A loan application must be documented on the following forms:
The initial loan application must include sufficient information for the underwriter to reach an informed decision about whether to approve the mortgage loan. The final loan application signed by the borrower must include all income and debts disclosed or identified during the mortgage process.
A complete, signed, and dated version of the final Form 1003 or Form 1003(s) must always be included in the mortgage file. If either the note or the security instrument and the final Form 1003 or Form 1003(s) will be executed pursuant to a power of attorney in accordance with this Guide, then the initial Form 1003 or Form 1003(s) must be personally signed by the borrower (except as provided below) and included in the mortgage file. See B8-2-03, Signature Requirements for Security Instruments, B8-3-03, Signature Requirements for Notes, B8-5-05, Requirements for Use of a Power of Attorney, for additional information. However, a power of attorney may be used to execute both the initial and final Form 1003 or Form 1003(s) in any of the following circumstances:
a borrower is on military service with the United States armed forces serving outside the United States or deployed aboard a United States vessel, as long as the power of attorney
expressly states an intention to secure a loan on a specific property, or
complies with the requirements under the VA Lender’s Handbook relating to powers of attorney for VA-insured mortgage loans, or
the attorney-in-fact or agent is the spouse or domestic partner of the borrower;
the attorney-in-fact or agent signs the security instrument in their personal capacity with regard to their individual ownership interest in the mortgaged property; or
such use is required of lender by applicable law.
The table below provides the requirements for the loan application package.
|✓||The loan application package must include …|
|A copy of the ratified sales agreement, if applicable.|
|Escrow/closing or settlement instructions, if applicable.|
|Any other information or documentation needed to verify, clarify, or substantiate information in the borrower’s application.|
|Any other documentation that is needed to make a prudent underwriting decision.|
Note: Any available technology may be used to produce copies of the documents in the mortgage loan file, such as a photocopier, facsimile machine, document scanner, or camera. Copies of documents provided by the borrower may be photos or scanned versions of the original documents and can be delivered to the lender in hardcopy or via email or other electronic means.
The Uniform Underwriting and Transmittal Summary (Form 1008) summarizes key data from the loan application package. Lenders use this information in reaching the underwriting decision. Form 1008 (or a similar document) must be retained in the mortgage file for manually underwritten mortgage loans. Lenders may, but are not required to, retain Form 1008 for loans underwritten with DU.
For loans underwritten with DU, the final DU Underwriting Analysis Report must be retained in the mortgage file.
The lender should perform a preliminary review of the borrower’s application to determine that the requested mortgage loan satisfies Fannie Mae mortgage eligibility criteria. The lender’s level of review should be the same for each mortgage. This eligibility review should take place before underwriting begins and be based on predictive risk factors that are incorporated into the Eligibility Matrix, specifically:
loan-to-value/combined loan-to-value ratios,
representative credit score,
number of units.
The table below provides references to the Announcements that have been issued that are related to this topic.