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

    … The days of the billion dollar mortgage underwriting fraud may be over. That hasn’t stopped lenders from running afoul of the False Claims Act, however. 2016 was the third best year ever for the Justice Department in terms of whistleblower lawsuit recoveries. Much of that success comes from the mortgage industry. By the numbers, the government…

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

    … government funds or programs. Since most residential home loans are backed by Fannie Mae, Freddie Mac, the VA or the FHA, bankers working with mortgage underwriting or servicing may qualify. FIRREA and Whistleblower Awards FIRREA is short for the Financial Institutions Reform Recovery and Enforcement Act. Along with its companion FIAFEA (Financial…

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

    … and hiding bas loans from auditors may violate banking laws, however. In that case, if the behavior is significant, whistleblower awards may be available under FIRREA for those who step forward and report the misconduct. Bank Secrecy Act and Anti Money Laundering The federal government continues to pursue banks that help Americans commit tax…

    Due Diligence- 21 readers -