Rolling Late definition
Rolling Late s A consecutive 30-day late on a mortgage payment is considered 1x30 if: . The mortgage is no more than 30 days late as of the underwriting date . The credit report, mortgage verification or canceled checks reflect one missed payment and the remaining consecutive payments have been paid as agreed. (CN) Continued . . . -------------------------------------------------------------------------------- Policy & Training Development UNDERWRITING / 1st LIENS Policies - Credit Requirements --------------------------------------------------------------------------[LOGO] Page 4 of 12 (03/03/99) Latest Revised Items in Bold Blue Mortgage Credit (continued) Subordinated New Century will allow subordinate liens provided they meet the Liens conditions indicated below. In all instances, the combined loan- to-value and debt-to-income ratios cannot exceed the maximums indicated in the General Product Description section and/or the --------------------------- Underwriting Matrix. ------------------- New Century Mortgage will consider all liens when determining the debt-to-income ratio. All liens should be reviewed to determine any terms or conditions which may adversely affect the borrowers' ability to pay their obligations. In addition, all loans should have regular monthly payments. If the repayment schedule is not monthly, it must be converted to a monthly payment for budgeting purposes. The subordinate lien must be: . Clearly in subordinate position behind the subject loan . Fully documented including repayment terms. . Recorded concurrently or after the subject loan. . Due no sooner than 3 years from closing unless fully amortized. -------------------------------------------------------------------------------- Policy & Training Development Consumer Credit Overview A majority of New Century's determination in evaluating consumer credit is based on the customer's payment record over the 12- month period prior to the application date. However, caution is used in reviewing any applicant whose credit history is characterized by notices of default, forecloses, bankruptcy, judgments, liens, charge-off's or other types of serious derogatory items. In evaluating the applicant's credit problems, a key factor is whether the credit problems are a result of an isolated problem, poor financial planning, or a general lack of regard for credit obligations. For certain credit grades, NCMC will accept a "Credit Score" in lieu of an individual evaluation of Revolving and Installment Deb...