Underwriting

Underwriting: Financial Assessment, Round One 

Recently, lenders and investors have suspended or changed their published financial assessment requirements. Based on NRMLA guidance put forth last fall, the best processes offered were aimed at addressing an increase in borrower tax and insurance defaults.This reassessment has given rise to a heightened awareness of the effects of a borrower’s prior delinquent T&I payment history, requiring additional focus on underwriting process to determine the ability and willingness of the borrower to meet these expense obligations in the future.   The likelihood and predictability of T&I default has been well documented and reviewed by lenders, servicers and HUD. This first