Zillow plans event to “hack” housing

Zillow plans event to “hack” housing

Offers $10,000 prize for creative solutions to jumpstart market

CFPB goes after Wells Fargo, JPMorgan for mortgage kickback scheme

Mega banks will pay $35.7 million total

Here are the hottest neighborhoods for 2015

This year it’s all about affordability
W S
Lending / The Ticker

Fannie Mae computer glitch rejects qualified applicants

paper messy desk
/ Print / Reprints /
| Share More
/ Text Size+

One miniscule computer glitch stood in the way of borrowers getting approved for a loan. Fannie Mae’s underwriting software failed to find the distinction between a foreclosure and a short sale. Per MoneyWatch:

Here's how borrowers were getting stuck: If you want a mortgage, you sit down with a lender. The lender takes down your information and inputs it into a computer that has access to your credit report and other financial information. If the lender wants Fannie Mae to insure the loan, it will use Fannie Mae's underwriting software, called Desktop Underwriter. 

 Meanwhile, borrowers were told to wait longer due to an error somewhere in the system.

Desktop Underwriter wasn't built with that kind of workaround. Instead, if a borrower reported he had been through a short sale while the system said it was a foreclosure, the system would not allow the lender to continue the application without shifting to a manual underwrite. With the system fix that will roll out Nov. 16, lenders can note the discrepancy and add additional documentation to prove the system's information is wrong and allow the application to continue, Sen. Bill Nelson, a Florida Democrat who began investigating the issue in May, said. 

Source: MoneyWatch
Read full story

Recent Articles by HousingWire Staff

Comments powered by Disqus