Posted by Linda_H/FL on 10/21/09 8:29pm
Msg #308152
VA Streamline RESPA signing tonite...a doozy!!
Can only imagine how big the package is going to be - the application was 80 pages!! Then, to add to that, some of what this borrower was told had me shaking me head:
1. LO said "We'll probably close this by 11/15 - don't make your November mortgage payment - so you'll basically skip 2 mortgage payments since your first payment won't be til 1/2010";
2. Application had NOTHING under liabilities except for his first mortgage - guy has second mortgage on property - he said he told his LO about the second and his LO told him "we're only going to worry about the first mortgage"..
3. No income information filled in on 1003 - guy gets monthly VA disability AND works..
4. He owes almost $138K on his current mortgage (plus $48K on equity loan but we're not worrying about that one) - loan is for $143 and he won't have anything out of pocket - GFE costs are almost $6K.
5. One doc he signed off saying he realized fair market value of his house is $250K...now I'm gonna tell you if that place is $250K then mine is $1M - even HE said "I WISH it was worth $250K - last he heard last year sometime it was down to $125K;
6. All this - he saves just under $100/month - and STILL has to make the second mortgage payments!!.
Ugh..
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Reply by Shoshana/AZ on 10/22/09 8:33am
Msg #308216
Re: Sounds like LO fraud to me!
Mortgage banks are not required to disclose YSP...only mortgage brokers have to. If the credit score was good enough, the YSP could be significant. However, if they fudged on the value of the home, that's fraud.
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Reply by PAW on 10/22/09 9:17am
Msg #308220
Re: Sounds like LO fraud to me!
Yes, the **broker** must disclose the YSP, however, by Florida statutes, the YSP, the initial exact or maximum YSP, needs to be disclosed on the Mortgage Brokerage Fee Agreement. And, if the YSP shown on the Agreement is changed, then the broker must disclose the new exact YSP. The OFR (Office of Financial Regulation) has stated that the re-disclosure does not require a new Agreement, but can be shown on a final or updated GFE.
The FAMB (Florida Association of Mortgage Brokers) have asked for clarification of the HUD requirement outlined for Section L, which states: "Such charges also include indirect payments or back-funded payments to mortgage brokers that arise from the settlement transaction. When used, "P.O.C." should be placed in the appropriate lines next to the identified item, not in the columns themselves." The question is, is the YSP a "back-funded" payment that arose from the settlement transaction? Some brokers say it is not, some say it is. I guess we'll find out when it ends up in court some day.
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