Mortgage Lending Policy

Description

This comprehensive Mortgage Lending Policy template is an essential tool for credit unions looking to establish or refine their mortgage lending practices. Crafted by industry experts, this downloadable Word document provides a robust framework for managing mortgage loan origination, underwriting, and servicing processes.

The policy covers a wide range of crucial topics, including loan types, eligibility criteria, loan-to-value ratios, debt-to-income requirements, and credit score thresholds. It also addresses important aspects such as property appraisals, title insurance, and mortgage insurance requirements.

This template includes detailed sections on loan documentation, closing procedures, and post-closing quality control measures. It outlines guidelines for handling various mortgage products, including conventional loans, FHA loans, VA loans, and jumbo mortgages.

The policy template incorporates regulatory compliance considerations, ensuring alignment with federal and state laws governing mortgage lending. It provides guidance on fair lending practices, anti-predatory lending measures, and consumer protection requirements.

Risk management is a key focus, with sections dedicated to portfolio management, concentration limits, and stress testing procedures. The template also covers servicing policies, including payment processing, escrow management, and default management strategies.

Customizable to fit your credit union’s specific needs, this Mortgage Lending Policy template offers a solid foundation for establishing sound lending practices, mitigating risks, and ensuring regulatory compliance in the competitive mortgage lending landscape.