TIP OF THE DAY- PAST DUE, COLLECITON AND CHARGEOFF OF NON MORTGAGE ACCOUNTS

Good Morning.

 

Due to the high volume of resubmissions, current turn times are 48 hours. We appreciate your patience as we try to resume to our normal 24 hours.

 

TIP OF THE DAY- Past Due, Collection and Charge off of Non Mortgage Accounts

 

PAST-DUE, COLLECTION, AND CHARGE-OFF OF NON-MORTGAGE ACCOUNTS

FANNIE MAE

Accounts that are reported as past due (not reported as collection accounts) must be brought current.

§   For one-unit, principal residence properties, borrowers are not required to pay off outstanding collections or non-mortgage charge-offs—regardless of the amount.

§   For two- to four-unit owner-occupied and second home properties, collections and non-mortgage charge-offs totaling more than $5,000 must be paid in full prior to or at closing.

§   For investment properties, individual collection and non-mortgage charge-off accounts equal to or greater than $250 and accounts that total more than $1,000 must be paid in full prior to or at closing.

 

FREDDIE MAC

When Loan Product Advisor returns an Accept response it is not required to payoff past-due, collection, and/or charge-off of non-mortgage accounts.

 

We in underwriting, continue to invite you to utilize the  UWSupport@genevafi.com mailbox.  This email is monitored and responses are sent out numerus times during the day by the underwriting department.  Please send all scenario or guideline questions to this address and not directly to the underwriters.  Thank you to those who have been utilizing this service.

 

justin brown