Automated mortgage underwriting involves processing mortgage applications primarily or entirely through computerized systems which evaluate eligibility and creditworthiness based on predefined criteria.
FICO scores measure borrower credit risk and are commonly used by mortgage underwriters when originating loans on owner-occupied homes. The score is based on the applicant’s credit history and credit usage patterns, expressed as a number between 300 and 850. This score determines loan approval and terms offered.
The front-end ratio is the proportion of a borrower's gross monthly income that goes toward housing costs, and it is utilized during the mortgage underwriting process to assess default risk.
The National Association of Review Appraisers and Mortgage Underwriters (NARA/MU) is a professional organization that provides certification, training, and support for individuals involved in property appraisal and mortgage underwriting. Membership in NARA/MU signifies a dedication to the highest standards of professional practice and ethics in the real estate appraisal and mortgage underwriting industries.
The Uniform Residential Appraisal Report (URAR) is a standardized form used by appraisers to provide a comprehensive valuation of residential properties. It is required by major secondary mortgage purchasers.
The Uniform Residential Appraisal Report (URAR) is a standardized report form used by appraisers when estimating the market value of a residential property, often in conjunction with mortgage underwriting.
