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dmortgageguy
128 Posts |
 Posted - 08/22/2008 : 12:26:15 PM
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Need some clarification folks.
Client wants to be pre-approved for short-sale using FHA loan.
broker said he wants complete package w/disclosures to be compliant, even if its just for pre-approval!!!!
Can someone tell me if HUD requires entire package just to pre-approve
a buyer? he has 549 score so prob a manual underwrite? $25k in reserves after closing, 95%-LTV.
who knows the HUD compliance rules on this?
I think this is over-kill but maybe thats the way it has to be.
Thanks! |
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jlgyork
308 Posts |
Posted - 08/22/2008 : 12:36:39 PM
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Are you MB for the buyer who is trying to be pre-approved? I am a little confused.
The other problem it seems that you have is that you really can't issue a pre-approval if you don't have an approval, right? If your customer has a 549 mid, he probably won't get an AUS approval, so it will need a manual underwrite, and I only know of TBW to do those. But you still don't have an approval until the underwriter signs off on the manual underwrite with their approval. If the broker who wants a complete package, are they the one who is qualifying the buyer? If they are, that is probably why he wants a complete package, because he has to submit the file. Your post is pretty confusing, so I am trying to help best I can. Good Luck. |
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EquitySmart
1240 Posts |
Posted - 08/22/2008 : 12:41:59 PM
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| You should be submitting the complete credit package to underwriting before sending any pre-approval or commitment letter - this situation is no different than a normal loan - you should still have a complete credit package with proper disclosures (showing property address as TO BE DETERMINED), credit report, income and asset documents - the only things you will not have yet is sales contract and appraisal - sending a file to underwriting without having a complete credit package is a waste of the underwriters time. |
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dmortgageguy
128 Posts |
Posted - 08/22/2008 : 12:44:17 PM
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| principal broker requires full package. if this was a 620 score, would you be able to run aus and not have all disclosures? |
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EquitySmart
1240 Posts |
Posted - 08/22/2008 : 12:48:52 PM
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quote:
Originally posted by dmortgageguy
principal broker requires full package. if this was a 620 score, would you be able to run aus and not have all disclosures?
You need to contact your broker compliance department to discuss this situation, since the answer may depend on your state laws and/or corporate compliance policies.
The simple (vague) answer is you always need to send proper disclosures, whether you have a purchase or refinance, etc. The question is what is required for this loan. |
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jlgyork
308 Posts |
Posted - 08/22/2008 : 1:22:37 PM
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| Since he can't issue a pre-approval since it would have to be manually underwritten, that is probably why he wants everything up front. This way he can submit everything to the underwriter and they can condition you for a ratified contract and appraisal. This is pretty much the only way to get a pre-approval with a manual underwrite, but that basically make it a full approval pending an acceptable contract and appraisal. I don't think it has anything to do with HUD, it is just because of the manual underwrite. The best thing to do, to learn, would be to ask your principle broker "Why?" I am sure, if he is a good broker, he will let you know why and help you out. Good Luck. |
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