Mortgage condition management, explained.

Conditional approval to clear to close: how a loan approved “subject to” a list gets to closing

The Thornburys' purchase loan, conditional approval to funding in five steps

1. Application and findingsThe Thornburys apply for the loan. DU returns Approve/Eligible at a 31.9% debt-to-income ratio, with its verification messages.
2. Conditional approvalOn October 1 the underwriter approves the loan subject to 14 conditions: 13 before docs, one before funding.
3. Conditions requested, received, checked and clearedEight documents arrive overnight on October 12. This is where the missing phone number and the new car loan are found, or missed.
4. Clear to close and the Closing DisclosureIssued October 13. The disclosure must be received by Friday, October 16 for a Tuesday closing.
5. Closing, funding and deliveryThe employment check is booked for Monday, October 19. The loan funds on the 20th and is delivered to the investor.

Step 3 is the subject of this guide. The people, lender and figures in this example are fictional.

Four surprises in clearing mortgage conditions

Four condition terms: condition, PTD and PTF, clear to close, findings

Fourteen terms are defined in the one-page summary.

Where a mortgage condition comes from, and which ones only an underwriter should clear

In shortConditions come from three places: the automated findings, the agency guide, and the lender's own overlays. They fall into a handful of families, and federal reporting rules split them into two kinds that matter for who clears them: conditions about the borrower's creditworthiness, and customary closing conditions about the property and paperwork.

The underwriter writes the conditions on a file, drawing most of them from three sources. The automated findings list the documents DU needs to support the data it was given, such as two months of statements for an account or a paystub dated within 30 days of application. The agency guide adds rules that apply to every loan, such as the gift letter's required contents. The lender adds overlays, its own stricter rules, for example a second month of statements where the findings ask for one. A clean approval for a salaried borrower may carry a handful of conditions; a self-employed borrower with a gift and a recent job change will carry many more.

The Thornburys' 14 conditions, by family

Two kinds of condition, and why the split matters

The official commentary to Regulation C, the rule that governs mortgage reporting, sorts conditions into two kinds. Customary commitment or closing conditions are things like "a clear-title requirement, an acceptable property survey, acceptable title insurance binder", a termite inspection or a subordination agreement. Underwriting or creditworthiness conditions include debt-to-income or loan-to-value requirements, a satisfactory appraisal, and verification of income or assets.4

The split decides how a file that never closes is reported to regulators, which section 07 sets out.4 Many lenders use the same line to decide who may clear what: the processor may clear title, insurance and property paperwork when policy allows, and the underwriter clears anything that bears on income, assets or credit.

What "suspense" means

A file the underwriter cannot decide yet, because something material is missing or contradicts the rest of the file, is "suspended" or "in suspense", a lender term with no regulatory definition. A suspended file has no approval yet, so it has no conditions; its suspense notice lists what the underwriter needs to make a decision at all. Lenders that track suspense items and conditions in one queue should mark which is which, because a suspended file is still waiting on a credit decision and the Regulation B clocks in section 07 keep running.

The agency rules behind mortgage conditions, and what moved in 2026

In shortConditions on loans sold to Fannie Mae and Freddie Mac rest on their guides, and FHA loans on HUD's handbook. The guides change every few months. In 2026 Fannie Mae reorganized its income chapter and renumbered the employment check, changed the employment check again in October, and both companies began requiring lenders to govern their use of AI. The federal timing rule for the Closing Disclosure did not change; the CFPB only asked whether it should.

The Closing Disclosure clock stayed the same in 2026

The three-business-day rule for the Closing Disclosure stands. On July 9, 2026, following a March 2026 executive order on mortgage credit, the CFPB published a request for information asking, among other things, whether "materiality-based standards could replace or supplement timing rules", while noting that the Truth in Lending Act itself sets the disclosure timing. Comments closed on August 10, 2026. A request for information changes nothing by itself, and no proposal had followed by the end of October 2026.20

Three deadlines every condition runs against: document age, the employment check and the Closing Disclosure

In shortA condition is cleared against a date. Each document has a shelf life measured to the note date; the employment check has a window that closes on the note date; and the Closing Disclosure has to be received three business days before signing, so every prior-to-docs condition has to be cleared before that. A fourth date comes from DU when it validates employment.

How long each document stays usable

The shelf lives differ in what they count from and to. Fannie Mae counts calendar months to the note date, Freddie Mac 120 days to the note date, and FHA 120 days to the disbursement date, starting the day after the document is dated.5,24,25 In states where the money moves a day or more after signing, an FHA file is measured to a later date than a conventional file that signs the same day. For a run of monthly statements, Fannie Mae looks only at the newest one.5

The practical problem is slippage. A seller asks for two more weeks, the closing moves from late September to early October, and a paystub, a statement and the credit report that were fine for the first date are too old for the second. The date moved under the documents, and each one becomes an open condition again, usually discovered by the closer.

The employment check must land inside a 10-business-day window

The verbal verification of employment exists to confirm "as late in the process as possible" that the borrower still has the job. For employment income it must fall within 10 business days on or before the note date. Fannie Mae allows up to 15 business days when the lender relies on documentation dated within 15 business days, 120 calendar days for self-employed borrowers, and a check after closing up to the time the loan is delivered; a loan without one is ineligible for sale.6 When DU validates employment through its validation service, the findings carry a "close-by date" instead, and the representation and warranty relief for employment holds only if the loan closes by it.27

The Closing Disclosure sets the real deadline for prior-to-docs conditions

Regulation Z requires the creditor to "ensure that the consumer receives" the Closing Disclosure no later than three business days before consummation, usually the signing. For this rule a business day is every calendar day except Sundays and federal public holidays, so Saturdays count.2,28 Receipt is what counts. A disclosure delivered by mail, or electronically without proof the borrower opened it, is treated as received three business days after it was sent.2

Our arithmetic on the example's dates: sent Wednesday, a mailed disclosure counts as received on the third business day after, Saturday, October 17, and the earliest signing is then the third business day after that, Wednesday, October 21. Monday, October 12, 2026 was Columbus Day, a federal holiday, but falls before any of these counts.

Three changes after the disclosure restart the three days: an annual percentage rate that becomes inaccurate, a change of loan product, or a prepayment penalty added. Other changes need a corrected disclosure at or before signing. A borrower can waive the wait only for a "bona fide personal financial emergency", in a dated written statement signed by everyone liable on the loan; printed waiver forms are not allowed.2 So a condition that changes the rate or the product after the disclosure goes out costs at least three more business days, which is why underwriters clear anything that could touch the terms before clear to close.

Checking a gift letter, a large deposit and reserves, worked through on the example file

In shortClearing a condition means testing every element of the rule behind it, on the right date, and writing down where the document meets each one. The three examples here use the fictional Thornbury file: a gift letter that fails on one missing line, and a single bank statement that satisfies two separate rules at once.

The gift letter: five elements, one missing

Fannie Mae requires the gift letter to "specify the actual or the maximum dollar amount of the gift", to "include the donor's statement that no repayment is expected", and to "indicate the donor's name, address, telephone number, and relationship to the borrower". The lender must also see the money move, for example evidence of an electronic transfer from the donor's account to the borrower's account or to the closing company.10 A gift letter is a short form, so one blank line is enough to send it back.

If the gift that actually arrives differs from the amount used in DU, the guide warns that "the lender may need to resubmit the loan casefile to DU".10 The corrected letter, with the telephone number added and signed again, came back the same morning.

The large deposit: is it above the line, and is it sourced?

For Fannie Mae, "a large deposit is defined as a single deposit that exceeds 50% of the total monthly qualifying income for the loan". On a purchase, if those funds are needed for the down payment, closing costs or reserves, the lender must document that they come from an acceptable source. When the statement itself shows the source, such as "a transfer of funds between verified accounts", no further explanation is needed. On a refinance, no explanation is required.11

The combined statement that arrived at 7:38 shows the $9,200 leaving the Thornburys' own savings account ••6620 the same day. The savings account was on the application but had no statement in the file until now. With that statement, the transfer is between two verified accounts, so the deposit is sourced.

Reserves: months of the full payment left after closing

Reserves are measured "by the number of months of the qualifying payment amount", the full monthly payment including taxes, insurance and dues, and for DU loans DU sets how many months are required.12 The Thornburys' payment is $3,536.47 and DU asked for two months.

One statement answers two separate questions here, so it clears two conditions. Each still has to be tested against its own rule and recorded on its own, because a reviewer reading condition 14 later should not have to open condition 13 to see why it was cleared. Matching one document to only the first condition it fits is a common way files stall: the second condition stays in "requested" while the evidence sits in the file.

When a cleared condition changes the loan: new debt, the debt-to-income ratio and a DU resubmission

In shortSome documents change the numbers the approval rests on. A new debt, lower income, a different gift amount or fewer assets mean recalculating the ratios and, past set tolerances, running the loan through DU again. A resubmission can return a different answer, so the underwriter decides; nobody should clear the condition around it.

When the credit report shows recent inquiries, the lender must confirm the borrower has not obtained credit missing from the report or the application; any new debt must be verified and the borrower qualified with its monthly payment.13 Fannie Mae's rule for what follows is direct: if, after the underwriting decision and up to closing, the borrower discloses or the lender discovers additional debt or reduced income, "the loan must be re-underwritten" when the debt-to-income ratio rises beyond the allowed tolerance. For a DU loan, re-underwriting means resubmitting to DU; a loan above 50% after recalculation is ineligible.29 Installment debts with more than ten payments remaining count in the monthly obligations.14

The tolerance is in B3-2-10. A DU loan must be resubmitted when the recalculated ratio exceeds 45%, or when it rises by 3 percentage points or more while staying at or below 50%. Reserves documented at 90% or more of the amount DU required need no resubmission.7

Four ways a document changes the numbers

The fourth way is the property: an appraisal below the price changes the loan-to-value ratio, which can change mortgage insurance, pricing and eligibility. Regulation C's commentary lists a satisfactory appraisal among the creditworthiness conditions for that reason.4 In the Thornbury file, the car loan is the only change. The DU re-run returns Approve/Eligible at 36.2%, and the underwriter accepts the new debt and clears the condition.

How a conditional approval ends without a closing, and the 2025 numbers behind it

In shortA conditional approval can end four ways besides a closing: denied on an unmet credit condition, approved but not accepted, withdrawn, or closed for incompleteness after a written request went unanswered. National reporting data show about one incomplete file for every ten loans made in 2025, a ratio that has crept up since 2019.

Regulation B gives a lender 30 days after receiving a completed application to tell the applicant what it decided. If the application is missing something the applicant can supply, the lender has two choices within 30 days: decide on what it has, or send a written notice of incompleteness that names the information needed, gives a reasonable time to provide it, and says that without it the application will get no further consideration. If no answer comes in time, the lender "has no further obligation".26 A quick e-mail asking for a missing paystub counts as that notice only when it carries all three parts.

The reporting rules then sort the file by which condition stopped it.4

HMDA does not record why a file was closed for incompleteness, and some of those applicants had already gone to another lender. The trend still matters for condition work: a request the borrower does not understand, or never sees, ends in exactly this outcome. A clear request, sent once, to the right person, with the date and the consequence in it, is the fix most within the lender's control.

Counteroffers, and recording which condition stopped a file

Two smaller rules touch conditional approvals. A condition that changes the terms the borrower asked for, such as a demand for a larger down payment, is a counteroffer in Regulation C's words, and Regulation B gives counteroffers their own notice timing.4,26 And a lender should record which condition stopped a file that never closed, because the outcome it reports depends on whether that condition was about credit or about closing paperwork.

Twelve condition errors that reach quality control, and why each one happens

In shortCondition errors fall into four groups: the wrong document on the wrong condition, a document checked on the wrong date, an element of the rule missed, and a number that moved without anyone recalculating. Quality-control data from 2026 put income, liabilities and assets among the top defect types, with gift funds and undisclosed debt named as repurchase examples.

What quality control found in early 2026

The overall critical defect rate in the loans lenders sent for full post-closing review rose to 1.71% in the first quarter of 2026, from 1.38% the quarter before, the largest quarterly jump in four years. ACES tied it to a wave of refinances after rates dipped below 6% in February, handled without matching headcount, and said "low-frequency procedural steps are precisely the ones most likely to be missed".30 The rate moves in both directions: 1.31% a year earlier, 1.51% in the second quarter of 2025 and 1.79% in the third.31,32,30

Freddie Mac's own repurchase reporting names the same items condition work handles. Its asset examples are "Gift Funds" and "Ineligible source of funds to close"; its liability examples include "Undisclosed non-mortgage debt" and "Missing Documents to support debt calculation"; its income examples include "Missing Documents to support Income Calculation". Income defects fell from 40% of its repurchases to 27% in the first quarter of 2026.33,34

What a badly cleared condition risks: repurchase, fair lending findings, a missed closing

In shortA condition cleared on the wrong evidence can make a loan ineligible for sale and send it back to the lender. Conditions applied unevenly across borrowers are a recognized sign of disparate treatment. And a condition cleared late moves the closing, which costs the borrower and the lender on the rate lock.

The closing date and the borrower's cost

When lenders run short of capacity, files take longer and borrowers pay more. Federal Reserve economists estimate that a one-standard-deviation rise in demand adds 3 to 5 days to processing and 3 to 8 basis points to mortgage rate spreads. They note that the average lock in an earlier study was about 46 days and that lenders offer standard 30-, 45- and 60-day locks.8 A file that runs past its lock needs an extension, and when the delay was the lender's, the lender often pays for it.

On the borrower's side a missed closing on a purchase can mean a second move, a lost rate or a seller who walks. The research is reassuring on one point: lenders that processed loans about 20% faster did not make riskier loans. Default rates on their FHA loans were about 25% lower than other lenders' after controls.40 Removing waiting time speeds a file while every check stays in place.

How long a mortgage takes from application to decision, and how busy 2026 has been

In shortAveraged across lenders, states and months, a mortgage takes about 51 days from application to decision, with a long tail past 77 days. No published figure isolates the conditions stretch inside that time, but the whole process lengthens when applications surge. Lenders made 6.8 million loans in 2025, and the industry expects roughly $2.1 trillion of originations in 2026.

Research times the whole loan, from the application date to the lender's action, because that is what the national HMDA data record. On loan-level data for 2010 to 2016, the average was 52 days for purchases and 51 for refinances.40 The Federal Reserve's March 2026 study, which averages HMDA data by lender, state and month, puts the mean at 50.8 days to a decision.8 The time is elastic. During the 2020 refinance boom, processing times rose "initially by about 6 days, rising to 11-13 days at the peak from July to September 2020", against a pre-pandemic average of about 48 days.41

The volume behind the queue

Volume decides how many conditions a team clears. In its August 2026 forecast the Mortgage Bankers Association expected $1.43 trillion of purchase originations and $713 billion of refinances in 2026, and $1.49 trillion and $655 billion in 2027, with the 30-year rate averaging 6.7%.42 Independent mortgage banks and the mortgage subsidiaries of chartered banks spent $11,094 to produce each loan in 2025, up from $11,076 in 2024, and earned $785 per loan on production.43 A margin that thin leaves little room for files that stall.

No public figure counts conditions per loan, conditions cleared per underwriter per day, or days from conditional approval to clear to close. Your loan origination system holds all three; section 17 shows how to pull them.

What software and AI change in condition clearing, and what the GSEs and regulators now expect

In shortSoftware can read and sort arriving documents, match them to open conditions, test each element of a rule, recalculate ratios and watch the dates. The judgment calls stay with people. Freddie Mac since March 2026 and Fannie Mae since August 2026 expect lenders that use AI to govern it in writing, and Fannie Mae's requirements now sit in its security supplement. Colorado adds duties for automated decisions from 2027.

The agencies already remove some conditions before they exist. When DU validates income, employment or assets through its validation service, its message says the verification report is acceptable documentation for that component, and a validated component can earn relief from representation and warranty enforcement. When DU has validated the assets, it also flags the large deposits on a purchase that need documentation; with no such message, none is required.27 Automation after the approval is the next step: the conditions that remain still need a document matched, tested and signed off.

What the GSEs and regulators expect of AI

Three limits on software that clears mortgage conditions

Three limits hold whatever the tool. First, the lender owns the decision: the selling contracts make the lender responsible for meeting every condition in the findings, whoever or whatever did the reading.1 Second, a new fact needs a person. Whether to accept a debt the borrower forgot, or how to treat a deposit from abroad, is underwriting judgment with fair lending consequences. Third, anything a borrower reads should be checked by a person before it goes, because a request that misstates the requirement wastes a day and confuses the borrower. Tools that show, for every clearance, the document, the page and the rule section make those limits easy to keep.

How mortgage operations teams clear conditions today, and where a condition's hours go

In shortA processor requests, chases and matches; an underwriter tests and clears; a closer waits for clear to close; the loan officer fields the borrower's calls. Most of a condition's elapsed time is waiting: for the borrower, for someone to match the document, and for the underwriter to reopen the file.

Who clears mortgage conditions: processor, underwriter, closer, loan officer

From conditional approval to clear to close: the condition hand-offs

About 20 working hours from arriving document to cleared condition

Few conditions take 20 hours of anyone's attention. The estimate is elapsed working time, most of it in queues: the document waits until a processor has a free hour, and the matched document waits until the underwriter's next pass through that file. Volume makes it worse. A surge triples the overnight mailbox but not the staff, which is the capacity effect the research measures.40,41

In-house processors, contract underwriting or condition-matching software

Twenty minutes on the Thornbury file: eight documents, fourteen conditions, one clear to close

In shortThis is the example from the top of the page, inside the product. Agents read the eight documents that came in overnight, drop each on the condition it satisfies and test it against the guide. Rachel Ochoa, the senior underwriter, clears what passed, decides on the new car loan, sends one plain request for the gift letter, and signs clear to close at 7:50 am, a day ahead of target.

1

The loan board, with the closing clock on top

At 7:30 am Rachel opens the Thornbury file. The board shows every condition in one of four lanes: Open 4, Requested 4, Received 0, Cleared 6. Above it runs the clock: today, clear to close targeted for Wednesday, October 14, the Closing Disclosure to be received by Friday the 16th, closing on Tuesday the 20th at 10:00 am. The meter reads 6 of 13 prior-to-docs conditions cleared.

On the left, the Arriving tray holds eight unread documents from the borrower portal, the shared mailbox, the title company and the homeowners association, the earliest from 6:04 pm the evening before. The verbal employment check sits in Open, booked for Monday the 19th. The board's note says it cannot be done earlier. In fact October 13 is already inside the window, five business days before the note date; Fannie Mae wants the check "as late in the process as possible", and booking it for the 19th keeps it current if the closing slips.6

2

One press, and each document lands on its condition

Rachel presses Match 8 new documents. Each document is read, lifts out of the tray and drops onto the condition it satisfies, and that card moves to Received. The run log reads: eight Thornbury documents tied to five conditions, nothing left over. Then the checks resolve.

The two paystubs show $4,038.46 every two weeks, $8,750 a month as qualified, with year-to-date pay of $84,807.69. The title commitment insures $489,600 with only closing items left. The HOA certificate shows $255 a quarter, paid through December 31, no special assessment. All three pass and show a Clear button. The gift letter goes back to Requested with its reason, and the letter of explanation stays in Received, marked as her call.

3

One statement, two conditions

Rachel clears the three that passed. At 7:38 am Julian uploads the combined bank statement for checking ••2290 and savings ••6620. The matcher places it on two conditions at once, 13 Reserves verified and 14 Large deposit explained, and groups them as one statement, two conditions.

Each is checked against its own rule: $19,204.32 left after closing is 5.4 months of the $3,536.47 payment against the 2 months required, and the $9,200 deposit on September 21 is a transfer from the borrowers' own savings, shown on the same page. Both pass. One press of Clear both moves the pair to Cleared, each signed with her name and the time.

4

The new car loan is her decision, with the numbers beside it

Condition 09 opens on what the condition asks for, the two documents, every check made, and the decision. The letter discloses a car bought on October 3: $30,549.29 financed, 60 payments of $612.00, not on the application. As approved, the debt ratio was 31.9% ($4,511 of $14,150); with the car loan it is 36.2% ($5,123). The DU re-run returns Approve/Eligible under the 50% maximum.

She has three choices on the screen: accept the new debt and clear, ask for more, or refer to the team lead for a second look. She accepts. The loan is added to the debts, resubmitted to DU and the summary updated. The screen's reference is to the Selling Guide's credit history section, B3-5.3; the current topics that govern this condition are B3-5.3-04 for inquiries, B3-6-05 for the debts counted and B3-2-10 for the resubmission tolerance.13,14,7

5

A plain request, a corrected letter, and clear to close

For the gift letter, the condition as written reads "donor telephone number missing". The message drafted for Nadia and Julian thanks them for sending the letter, says one thing is missing, her mother's telephone number, and asks them to have it added on the line marked "Donor's telephone", signed again and uploaded; a photo from her phone is fine. Rachel reads it and presses Send. Four minutes later the corrected letter arrives, lands on condition 08, passes, and she clears it.

With 13 of 13 prior-to-docs conditions cleared, she signs clear to close. Still prior to funding: the verbal employment check for both borrowers. Ana Lucero, the closer, is notified to send the Closing Disclosure on Wednesday. It must be received by Friday, so she needs the Thornburys' acknowledgment of receipt; by mail alone it would count as received on Saturday, too late for Tuesday (section 04).

The solution's design targets are a condition cleared the same day its document arrives, and every clearance carrying its document, page and guide section. They are targets, to be measured on your own files.

The rest of the desk in fifteen screens: pipeline, documents, requests, closings and clearing rules

In shortThe first four screens finish the Thornbury morning. The rest show the whole desk: the pipeline two ways, the loan file, a condition opened at its evidence, the overnight documents, the requests, the closing calendar, a second file with a problem binder, the operations view and the rules managers set.

Select any screen to open it larger. The lender, borrowers, people and figures are fictional, and the operations figures are sample data.

Six agents prepare each condition; the underwriter, the processor and the team lead sign it off

In shortEach agent has one job and limits it never crosses. None of them clears a condition, sends a message to a borrower, waives a requirement or resubmits a changed loan. Only an underwriter clears income, asset and credit conditions, makes judgment calls and issues clear to close; the processor may clear administrative conditions where the lender allows it.

Six agents that match each borrower document to its condition

The underwriter clears credit conditions; the processor clears paperwork

Every clearance is signed with a name and a time and keeps its evidence attached. Agent steps and human decisions sit side by side on the file's run log and the audit trail, rule changes are versioned, and no message reaches a borrower until a person sends it.

Rachel, Tyler and Ana on the Thornbury file

The borrower documents and DU findings it reads, and the cleared conditions it records

In shortThe solution reads the conditions your approval already sets and the documents borrowers and third parties already send, checks them against your guides and overlays, and leaves behind a board per loan, proposed clearances with their evidence, requests in plain words, and clear to close when the file is ready. Your loan origination system stays the system of record.

LOS, borrower portal, shared mailbox and DU to connect

For each, check whether it has an API, a file feed or only screens, and who owns it.

Your LOS and condition templates stay as written

Every clearance shows its proof, and one document clears every condition it meets

What conditions cleared by hand cost you in staff hours, slipped closings and loans you cannot sell

In shortStart with your own numbers, because nobody publishes the cost of a condition. A few published figures frame them: what a loan costs to produce and earn, how much a busy month slows every lender, and how often files end incomplete. Then find your own in a week, from your loan origination system.

Timing ten conditions and counting conditions per loan

Lost purchase contracts, unsellable loans and volume surges

Valuing the minutes: staff time, files in flight and the break-even volume for condition software

In shortPut in your own numbers. The calculator starts from published processor and underwriter wages and asks you for the rest: loans a year, conditions per loan, minutes per condition now and after, days saved, and what the tool and your testing cost a year. Every default marked illustrative is an assumption to replace.

Staff time and a faster clear to close

Your staff hours on a year of conditionally approved loans

Our arithmetic: $150,000 ÷ (14 × minutes saved ÷ 60 × $43). A lender closing 2,000 loans a year clears the first two lines; one closing 500 a year needs larger savings per condition, or fewer manual minutes today, and should measure before buying.

How ready is your condition desk? Score your templates, clearing authority, document channels and AI governance

In shortPick the answer closest to your team today. Eight questions score 0 to 2; the last is for reflection. The meter adds up your score as you go, and each question says why it matters and what a strong answer sounds like.

Condition desk scores: export a quarter, pilot on approved files, or implement

Eighteen vendor questions that test how condition management software turns a document into a cleared condition

In shortAsk every vendor the same questions, us included. The answers show how a document becomes a cleared condition: what it reads, how it matches, what it checks and against which rule, who presses clear, what evidence you keep, and how you would measure it on your own files.

A ten-week pilot on your own conditionally approved files, with errors you plant

In shortMeasure first, then test on your own files with errors you planted, then run in parallel with your people clearing everything, then decide with four numbers. None of these steps commits you to a vendor.

1. Pull your baseline: last quarter's conditions per loan, received-to-cleared hours, re-requests, and QC findings tracing to conditions.
2. Update your templates for the 2026 Selling Guide changes, and write down who may clear each family of condition.
3. Gather 50 recent files with their conditions and documents. Copy ten and plant known errors: a missing gift letter line, a stale statement, an undisclosed debt.
4. Run in parallel on live files for four weeks, with your processors and underwriters clearing every condition.
5. Decide with four numbers: matches right, catch rate by error type, false alarms, and hours from received to cleared.

Measuring condition software: right matches and catches by error type

PTD conditions, gift letters, VOE timing and clear to close: common questions

In shortThe questions borrowers, processors and buyers type most often, each answered on its own.