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hmetcalf
320 Posts |
 Posted - 02/19/2008 : 3:38:49 PM
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Here is a story for you. I would love criticism positive or negative.
I submitted a deal to Citi. It had every layer of risk you could imagine. Stated, NOO, Cash out, less than 6 months seasoning. I basically had 2 positives. The borrower is a seasoned property investor. The appraisal is as solid as it gets (needs to be right?)
I submitted the deal on 1/25. We received a suspense notice on 2/8. 12 day turn time. the suspense condition was to justify the income. The borrower is an appraiser and I stated $9500 per month. That may seem a bit high in the St. Louis market, but he makes it. He just writes a lot off. So I asked the underwriter if I could show her an appraisal volume report from him over the last 12 months and she said sure. "Just make in convincing." I showed a volume report that showed a total volume dollar amount of near $220k over the last 12 months.
They countered to full doc and said I am now showing income. My argument is that it is company revenue, not personal income. Long story short, the deal died.
Do you agree with the underwriter? Should I have saw this coming? I am so mad because I even thought about that being an issue and did not check into it because I thought it would be viewed as company revenue.
Now I am stuck. On top of it all, I am very good friends with this borrower and not sure wherre to turn.
686 FICO 75%LTV NOO no seasoning
We could possibly quit claim his business partner on title and go full doc with both of them.
I am looking for honest, compliant ways to do this. You may say of course, but there are some idiots on here that will make a post that could incriminate them.
Any feedback is welcome. |
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Vinni100
175 Posts |
Posted - 02/19/2008 : 3:51:24 PM
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| That is a total bummer. I wonder if the same underwriter would have just looked at the total number of appraisals this appraisal billed for? Its probably common knowledge what an appraisal costs. At any rate, its bogus you were disallowed for replying positively. I dont know all the circumstances, but that sounds like someone who isn't interested in thinking outside the box. Just my three cents. |
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hmetcalf
320 Posts |
Posted - 02/19/2008 : 3:55:36 PM
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Also,
I forgot to mention this. I told the underwriter to run it back through DU to see what type if income docs were needed. Maybe (very doubtful) but maybe, I could get a verbal VOE and use a CPA letter for it. I also told her that if she was going to count that $220k as income, then use $18k per month for income, not the $9500 I originally stated. She said she could not do that. |
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TheFinancier
708 Posts |
Posted - 02/19/2008 : 4:04:26 PM
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| Yep You Should have... |
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clos25
419 Posts |
Posted - 02/19/2008 : 4:05:37 PM
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| In any stated deal a dollar amount should never be shown. you should've shown just the volume, or number of appraisals done in 2007. Oh well, remember this is a very detail oriented business, pay close attention to details. |
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hmetcalf
320 Posts |
Posted - 02/19/2008 : 4:08:18 PM
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OK...
I am an idiot.
Any suggestions on a different lender? |
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lucky1s
3620 Posts |
Posted - 02/19/2008 : 4:09:03 PM
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Back in the old days my processor would have caught that before I sent in in.
Before she got laid off and all. |
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dmj30064
236 Posts |
Posted - 02/19/2008 : 4:09:28 PM
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WOW, I have a loan similar to that right now with Citi only it's a second home purchase. All I can say is try Franklin American, they offer what you need & turn0time is 48hrs.
quote:
Originally posted by hmetcalf
Here is a story for you. I would love criticism positive or negative.
I submitted a deal to Citi. It had every layer of risk you could imagine. Stated, NOO, Cash out, less than 6 months seasoning. I basically had 2 positives. The borrower is a seasoned property investor. The appraisal is as solid as it gets (needs to be right?)
I submitted the deal on 1/25. We received a suspense notice on 2/8. 12 day turn time. the suspense condition was to justify the income. The borrower is an appraiser and I stated $9500 per month. That may seem a bit high in the St. Louis market, but he makes it. He just writes a lot off. So I asked the underwriter if I could show her an appraisal volume report from him over the last 12 months and she said sure. "Just make in convincing." I showed a volume report that showed a total volume dollar amount of near $220k over the last 12 months.
They countered to full doc and said I am now showing income. My argument is that it is company revenue, not personal income. Long story short, the deal died.
Do you agree with the underwriter? Should I have saw this coming? I am so mad because I even thought about that being an issue and did not check into it because I thought it would be viewed as company revenue.
Now I am stuck. On top of it all, I am very good friends with this borrower and not sure wherre to turn.
686 FICO 75%LTV NOO no seasoning
We could possibly quit claim his business partner on title and go full doc with both of them.
I am looking for honest, compliant ways to do this. You may say of course, but there are some idiots on here that will make a post that could incriminate them.
Any feedback is welcome.
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gsalow
64 Posts |
Posted - 02/19/2008 : 4:28:46 PM
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quote:
Originally posted by lucky1s
Back in the old days my processor would have caught that before I sent in in.
Before she got laid off and all.
Maybe the processor would have caught it but you would have sent it anyway as that's what the u/w asked for specifically.
This is pretty ridiculous and your AE should go to bat for you with the u/w manager. The u/w can't tell you to send something in and then when they get it tell you it blows the deal. That's tantamount to trickery IMO. If the u/w says it's income then they should use it as income and it shows plenty. If not it's not income.
I would be mighty PO'd and you need to get your AE and u/w manager or higher involved ASAP. This deal seems to make sense so I don't think you'll have any trouble going over the u/w's head and getting a manager to examine it. |
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FLMike
517 Posts |
Posted - 02/19/2008 : 4:35:25 PM
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| Remember the Tom Petty song, Don’t Back Down? I wouldn’t until it’s completely dead. |
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