Syllabus
Analyzing Creditworthiness
This course introduces the student to basic underwriting guidelines for conventional conforming mortgage lending. The student will learn to identify and evaluate the borrower, analyze the borrower’s credit history and learn what is acceptable to the primary investors in the secondary mortgage market - Fannie Mae and Freddie Mac. In addition, the underwriter will learn to identify and analyze the proper documentation for cash assets and funds to close.
Credit issues and identification of risk are explored in depth. The student will also learn to review employment and income documentation, and apply qualifying ratios to each borrower’s case.
EVALUATING THE BORROWER
U.S. Citizens
Foreign Nationals
Permanent Resident Aliens
Non-Permanent Resident Aliens
Living (Inter Vivos Revocable) Trust
Equity Requirements (Owner-Occupied Property)
Maximum Risk to One Borrower
Qualifying Ratios
Payment-to-Income Ratio
Debt-to-Income Ratio
Compensating Factors
Motivation of the Borrower
ANALYZING A BORROWER’S CREDIT HISTORY
Requirements of the Credit Report
Credit History for Non-Permanent Resident Alien
Credit Scores
Significant Adverse Credit/Derogatory Credit
Verification of Mortgages
Fair Credit Reporting Act
Fraud Considerations
EVALUATING ASSETS AND FUNDS TO CLOSE
Adequacy of Funds
Equity Position
Sources of Funds
Cash Reserves
Unacceptable Sources of Funds
Verification of Funds
ASSESSING LIABILITIES
ANALYZING INCOME AND EMPLOYMENT
Verifying Income
Analyzing Cash Flow
Averaging Income
Fraud Consideration
Employment Stability
Adequacy and Continuance of Income
Other Income Sources
DOCUMENTATION STANDARDS
Self-Employed Borrowers
FLORIDA MORTGAGE BROKERAGE AND LENDING ACT
Under this Act, the Florida State legislature has established a system of licensure, and rules of practice and conduct of mortgage brokers, in order to promote honesty and fair dealing, and to preserve public confidence in the lending and real estate community.
The Act describes the legal and ethical requirements to do business as a mortgage broker, mortgage lender or correspondent lender in the State of Florida.
The proper maintenance of trust accounts, accounting records, and advertising materials is required. The procedure to obtain a mortgage broker license is described, and the education requirements are listed. The Department of Banking and Finance of the State of Florida oversees adherence to the Mortgage Brokerage and Lending Act.
Credit issues and identification of risk are explored in depth. The student will also learn to review employment and income documentation, and apply qualifying ratios to each borrower's case. |
