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    MCUS B0034 Full Doc Processing Checklist NR

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    Scott Royval
    This document provides a checklist of documentation requirements for full mortgage loan processing. It lists 16 sections of required documentation for both full documentation and substitution documentation loan types, including requirements for loan applications, credit reports, employment and income verifications, asset documentation, sales contracts, appraisals, and title work. Compliance with the checklist helps ensure all necessary information is obtained for loan underwriting and closing.

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    MCUS B0034 Full Doc Processing Checklist NR

    Uploaded by

    Scott Royval
    86 views3 pages
    This document provides a checklist of documentation requirements for full mortgage loan processing. It lists 16 sections of required documentation for both full documentation and substitution documentation loan types, including requirements for loan applications, credit reports, employment and income verifications, asset documentation, sales contracts, appraisals, and title work. Compliance with the checklist helps ensure all necessary information is obtained for loan underwriting and closing.

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    MCUS-B0034-Full-Doc-Processing-Checklist-NR

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    This document provides a checklist of documentation requirements for full mortgage loan processing. It lists 16 sections of required documentation for both full documentation and substitution documentation loan types, including requirements for loan applications, credit reports, employment and income verifications, asset documentation, sales contracts, appraisals, and title work. Compliance with the checklist helps ensure all necessary information is obtained for loan underwriting and closing.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    86 views3 pages

    MCUS B0034 Full Doc Processing Checklist NR

    Uploaded by

    Scott Royval
    This document provides a checklist of documentation requirements for full mortgage loan processing. It lists 16 sections of required documentation for both full documentation and substitution documentation loan types, including requirements for loan applications, credit reports, employment and income verifications, asset documentation, sales contracts, appraisals, and title work. Compliance with the checklist helps ensure all necessary information is obtained for loan underwriting and closing.

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    © All Rights Reserved
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    of 3

    Full Doc Processing Checklist

    Part I - Documentation Type


    Documentation Required Required

    Loan Application: See Part II, Section 1


    Credit Report – Traditional Credit: See Part II, Section 2

    Credit Report – Non-Traditional Credit: See Part II, Section 3

    Verification of Rent – Non-Traditional Credit: See Part II, Section 4

    Verification of Mortgage – Non-Traditional Credit: See Part II, Section 5

    Verification of Employment – Full Doc: See Part II, Section 6

    Verification of Employment – Substitution Doc: See Part II, Section 7

    Alimony/Child Support: See Part II, Section 8

    Rental Income: See Part II, Section 9

    Self-Employed: See Part II, Section 10

    Verification of Bank Accounts or Investments – Full Doc: See Part II, Section 11

    Verification of Bank Accounts or Investments – Substitution Doc: See Part II, Section 12

    Verification of Gift Funds: See Part II, Section 13

    Sales Contract: See Part II, Section 14

    Appraisal: See Part II, Section 15

    Title: See Part II, Section 16


    Part II - Documentation Requirements

    Section 1: Loan Application Required Complete

    1003: Complete, signed and dated by all borrowers qualifying for the loan and the loan originator.
    The loan originator must indicate how the application was taken.

    Section 2: Credit Report – Traditional Credit

    Credit Report: Based on data provided by at least two of the three national credit repositories:
    Equifax, Experian and TransUnion.

    Section 3: Credit Report – Non-Traditional Credit

    Non-Traditional Mortgage Credit Report prepared by a consumer credit agency or individual


    references directly from the borrower’s creditors. Note: A Non-Traditional Credit Report is only
    considered acceptable when the traditional credit report cannot be generated or provides less
    than the minimum required tradelines for all borrowers and must meet eligibility criteria.

    Section 4: Verification of Rent – Non-Traditional Credit

    VOR (Verification of Rent)


    ƒƒ Payment history from the management company which should provide the borrower’s most
    recent 12-month payment history OR
    ƒƒ The most recent 12 months of canceled checks or other evidence of timely payment of the rent.
    Full Doc Processing Checklist (Page 2)

    Section 5: Verification of Mortgage – Non-Traditional Credit Required Complete

    VOM (Verification of Mortgage)


    ƒ A loan payment history from the mortgage servicer OR
    ƒ The borrower’s year-end mortgage account statement (provided it includes a payment receipt
    history), supplemented by the borrower’s canceled checks for the months that have elapsed
    since the statement was issued to support a 12-month payment history OR
    ƒ The borrower’s 12-month cancelled checks.

    Section 6: Verification of Employment – Full Doc

    VOE (Verification of Employment) that covers the previous two-year period and
    year-to-date earnings.
    Verbal VOE completed 10 days prior to closing.

    Section 7: Verification of Employment – Substitution Doc

    Verbal VOE completed ≤ 10 days prior to closing. The verification should be completed verbally by
    contacting a party within the HR department (not the owner) and the employer’s telephone number
    should be independently verified.

    Paystubs for the most recent 30-day pay period that reflect YTD earnings.

    W-2s for the prior two years for all jobs held.

    1040s for the prior two years for commissioned income > 25 percent.
    Section 8: Verification of Alimony/Child Support Income

    Written Legal Agreement or Court Decree (Divorce Decree or Separation Agreement) that
    states the amount of the award and that it will continue for at least three years after the date of the
    mortgage application.

    Evidence of Receipt of Funds


    ƒ Deposit slips, court records, copies of signed federal income tax returns that were filed with the
    IRS (for alimony only as only alimony is claimed on the 1040s), OR
    ƒ Copies of the borrower’s bank statements that show the regular deposit of these funds to
    evidence 12 months’ receipt, OR
    ƒ Copies of cancelled checks that show 12-month receipt (for alimony only).

    Section 9: Rental Income

    Investment Property: When rental income is from other investment property owned, rental income
    can be documented by obtaining copies of two years’ tax returns, including the Schedule E, or
    copies of the current lease agreements. If the borrower has owned the properties for more than 12
    months, the tax returns are required. Lease agreements may only be used (at 75 percent of lease
    amount) when the property was acquired subsequent to the most recently filed tax return.

    Conversion of Primary Residence: For purchase transactions where the borrower(s) intend to
    rent out their current home, please refer to Conversion of Primary Residence Guidelines (Arch MI
    Program Guidelines for conversion of Primary Residence).

    Rental Income from Subject Property: For a purchase transaction of a 2-unit property when 1
    unit is not occupied by the borrower(s), obtain the appraiser’s opinion of fair market rent and, if
    applicable, copies of the current lease agreements.

    Please refer to the Rental Income Analysis Calculator (can be found on the Arch MI
    website) archmi.com/training/toolkits.
    Full Doc Processing Checklist (Page 3)

    Section 10: Self-Employed Borrower Income Required Complete

    Personal and Business Tax Returns for the most recent two years.

    Profit and Loss Statement from end of most recent filed return to current quarter,
    if tax gap is more than 120 days.

    Please refer to the Tax Return Analysis Calculator (can be found on the Arch MI website)
    archmi.com/training/toolkits.

    Section 11: Verification of Bank Accounts or Investments – Full Doc

    VOD (Verification of Deposit).

    Section 12: Verification of Bank Accounts or Investments – Substitution Doc

    Bank Statements or Investment Portfolio Statements that cover activity in the accounts for the
    most recent two-month period (or, if account information is reported on a quarterly basis, for the
    most recent quarter) and, if applicable, copies of the most recent retirement account statement that
    is available.

    Section 13: Verification of Gift Funds

    Gift Letter (from a relative, domestic partner, fiancé or fiancée) signed by the donor.
    The letter must include:
    ƒ Dollar amount and funds transfer date.
    ƒ Statement that no repayment is necessary.
    ƒ Indicate the donor’s name, address, telephone number and relationship to the borrower.

    Verification of transfer of funds (copy of the donor’s check or withdrawal slip and the borrower’s
    deposit slip, a copy of the donor’s check to the closing agent OR a settlement statement showing
    receipt of the donor’s check, etc.).

    Verification of receipt of gift funds


    ƒ Verified in borrower’s bank or escrow account, OR
    ƒ Copy of the cancelled gift check.
    Section 14: Sales Contract

    Complete Sales Contract and all addenda (signed by the buyer, seller, listing agent and
    selling agent, if applicable).

    Section 15: Appraisal

    Complete Appraisal Form and all applicable addenda (signed by the appraiser).

    Section 16: Title

    Check chain of title, which should match the loan application, the appraisal information and
    if applicable, the sales contract.

    
    Arch Mortgage Insurance Company is providing this checklist to you for your use as a training tool only. These materials are not intended nor should they
    be relied upon for any other purpose, including underwriting actual mortgage loans without independent verification and testing by your in-house quality
    control and/or compliance personnel or actual preparation of documents, including tax forms, which may be presented in the materials. All materials
    presented are samples for illustrative purposes only.
    MCUS-B0034-0118

    ARCH MORTGAGE INSURANCE COMPANY | 230 NORTH ELM STREET GREENSBORO NC 27401 | ARCHMI.COM
    © 2018 Arch Mortgage Insurance Company. All Rights Reserved. Arch MI is a marketing term for Arch Mortgage Insurance Company and United Guaranty Residential Insurance Company.

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