Fannie Mae = 1003

Freddie Mac = 65

• check stubs
• W2s
• copies of bank statements and other documents
• verification forms (sent to the borrower's employer, banks, other creditors and any previous mortgage lender)

Automated Underwriting Systems

• provides consistent underwriting decisions using statistical computer modesl based on traditional underwriting factors.
• Ignores factors such as race, ethnicity, age or any other characteristic prohibited by law

• gathers all necessary documents
• calculates the various prorations, adjustments and fees charged to each party
• Compares the GFE of closing costs to the HUD-1 settlement statement to verify the proper tolerance with disclosed fees

• Straight Note or Interest Only Note - calls for payments o interest-only during the term of the note, with a balloon payment at the end of the loan term to pay off the principal amount; usually a short-term loan
• Installment Note - calls for payments of principal and/or interest at designated intervals (possibly, a balloon payment may be required)
• Partially Amortizing Installment Note or Installment Note with balloon - calls for periodic payments of principal and interest during the loan term with a balloon payment at the end of the term to pay off the balance due
• Fully Amortizing Installment Note/ Self Liquidating Note - calls for regular payment of principal and interest, calculated to pay off the enture balance by the end of loan term

1. Trust Deed: borrower is trustor, lender is beneficiary. Title theory = non-judicial foreclosure
2. Mortgage: borrower is mortgagor, lender is mortgagee. Lien theory = judicial foreclosure

1. equitable right of redemption - the right to save or redeem the property prior to the confirmation of sale
2. statutory right of redemmption - allows debtors to redeem themselves after the final sale
3. deed in lieu foresclosure - debtors still lose the property, but by conveying it voluntarily before final court action, they avoid having a foreclosure on their credit record.