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celtsfan75
154 Posts |
 Posted - 03/24/2008 : 5:12:04 PM
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Ok here is my situation.
Have a full Doc DU approved loan sent to TBW. Findings do not ask for income just verification of the business and "obtain authorization to request copies of tax returns"
The underwriter, who I have had to previously correct already is now asking for a 4506t form which is fine, but also is saying they need to process it prior to close which could delay me even more than I have already been delayed.
My questions are
a. is this necessary seeing as how DU did not say to obtain copies but just get the form?
b. is this a company policy?
c. is this due to him being self employed?
d. Is this because the loan is "full doc" (stated findings) or is it because the loan is "stated"
Ayone who works for TBW feel free to chime in |
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celtsfan75
154 Posts |
Posted - 03/24/2008 : 8:07:58 PM
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can you post the info for your AE?
quote:
Originally posted by Banker0679
you need to contact your AE
my AE does a lot, and can email the U/W's manager.
He's helped me with 3files in the last 3months
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jvanpetten
2553 Posts |
Posted - 03/24/2008 : 8:13:37 PM
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Each person/area has their own AE, you don't know who yours is?
quote:
Originally posted by celtsfan75
can you post the info for your AE?
quote:
Originally posted by Banker0679
you need to contact your AE
my AE does a lot, and can email the U/W's manager.
He's helped me with 3files in the last 3months
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ehm3
979 Posts |
Posted - 03/24/2008 : 8:27:02 PM
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I can't speak for TBW specifically but it is my understanding that on a DU full doc loan lenders could always execute the 4506t at their discretion. It used to be rare, but its going to start happening a lot more now.
Agency SISA (RIP...moment of silence) also had the 4506 provision...again, rarely executed but it was available.
Your AE might be able to help on this one but I wouldn't be surprised if its just another sign of the times we have now in this bidness and he/she can't change it. Fannie/Freddie are cranking down hard on risk, I just hope the clowns who buy MBS figure it out sooner rather than later. |
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hherrm
1407 Posts |
Posted - 03/24/2008 : 8:32:38 PM
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| I just submitted an FHA file and on the submission sheet it said *we will execute 4506T on every file* I think it is a new thing we have to get use to. |
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KHufford
6019 Posts |
Posted - 03/24/2008 : 9:40:39 PM
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| Why dont you just go ahead and submit the income docs and be done with it? Dont make life more difficult than it has to be...either its full doc and he qualifies, or they dont, and dont waste the time. |
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celtsfan75
154 Posts |
Posted - 03/24/2008 : 9:57:55 PM
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he received reduced findings. what is the purpose of even having the findings if you are not following them? Why underwrie agency loans if you won't follow agency standards
THere are some people with low LTV's, great scores, or good reserves who do deserve the benefit of stated income or less strict approvals. LEt's not throw the baby out iwth the bathwater and get rid of everything. |
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KHufford
6019 Posts |
Posted - 03/24/2008 : 10:03:15 PM
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quote:
Originally posted by celtsfan75
he received reduced findings. what is the purpose of even having the findings if you are not following them? Why underwrie agency loans if you won't follow agency standards
THere are some people with low LTV's, great scores, or good reserves who do deserve the benefit of stated income or less strict approvals. LEt's not throw the baby out iwth the bathwater and get rid of everything.
Dude, the market has changed my friend...we are not in the driver seat anymore....sorry.
It is what it is, just get the thing done. If you cant get it done move on..dont waste time.
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khoiey
1590 Posts |
Posted - 03/24/2008 : 11:50:51 PM
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Very true! Not so many brokers/loan officers realize this hard fact.
quote:
Originally posted by KHufford
quote:
Originally posted by celtsfan75
he received reduced findings. what is the purpose of even having the findings if you are not following them? Why underwrie agency loans if you won't follow agency standards
THere are some people with low LTV's, great scores, or good reserves who do deserve the benefit of stated income or less strict approvals. LEt's not throw the baby out iwth the bathwater and get rid of everything.
Dude, the market has changed my friend...we are not in the driver seat anymore....sorry.
It is what it is, just get the thing done. If you cant get it done move on..dont waste time.
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jvanpetten
2553 Posts |
Posted - 03/25/2008 : 04:45:27 AM
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It is not easy anymore.
quote:
Originally posted by celtsfan75
he received reduced findings. what is the purpose of even having the findings if you are not following them? Why underwrie agency loans if you won't follow agency standards
THere are some people with low LTV's, great scores, or good reserves who do deserve the benefit of stated income or less strict approvals. LEt's not throw the baby out iwth the bathwater and get rid of everything.
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financebiz
671 Posts |
Posted - 03/25/2008 : 04:50:32 AM
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| From experience, they will execute it. My borrower had completed, signed tax returns for 2 years, BUT never mailed the damn things. So we had a problem. |
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CoolMtgGuy
3725 Posts |
Posted - 03/25/2008 : 05:48:51 AM
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quote:
Originally posted by financebiz
From experience, they will execute it. My borrower had completed, signed tax returns for 2 years, BUT never mailed the damn things. So we had a problem.
It is a general rule that underwriters can request whatever documents they deem necessary to approve a file regardless of what conditions the auto-underwriting system produces. They are now exercising that option more often now. Expect that any given file will generate a couple of conditions/actions that you cannot anticipate.
I counsel my borrowers that the file is not done until funding has occured!
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Willy
78 Posts |
Posted - 03/25/2008 : 07:09:44 AM
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| I would agree that if the findings from Du only ask for the forms, then that is what the stip should be for. Fannie Mae is saying they will buy the loan with the form signed. Fannie Mae is not saying that you need the two years of tax returns, otherwise what is the point of them having a reduced doc findings loan anyway! The OFHEO just gave Fannie a Big break on their reserve requirements to make more funds available for borrowers-200 billion in order to help unfreeze the credit freeze up! |
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broker
115 Posts |
Posted - 03/25/2008 : 07:11:49 AM
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quote:
Originally posted by celtsfan75
Ok here is my situation.
Have a full Doc DU approved loan sent to TBW. Findings do not ask for income just verification of the business and "obtain authorization to request copies of tax returns"
The underwriter, who I have had to previously correct already is now asking for a 4506t form which is fine, but also is saying they need to process it prior to close which could delay me even more than I have already been delayed.
My questions are
a. is this necessary seeing as how DU did not say to obtain copies but just get the form?
b. is this a company policy?
c. is this due to him being self employed?
d. Is this because the loan is "full doc" (stated findings) or is it because the loan is "stated"
Ayone who works for TBW feel free to chime in
If you read the one page TBW guidelines for conforming loans, it clearly states in bold letters:
• A signed IRS form 4506T is required for all borrowers
regardless of incomes source or doc type. A final
4506T will also be required at time of closing.
From what I have heard, the first 4506T is used by TBW to pull the transcript as part of their QC. And yes they do pull the transcript before CTC. The 2nd 4506 signed at the closing is in the file for the next owner of the loan ie Freddie Mac.
In light of all the changes in the industry, many lenders implement additional requirements beyond the standard DO/LP certificates.
You really need to print out these guidelines and stick them in your loan file for each loan. I always go through every single item to make sure that I have everything.
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celtsfan75
154 Posts |
Posted - 03/25/2008 : 07:35:53 AM
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Have no problem with them asking for it since that is what findings indicated
HOwever what is the sense of pulling it if Fannie/Freddie is not asking for it? That is the purpose of the findings in the first place
Otherwise just make all loans full doc and go with manual underwrites and we done with it
quote:
Originally posted by broker
quote:
Originally posted by celtsfan75
Ok here is my situation.
Have a full Doc DU approved loan sent to TBW. Findings do not ask for income just verification of the business and "obtain authorization to request copies of tax returns"
The underwriter, who I have had to previously correct already is now asking for a 4506t form which is fine, but also is saying they need to process it prior to close which could delay me even more than I have already been delayed.
My questions are
a. is this necessary seeing as how DU did not say to obtain copies but just get the form?
b. is this a company policy?
c. is this due to him being self employed?
d. Is this because the loan is "full doc" (stated findings) or is it because the loan is "stated"
Ayone who works for TBW feel free to chime in
If you read the one page TBW guidelines for conforming loans, it clearly states in bold letters:
• A signed IRS form 4506T is required for all borrowers
regardless of incomes source or doc type. A final
4506T will also be required at time of closing.
From what I have heard, the first 4506T is used by TBW to pull the transcript as part of their QC. And yes they do pull the transcript before CTC. The 2nd 4506 signed at the closing is in the file for the next owner of the loan ie Freddie Mac.
In light of all the changes in the industry, many lenders implement additional requirements beyond the standard DO/LP certificates.
You really need to print out these guidelines and stick them in your loan file for each loan. I always go through every single item to make sure that I have everything.
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