w FHA Tip Use a MCAW instead of 1008
FHA Tip Use a MCAW instead of 1008
FHA Tip of the Day: FHA does not use a 1008 "Uniform Underwriting and Transmittal Summary. They use a Mortgage Credit Analysis Worksheet -Purchase Transaction known as a MCAW (HUD 92900-PUR) or
Mortgage Credit Analysis Worksheet (HUD-92900-WS) used for Refinance transaction. I have included a copy of each along with the instructions. Notice you can find the form numbers at the bottom of the page. I am sure you will find these in your loan origination systems.
Make sure you use the correct MCAW for your transaction. The next step which is a must, make sure the MCAW is completed correctly. You will use this form to communicate with the underwriter how you are structuring your loan. The work sheet should be complete including the case number, section of the act and include CAIVRS in box 16 and the LDP/GSA which you can get in FHA connection.
Any seller paid closing cost must be listed in Box 5. This does not include money given to a DPA. A seller can pay up to 6% closing cost plus their contribution to a DPA. It the seller is paying more closing cost than the borrower has the difference will go toward reducing the sales price. The borrower would still have to bring in the required 3% down payment from their own funds. The great thing about FHA is they consider gifts as the borrowers own funds.
Box 10a must match your sales contract on form HUD (92900-PUR). Line 10 H must show at least 3% needing to come from borrowers funds.
12I list all gift funds (92900-PUR)
Box 13 so often the monthly mip is not included (this is calculated by taking .50% x box 3a/12) hazard insurance, taxes and any HOA fees must be included.
When doing an FHA streamline loan box 5, 11, 12, 14, and 15 of the HUD-92900-WS will be left blank.
Refinance loans that have a MIP refund should be entered on line 10d of the HUD-92900-WS.
You will want to use your MIP streamline worksheet to determine your loan amount which we will go over on another day.
Not all Origination systems automatically calculate this MCAW correctly. Until you know you system I would double check the figures manually. This also will give you great insight on how the MCAW is used as a very helpful tool in underwriting the file.