What is the loan Prospector identifier?
A unique identifier assigned to a Mortgage by Loan Prospector when the Mortgage is first submitted to Loan Prospector. The Key Number is returned to the Seller on the Feedback Certificate and is used by the Seller and Freddie Mac to identify an individual Mortgage.
What are the 4 C of underwriting?
Standards may differ from lender to lender, but there are four core components — the four C’s — that lender will evaluate in determining whether they will make a loan: capacity, capital, collateral and credit.
What is desktop underwriting?
Desktop Underwriter is an automated system for mortgage underwriting that calculates if a loan meets approval requirements. It is used by Fannie Mae and, in some cases, the Federal Housing Authority. The program uses Form 1003 plus more than 75 third-party vendors to predict if the borrower will be approved for a loan.
What is MAF on LPA?
Note: The optional Loan Processing Stage field indicates the point in the loan origination process at which the loan is being sent for assessment. You will not receive Minimum Assessment Feedback (MAF) in stage 1 (Prequalification).
What is Freddie Mac BorrowSmart?
The Freddie Mac BorrowSmart program can provide up to $2,500 in down payment/closing cost assistance based on area median income (AMI) and other eligibility criteria. It may be used to cover 100% of funds needed to close.
What does QC mean in underwriting?
Lenders originating loans for secondary market sale are required to conduct quality control (QC) reviews on their loan packages. Quality control is an independent re-underwrite of a loan file and verification that the loan complies with both regulatory requirements and investor guidelines.
What is a Du from a lender?
Desktop Underwriter® (DU®) – the industry-leading underwriting system – helps lenders efficiently complete credit risk assessments to establish a home loan’s eligibility for sale and delivery to Fannie Mae with easy-to-use, powerful tools.
What is Freddie Mac LPA?
Loan Product Advisor is our enhanced automated underwriting system. It helps simplify your origination processes and provides you with greater certainty that your loans meet Freddie Mac eligibility requirements.
Is Fannie Mae DU or LP?
Fannie Mae uses the automated underwriting system called Desktop Underwriter or DU, while Freddie Mac uses the AUS called Loan Prospector or LP. Both of these systems do similar functions. They are the systems that lenders submit a home buyer’s information to for automatic approval.
Can you run FHA Through LP?
This mortgagee letter announces that FHA has approved Freddie Mac’s Loan Prospector (LP) for use on FHA insured mortgages effective March 2, 1998.
What is a 10 day PCV?
10-day pre-closing verification (10-day PCV) The 10-day PCV, when required, must either be obtained no more than 10 Business Days prior to the Note Date, or after the Note Date but prior to the Delivery Date.
What is MAF in mortgage?
A Minimum Assessment Feedback (MAF) message specified on the Feedback Certificate indicating that a Mortgage may be originated without an appraisal or inspection of the Mortgaged Premises.
What is Homepossible?
Home Possible is a Freddie Mac program for low and middle income borrowers. It offers low down payments, low fees, and low mortgage insurance requirements. Borrowers have flexibility in funding their down payments.
What is QC review?
The purpose of the quality control review is to determine whether an audit organization’s internal quality control system is in place and operating effectively, and to provide assurance that established policies and procedures and applicable auditing standards are being followed.
What is QC in mortgage lending?
Mortgage quality control involves preparing the correct documents, obtaining signatures from the right people, providing the proper disclosures at the appropriate time, and maintaining accurate documentation.
What are the 6 steps of loan process?
The 6 Steps of the Mortgage Loan Process Explained
- #1: Mortgage Pre-Approval. The first step in the mortgage loan process is getting pre-approved for a loan.
- #2: Finding a House/Purchase Agreement.
- #3: Preparing Your Application.
- #4: Application Processing.
- #5: Mortgage Underwriting.
- #6: Mortgage Approval and Closing.
What is du and LP in mortgage underwriting?
So remember, Desktop Underwriter (DU) is Fannie Mae’s automated underwriting system, and Loan Prospector is Freddie Mac’s. How Do DU and LP Apply to the Mortgage Process?
What is the difference between Desktop Underwriter and loan product advisor?
But Freddie and Fannie have to be careful about what loans they purchase, so they created DU and LPA to help assess risk. Desktop Underwriter is the AUS run by Fannie Mae and Loan Product Advisor (formerly called Loan Prospector) is the AUS run by Freddie Mac.
What is an automated underwriting system?
Still, an automated underwriting system is a great way to double-check and avoid missing something before the loan goes to the underwriter.