Ž Effective
June 1 2010 Gateway will be updating our policy for FHA streamlines and VA IRRRL’s.
With new files submitted to Gateway Mortgage Group on or
after June 1st 2010, Gateway mortgage will require all FHA and VA
loans to have Credit pulled (Mortgage only w/ all three scores) for every borrower
and income docs submitted for each borrower for review by Underwriting.
Regardless of the streamline that is being submitted all will have this as a
“minimum” requirement. Streamline refinances present a higher probability
of fraud and delinquency based on servicing feedback from our internal
portfolio and in our discussions with HUD. Servicing lenders are required
by HUD to police their portfolio and assign certain overlays to ensure all
borrowers qualify for the loan that is being applied for. Setup and
Underwriting will be held to these requirements during Gateway’s due diligence
process.
The purpose of this policy is that we need to validate the borrower’s
income and debt ratio to make sure they qualify for the loan. It is
practical underwriting to make sure any borrower including streamlines can
qualify for the loan they are applying for. We are not pulling DU; we will
qualify the borrower on the DTI and income that is supplied.
Steve Peters
Gateway Mortgage Group LLC
(972)908-3390--
6/01/2010