Posted by Ali/IL on 8/1/07 10:14am
Msg #203185

non owner occupied question

Last evening I had a signing that was owner occupied but, was being treated as non owner occupied. It was a regular single family home.

The loan package had no rtc. Title and lender knew but, I am not sue if borrower knew.

When would a loan be handled this way?If a borrower wants it that way can it be done?

Reply by MistarellaFL on 8/1/07 10:16am
Msg #203187

My guess

Could have been a second home or investment property that they are living in temporarily.

Reply by Ali/IL on 8/1/07 10:29am
Msg #203191

Re: My guess

During our conversation she told me that she has been living there for 30 years with her partner.

Title company told me it was owner occupied being treated like non owner. Had me fax over most of package so that it could fund same day.

Reply by MistarellaFL on 8/1/07 10:31am
Msg #203192

Re: My guess

Maybe she has an owner-occupied loan on a different property......

Reply by Becca_FL on 8/1/07 10:35am
Msg #203193

Re: My guess

Sounds to me like a broker or LO was desperate for a commission check. The sad thing is with most non-owner occupied loans, the interest rate is higher. So the borrower may have paid .25-1.0 higher for a non-owner occupied loan just because the LO was desperate? Sick.

Reply by SharonMN on 8/1/07 3:37pm
Msg #203255

Re: My guess

Maybe if they weren't married, they had to treat the partner as a renter for some reason? No idea, but not really our business, so I wouldn't worry about it.

Reply by Bob_Chicago on 8/1/07 10:51am
Msg #203196

Most packages have some type of "Occupancy Affidavit" form..

which has bwr state if primary, 2nd home , investment, etc.
What did this one say??
Also, under certain circumstances, there is no RTC reqd if re-fiing with
same lender.
So long as you did not tell them that they had a RTC and if TC was
aware that there was not a RTC, as they obviouslywere, it is not
your problem.

Reply by Kate/CA on 8/1/07 11:01am
Msg #203197

Bob is correct, but these are rare. n/m

Reply by Lisa Prestegard on 8/1/07 12:51pm
Msg #203228

It can be done, but usually only in the instance...

of dire financial need on the part of the Borrower, with a letter of explanation to the Lender and Lender acceptance. This would include emergencies such as imminent foreclosure, medical necessity, or something of that nature.
In your case, however, it seems as though the LO just wanted it to fund by the last day of the month so he can receive his commission when checks are cut in August for July loans

Reply by Lisa Prestegard on 8/1/07 7:10pm
Msg #203299

Read Regulation Z regarding RTC and exceptions n/m