Herman Ransom, Director, Office of Multifamily Housing - Hud-Oig

Case Narrative – Loan Number 492-8705878Mortgage amount: $123,692Date of loan closing: February 3, 2010Status as of November 30, 2011: DelinquentPayments before first default: TwoTotal claim paid: $12,036—partial claimHUD loss: N/AUnderwriting deficiencies:• Credit report contained disputed itemsSummary:Borrower’s Credit Report Contained Disputed ItemsThe borrower’s revised credit report, dated January 2, 2010, contained two disputed items. FHArequired PrimeLending to manually underwrite loans when the credit report containing disputeditems. 19 For instance, if PrimeLending had manually underwritten this loan, it would have had todocument and explain compensating factors associated with exceeding HUD’s underwritingratios. For this loan, the front end ratio totaled 36 percent exceeding HUD’s manualunderwriting ratio standard of 31 percent. PrimeLending did not manually underwrite this loanas required by the TOTAL scorecard manual.19Ibid32