RC_LP_U_307.1 Underwriting Jumbo Loans

This is a single-family/residential course.

Jumbo mortgage loans provide customers with a financing opportunity to purchase or refinance a home when the first mortgage loan amount exceeds conforming loan limits. Industry statistics report an increase in jumbo loans in recent years. This increase is due to an increased availability of jumbo loans, and jumbo loan interest rates that have become more affordable. Additionally, it is not only the mortgage giants offering jumbo mortgages. Smaller regional and local banks are also participating in this market and can usually provide faster service for purchase and even refinance of jumbo mortgage loans.

The conforming loan limit adjustments of Fannie Mae and Freddie Mac may fluctuate annually and are based on the October-to-October changes in the mean national home price, as published by the Federal Housing Finance Agency (FHFA). Typically, a home requiring a jumbo mortgage exceeds the mean, hence the need for a higher loan amount.

Underwriting Jumbo Loans defines jumbo mortgage loans and summarizes the steps needed to submit conventional, non-conforming, jumbo loan products to Fannie Mae's Desktop Underwriter and Freddie Mac's Loan Product Advisor. The course begins by defining jumbo loans as well as loan limitations. Next, it discusses property appraisal considerations for jumbo loans. The course then reviews some investor standards for jumbo loans. At the end of the course, the use of automated underwriting systems for evaluating jumbo loans is addressed.

Topics:

Defining Jumbo Mortgage Loans

Underwriting Risk

Jumbo Underwriting Complexities

Jumbo Loan Evaluations in AUS

 

Seat time approximately 1.5 hours.

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