Credit reports now automatically detect and interpret Fannie Mae
loan conditions
SAN DIEGO--(Business Wire)--
Cogent Road, a provider of Internet-based applications for the
mortgage industry, announced today that its Funding Suite(R) credit
management software now includes a free Underwriting Conditions Scan
that automatically detects underwriting conditions and translates
those into easily interpreted language.
An agreement by President Bush and congressional leaders may
result in a new economic stimulus plan that raises Fannie Mae and
Freddie Mac loan limits from $417,000 to as high as $730,000. As a
result, many brokers will reissue a higher percentage of loans through
these automated underwriting systems in 2008. For many originators,
this may be their first experience with the various underwriting
conditions presented by Fannie Mae's Desktop Underwriter(R) or Freddie
Mac's Loan Prospector.
Currently compatible with Fannie Mae, Funding Suite's UC Scan
automatically detects underwriting conditions the loan file will
generate when processed through Desktop Underwriter(R). Each condition
is translated into easy to understand language which helps loan
officers better understand the issues delaying their loans.
Additionally, the tradeline data in question is listed along with the
condition to more easily determine the steps necessary to have the
issue resolved. Without UC Scan, the only way conditions can be
determined is to create and run a new Desktop Underwriting session,
which can cost more than $15. Consequently, the UC Scan can be a time
and cost saving tool as it proactively provides the conditions and can
eliminate unsuccessful Fannie Mae Desktop Underwriting sessions.
Both Fannie Mae and Freddie Mac use detailed analysis of the
tradeline data within the tri-merge credit report to derive lending
decisions. In addition to the credit score, these systems also analyze
items such as payment history, seasoning, number of derogatories,
account status and more to price their loans. While decisions are
instantaneous, the automated systems can generate confusing
"underwriting conditions" with only vague references to the data that
caused them. In fact, a paper tri-merge credit report often does not
even list the data referenced by Fannie Mae. Not only can this leave
many loan officers in prequalifying limbo, but these situations can be
difficult to explain to borrowers.
Funding Suite's UC Scan not only educates the broker as to what
conditions exist and what they are - it also helps resolve them more
effectively and get the loan moved through the Fannie Mae system more
efficiently.
Included as a separate tab within the Intelligent Credit Report,
all results are listed in easy to understand language to help mortgage
originators more easily resolve conditions before the file is even
processed through Fannie Mae. Currently, the UC Scan works with
Fannie's Desktop Underwriter. Funding Suite plans to include Freddie
Mac UC Scans by the middle of 2008.
"Last month, President Bush unveiled a new economic stimulus plan
that will likely raise Fannie Mae and Freddie Mac loan limits from
$417,000 to as high as $730,000," said Alan Baia, president of Cogent
Road. "Many loan officers will now have an opportunity to reissue a
higher percentage of loans through these underwriting systems and may
be unfamiliar with the various underwriting conditions they present.
Our UC Scan educates loan officers on the conditions generated through
Desktop Underwriter, which enables them to move loans more efficiently
through the pipeline."
About Cogent Road
Cogent Road develops Internet-based applications for the mortgage
industry, such as Funding Suite(R), the industry's first, true Credit
Management Platform. Currently utilized by more than 30,000 mortgage
professionals nationwide, Funding Suite helps clients qualify more
applicants with its unique Intelligent Credit Report and assorted
credit proofreading tools. For mid to large-sized clients, Funding
Suite also offers robust user-level access controls and detailed cost
accounting. For more information about Cogent Road, visit
www.cogentroad.com. For more information about Funding Suite, visit
www.fundingsuite.com.
For Cogent Road
Joy Harper, 678-799-8118
Copyright Business Wire 2008
