If you, as a borrower or Realtor, have been suprised by the depth of information asked from you, you might gain insight from the Mortgage Process Blog written by an FHA underwriter.
An underwriter is the person who personally signs off on your loan when it is approved. Underwriters who are authorized by HUD to underwrite FHA loans have a ”D.E.” designation, which is quite valuable at this time when FHA loans are in demand; and they risk losing the designation if their underwriting is determined to be substandard.
Lending decisions are no longer made by computers. A loan file is documented to provide as clear a picture as is possible, and an individual person looks it over and makes a decision. Getting a mortgage approved and closed is a longer process, and a more intensive process, than it was two years ago, and adjusting is painful.
But I’m glad that HUD is focusing on their mission and their responsibility to the taxpayers. And I’m realizing that we are lucky to have access to high-balance, 30-year mortgages at all.
