UPBEAT TIMES, INC. • June 2016 • 27


SANTA ROSA, CA. ~ Te morning light comes streaking through my window nudging me out of bed. As we approach the longest day of


the


year, the prolonged daylight stretches into the night. Tis time of year invokes growth and change. We plan our vaca- tions, attend gradu- ations, weddings, BBQs, and meander through the farm- ers markets.


June has cycled


around and summer is in the air! Summer is the prime home-


buying season. Whether you are a first-time home buyer, or a move-up buyer, the transac- tion begins with an open es- crow. How the close of escrow comes about, will usually de- pend on how well your financ- ing goes. Summer is between school years and is an ideal time for families to transition into a new residence without too much disruption of their daily routines. Most purchases usually require some form of financing. Tere are new changes in un-


derwriting that will start June 25th. All loans get underwrit- ten through an Automated Underwriting System (AUS). Basically, AUS is soſtware that will review all of the data and


Upbeat Times Advertising Position Open!


Flexible Hours! Send upbeat resume to:


upbeat@upbeattimes.com GREAT PAY!


Positive Attitude


Manditory. Ad Experience Neccessary.


Some Computer Skills required. Understanding


of basic advertising design & layout required.


Download these Delicious Live-Changing Recipes Today! Available on iTunes and Amazon


300 Golf Course Dr.Rohnert Park, CA 94928 “Home is the place where, when you have to go there, They have to take you in.” ~ Robert Frost


707- 585-0226 UPBEAT TIMES, INC. • June 2016 • 27


Are You a Trender? by Barry O'Meara • barryo@stearns.com crunch the numbers.


Tis


ensures the loan meets the guidelines for whatever loan program you are ap- plying for. Desktop Underwriter (DU) is Fannie Mae’s AUS and Loan Prospec- tor (LP) is Freddie Mac’s. Tere is also GUS for govern- ment loans, but the majority of loans


are run through DU or LP. For the last couple of months, the credit bureaus have been changing their formats and the look of the credit reports. Tey have added a new sub category that tracks the bor- rower’s pay- ment


habits. Te


old for- indi-


mat just


your bills without missing a payment.


cated that you paid Now, besides re-


porting the payment history, they report the amount you paid and what the minimum payment was. Tis reporting is called Trending. So, the un- derwriting system will know if you are just making the mini- mum payment, or paying the card off in full each month, or something in-between. Aſter June 25th this information will be incorporated into the data


crunch that makes the decision whether you get approved for a loan or not. For right now, only Fannie Mae will be incor- porating this new information. Freddie Mac has not yet said when they will include this in their soſtware. Tis change in credit report- ing does add new insight into consumer habits for managing credit. With the old report- ing, it did not give a borrower credit for paying off the credit cards in full each month. I would have borrowers tell me they never


carry a balance, but when I would pull their


credit, their credit report would show a balance owed with a minimum payment. Now with Trending show- ing what their balance was,


Weird Facts & Fun Trivia - 7


and what they paid on it each month, will demonstrate how the borrower is a better credit risk over a borrower that con- tinually struggles to pay down their balance. For now, we are waiting to see


how this new change in credit reporting will pan-out in the underwriting decision.


Fan-


nie Mae has committed to us- ing this “trending” as part of its approval process. Freddie Mac has not set any committed date it will incorporate the trending reporting. If lenders are hav- ing trouble getting a Fannie Mae approval through DU you will find lenders shiſt-


ing their loans to LP, in other words Freddie Mac. So where are you on the credit treadmill? Do you pay more than the minimum due? If you are considering getting a mort- gage you may want to consider your payment patterns. I know the lender will.


Finland’s Flag Day is celebrated on the Saturday closest to June 24.


On June 6th, Sweden celebrates its national holiday, Flag Day.


On June 12, The


Philippines’ Independence Day is celebrated.


June was named after the Roman goddess Juno, who is the wife of Jupiter.


June is also home to National Candy Month, National Dairy Month, and National Iced Tea Month .


The famous English tennis tournament, Wimbledon, is played during the month


of June.


LANES Double Decker


Sign Up Now! Program Starts June 6th


Program runs through September 4th Go to: www.kidsbowlfree.com/doubledecker


THE MORTGAGE COACH


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32