Skip to main content

​
What this task is

This task collects the most recent mortgage statement for an owned property where the borrower has an outstanding mortgage. The statement should show key information such as loan number, current unpaid principal balance, interest rate, monthly payment amount, escrow components, and payment history. For underwriting, the mortgage statement is the primary source of truth about the status and terms of an existing real-estate secured liability tied to an owned property.

​
When this task is required

This task is required whenever:
  • An owned property has a mortgage that is still active, and
  • The liability is being treated as a qualifying obligation for the new loan (i.e., it is not fully excluded from ratios, forgiven, or otherwise removed).
Typical scenarios include:
  • The borrower owns additional real estate beyond the subject property (primary, second home, or investment) and the associated mortgage must be considered in DTI.
  • The borrower has recently refinanced, modified, or transferred the loan, and the underwriter needs to confirm current payment and balance details.
  • The credit report or application shows incomplete or inconsistent information about the mortgage, such as missing balances or payments.

​
Why this task is required

Lenders rely on the mortgage statement to:
  • Confirm the current unpaid principal balance for liability and risk calculations.
  • Validate the monthly payment amount, including principal, interest, taxes, insurance, and HOA if escrowed, for accurate debt-to-income analysis.
  • Identify escrow status and shortages or delinquencies that may signal additional risk.
  • Ensure that the liability is correctly tied to the specific owned property reflected in the real estate schedule.
Without a clear and recent mortgage statement, the lender would be relying on estimated or potentially outdated data, which can lead to:
  • Understating or overstating the borrower’s true housing expenses.
  • Incorrectly calculating DTI and residual income.
  • Missing evidence of late payments, delinquency, or escrow issues that could affect eligibility.

​
Documents needed to resolve this task

To satisfy this task, provide:
  • The most recent mortgage statement for the owned property:
    • All pages, unredacted, including any payment coupons or additional disclosures that show balances or fees.
    • The statement should clearly show the property address or sufficient information to match it to the subject REO.
  • If the property has multiple liens, provide a statement for each mortgage or deed of trust tied to that property.
These documents allow the underwriter to precisely tie mortgage obligations to the owned property and ensure they are treated correctly in the loan decision.