Competition for loans in the marketplace is high. There may be multiple backup offers/ buyers for a single property with a tight closing date, or multiple lenders waiting for the opportunity to divert your borrower to their program and promises. You need to be concise and aggressive with your loan processing and underwriting timeline while ensuring the loan is complete, salable and closes on time. Mortgage Insurance (MI) is typically one of the last steps in a loan process, and that MI commitment is required to order loan documents… The clock is ticking…
Whether you are the loan originator, processor, underwriter, branch manager or filling in/covering for a co-worker that is out of the office, receiving a notification that your MI loan submission is incomplete or on hold creates a bottleneck and can be pretty stressful.
In this article, Donna Muratalla, Regional Underwriter at Enact Mortgage Insurance, shares proven, practical steps lender teams can use to reduce resubmissions and increase the likelihood of first pass approvals, helping loans move through underwriting cleanly and on time.
What are first pass approvals?
A first pass approval means exactly what lender teams want: a complete loan review approved at the original underwrite, with no conditions. But too often, MI submissions fall short.
Incomplete MI submissions are caused by common pitfalls
An MI hold doesn’t just pause the process, it disrupts workflows across sales, processing, underwriting, and closing. Processors scramble to track down documents. Loan officers manage borrower expectations. Operations teams lose efficiency. Closings get pushed.
Missing documents are one of the most common reasons for loan delays:
- Incomplete Loan Origination System transmissions (your LOS should not show 'pending' status)
- Inconsistencies between the 1003, 1008, and AUS findings
- Missing income or asset documentation
Key tips to work with Enact and avoid these pitfalls:
- Use a standardized, easy-to-follow checklist like this one from Enact.
- Before submitting to MI, take a couple of minutes to ensure:
- LOS connection is functioning/ Internet has a stable connection (if not, Plan "B" would be to submit via email to MIonly.UW@EnactMI.com)
- MI rate quote has been updated with current and final information
- All required loan documents/ folders are transmitted
- No asterisks on folder names that may prevent transmission
- No disclosures, condo docs, title work, or original 1003 submitted unnecessarily
- Contact email and phone number are included
For teams juggling volume, timelines, and borrower expectations, these avoidable issues compound quickly. In high-demand markets, delays can mean losing deals altogether.
That’s why achieving first pass approval isn’t just about MI; it’s about protecting pipeline velocity and delivering a better borrower experience. So what’s the best process to do so?
A roadmap to consistently achieve first pass approvals
Achieving first pass approval requires discipline, organization, and consistency. The following best practices create a repeatable, scalable approach for lender teams.
1. Align all loan data upfront, prior to submission
- Ensure the 1003, 1008, AUS findings, and MI quote all match
- Verify accurate MI coverage needed for the transaction
- Employer Relocation Agreement
Alignment upfront prevents downstream rework.
2. Submit only final, complete documents
- Final 1003, 1008, and AUS—no duplicates
- Clear documentation of AUS conditions
- No unnecessary items such as disclosures, condo documents, title work, or draft files
A clean submission improves review efficiency and approval speed.
3. Address program-specific requirements early
- For ARMs: provide ARM disclosure with index, margin, caps
- Identify affordable housing or HFA loans
- For files without AUS: ensure they meet Enact MI manual underwriting standards
Clarity eliminates avoidable conditions.
4. Ensure credit, income, and asset documentation is complete
Strong documentation is critical for approval, including the following examples:
- Follow and document all conditions per Desktop Underwriter® Approve/ Eligible or Loan Prospect Advisor® Accept/ Eligible findings
- 3 tradelines with 12 month history for manual underwrites
- Paystub with complete employer information including income breakdown and YTD figures
- W-2s for all jobs
- VOE for current and previous employment - be certain the info matches the final 1003
- 2-years tax returns plus your income calculations for self-employed borrowers
- New employment contract is fully executed and verifies salary as well as the start date within 90 days of closing
- Document child/ spousal support has a 3-year continuance
- 2-months consecutive bank statements and source any large deposits
- Gift letter matches gift amount on the 1003 and AUS findings
Completeness reduces follow-up and speeds resolution.
5. Provide additional supporting documentation when applicable
Supplement files like the following examples when needed:
- HFA second mortgage/ grant information or reservation form
- Trade school/ college transcripts to cover employment gaps
- Document PITIA for other real estate owned
- Relocation Agreement
- Purchase CD to verify seasoning of the mortgages to be paid off on a refinance
- Solar Power agreements
- IBTS info for manufactured homes, if appraisal does not verify HUD data
Anticipating needs keeps files moving forward.
6. Close the loop with feedback
We encourage your teams to:
- Ask questions before submission by contacting Enact’s Regional Underwriting Team
- Track repeat issues and refine internal processes
- Build standardized checklists and workflows
Repetition and organization drive long-term success.
More ways we at Enact can help
First pass approvals aren’t accidental—they’re the result of consistent processes, clean data, and disciplined submissions. By aligning loan data upfront, submitting only final documents, and addressing requirements early, lender teams can reduce friction, protect closing timelines, and deliver better experiences for borrowers.
In a market where speed and certainty matter, these habits help lenders stay competitive, one clean approval at a time.
That’s why it’s important to keep the conversation going, because when we know the tools and tips available to us, we can empower more families to achieve the dream of homeownership. Our Regional Underwriting Team is available to assist you Monday-Friday 8am to 8pm ET at 800-444-5664 option 2.
Enact also offers a suite of resources—including Rate Express®, Underwriting Resources, and training resources to help you along the mortgage origination journey.
Source: Donna Muratalla is a Regional Underwriter at Enact Mortgage Insurance.
The statements in this article are solely the opinions of Donna Muratalla and do not necessarily reflect the views of Enact or its management. Lenders should consult their own legal and compliance advisors when interpreting applicable guidelines and requirements.
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