What happened to the OO (owner-occupied) status for REOs?

In order to provide better conformity with the Fannie Mae and Freddie Mac underwriting engines, the OO status has been replaced by the ‘This is a current residence’ flag, combined with the Rental, Retained, Sold or Pending Sale status.

BytePro uses the ‘This is a current residence’ flag to determine if the liability for that property should be added into the second ratio, or ‘not counted’, with the present housing expenses (top of page 2 of the loan application) including that liability for expression in the first ratio.

For example, your borrower might be purchasing a second property with an existing mortgage on their current residence. You would flag the existing REO ‘This is a current residence’ with the Retained status. BytePro would not count that payment against the borrower in the second ratio or the first. Instead, you would add that payment manually to the present housing expenses for inclusion in the first ratio.