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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 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