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03-11-2008, 08:21 AM

FHA Secure requires that the mortgage rate 0X30 the 6 months prior to adjustment with a reasonable payment history prior to that on the mortgage history. The rolling lates are indicative of an issue, however if they were prior to adjustment, the FHA underwriter has their hands tied, they can not approve the loan under FHA Secure guidelines...

Plus a rolling 30 and or other rolling event during forbearance is looked at as the borrower being in Foreclosure status, Forbearance is not arrived at unless the borrower is seriously and demonstratively delinquent. If this all occurred prior to adjustment the FHA underwriters hands are just plain tied, they are not able to approve the loan. I am sorry, I would be in the same position to, we have to adhere to the guidelines or the loan is uninsurable by FHA and we are in deep you know what with FHA and with our employers. FHA monitors us as underwriters and audits a percentage of our files....oh joy yet another master....

As you write the courts are getting ready to dismiss the foreclosure action that apparently was filed due to non-action on Saxon's part, so there was a foreclosure filed even if on the most basic of levels. That too will show on the credit report.

It is true that we do reconsider loan requests with additional documentation after an initial decision has been made, however, with the guidelines so doggoned tight on the FHA Secure....I think that sadly enough that the underwriter would be unable to make a positive decision. I am not looking at the file and I am very liberal in my application of the guidelines in these cases, we are looking to get people out of the mess that is place, but the guidelines are so restrictive on this one, my initial read would be that we could not extend the approval due to the rolling lates and the prior Foreclosure activity if it occurred prior to adjustment of the loan. We have not been to successful with any loan that has been or is in foreclosure as FHA rules are 36 months from the last foreclosure event prior to any consideration in a favorable light....

Please try, but be aware that the underwriter is tied to the guidelines in these cases, more than perhaps they would like to be.

The Ohio program is not one that I am familiar with and due to the problems in Ohio, may be more forgiving in the analysis of the credit issues as pertains to the mortgage credit side of the credit analysis.

03-11-2008, 08:21 AM	#10 (permalink)
Mary Salzer Guest Posts: n/a	Re: Question about FHA Secure FHA Secure requires that the mortgage rate 0X30 the 6 months prior to adjustment with a reasonable payment history prior to that on the mortgage history. The rolling lates are indicative of an issue, however if they were prior to adjustment, the FHA underwriter has their hands tied, they can not approve the loan under FHA Secure guidelines... Plus a rolling 30 and or other rolling event during forbearance is looked at as the borrower being in Foreclosure status, Forbearance is not arrived at unless the borrower is seriously and demonstratively delinquent. If this all occurred prior to adjustment the FHA underwriters hands are just plain tied, they are not able to approve the loan. I am sorry, I would be in the same position to, we have to adhere to the guidelines or the loan is uninsurable by FHA and we are in deep you know what with FHA and with our employers. FHA monitors us as underwriters and audits a percentage of our files....oh joy yet another master.... As you write the courts are getting ready to dismiss the foreclosure action that apparently was filed due to non-action on Saxon's part, so there was a foreclosure filed even if on the most basic of levels. That too will show on the credit report. It is true that we do reconsider loan requests with additional documentation after an initial decision has been made, however, with the guidelines so doggoned tight on the FHA Secure....I think that sadly enough that the underwriter would be unable to make a positive decision. I am not looking at the file and I am very liberal in my application of the guidelines in these cases, we are looking to get people out of the mess that is place, but the guidelines are so restrictive on this one, my initial read would be that we could not extend the approval due to the rolling lates and the prior Foreclosure activity if it occurred prior to adjustment of the loan. We have not been to successful with any loan that has been or is in foreclosure as FHA rules are 36 months from the last foreclosure event prior to any consideration in a favorable light.... Please try, but be aware that the underwriter is tied to the guidelines in these cases, more than perhaps they would like to be. The Ohio program is not one that I am familiar with and due to the problems in Ohio, may be more forgiving in the analysis of the credit issues as pertains to the mortgage credit side of the credit analysis.