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MBA Urges Regulators To Avoid Invoking Suitability Standards
The Mortgage Bankers Association (MBA) recently made a preemptive strike against what it obviously perceives as the next threat against the mortgage industry - "suitability standards." Read more...

 

The Mortgage Underwriter And Reverse Mortgage Application

The mortgage loan qualification, as well the approval and pre-approval are being fully understood by the mortgage underwriter. The mortgage underwriter is practically the one that makes the decision whether the borrower qualifies for the mortgage or not. In case the reverse mortgage application if failing to meet the qualification level, the mortgage underwriter basically determines the best mortgage loan options for the borrower that finds him/herself in this situation.

The mortgage underwriter has to check the credit history, credit score, down payment, equity, income, and outstanding loan, in order to qualify a borrower for mortgage. This practically means that a mortgage underwriter understands how to repair bad credit in order to increase the credit score.

The factor which determines how the borrower pays off loan obligation is being represented by the credit history. And this is true because it is well known that the credit score automatically increases as you are paying off mortgage. Also, it is good to take into consideration the fact that a high score represents a positive indicator. This means that the borrower may qualify for the mortgage. The factor that proves whether the income is enough to cover the mortgage as well as the outstanding loan is being represented by the income and debt ratio, which is being verified by the mortgage underwriter. In order to prove this, the mortgage underwriter has to verify different source of income.

The first thing which a loan officer has to do is to prepare all necessary documents for the reverse mortgage application. After the system checks information, the loan officer gets the qualified reverse mortgage application. The next step is to send the reverse mortgage application to the mortgage underwriter. The mortgage underwriter checks the reverse mortgage application in order to ensure that the borrower is able to pay off the mortgage.

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