Posted by SatomiCO on 3/2/06 10:10am
Msg #101344

Self-employed single borrower

does not want money wired into his account because he doesn't have a checking account. Request for tax transcript was for three years. BO crosses through page and advised that he is not required to file tax returns.

How to these people apply for loans, and how do they even qualify for loans?

Reply by John_NorCal on 3/2/06 10:12am
Msg #101346

Sounds like you may have a cancellation in the making. Double check to make sure that you get paid from whomever hired you. Good luck!

Reply by SatomiCO on 3/2/06 10:14am
Msg #101348

I don't understand how it even got to this point.

Reply by John_NorCal on 3/2/06 10:19am
Msg #101349

I don't either. The part that really gets me is ,"BO crosses through page and advised that he is not required to file tax returns."
Since when does a self employed person not have to file tax returns? That sounds like a real sham to me.

Reply by SatomiCO on 3/2/06 10:24am
Msg #101354

and he was proud of the fact, too, that he doesn't file.

Reply by Charm_AL on 3/2/06 10:25am
Msg #101355

was he a retired vet?

Reply by SatomiCO on 3/2/06 10:31am
Msg #101358

Nope. Sad part is, I'm not even sure he is legal to live in the U.S. Signing at law office. I raised my eyebrows to the attorney, and he just smiles.

Reply by SatomiCO on 3/2/06 10:49am
Msg #101364

Re: I know, I know ...

I verified IDs, but am I supposed to be an immigration officer, too?

Reply by SatomiCO on 3/2/06 10:55am
Msg #101366

Re: I know, I know ...

BTW, our daughter-in-law is from New Zealand and has green card and required to file U.S. tax returns.

Reply by PAW on 3/2/06 11:41am
Msg #101377

You do not know the background and/or history of the borrower to be able to make a justified decision as to whether or not the person can be making the loan in the first place. That's the role of the broker, loan officer, and title agents. If the borrower presents proper ID to you, you cannot question the validity of the documents unless there is some gross misrepresentations which would jump right off the page.

There are many SE borrowers who have a "no documentation" loan.

As for not signing the 4506 (I'm assuming that's the form you're talking about), I would simply inform the borrower that refusing to sign any of the documents, or making any "unapproved" changes to the documents, may delay their funding or even have the lender withdraw the offer in it's entirety.

Reply by Rick_NY on 3/2/06 11:57am
Msg #101384

EXACTLY!

We're not the loan underwriters.

Reply by SatomiCO on 3/2/06 12:01pm
Msg #101387

You are right. I'm there to witness only. I've just never signed a loan where I was blatantly told that they didn't have a checking account nor required to file income taxes.

Reply by Charm_AL on 3/2/06 10:23am
Msg #101353

That's the stupidest thing I've ever heard. No closing would be scheduled if all conditions were not met before leaving my office to the closing table. During the several weeks before closing the processor is supposed to be making sure they have everything for final approval.
Something smells fishy here, non of this sounds remotely legal within the confines of FannieMae

Reply by celeste/ca on 3/2/06 10:33am
Msg #101359

I believe if I am not mistaken that people in religous sects, such as preachers, priest and so forth do not have to pay taxes, but with this persons attitude I highly doubt he was any of the above.

Reply by SatomiCO on 3/2/06 10:35am
Msg #101360

Once I did a signing in the church for a priest. They were also asking for tax transcripts for specific years, and he had no problem signing.