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mortgagegirl1010
203 Posts |
 Posted - 05/23/2008 : 7:05:13 PM
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I am a processor and I take measures to protect myself from being involved with fraudelent brokers/files. With everyhing going on today I really scrub my files.
When I get a file, These are some of the things I do:
1) Order my own VOE (Regardless if one is provided)
2) Check to make sure paystubs are legit (format & that company exists, taxes calc correctly) I also do an internet check on the business and division of corporations.
3) For S/E I check sunbiz and cpa letter ( I make sure CPA is listed in yellow pages and sunbiz and they are legit)
3) Order my own VOD's
4)I check public records to make sure property is a true primary & loan is being done with correct occupancy. If they own more than one I make sure the indictaed primary had the homestead exemption on it(Florida)
If they are buying a new primary and the one being rented out is higher value I make sure it makes sence ( Using LOE, appraisal, distance to job)
5)I check leases on the rentals on the REO.
6) I check my disclosures to make sure signatures match up to the D/L
7) On purchases I make sure the seller is the legal owner per public records.
I also have a clause in my contract. Trust me. I am not looking to kill deals or be overly paranoid but if I feel something does not smell right I will not be involved. A few hundred bucks is not worth my freedom.
Does anyone have any suggestions for me besides what I am doing now? Thanks |
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ladysammm
352 Posts |
Posted - 05/23/2008 : 7:33:32 PM
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Hi, I am a wholesale AE and have been in mortgage for 23 years. I commend you on your efforts. As a contract processor it can be difficult as you are not directly working with the employer and are not privy to company policy. The only other suggestion I can offer is if documentation is being provided to you already copied, have the loan officer stamp every page "Certified to be a true and correct copy of the original" and sign it. We were required to use this on all supporting doc's in every loan.
pam.kirchner@assurityfinancial.com Wholesale AE
If you need any help on any loan, we are an execellent FHA lender and we lend on MFG under HUD requirements.
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mortgagegirl1010
203 Posts |
Posted - 05/23/2008 : 7:41:05 PM
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| Thank you Pam, I appreciate your response. |
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peter
4610 Posts |
Posted - 05/23/2008 : 7:48:14 PM
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Mellisa, your work is commendable and I wish most loan
processors would do half as much as you do in order to
protect themselves and their brokers. These days, with
home values declining in most locations, you might want
to check out the comps to see if the value of the subject
is in the ballpark in order not to waste your time. Also,
if you can get the 2-month bank statements with line items
showing deposits and withdrawals, you might want to double
check if the purported paycheck amounts were actually
deposited in line with the dates of the paystubs issued.
If there are no traces of deposits of the paystubs, then
borrower should be asked as to where or which other bank
the paychecks had been deposited.
By doing this, you will also protect the naive L/O
who may be victimized by a deviously seasoned realtor who
gave him all the paystubs and W-2s to do the purchase loan
to accomplish his own end or from the professional borrower
who comes so well prepared with fradulent documentation.
Peter |
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EquitySmart
1240 Posts |
Posted - 05/23/2008 : 8:20:47 PM
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Melissa - your list is good. One thing I cannot stress enough is that ALL verifications should ALWAYS be done by the processor (never the loan officer). If you suspect anything fishy on the income documentation, order your own written VOE (even if you only need the verbal VOE for underwriting approval). If you suspect anything fishy on the bank statements, order your own VOD. If the loan officer provides you with a VOM, order it again yourself. EVERY time. NO exceptions.
Make it clear to the loan officers you work with (and their managers) that you will not send files to underwriting until YOU have ordered the necessary VOE and VOD and VOM (and discourage them from ordering these verifications). I have a very strong relationship with all loan officers in my branch, but I will still not allow them to order verifications (since I am the processor). It is always worth delaying a file by a week if necessary, to eliminate any possible suspected fraud.
By sending the file to underwriting (or even closing the loan) when fraud surfaces then everyone involved with the file will have nothing but trouble from the lender and/or state regulators - ESPECIALLY YOU, since part of the processors job is doing everything possible (within reason) to catch any suspected borrower and/or loan officer fraud BEFORE sending the file to the lender. |
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mortgagegirl1010
203 Posts |
Posted - 05/23/2008 : 8:20:47 PM
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that was a good point Peter that brokers can get supplied that info. I hope my post did not come accross as blambing the broker if that was to happen. But we all know in large shops or net branch companies that the deals go straight to the processor. I also like to keep the principles aware of the quality of files I get from their brokers so they know who needs more training and education & also to protect them from problem brokers. Even though I am contract I still look out for the owners so I can develop trust and long term relationship.
As far as comp checks, the only site I know of is Zillow and I find the values are not very accurate in some cases. Any other sites you can recommend?
thanks do much. |
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rtrefflich
3414 Posts |
Posted - 05/23/2008 : 8:28:13 PM
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| We run a pretty small shop and I have my processor verify everything after we get it. We had a client create pay stubs and tax returns once. Pulled the VOE and employers put the actual income. It has helped us out more than once. |
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mortgagegirl1010
203 Posts |
Posted - 05/23/2008 : 8:44:56 PM
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I also know some brokers make the client sign an affadavit for stated deals that what they are indicating is their true income. Does anyone have a copy of one that they would not mind sending me? I would like to start using one. I would assume that if a broker has a hard time with me asking for one then I dont need to work with them.
Thanks |
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peter
4610 Posts |
Posted - 05/23/2008 : 9:13:25 PM
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Mellisa, I do use Zillow in conjunction with Cyberhomes.com
As for the Stated Income Letter to be signed by the borrower,
you can simply write up one yourself in the way that states
that the borrower is representing that he is earning $$$$
per month as his reported income for the past 2 years. This
letter has helped me from getting a loan buyback from GMAC
at one time on a Stated loan, as the lender who funded my
loan immediately sold it to GMAC and they pulled the 4506T
during the 60-day validity of the 4506T and found the
discrepancies. But the discrepancies must be within their
corporate risk tolerance levels, and they accepted the
borrower's stated income letter without asking any more from
my and my broker.
Remember VOE is not foolproof. What if your borrower is
working for his brother-in-law who owns an established
business but who is inflating the borrower's income to help
him get the loan. There are also crimes without traces too,
and only the pulling of the 4506T will protect your broker
and your self from further problems. So, why not have the
borrower sign the 4506T upfront as this will scares him away
in case he is not quite legit?
But we have to do this with finesse by explaining to the
borrower that this is part of our loan processing procedure
and is a requirement of the lender/investor with whom we will be
funding his loan.
Then, to save your shop the cost of pulling the 4506T, just
send the form along with your package and let the lender
determine when to pull it. If you get a DU/Eligible with
an income waiver, and the lender does not pull it, then the
loan will go thru. But if the investor who bought the loan
pulls it -- as an audit procedure or else -- at least you
have shown your intent to prevent fraud by submitting the
signed 4506T upfront along with the stated income letter if
the loan is stated income.
Peter |
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cindyhulett
356 Posts |
Posted - 05/23/2008 : 11:16:06 PM
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| Technically/legally, VOE's are never supposed to come from hands(faxes) other than the employer to the lender. As for the 4506T's, save yourself some time and order when you receive your file. This used to be standard and included in all files. |
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slants
4274 Posts |
Posted - 05/23/2008 : 11:29:13 PM
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quote:
Originally posted by mortgagegirl1010
I also know some brokers make the client sign an affadavit for stated deals that what they are indicating is their true income. Does anyone have a copy of one that they would not mind sending me? I would like to start using one. I would assume that if a broker has a hard time with me asking for one then I dont need to work with them.
Thanks
We require a hand written statement in borrower(s) own handwriting signed and dated by them certifying their line of work/business, length of time and monthly income, etc. Much better than a form letter where the borrower can claim they didn't know what the document said when they signed, or that they were duped into signing it but did not provide the data contained. If they wrote it, they cannot refute it. |
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darkstar
18289 Posts |
Posted - 05/24/2008 : 03:50:49 AM
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| If the guy at Lifelock can get hacked, we're all vulnerable! |
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Cornelius
161 Posts |
Posted - 05/24/2008 : 08:36:43 AM
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As for the lifelock example it's about monitoring and restoration.
Can anyone give me a ball park figure on the compensation of a processor? I understand different places pay diffeent amounts, i'm asking about a
average range.
www.prepaidlegal.com/hub/ckey |
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rtrefflich
3414 Posts |
Posted - 05/24/2008 : 09:02:57 AM
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When volume was going crazy he would get $350 a file, now that business is slower I raised it to $500 so he has enough to eat and pay bills.
quote:
Originally posted by Cornelius
As for the lifelock example it's about monitoring and restoration.
Can anyone give me a ball park figure on the compensation of a processor? I understand different places pay diffeent amounts, i'm asking about a
average range.
www.prepaidlegal.com/hub/ckey
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mortgagegirl1010
203 Posts |
Posted - 05/24/2008 : 09:16:55 AM
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| I would say between $400-$595 depending if It is conventional or FHA |
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ladysammm
352 Posts |
Posted - 05/24/2008 : 09:20:48 AM
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Melissa
I just sent you an email containing your request.
Pam Kirchner |
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