Posted by NC_Notary on 3/26/09 7:02pm
Msg #282288

Has anyone heard about new mortgage requirements for all

loans disbursing after 3/31/09? A borrower mentioned that if their loan were to close after today they may be required to provide additional documentation, proof of income, etc. due to new requirements by the Obama Administration.

Has anyone heard about this? Maybe that is why it was so crazy these past 2 days...

Reply by Michelle/AL on 3/26/09 9:23pm
Msg #282296

I haven't heard about new requirements, but it has

been crazy busy in Northern Alabama.

Reply by ME/NJ on 3/26/09 10:03pm
Msg #282298

Something is up, 2 loans tonight they verified employment 3 times in the last week.

Reply by jba/fl on 3/26/09 10:30pm
Msg #282299

Mine today said they had been verified again today as to employment. One said they asked his boss if he thought bo would be there for a while still. They thought odd - I thought cautious in light of previous years closings.

Reply by Teddog/CO on 3/27/09 5:45am
Msg #282313

jba/fl

Sounds like everyone is just plain old scared. Now the "over-kill" theory is in use. In this economy no one knows if they will have job tomorrow. Doesn't matter how good you are or how long you have worked for a company. Here today and gone tomorrow. So rechecking the BWR's employment zillion times really is just a waste of time. JMO If the lender asked my employer if "I was going to be there for awhile" I would be be very upset with the lender.

Everyone have a great weekend

Reply by Shoshana Roller on 3/27/09 7:54am
Msg #282321

As far as loan requirements, lenders can be different on many things, however there are some things that are universal. Right now there is a strong push moving towards a minimum 620 FICO for an FHA loan. It used to be 580. I still have people asking me on a daily basis why we can't do stated income loans.

Reply by Linda_H/FL on 3/27/09 7:59am
Msg #282322

Could also be your borrower misunderstood a bt - most loans have a rate lock expiration date, and many times their documentation expires on the same date. It's possible that was the case here and his rate lock (or his loan commitment) was expiring on 3/31 along with the documentation - meaning he'd have to provide updated pay stubs, bank statements, etc. etc. in order to continue with the loan.

Reply by PAW on 3/27/09 8:25am
Msg #282324

My experience (as a broker) has been that regardless of the rate lock expiration, any application in the pipe longer than 30 days requires new supporting documentation, e.g. employment verification, bank statements, pay stubs, etc.

For the commercial aspect, the lender that I worked with the most, required updated information when the application was returned to the LO/broker from the underwriter and again just prior to closing.

Reply by BobbiCT on 3/27/09 8:46am
Msg #282325

Not a new mortgage requirement ...

1. Read the fine print in some of the compliance documents. It gives lender or its auditor authority to re-check employment, credit, appraisal etc. AFTER the loan documents are signed and even AFTER the $$$ are disbursed; i.e., usually done during the 60-day audit period.

2. When "banks" cared and held loans or were worried about buy-back plus financial penaty for a sold loan that didn't meet the secondary buyer's underwriting criteria: The day before or day of the closing, the mortgage processor was REQUIRED to re-verify borrowers' employment and include a SIGNED note in the file with date & time called, telephone #, and name and title of person who verified employment. (I saw a few loans "pulled" when it turned out borrower on day of closing was "no longer employed" and when borrower called, he confessed "I am now unemployed".

Sounds like we are back to the "real underwriting" and "real auditing" days between booms.

Reply by CopperheadVA on 3/27/09 9:02am
Msg #282329

Re: Not a new mortgage requirement ...

In February I closed a loan, everything was signed, notarized, sent back to TC. Apparently during the 3-day RTC the lender found out that the borrower had changed jobs, and the lender CANCELED the loan.

I got called for the re-sign a few days later, but I was unavailable.

Reply by MW/VA on 3/27/09 12:38pm
Msg #282355

Re: Not a new mortgage requirement ...

I've also seen forms appearing for employment verification that weren't there in the past.
I'm sure it's all part of the tighter lending practices that were in place until thngs got out of hand. From what I understand it's going to be very tough to get stated income loans.

Reply by JanetK_CA on 3/27/09 4:45pm
Msg #282413

I haven't seen anything along those lines, but I have seen the opposite. More and more I'm running into borrowers -- of all ages -- who are skeptical, distrustful or fearful about the loan docs because of all the bad press they've heard about lenders, etc. And they don't understand who all the players are. Seems like I'm seeing more and more "readers" as a result. Trying to emphasize the RTC (if there is one) isn't helping as much as it used to. Guess we have to take the bad with the good...