How Can Mortgage Brokers And Lenders Benefit from GUS?

Can GUS Benefit Mortgage Brokers? Well sure. But first, who is GUS? GUS isn't a person; GUS is a thing. A computer program called Guaranteed Underwriting System. GUS. And if you're a Mortgage Broker or Mortgage Lender that deals with USDA Mortgage Loans, GUS can be your friend. An excellent friend. GUS is to Mortgage Underwriting like a hammer is to a nail. You can do the job without it, but it will be a lot more complicated.

Using GUS, brokers, and lenders can more easily assess borrowers' credit and determine if they will qualify for a mortgage loan. GUS uses a variety of information to draw this conclusion.

• Credit history
• Current income
• Cash reserves
• Debt

All of these factors are usually considered when lenders qualify someone for a home loan. But GUS takes it a step further by making the inquiries and coming to a decision independently.

With GUS, it becomes much easier to assess the borrower's creditworthiness as it amalgamates a plethora of factors to determine whether a potential borrower would be able to return the loan or not. The factors that GUS considers for determining the borrower's creditworthiness include credit history, cash reserves, current income, and other vital elements that impact the borrower's cash inflow.

When the GUS determines the creditworthiness of a potential borrower, and if the person is considered a safe borrower, the approved requests are exhibited as an "Accept" by the system. However, suppose there is a certain level of risk involved in providing the loan to the person. In that case, the potential borrowers are provided with different statuses, reflecting the risk level involved. These statuses subsume "Refer" (for lower risk) and "Refer with Caution" (for higher risk).

Benefits Of GUS For Lenders and Brokers

Two GUS programs are different only in how the money gets to the borrower.

• Single-Family Housing Direct Loans

• Purchase or build with no money down in eligible rural areas
• Low or Very-Low Income
• Typically 33-year term with payment assistance is available
• Apply directly with Rural Development

• Single-Family Housing Guaranteed Loan Program

• Purchase or build with no money down in eligible rural areas
• Moderate Household Income
• 30-year fixed rates. Refinance options available
• Apply through an approved lender

GUS offers a set of benefits for both lenders and borrowers. A reliable tool to determine borrowers' creditworthiness, GUS can be leveraged by lenders and brokers to develop a clearer understanding of the SDA's loan regulations and qualifying conditions for the SFHGLP (Single Family Housing Loan Guarantee Program).

GUS benefits for mortgage lenders include a precise evaluation of the ability of the borrower to repay the loan, the eligibility of the borrowers and the level of risk involved in offering loans and streamlining the overall underwriting process. GUS also reduces the amount of paperwork involved in the loan process. But the most significant thing about GUS is that it makes it easier for lenders and borrowers to make decisions about lending the money or not.

Important Components of GUS

GUS has become the benchmark for many lenders when determining borrowers' creditworthiness. But it also supplies details of that borrower to paint a much clearer picture of any problems. In this manner, any questionable credit flags can be investigated individually.

Using the GUS, both the money lenders and brokers can enhance the reach of the USDA's "Single-Family Housing Guaranteed Loan Program" in the different rural areas.

• Property and Income Eligibility Assessment - When property information is entered into the system, GUS automatically runs an evaluation to determine if that property is in the eligible rural locations. It also checks annual income, which should not be greater than the adjusted limits, household size, and the state in which the applicant wants to live. GUS can be found on the Rural Development's public website.
• Rules System - GUS Rules programs assimilate all the standards as found in RD Instruction 1980-D. Administrative Notices augment these rules regarding the origination of SFHGLP loans. The search engine rules can be scaled per analysis.
• TOTAL Scorecard - TOTAL is a version of the FHA mortgage scorecard that SFHGLP loans have adopted. The scorecard favors applicants who have the cash reserves to make housing payments.
• GUS and the Credit Bureau - The Fannie Mae Credit Interface service provides the bridge between GUS and credit bureaus. This allows lenders to incorporate the credit scores into the loan package directly.

Here's A Way to Leverage The GUS

So you've heard us talk about outsourcing before, here's a place where it can do wonders. Imagine inheriting a turnkey Mortgage Loan Processing partner. A partner that can not only take your borrowers through a GUS process but just about any other mortgage loan process. And has all the training and experience you need to do it quickly, professionally, and error-free. Oh, did we mention they'll do it at a price point that's probably 40% less than your in-house team? Take a look at why the smart money is turning to a Mortgage BPO for all of their Mortgage Loan Processing needs.