Mortgage Underwriting

Mortgage underwriting is the process a lender uses to determine if the risk (especially the risk that the borrower will default) of offering a mortgage loan to a particular borrower is acceptable. Most of the risks and terms that underwriters consider fall under the three C’s of underwriting: credit, capacity and collateral. (In the UK they are known as the three canons of credit - capacity, collateral and character.)To help the underwriter assess the quality of the loan, banks and lenders create guidelines and even computer models that analyze the various aspects of the mortgage and provide recommendations regarding the risks involved.
Posts about Mortgage Underwriting
  • Mortgage Underwriting Fraud in 2016 – Whistleblower Post

    … another mortgage underwriting fraud cases against Primary Residential Mortgage (PRMI). The company agreed to pay $5 million to settle the case. According to the Justice Department, “PRMI admitted it endorsed loans that were not eligible for FHA mortgage insurance, including loans where: PRMI failed to document the assets used to qualify…

    Due Diligence- 18 readers -
  • “My Family Thinks I’m a Fraud for Working at Wells” – FIRREA Post

    … right by their customers. The rot is at the top of the organization. Its not with tellers, private bankers, underwriters, and customer service specialists. So what is the alternative? For some bankers, it may the False Claims Act, FIRREA or the Fair Labor Standards Act. For some downtrodden workers those three laws can become the trifecta. False…

    Due Diligence- 13 readers -
  • Comptroller of Currency ’16 Whistleblower Opportunities

    … all lead to FIRREA awards. Some misconduct, such as bad mortgage underwriting, can also lead to even larger whistleblower awards under the False Claims Act. If you know of fraud, report it. We can help you qualify and collect the largest possible award for your information. Need more information? Contact attorney Brian Mahany at brian…

    Due Diligence- 21 readers -