12/10/2008: What Topic Would You Like to See?

Post your comments about any underwriting subject you'd like to discuss.

Note: please DO NOT post a comment about a specific file. Those type of comments should be directed to the individual underwriter via normal communication channels.

USDA Urgent Announcement

From: Lambright, Allen - McKinney, TX [mailto:Allen.Lambright@tx.usda.gov]
Sent: Thursday, December 04, 2008 2:27 PM
Subject: Urgent Eligibility Issue

As our program grows in North Texas, I am finding more and more instances where our on-line eligibility map has not kept up with local communities growth.

The most notable and controversial area is the northern portion of Tarrant County. The City of Ft Worth has grown into some of the open country that was once considered eligible. If a property is paying city of Ft. Worth taxes, it is not in an eligible area. We cannot make exceptions.

Please, please pay close attention to this when originating loans in Tarrant County. My staff will be working this issue and re-drawing the Tarrant County map in the near future.

Unfortunately, this will result in a more conservative approach to our eligibility line in Tarrant County. My staff may ask for tax data for any property that appears in question. Again, if the tax data shows the client is paying City of Ft. Worth, City of Denton, City of Lewisville, Flower Mound, Sherman, Denison, Dallas, Rowlett, etc, the property will not be considered eligible, regardless of the website determination.

I apologize in advance for any issues this may cause. If I can be of service, please call.

Allen M. Lambright Area Director USDA Rural Development 1406 E North McDonald McKinney, Texas 75071 Ph: - 972.542.0081x4 Cell: - 972-489-2556 Fax: - 972.542.4028 www.rurdev.usda.gov

DU Update: Vebal VOE

The Desktop Underwriter income documentation option of obtaining a Verbal VOE as the only verification of income will be eliminated with the DU update to DU 7.1 scheduled for next weekend (12/13 - 12/14).

Alethes will update all outstanding approvals as to the final date we will accept those DU findings with only a Verbal VOE as we get this information from our investors.

It is possible that resubmissions after DU's update to 7.1 will continue to give out the option for only a Verbal VOE. This will not be acceptable except as outlined in a future announcement.

Underwriting Tip: Sales Contract

Please be sure the Sales Contract submitted to underwriting is the most up-to-date.

One of three loans I underwrite does not have the correct information and it slows the entire process down when we have to re-underwrite the file due to changes. These changes, too many times, causes us to have to re-run DU and 25% of the time the file moves from an Approved/Eligible to a Manual underwrite.

Ruth

AUS Tip: Property Type

Many times I recieve a file for AUS input and it does not have the "Property Type" marked on the 1003.

Without knowing the Property Type I can't complete the file and many times the processor or loan officer is not immediately available to give me this information.

So, please be sure and mark the correct Property Type when you send me your Calyx Point file.

Erin

Underwriting Tip: Try to send all the conditions in at one time

It helps when a processor sends all the conditions in at one time. This not only helps with that loan, but with the entire shop's ability to turn our more loans.

Plus, everytime an underwriter picks up a file, there is more of a tendancy to "look" at it again. I know that when I was a loan officer that I wanted the underwriter to pick up the file as few times as possible.

Kelley

Underwriting Tip: Number your conditions

The less an underwriting has to look through the file, the quicker and easier it will be for her/him to get your conditions cleared.

Numbering your conditions to correspond with the Underwriting Action sheet helps tremendously. In fact, when I recognize a file from a processor that I know numbers her conditions.....well, it just feels good to see the professionalism.

Ruth