What Factors Are Considered Layered Risk In Manual Underwriting

What Factors Are Considered Layered Risk In Manual Underwriting

Layered Risk In Manual Underwriting:

Layered Risk comes in play with manual underwriting on VA and FHA Loans.

Mortgage Underwriters go over a borrowers credit and income profile with a fine tooth comb
Lenders understand that borrowers could have had prior bad credit and do not need perfect credit to qualify for mortgage loans
If three of the following negative factors are presented on a particular mortgage borrower, mortgage underwriters will require compensating factors
Compensating Factors are positive factors that offset layered risk in manual underwriting on borrowers and add integrity to the overall credit and income profile of borrowers
If four or more of the following risk levels in manual underwriting are present, credit approval cannot be granted

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