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 throughout 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.
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). 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.