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TOC | Next | UNDERWRITING GUIDELINES UNDERWRITING PHILOSOPHY: ASMC attempts, absent
conflicting regulatory issues to the contrary, to make common sense decisions when reviewing an applicant's income, assets and liabilities, credit history and property valuation. Please
include any information you may consider relevant in your submission package. We underwrite according to our interpretation of FNMA, FHLMC, FHA, VA, and our investor's guidelines.
Occasionally you may experience a requirement from our underwriter with which you are unfamiliar or cannot locate in the regulations. In these instances, please do not hesitate to call us
for clarification. TIME FRAMES: ASMC strives to maintain a two business day turn-around time for all "full file" loans requiring In-House approval. This time frame
begins upon our RECEIPT
of the properly packaged loan file, and includes "Credit only" files. We will notify you when we receive the file and indicate in a return confirmation memo when you should expect a response to allow you to notify your applicant. Response time may vary based on volume of files received.
We hope to provide the best possible service to our correspondents. Should there be a situation that requires an exception to our standard underwriting time frame, we will do our best to
expedite and accommodate. In these instances the file should be so noted, along with a phone call to our underwriting department. This should, however, be the exception and not the
rule. For AUS (automated underwriting system) transactions, we attempt to provide same- or next business day response. This time frame may vary, however, based on volume of files
received. Should an unexpected or unusual delay effect the time frame, we will notify you as soon as possible. Loans requiring submission to an outside investor require a minimum
of an additional 48 hours. These loans will be reviewed by ASMC the same day they are registered in the ASMC underwriting department. The Lender will be notified if additional
information or documentation is needed prior to submitting the loan to the investor. Requests for additional information will delay the submission to the investor. Should a loan
submitted for underwriting be put in a PENDED status, ASMC will re-underwrite the file within two business days upon receipt of ALL pended items. Loans which have been
approved with conditions or requirements will be cleared within one business day from the receipt of ALL required items. Please attempt to deliver ALL conditions together. We
can improve our response time greatly if we can reduce the number of times a file has to be handled. CREDIT ONLY/PRE-QUALIFY UNDERWRITINGUpon request, ASMC will underwrite
"credit-only" files (no appraisal) for the purposes of pre-qualifying an applicant provided we are supplied with an original and complete credit package. However, while we will offer an
opinion as to the acceptability of a borrower or a situation based on copy packages or partial documentation, we will not commit to a credit decision based on a review of a copy package.
FILE RETURN POLICY When requested by our customer, when a file is declined and the correspondent has canceled the lock and notified the ASMC underwriting department that the
file WILL NOT be resubmitted, the original credit file will be returned to the correspondent. This will not be done until every effort to reconsider the file has been exhausted.
ASMC STANDARD APPROVAL REQUIREMENT: On purchase money transactions, a termite certificate is required on all Oklahoma loans on existing construction. The
certificate should be dated within 60 days of the date of closing. A flood certification is required on all loans.
The following is required on all well and septic systems: (All required inspections should be dated within 60 days of closing.)
- On new construction: Local or state health department approval is required. The new system must be installed in compliance with all
health authority requirements. (There should be no reason that a new system cannot be installed properly). In Oklahoma, DEQ form 576 on the septic is required; on the well DEQ form 579 is required.
- On FHA and Conventional purchases of existing homes:
- Wells - DEQ form 579 is required; the form should include evidence of a recent, satisfactory water test (form 581). If the 579 indicates that the well does not comply with
requirements due solely because of distance to the house, a waiver must be requested from ASMC management prior to closing. In addition to the DEQ 579, a current water test
is required and should include a bacteriological, nitrates and lead test.
- Septic Systems
- A visual inspection (the form is usually called "Existing System Report") is required. Obtained from health authority.
NOTE: On conventional refinance transactions only, in most instances, unless otherwise noted on the underwriting report to the contrary, we will waive the well water test and septic
system health authority report provided, however, that the appraiser comments on the appraisal report that the septic system appears to be functioning properly and there is no evidence of
seepage. Original signatures from the borrowers should be on copies of tax returns submitted. A rental dwelling hazard insurance policy is required if the applicant is retaining
their existing primary residence for rental purposes. For all Oklahoma transactions, a non-qualifying spouse must sign the mortgage with exculpatory language, but cannot
take title to the property. If a borrower is retaining their existing primary residence, and the subject property is approximately the same value or is lesser in value, a letter of
explanation on the reason for the move is required. When a purchase contract reflects that the earnest money has been deposited with the seller rather than a third party (usually in cases of
"for sale by owner" transactions) the earnest money deposit must be placed in escrow with the title company prior to submission for underwriting, if credit is to be given for the
deposit. A recertification of value submitted from an appraiser must include original photographs of the subject property. ASMC does not normally escrow for repairs to be
completed. Any requests for repair escrow holdbacks must be approved by ASMC management prior to closing.
The following documentation is required to request an escrow for repairs:
- An estimate of costs of repairs to be completed
- A final inspection which indicates that all repairs, other than those being postponed, have been completed.
- The escrow will be 1 1/2 times the estimate with a MINIMUM escrow of $500.00.
- Repairs to be postponed should generally be weather related, or extenuating circumstances must be present.
Normally, no more than 30 days can be given for completion. An escrow agreement is required, see Exhibit 23 for conventional loans. - If ASMC is to hold the funds, an administrative fee $100.00 will be charged.
- Lender should collect for an additional inspection to be made when repairs are completed.
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