First, be aware of current fraud dangers. This year, not last year. Stay current.
Second, right now, it’s occupancy and income. That’s 95% of your problems so it should get 95% of your attention. Forget the other stuff, unless you have all day to do a review.
Third, if your job is to find red flags, remember you aren’t an underwriter – you are there to find the “odd.” If it makes you say, “hmmm,” then that’s a red flag. Simply put, does the loan have characteristics that make it unusual? Is the commute distance reasonable? Would you drive it? Or is the income or employment catching your eye? My dad worked until he was 80. Full time, a judge. But if his home loan was audited, I would expect a reviewer to find it interesting that an 80 year old still drove himself to the Norwalk courthouse every day. It’s a flag – maybe not red, but it’s worth a look. Underwriters cannot consider age – you can.
Fourth, prepare for disappointment. You’ll find EVERY profession, every race, every social status shading the truth. Never look at the file and think, oh, that’s a virtuous profession, they wouldn’t lie.
