PUTTING FUN IN AUS GENEVA FINANCIAL TRAINING AND DEVELOPMENT

PUTTING FUN IN AUS GENEVA FINANCIAL TRAINING AND DEVELOPMENT

AUTOMATED UW SYSTEM OPTIONS

FANNIE MAE DU ON EPASS – FUN FACTS DU stands for Desktop Underwriter Was First Released in June of 1995 Is now used for Seller Servicers to underwrite and sell directly to Fannie Mae

The FNMA Streamline 1003 in Encompass is where most alerts can be addressed when running DU. DESKTOP UNDERWRITER TIPS AND TRICKS Running DO or DU and then attempting to run the opposite will not work. Once a file has been run through one of the systems it cannot be run through the other FHA Loans when run through DU are actually being run through Total Scorecard

ENCOMPASS DU INSTRUCTIONS Locate the Services Tab and Select Request Underwriting Select Fannie Mae DU on Epass

A direct integration that connects Encompass with DU DU ON EPASS Gives you access to the full DU system through the Access DU Loan List Option Contains Training Materials and UW Guides Provides a seamless transfer of information without having to export and import a 3.2 file.

ORDERING UNDERWRITING Click the Submit to DU on ePass option The next box that opens will be for adding your credit credentials to your EPASS profile Type in your Universal Credit User Name and Password in available field. Click Submit

FIELD WARNINGS Most warnings are simply missing data points that could strengthen your loan file. While all fields are not required to run DU, they are recommended. However some fields are critical data and will return an error if they are not completed.

RUNNING DU Once your field warnings are cleared or you are comfortable click the Continue button at the bottom of the box. DU will automatically Run and Your findings will be shown once it completes.

SUMMARY OF FINDINGS Fannie Mae Recently updated the format of the Summary of Findings page in DU There is now an Index on the right side which makes it easy to move between sections All Day 1 Certainty items will be listed All Messages will be grouped and counted

DU DID YOU KNOW? Fannie Mae offers a full selection of Job Aids which can be found at https://www.fanniemae.com/content/job-aid/desktop-underwriter/topic/ du entering the data for a purchase loan.htm Fannie Mae provides originators with a chart that can breakdown all potential MI options for your borrower. https://www.fanniemae.com/content/fact sheet/mi-plans-comparison.p df

FREDDIE MAC LPA– FUN FACTS First released in January of 1995 as Loan Prospector Offered the first streamline automated underwriting findings which allowed for reduced documentation requirements Recently Released its version of Day 1 Certainty called AIM

LPA TIPS AND TRICKS LPA System to System is a different type of integration than it sister DU. All input is directly related to the 1003 and Freddie Mac Additional Data Screen There are several additional fields on the Freddie Mac Additional Data Screen that must be completed for an LPA run to be successful (property type, processing point, loan purpose)

LPA SYSTEM TO SYSTEM ENCOMPASS INSTRUCTIONS Locate the Services Tab and Select Request Underwriting A Box will open, select Freddie Mac Loan Product Advisor System to System click Submit

SUBMISSION TO LPA Unlike DU/DO LPA does not require your credit credentials when submitting your file. It does require you to select the credit company Click the Credit Provider dropdown and select Equifax Mortgage Solutions A second dropdown will appear, select Universal Credit Services Click Submit

LPA VALIDATION ISSUES AFTER YOU SUBMIT THE UNDERWRITING REQUEST YOU COULD SEE A LPA VALIDATION ISSUES BOX OPEN.

CLEARING VALIDATION ISSUES Most issues can be resolved on the Freddie Mac Additional Data Screen, which is accessed by click the boxes at the bottom of the forms tab (Show All, Alpha Order) Unlike DU/DO, LPA will allow you to highlight the validation issue and click go to field. This will allow you fix that specific field. Repeat this step until you have cleared the issues.

REVIEWING YOUR FINDINGS Just like with DU/DO, LPA will provide you will a comprehensive findings report which will include all aspects of your loan file. You will be able to review the report by reviewing it from the Efolder Freddie Mac does provide Property Inspection Waivers and Electronic Validation

FREDDIE MAC SUPPORT AND TRAINING Freddie Mac has a modern tools and learning section on their website https://sf.freddiemac.com/tools-learning/loan-advisor/overview These tools include training videos and input guides and a comprehensive FAQ’s section that can give you a real edge when working in LPA https://sf.freddiemac.com/faqs/loan-product-advisor-faq

SUBORDINATE FINANCING/DPA/GRANT S Both AUS systems have different processes for inputting subordinate financing, dpa’s, and grants

DU/DO SUBORDINATE FINANCING/DPA/GRANTS True Subordinate financing will be input in on the Subordinate Financing screen in Encompass and will follow Fannie Mae Guidelines for CLTV DPA/Grants will be input differently

On the FNMA Streamline 1003 form in Encompass locate the MORNETPlus Community Lending Section ADDING DPA/GRANT FINANCING Even standard conventional loans that have a DPA or Grant attached will need to be marked by checking the box at the top of the section labeled Community Lending If there is a DPA/Grant second mortgage attached you will also need to check the Community Seconds box and use the dropdown labeled Repayment Structure, selecting the appropriate terms

LPA – SUBORDINATE FINANCING Unlike DU/DO Freddie Mac has a different process for structuring a these loans Standard Subordinate Financing will be input on the sub financing screen in Encompas and follow Freddie CLTV Guidelines

LPA – DPA/GRANT S LPA looks at these programs differently and therefore they are input differently On the Freddie Mac Additional Data screen locate the Gift Funds field at the top Put in the amount of the DPA or Grant in this field – LPA will not approve a standard Freddie Loan that exceeds 95% CLTV Only Home Possible for HFA DPA loans will allow higher CLTV

QUESTIONS?