How to use the Scenario Desk
|
The scenario desk helps you find which investors have eligible programs for unique and hard to accommodate loan scenarios. To search the database, enter a keyword and click on the "Search" button, or click on a category for a list of topics. The results will help you learn how each investor handles your scenario.
|
|
|
Click on the topic below to learn how your investor will handle unique loan scenarios. Or search by Keyword.
|
|
|
|
|
|
Select a category
|
|
|
|
|
|
Available topics for: Credit
|
|
|
|
|
|
|
| |
| | | |
| CitiMortgage | Credit | Forbearance | An agreement to forbear, workout or otherwise rearrange the terms of the original loan requires a written
explanation from the borrower as to why the original terms were not met. Forbearance on a mortgage should
be considered a foreclosure for evaluation purposes. This includes short payoffs or workouts by the servicing
lender’s loss mitigation or collection department. If the debt has been restructured due to the borrower’s
inability to repay on terms originally agreed upon, it does not change the fact that the loan was not paid in
accordance with original terms and must be considered an adverse risk factor. Note: DU and LP cannot read
or analyze the forbearance/workout therefore the AUS findings become null and void. The loan is not eligible
for delivery to the agencies. Underwriters need to be cognizant of these transaction structures and act
accordingly.
Exception: There are situations where a creditor will forgive all or a portion of a debt, or defer payment of the
debt for a specified period of time in exchange for services. For example, a teacher or doctor who agrees to
work in a rural or inner city area where there is a shortage of qualified professionals. Although documentation
of the forbearance is required to support the exclusion of the debt in the borrower’s ratios, it should not be
considered an adverse risk factor. Policy may vary based on the Documentation Process type selected. Refer
to the applicable Documentation Process for additional details. |
| PHH | Credit | Forbearance | The term "forbearance" usually implies that the customer is not able to meet their obligation as agreed, and the lender acknowledges this, but has agreed that they won't pursue standard collection practices, such as turning it over to a collection agency, judgment, etc., until a later date.
Student loans in forbearance will be considered in the overall evaluation of the loan profile. Refer to the Student Loans section of the Liabilities chapter for requirements regarding student loans in forbearance and deferred student loans. |
| Provident Funding | Credit | Forbearance | Any installment loan that is reflected on the credit report as being in deferment or forbearance must be included in calculating the Borrower’s debt ratio. If a payment amount is not reflected on the credit report, a direct verification will be required from the creditor, or a copy of the installment loan agreement obtained from the borrower. This will include debts on furniture, household items and automobiles on which the initial payment is delayed for a period of time as part of a promotional |
| Wells Fargo | Credit | Forbearance | Some debts may have deferred payments or are in a period of forbearance. These debts must be included in the qualifying ratio(s) if there are more than 10 months of payments remaining. |
|
|
|
|
Click on an investor name to access their profile, view news, and search for guidelines.
|
|
|
|
|
|
|
|
|