, and the lenders, appraisers, underwriters, a MORTGAGE FRAUD FACT SHEET FOR VICTIMS accountants, real estate agents, 77 The company/person pressured STEP 2 – Speak with a HUD- settlement attorneys, land you to sign over the deed to your approved housing counselor.
    [Show full text]