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Darin Ferraro
7813 Posts |
 Posted - 01/15/2005 : 10:47:50 PM
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Here's a little ethics trivia for all of you, triggered by another topic on this forum.
If you were confronted with a situation where you were given full doc income information and the customer insisted on a stated income loan and stated more income than the original income numbers you saw on his initial interview with you..
How could you ethically process this loan for the borrower? Would you continue with the loan process at that point?
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MSGulfCoast
181 Posts |
Posted - 01/15/2005 : 11:05:37 PM
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| I would want to know the reasons why the person wants to go stated,and it would depend on the loan- cash out, no way, or any other loan that would put the individuals financials, such as purchasing a new property,etc., at risk. But on a debt consolidation, where the loan would benefit the borrower a great deal, or a rate and term that would reduce the pmt significantly, i would consider it. |
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dnuex2
3023 Posts |
Posted - 01/16/2005 : 09:39:05 AM
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I would accept on the following conditions:
Undocumented income does'nt exceed 55% max back end ratio.
Source of undocumented income makes sense and fairly reliable.
I ran into this scenario very recently and feel very strongly about not pushing people into something that they cant, or may not be able to afford.
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jetompkins
2 Posts |
Posted - 01/17/2005 : 07:11:53 AM
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I think much of it depends on the lender, many that we work with just want stated borrowers to state a "reasonable" income for that particular job classification. If its all the lender wants, and they are asking you to come up with a reasonable income amount, I dont believe its unethical to provide that number despite what you have seen in documentation.
quote:
Originally posted by Darin Ferraro
Here's a little ethics trivia for all of you, triggered by another topic on this forum.
If you were confronted with a situation where you were given full doc income information and the customer insisted on a stated income loan and stated more income than the original income numbers you saw on his initial interview with you..
How could you ethically process this loan for the borrower? Would you continue with the loan process at that point?
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karimdu
5 Posts |
Posted - 01/17/2005 : 09:44:12 AM
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| Typically what I see is that many of our customers who provided documentation, have either a cash job on the side that is not listed on taxes, or they have a partner that is sharing the liability but will not be on the debt till later, due to poor credit issues etc. Typically that is when they will go stated if the credit scores support it and trades. Another scenario is a customer that is self employed, but takes large deductions on taxes. Can't prove income that way. I will usually ask them if their income is provable by bank statements or such. |
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midas
4409 Posts |
Posted - 02/17/2005 : 11:46:43 PM
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| i make as much as $100,000 a month and my taxes show an income of $36,000 a year. i go stated all the time, does this make me un ethical or illegal? hell no. do your accounting homework. i put everything in the corporation name then pay for all of it out of the companys expences and at the end of the year i only had to draw $36,000 in taxable income. are you telling me you wouldnt do a loan for me because you judged me by my taxable income. i purchased $3,000,000 in propertys in the last two weeks and will have no problem paying for them. anthony robbins says if you create the debt you will create the payment as well. by the way i always take the full ysp on my own loans and use the money to pay the payments. |
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