Relocate to Wisconsin : Underwriters CAN ...Over Write...

Underwriters CAN ...Over Write...

 There are times when as an agent...you are sure that common sense has been banished from the Universe...and egos thinly disguised as "professional watch dogs" reign watch dogthroughout the lending process.  Occasionally it may even be the pass the buck excuse ...with mumbles of that "the government requires..."  What government ?  That one that is "by the people, for the people" ?  Nah...that can't be...the questions are too ridiculous for them to have come from them.

    The kinds of loans...the side of the bed that the Underwriter chose that morning...what he/she had or did not have for breakfast or too much/not enough of the night before...all seem at times to play a role on the documentation demanded to "clear the conditions" for the over burdened borrower.

   boomerang  For Boomerang Buyers....and sometimes the kinds of loans that can hasten the "normal" waiting period to return to homeownership...the list is longer..more detailed.  It never matters that their short sale shows as "paid for less than owed"...that they can produce a tax record of their former address with the recorded transition of ownership...the Underwriter wants the HUD and every piece of closing documentation that he/she can imagine exists.  

    After producing a year of bank statements, "payment testimonials" from a landlord, soaring credit scores, savings account balances...one Borrower was asked to provide "evidence" of 12 months of paid bills from another trade credit line.  Really ?  You have 12 months of bank statements, you have a credit report, you have the documented balances of credit cards (reduced or eliminated monthly). common sense The "abuse of power" continues...and the borrower is left with little choice but to comply or start the process over again with another lender...a different loan program and a hopefully...an underwriter with common sense.
  You can choose to be silent...after all "THEY"...whoever the lender may be...have the money...and "THEY" make the rules. OR....you can speak up...and let "THEM" know that their position does not entitle  them to an abuse of power.  
    There may be no one who reads this post that will  ever take any action along these lines...of credit...of trade...And then...the light of truth in lending may shine and at least one person makes it know that abuse has consequences....and then this blog will have served a purpose. Amen and Women.

  

 

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Comment balloon 10 commentsSally K. & David L. Hanson • May 23 2016 05:05AM

Comments

Well, lets hope these things can change. We are still in the process of an accepted offer from October (yes October) that still has not closed because of some last minute documentations...Ridiculous!

Posted by Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400, Long Island Condo & Home Sale Specialists (The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803) about 2 years ago

Well Sally, you better be behind Trump BECAUSE he wants to repeal Dodd- Frank. And then maybe the lenders will get the message: MAKE MORE LOANS. Right now they are so afraid of "re-purchase" that they don't want to make ANY LOANS.

All these hoops you are asked to jump through are an attempt to NOT make the loan.

Bill Roberts

Posted by Bill Roberts, "Baby Boomer" Retirement Planner (Brooks and Dunphy Real Estate) about 2 years ago

It's pretty difficult for most buyers to manage as it becomes daunting - and many take it personally. 

Posted by Debb Janes EcoBroker and Bernie Stea JD, REALTORS® in Clark County, WA (ViewHomes of Clark County - Nature As Neighbors) about 2 years ago

Thank you for sharing the information. I hope consumers will read it .

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) about 2 years ago

Sally and David Underwriters can sometimes be difficult but sadly it is more the rules from the government that is supposed to be by the people and for the people.  As an LO this is my world, and some of the regulations which from Fannie Mae, Freddie Mac, FHA, VA, USDA, and the biggest pains in the butt the CFPB have cause the need for requesting documents that go beyond common sense.  It is OK to be upset with the Underwriter, but your true anger should be pointed to the government that is supposed to be by the people for the people.  When you vote in November that your Representatives in Washington are a part of they issues you are having if they supported the Dodd /Frank Act.  So if you really want to have an impact and change things vote them out of office and do not put others in office who will maintain the status as is.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) about 2 years ago

Sally and David

It would seem that the watch dog is looking in all the wrong places.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) about 2 years ago

I just had a listing close with the most difficult underwriter I have had in a long time. It took documentation over and over again to prove it to her.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 2 years ago

Good morning Sally. Welcome to my world, it is often crazy some of the stuff that underwriters ask for. It is bad enough to for the stuff they can ask for, but very often late in the process.

Posted by Joe Petrowsky, Your Mortgage Consultant for Life (Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709) about 2 years ago

Hi Sally and David... common sense has simply flown out the window in so many aspects of our lives, underwriting included. Thank you Dodd-Frank!

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (RE/MAX Executive | Charlotte, NC) about 2 years ago

Common sense is out the window with some underwriters Sally K. & David L. Hanson and my gripe is why wait until the last minute to check or ask for these crazy things, often they have been in underwriting for weeks

Posted by Scott Godzyk, One of Manchester NH's Leading Agents (Godzyk Real Estate Services) about 2 years ago

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