Paramount Residential Mortgage Group Underwriting Credit Authority Levels

Transcription

1 Paramount Residential Mortgage Group Underwriting Credit Authority Levels Policy PRMG has established credit authority levels and new hire requirements for all underwriters within the organization. The levels are assigned to each underwriter based on their performance, PRMG and/or industry experience, and successful results on their PRMG probationary test cases. Overview PRMG underwriters are assigned a specific credit authority as approved by the COO, National Operations Manager or the Regional Operations Manager (as applicable). PRMG underwriters are encouraged to complete the necessary work/training and additional test cases required for elevating their credit authority as defined in this policy. Roles and Responsibilities All loans underwritten must be done so within the approved authority of the underwriter and/or signed off by the appropriate level of second review per this policy. Level I: Fannie Mae/Freddie Mac conventional products up to $417,000 o Excluding Fannie Mae s 5-10 financed properties VA non-credit qualifying IRRRL FHA non-credit qualifying streamline (must have CHUMS ID) PRMG Underwriting Credit Authority Page 1 of 5 Revised 09/1/17

2 Level II: VA non-credit qualifying IRRRL FHA non-credit qualifying streamline (must have CHUMS ID) Level III DE: FHA products to HUD county, which includes high balance loan amounts FHA manual underwrites permitted with second signature from Level V Underwriter VA test cases with conforming to $417,000 with review by designated SAR (VA loans require that the appraisal be reviewed and a NOV issued by a designated SAR with LAPP authority at PRMG) Level III DE/VA: FHA products to HUD county, which includes high balance loan amounts FHA manual underwrites permitted with second signature from Level V Underwriter VA conforming to county limit For VA, must be a designated SAR with LAPP authority at PRMG and able to issue VA NOV PRMG Underwriting Credit Authority Page 2 of 5 Revised 09/1/17

3 Level IV DE: FHA products to HUD county, which includes high balance loan amounts FHA manual underwrites permitted VA test cases with conforming to $417,000 with review by designated SAR (VA loans require that the appraisal be reviewed and a NOV issued by a designated SAR with LAPP authority at PRMG) Loan scenarios requiring an exception permitted If designated underwriter for region, all non-conforming/jumbo/niche/closed end second products (product is still subject to investor/third party second review and approval) If designated by the Operations/Underwriting Manager, second signatures for manual underwrites and exception scenarios PRMG Underwriting Credit Authority Page 3 of 5 Revised 09/1/17

4 Level IV DE/VA: FHA products to HUD county, which includes high balance loan amounts FHA manual underwrites permitted VA products to max loan amount offered, which includes high balance loan amounts VA manual underwrites permitted For VA, must be a designated SAR with LAPP authority at PRMG and able to issue VA NOV Loan scenarios requiring an exception permitted If designated underwriter for region, all non-conforming/jumbo/niche/closed end second products (product is still subject to investor/third party second review and approval) If designated by the Operations/Underwriting Manager, second signatures for manual underwrites and exception scenarios Level V Operations/Underwriting Manager: All products/scenarios/exceptions Second signatures Requirements for Requesting Additional Authority Levels Conforming First Time Credit Authority (No Previous Underwriting Experience): Candidate must be employed by PRMG for a minimum of 6 months and have manager approval. FHA First Time Nominee: For an underwriter to be nominated for a new DE they must have been employed by PRMG for a minimum of 12 months, currently a Level II and receive manager approval in addition to meeting HUD requirements. HUD states a nominee must have: a minimum of three years full-time experience reviewing credit applications and one- to four-unit property appraisals, within the past five years; or have a minimum of two years full-time experience reviewing credit applications and one- to four-unit property appraisals, within the past three years, combined with an additional three years of such full-time experience within the past ten years; and be a full-time employee of a single Mortgagee; and be authorized to bind the Mortgagee in matters involving origination of mortgages VA First Time Nominee or Dormant VA Credentials: For an underwriter to be nominated for a new VA Credit or SAR authority they must have been employed by PRMG for a minimum of 12 months (except dormant VA), have their DE Authority, have their manager approval and meet VA s requirements below: VA Credit Underwriting: PRMG Underwriting Credit Authority Page 4 of 5 Revised 09/1/17

5 At least 3 years experience in processing, pre-underwriting, or underwriting mortgage loans with at least 1 year of the most recent 3 years making underwriting decisions on VA loans or a current Certified Residential Underwriter (CRU) designation from the Mortgage Bankers Association. VA SAR or Appraisal (LAPP) Underwriting: Must have at least 3 years of work experience which qualifies underwriter to competently perform administrative appraisals reviews in conjunction with underwriting loans for VA loan guaranty purposes. Note: Three years of experience related to the HUD Direct Endorsement program satisfies the experience requirement provided all other application requirements are satisfied. PRMG Underwriting Credit Authority Page 5 of 5 Revised 09/1/17