A lender packages a $500,000 conventional loan that meets all current GSE standards but was originated using outdated underwriting software that didn't verify employment in the required manner. This loan would be:
Correct Answer
B) Non-conforming due to deficient underwriting process
GSE eligibility requires that loans be underwritten according to GSE standards at origination, including proper employment verification procedures. Deficient underwriting processes make the loan non-conforming, regardless of whether the borrower ultimately qualified.
Why This Is the Correct Answer
GSE eligibility requires that loans be underwritten according to GSE standards at origination, including proper employment verification procedures. Deficient underwriting processes make the loan non-conforming, regardless of whether the borrower ultimately qualified.
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