Module 1: Introduction
In a mortgage transaction, the lender will request several documents for risk assessment and mitigation, compliance, processing, and underwriting, and to fulfil investor requirements. This Hands-On Guide to Documentation: Jr. Underwriting will cover documentation that is generally seen by Jr. Underwriters over the course of their file review.
How this Hands-On Guide Works
The rest of this guide is divided into five more modules, with each module addressing different types of documentation requested. It is important to keep in mind that not all the documents listed in this guide will be requested in each single loan file.
Module 2 covers documents broadly related to the loan application (the Uniform Residential Loan Application Form 1003) and the loan terms, that don’t fit the rest of the categories in this Hands-On Guide.
Module 3 covers credit documentation, including the credit report, which help assess the creditworthiness of the borrower through their credit history.
Module 4 covers income documentation, which are documents that support the borrower’s capacity to repay the loan.
Module 5 covers asset documentation, which help verify the capital that the borrower will use to pay the downpayment of the property and the closing costs.
Module 6 covers title documents, which are requested from the Title Insurance Company during the loan setup milestone.
Module 7 covers property-related documentation, such as the appraisal report, real estate contract, and insurance documents, which can be encountered in different loan files.
For each document, the guide will provide a brief description of the document and indicate the document’s context, key takeaways, and important items to be aware of during review.
Context: Items that help identify the document. Highlighted in green.
Key takeaways: Important items that should be reviewed once the document is received to ensure completeness and accuracy. Highlighted in blue.
Important notes: Things to keep in mind when reviewing documents.