Overview of FHA, VA, USDA – Underwriting for Mortgage Loans Three-Hour Remote Session – ON-DEMAND WEBINARS

Recorded Date: June 2, 2022
Presented By: Anetria Cohen, Vice President and Senior Consultant, ProBank Austin

A three-hour program that reviews the requirements for federally insured or guaranteed mortgage loans.

Mortgage loans, with greater loan amounts and longer terms, can be risky for financial institutions, as customers may default or become delinquent, potentially requiring the long and sometimes frustrating foreclosure process. As we would like to avoid this as much as possible, many financial institutions turn to the secondary market to control this risk.

This includes loans that may be insured or guaranteed – thus ensuring that the financial institution will get its money back – by the federal government. The U.S. Federal Housing Administration (FHA, as part of the Department of Housing and Urban Development (HUD)), the Department of Veterans Affairs (VA), and Department of Agriculture (USDA) provide numerous programs that assist borrowers in obtaining a mortgage loan who may not otherwise qualify for conventional loans, as institutions are more willing to enter into risker loans because the loan is insured or guaranteed.

In order for these agencies to insure or guarantee a loan, the borrower and transaction must meet specific, and often, strict requirements, including underwriting requirements. If the institution does not meet these requirements, the agency may take administrative actions, including the institution’s ability to use these programs.

This program will provide an overview of these underwriting requirements, focusing on manual underwriting requirements, but also discussing if and how the effect of the use of an automated underwriting system (AUS) may have on the process.

HERE IS WHAT YOU WILL LEARN:

• Lender’s responsibilities
• Documentation and verification requirements
• How income, assets, and debt must be considered
• Credit history review
• Special underwriting considerations, including refinance loans
• Effect of AUS