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Article: Loan Prospector, from judge to judged. (Federal Home Loan Mortgage Corp.'s automated underwriting system)
- Article from:
- ABA Banking Journal
- Article date:
- December 1, 1997
- Author:
CopyrightCOPYRIGHT 1997 Simmons-Boardman Publishing Corporation. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The major benefits of automated underwriting, which conventional lenders have enjoyed for years, are now being made available to government mortgage lenders. Conventional lenders using automated underwriting say that they value not so much the underwriting decision as the possibility of credit waivers and, more importantly, being allowed to supply minimal documentation to substantiate a loan application. This shrinks their processing departments and mortgage closing times.
Until now, lenders making Veterans Administration loans and Federal Housing Administration loans were not allowed to change their basic underwriting procedure even if they used automated ...