A computer – based method that enables mortgage lenders to process loan applications more quickly by using credit – risk scores and other loan application data to make a recommendation on whether or not to extend a mortgage loan.
A computer-base (automated) underwriting system that helps mortgage lenders collect and analyze information needed to process mortgage loan applications."B" or "C" Loan A loan that reflects less than the best possible interest rate, terms and conditions. Consumers with impaired credit may be offered "B" or "C" loans. These loans always impose higher interest rates and fees and should be closely scrutinized.
The process of approving of a mortgage loan using sophisticated computer models by entering a consumers credit profile and other important property information into a secure electronic database. Loans, which are approved by automated underwriting, still must be underwritten.
A home mortgage computerized method of reviewing applications for loan approval. alloon Payment - A lump sum payment for the unpaid balance of the loan either at the end of the loan, or at agreed upon dates.
A tool that automates the process of qualifying and underwriting borrowers.
An automated process performed by a technology application that streamlines the processing of loan applications and provides a recommendation to the lender to approve the loan or refer it for manual underwriting.
A home mortgage computerized method of reviewing applications for loan approval. back to the top
A term used to refer to an instant underwriting decision regarding an application for a mortgage loan. There are several systems in use today, including Loan Prospector and Desktop Underwriting.
A computer-driven process for informing the loan applicant very quickly, sometimes within a few minutes, whether the applicant will be approved, rejected, or asked for additional information. The quick decision is based on information provided by the applicant, which is subject to later verification, and other information retrieved electronically including information about the borrower's credit history and the subject property.
A computerized method of reviewing home mortgage applications for loan approval.
A particular computerized system for doing automated underwriting. Mortgage insurers and some large lenders have developed such systems, but the most widely used are Fannie Mae’s “Desktop Underwriter†and Freddie Mac’s “Loan Prospector.
A service that enables lenders to obtain a risk classification without traditional manual underwriting. Freddie Mac's service, Loan Prospector, is statistically based on the performance of past loans; others are rules based.
A technology application, such as Fannie Mae's Desktop Underwriter®, that streamlines the processing of loan applications and provides a recommendation to the lender to approve the loan or refer it for manual underwriting.
Computer systems that permit lenders to expedite the loan approval process and reduce lending costs.
An automated system that renders a loan recommendation on a mortgage application. Automated underwriting systems streamline the processing of a loan by determining the documentation a borrower must provide upfront. In many circumstances these systems will allow for greatly reduced documentation.
After you complete your loan application with a lender, it is sent to "underwriting" for review. In short, underwriting is the process used to analyze how you have managed credit obligations in the past, whether you have the ability to repay the mortgage loan you are applying for (i.e., your income and assets), and whether the price you are willing to pay for the home is supported by the price of the property.