I have a loan in underwriting. It is a purchase with 20% down, great credit and great reserves. Once again, I am not sure whether this loan will be approved. The debt-to-income ratios are high. “Compensating factors,” such as credit and reserves only go so far today in overriding high ratios.

By the way, the purchase loan addressed in my blog on June 11th got approved today. I’m glad.  It shows you that there is some give and flexibility coming into play when the loan makes real good sense.

Rates went up again today.  I wish I knew the underlying reason why rates have become somewhat volatile in recent days.