Advanced FHA Underwriting

These skills may have been acquired through attending the Fundamentals of FHA Underwriting and/or Intermediate FHA Underwriting courses through AllRegs or through other training or experience.

During the course students will utilize and apply their knowledge of manual underwriting, and scenarios which should be addressed by the underwriter during the credit write-up. This course will consist of hands-on manual underwriting, various special underwriting circumstances and programs, a variety of refinance scenarios and guidance, as well as digging deeper into the complexity of condominium approval, appraisal reviews on condominiums and 2-4 unit properties.
What it's about
By the end of this course students will be able to effectively transition from conventional to FHA underwriting; be able to calculate mortgage insurance premiums (MIP) and maximum mortgage amounts and determine eligibility for the applicant and property.

Classes consist of four 90-minute live sessions with instructors delivered through the Zoom conferencing platform.

What will I learn?

Upon completion of the course, students will be able to:

Perform and describe a manual underwrite and credit write-up
Identify and execute special underwriting techniques
Evaluate complex properties

Participants will be provided a student manual for each of the four sessions.

Participants will be required to complete an assessment at the end of each of the four sessions to assess mastery of the content.

To receive the certificate of completion participants must receive a course grade of 70% or greater.

Benefits

By the end of this course students will be able to manually underwrite and take appropriate actions based on their credit analysis, Understand and execute special underwriting circumstances, fluently underwrite any type of FHA refinance, and understand condominium approvals and complex property appraisals.

Agenda

Upon completion of the course, students will be able to:

Session One

Introduction
Credit Risk
Layering Risk
Risk Assessment

Objectives

Evaluate Credit Risk
- Describe specific credit factors that impact the layers of risk
- List and evaluate the factors that fall under the two categories of risk assessment

Session Two

Other Programs
- ARMs
Specialty Programs
- New Construction
- EEM
- HUD REOs
- GNND
Streamline Refinance

Objectives

Analyze FHA Programs
- Describe the components of an ARM
- Calculate payment adjustments, rate adjustments, maximum mortgage amounts and LTV’s when applicable
- List the “Specialty Programs” and describe their unique characteristics
- Explain the FHA Streamline Program

Session Three

General Requirements for Appraisals
Appraisal Review
- Single Family
- Condominium
- Multi-Unit Properties
- Property with Repairs/HUD REO

Objectives

Identify missing, incorrect or inconsistent information
Identify if an appraisal meets HUDs Minimum Property Standards
Differentiate requirements for a property needing repairs and a HUD REO property needing repairs
Describe the Condo Project Approval Process for HRAP and DELRAP
Describe the difference between a single family appraisal report and a condo appraisal report
Describe the risks of a multi-unit property
Calculate income for qualifying purposes on a multi-unit property
List additional requirements of a multi-unit appraisal

Session Four

Manually Underwrite a Purchase Transaction
- Credit
- Income
- Assets
- Appraisal
Manually Underwrite a Streamline Refinance
Recommend an Approval or Denial

Objectives

Demonstrate your ability manually underwrite a FHA loan file
Take appropriate actions based on credit analysis
Fluently underwrite both purchase and refinance transactions