National Quality Assurance div of SMC

National Quality Assurance div of SMC Mortgage Industry Compliance Expert known as "Mother Mortgage" Her expertise is assisting new start up mortgage companies regardless of the size.

Industry Expert, Quality Control and Closed Loan Auditing Specialists, Forensic Audits, Telephone and E-mail Consulting, Expert Witness, Office Efficiency Audits. President and Owner,
Sonja Grant Wheeler NMLS License #174483 has 180 hours of continuing education. Our Story
NATIONAL QUALITY ASSURANCE DIV OF SMC·THURSDAY, JULY 26, 2018·
Since 1969, Sonja has a ton of hands-on experience in every

facet of starting and owning a mortgage lender/broker business. Affectionately known as “Mother Mortgage”. If you wanted to know something you always asked your Mother. How Sonja Can Help You: If you would like to experience being your own boss and start a mortgage company she can assist you with everything from a Budget, Licensing, Manuals, Software, Location, and Security to name a few of the items needed. If you need access to manuals and/or need state licensing information, I have a panel of experts (that value you as a client) to assist you. I specialize in counseling you on setting up or managing your mortgage business, so you don’t make costly mistakes along the way. I feel that is is so important to give back to the industry and share all the knowledge I have gained through the years to assist someone prosper and grow in a business they are passionate about. On going assistance is provided by: Annual renewable Consulting, Closed loan File Audits, State Office of Financial Regulation Audit preparation and assistance with findings if any, Audit File Check Lists for FHA, VA, USDA, Conventional Loan, Private Investor File Audits and Checklists, Office Audits, Expert Witness and any other mortgage related items.

01/31/2025

Fannie Mae - Using a Fund Raising Platform for Down Payment & Closing Costs

Our loan scenario desk experts receive thousands of questions from our subscribers.

Our experts work in the field and have over 25 years of experience, which is why they are known for saving a lot of deals.

We hope you learn something new!

Question:

Does Fannie Mae allow assets from crowdfunding websites to be used for closing costs, earnest money, or a down payment on a home? My clients are getting funds from GoFundMe.

Answer:

There is no discussion anywhere in the Fannie Mae selling guide for the use of a crowdfunding website as an eligible source of down payment, closing costs, prepaids, or reserves.

I do know that Fannie Mae (some years back) had a ‘test and learn’ pilot allowing a specific lender to offer a crowdfunding option. Still, it was limited to only one lender, and the last I heard from Fannie Mae, this pilot or ‘test and learn’ ended without any changes to the selling guides.

Some additional comments/thoughts:

Gift Funds: If the funds from GoFundMe are considered gifts, they might be acceptable if they come from an eligible donor (like a family member). However, each gift must be documented with a gift letter, and the donor must be an eligible donor. I suspect this is very unlikely, but I’m throwing this idea out there, ‘just in case.’

Donated Funds: If the funds are donations from entities or individuals not closely related to the borrower, this might be treated more like a grant or donation. Fannie Mae allows grants under certain conditions, but these are typically from established organizations or programs and not from a GoFundMe campaign. So, this is probably even more unlikely than my comment above.

Summary:

While there are no direct guidelines on crowdfunding, if these GoFundMe funds can be shown as legitimate gifts from eligible donors or as donations from entities that follow similar principles to grants, they might be acceptable.

However, this would require:

-Clear documentation of the source of each donation.
-Gift letters if applicable.

Verification that these funds are considered the borrower’s own funds or are from an acceptable source without any obligation to repay.

Given the ambiguity and lack of guidance, I suggest that the safest approach would be to consult directly with Fannie Mae and get their opinion in writing.

Subscribers have access to the Gifts & Gifts of Equity—All Agency Comparison Chart, which can be found under “Charts & Checklists.”

Submit Your Loan Scenario Question at www.mortgageguidelines.com

12/30/2024

It's the Best of our "Ask the Expert Questions" - December 2024 - Q&A Issue JUST RELEASED!

1 NEW Chart - Self-Employed Income as Secondary Income - All Agency Comparison
2 NEW Social Media Posts!
2 NEW Charts with Investor Overlays Added - Child Support - Family Owned Business - Both Income Analyzers with All Agency Comparison

Our Experts Get 100's of Questions Each Month - Here are Some Highlights!
✔ Calculating DTI When the Spouse is on a Property Deed but Not the Mortgage
✔ Using Short-Term Rental Income When Purchasing an Investment Property
✔ Using Stipend Income
✔ Using GoFundMe to Raise Assets to Buy a Home
✔ Equity vs. LTV Requirement for a Second FHA Loan
✔ FHA- Using Borrower Credit Score When Co-Borrower Has No Score
✔ Texas Refinance When Using FHA or VA Financing
✔ Number of Properties Permitted for a Shared Well
✔ VA Honorable Discharge That Does Not Meet Service Requirements

Plus, More Questions and Answers on Our Site!
Subscribers can find this issue under "Current Issue" and Archived Issues under "Past Q&A Issue."

Keeping You Smarter Than the Competition!
www.MortgageGuidelines.com

11/25/2023

New Job Aid Released - 401K Loans

Our Job Aid Includes:
* Why Clients Consider a 401K for Home Financing
* The Rules for Borrowing on a 401K
* How a 401K Loan Works
* How a 401K Loan Impacts Home Financing

Our new Job Aid can be found under “Latest Updates” on the Charts & Checklists page or under the category of “All Agency”.

Keeping you Smarter Than the Competition!
www.mortgagecurrentcy.com
Simplifying the Complicated

08/10/2023

"1031 Like-Kind Exchange" - All Agency Comparison w/Investor Overlays - Just Released!

Hooray! It's Finally Happening! Please Read Carefully!

After 100's of hours of research by our expanded team of experts who focus on Investors vs. Agency guidance, Mortgage Currentcy is excited to announce the first releases of comparison charts with investor overlays.

We host 100's of proprietary charts, so releasing them all at once would have delayed the process.

So, we picked the most used charts and the subjects with the most overlays and started there.

Each week this summer, we will be releasing an existing chart with the addition of Investor Overlays.

This fall, we will release more charts at a faster pace so that by the end of 2023, all charts will have Investor Overlay information.

This week's chart is "1031 Like-Kind Exchange" - All Agency Comparison.
* You will see the agency guidance at the top of the chart, as it has always been.
* Scroll down to the bottom, and you will now see the Overlays by Investor or Investors with No Overlays
* Charts with a "w/Investor Overlays" at the end of the name on the site denote that this chart contains Investor Overlays.

Previously Released Charts w/Investor Overlays are:
* Gifts & Gifts of Equity
* ADUs [Accessory Dwelling Units]
* Manufactured Homes
* Non-Occupant Co-Borrower
* Minimum Credit Scores
* Appraisal Waivers
* Nontraditional Credit

Find these under Charts & Checklists > "Latest Updates" or under "All Agency"

"Doing What Others Said Was Impossible is Fun!" - Walt Disney

Keeping You Smarter Than the Competition By Simplifying the Complicated!
www.mortgageguidelines.com

08/10/2023

"Appliances" - All Agency Comparison w/Investor Overlays - Just Released!

Hooray! It's Finally Happening! Please Read Carefully!

After 100's of hours of research by our expanded team of experts who focus on Investors vs. Agency guidance, Mortgage Currentcy is excited to announce the first releases of comparison charts with investor overlays.

We host 100's of proprietary charts, so releasing them all at once would have delayed the process.

So, we picked the most used charts and the subjects with the most overlays and started there.

Each week this summer, we will be releasing an existing chart with the addition of Investor Overlays.

This fall, we will release more charts at a faster pace so that by the end of 2023, all charts will have Investor Overlay information.

This week's chart is "Appliances" - All Agency Comparison.
* You will see the agency guidance at the top of the chart, as it has always been.
* Scroll down to the bottom, and you will now see the Overlays by Investor or Investors with No Overlays
* Charts with a "w/Investor Overlays" at the end of the name on the site denote that this chart contains Investor Overlays.

Previously Released Charts w/Investor Overlays are:
* Gifts & Gifts of Equity
* ADUs [Accessory Dwelling Units]
* Manufactured Homes
* Non-Occupant Co-Borrower
* Minimum Credit Scores
* Appraisal Waivers
* Nontraditional Credit
* 1031 Like-Kind Exchange

Find these under Charts & Checklists > "Latest Updates" or under "All Agency"

"Doing What Others Said Was Impossible is Fun!" - Walt Disney

Keeping You Smarter Than the Competition By Simplifying the Complicated!
www.mortgageguidelines.com

05/10/2023

Calculating Rent-to-Own Credits Towards Down Payment & Closing Costs

Fannie Mae, Freddie Mac & FHA permit rent credits to be used towards a down payment and closing costs. These can be set up via a private owner renting a property or large companies that specialize in this, like Divvy Homes. It’s a great way for renters to pay a little more each month than the average rent and have the additional money set aside for a down payment when they are ready to purchase the home.

Here's what you need to know:

Rent Credits refer to the amount of the rental payment that exceeds the appraiser’s estimate of fair market rent. The lender may use the cumulative amount of rental payments that exceed the appraiser’s estimate of fair market rent towards the down payment and closing costs. The lender must obtain:

• the rent with option to purchase agreement,
• the appraiser’s estimate of market rent, and
• evidence of receipt of payments.

Calculation Example: The Appraiser estimates the market rents for the home. Then subtract what was paid to the seller, and the difference is what you can use for the down payment and closing costs. So, for example, if the appraiser states the market rent is $1000/mo. and the borrower has paid $1200 per month, the additional amount paid over market rent is $200/Month. Multiply $200 times the number of months the renter paid under this agreement, and that total is the amount the borrower can use for the down payment and closing.

Where this becomes a challenge is that the Appraiser determines the fair market rent, and that can be at odds with the renter/landlord agreement. Sometimes the appraiser’s market value for rent differs from the agreement between the landlord and the renter. Under those agreements, the renter would still get the money set aside by the landlord, but they would only be able to use the difference between the fair market rent and what they paid.

For full details on how to use Rent Credits, Mortgage Currentcy hosts a “Rent Credits – All Agency Comparison Chart” for subscribers.

This guideline tip is provided by www.mortgageguidelines.com

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