Documentation RequirementsTake Advantage of Fewer Documentation Requirements With Loan Prospector
Loan Prospector® provides you with a quick and easy way to streamline the document-gathering process for your borrowers with two documentation levels that define your borrower documentation needs, and offer helpful underwriting reminders. Your borrowers will appreciate knowing exactly what they need to gather, and you'll find it easier to process more loans with less work.
It's easy to streamline your processes using Loan Prospector's convenient levels to define your borrower documentation needs:
Streamlined Accept – Allows you to take advantage of fewer documentation requirements than traditionally underwritten loans for the Accept risk class. For example, for salaried and hourly income borrowers, you'll need just one pay stub showing year-to-date earnings for the most recent 30 days, one W-2, verbal verification, and one recent bank statement from your borrowers.
Standard – Requires Standard Guide documentation for higher-risk loans including some Accept risk class loans, A-minus eligible loans and Caution risk class loans. For this level, you'll need to collect an additional documentation for example, two bank statements and two W-2s. Note, however, you still need one pay stub covering the most recent 30 days, and verbal verification of employment.
To make it even easier to identify what documents are needed, you'll also receive a Loan Prospector Documentation Checklist with your automated underwriting results.
Loan Prospector Documentation Matrix
If you have any questions about the amount of documents you need to collect from your borrower for a loan, be sure to review the Loan Prospector Documentation Matrix. This quick reference summarizes documentation requirements and provides guidance to help streamline the document gathering process for your borrowers. As always, refer to the Single-Family Seller/Servicer Guide Bulletins for complete details.