Eugene Loan Guy

Automated underwriting is the rule of the day in mortgage lending these days. Almost all loans are either run through Desktop Underwriter (DU) (also called Desktop Originator (DO)), the Fannie Mae system, or Loan Prospector (LP), the Freddie Mac underwriting system.  There are individual systems that use these as a base but all are basically the same, you get either an Accept or Refer or Caution. However, there are other messages that are also critical in the automated underwriting process with mortgage loans, either conventional or government.

One such area has to do with Social Security Number alerts. They are:

1. Deceased Individual.
2. Invalid Format.
3. Not Issued.
4. Year of Issuance.

What these can mean is that: (1) the Social Security Administration has associated the number used with someone that is deceased. This could just mean the wrong number was entered (same for all 4 messages), or it could be a red flag for fraud. (2) There is a specific format for social security numbers and if the format is wrong, again it could be an issue of fraud. (3) Another red flag for fraud has to do with a number that the SSA says has not been issued. (4) Certain numbers were issued at specific times. If the age of the applicant doesn’t match this time frame, it also could be fraudulent.

So, what does all of that mean? Well for one thing, we want to see and copy your Social Security card now if at all possible. If that isn’t possible, we will have you sign a form that allows us to get the information needed from the Social Security Administration. More paperwork to help stop fraud.

If you have any additional questions about applying for a loan or the process that it involves, please give me a call and let’s schedule an appointment to discuss your question or concerns. Reach me at 541-342-7576/541-221-3455 Cell or e-mail at eugeneloanguy@gmail.com. (NOTE: the use of the sample Social Security Card does not indicate approval of the Social Security Administration or endorsement of my Blog.)