MLOs Are Losing Deals Because They Don’t Have The Opportunity To Do This

But did you know that you might be losing deals because your lender won’t accept LP (Freddie Mac) or vice versa?

For example, when a borrower is S/E for 5 years in the same business…

You may receive AUS approval permitting you to provide only ONE year of business and personal returns from Freddie Mac. Where Fannie Mae might ask for 2 years and average the income. 

THIS IS HUGE

Maybe 2 years ago your client had a bad year or had a COVID issue with revenues. The next year was back to normal. A 2 yr average required by Fannie Mae would kill the loan, whereas a 1 yr tax return requirement with Freddie Mac would save the day.

This is just one example of when LP is better than DU.

DU is a better choice when the borrower might not be living at the primary residence, and if you run both LP and DU, you might get an appraisal waiver with one and not the other. Choice is critical to closing or losing a Mortgage.

And to make the right choice you need two things. 

1. A better understanding of LP and DU. 
2. And an origination platform that allows you to pick from lenders who offer different choices.

For more information about all the advantages of LP vs DU and vice versa download our guide.

If you need an origination platform that gives you a choice, schedule an interview with one of our specialists.

Innovative Mortgage Services, Inc. - 250769