Freddie Mac's Single Family Quality Control team reports that the most common errors turning up in the files of new loans involve borrower income.
"Some borrower income documents were missing from about one out of ten loan files Freddie Mac has reviewed over the past 12 months," according to Chris Mock, Freddie Mac's vice president of single family quality control.
As a result, borrower income documentation was either insufficient to qualify the borrower for the mortgage or insufficient to document the borrower had the funds to close. In other cases, the lender calculated incomes incorrectly because documents were missing.
That puts borrower income documents at the top of the list of documents lenders missing from the new loan files Freddie Mac reviewed over the past 12 months. Here are the other documents rounding out the top five missing from the new loan files we've seen.
|Top Five Missing Documents from Mortgage Files*|
|5||Preliminary Title Binder|
Hear a free tipcast for reducing and managing missing documents from senior director of single family quality control Debra Johnson.
*Reviewed over past 12 months by Freddie Mac Single Family Quality Control Source: Freddie Mac
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