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a. Program Overview (03/14/2016)
The Direct Endorsement (DE) underwriter serves as the Mortgagee’s subject matter expert for underwriting and must ensure compliance with all underwriting requirements in Origination through Post-closing/Endorsement for all manually underwritten Title II Forward Mortgages. Underwriting responsibilities include, but are not limited to, the following:
• calculation of maximum mortgage amounts;
• underwriting the Property; and
• underwriting of the Borrower.
The DE underwriter must also ensure compliance with all requirements for Underwriting the Property for all Title II Forward Mortgages underwritten using the Technology Open To Approved Lenders (TOTAL) Mortgage Scorecard.
The DE underwriter also serves as the Mortgagee’s subject matter expert on the financial assessment requirements in Origination through Post-closing/Endorsement for all Home Equity Conversion Mortgages (HECM). Financial assessment requirements include, but are not limited to, the following:
• underwriting of the Property;
• analysis of the Borrower’s credit history;
• analysis of the Borrower’s property charge payment history;
• calculation of residual income; and
• determination of the need for and the amount of a Life Expectancy (LE) Set-Aside.