Bulletin 2021-072 Delegated Underwriting Reminders

Delegated Underwriting Reminders

Newrez LLC "Newrez" Approved Correspondent Clients: If you’re looking for a path to reduce the turn time from submission to loan purchase and avoid a loan being suspended for additional documentation, here’s a few of our top picks.


Purchase / Delivery Requirements


  • COVID has impacted a lot of areas including the underwriting guidelines. The most common oversights include:
    1. Exceeding the shorter income and asset documentation expiration dates of 60 days at time of Note
    2. Not verifying that all mortgages for all REO, have been paid through the month prior to the Note date and
    3. For self-employed borrowers, the need to verify the business is open and operating in addition to providing 3 months bank statements in support of the Profit & Loss and the income used to qualify.  

Reminder – because these guidelines are temporary, they don’t show on the AUS findings so be sure your procedures include meeting these additional requirements.


  • An inaccurate DTI is one of the most common deficiencies, especially when it has to do with verifying the correct payment for REO.
    1. For properties that are financed, it’s not as simple as taking the payment shown on the credit report. A recent mortgage statement is needed to verify if the payment includes taxes and insurance. If it does not, a current tax bill along with the homeowner’s insurance bill is needed and must be included when qualifying.
    2. Even if a property is owned free and clear, taxes and insurance must be verified and included in the DTI.
    3. Lastly, for any property that is subject to an HOA fee, verification of that monthly fee is required. A recent billing statement or coupon that identifies the property and HOA fee is needed.
  • CD-LE column of the Calculating Cash to Close section must match the last disclosed LE provided
  • AUS must be run with correct property type
  • IRS 4506C to be fully completed within 30 days of closing. A separate 4506C is required for business entity when business tax returns are present in file
  • VVOE fully completed within specific timeframes as per product guidelines