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jfrederick
580 Posts |
 Posted - 07/04/2009 : 11:57:35 AM
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Had a client that owns 2 properties in France; both income generating. They also receive other forms of income from France. I told them we need to list everything, as it all shows up on their tax returns. They were lazy and didn't want to get it together, as they don't file their returns until sept. to coincide w/ France tax filing.
They went to Wells retail and the LO and branch manager told them to not list any of it. Won't the UW or eventual investor see this when they execute a 4506? Isn't this illegal? I have a feeling the borrower is going to get screwed somewhere down the line. |
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jfrederick
580 Posts |
Posted - 07/04/2009 : 1:16:08 PM
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| Oh, and there are mortgages on both properties in France; so essentially, they are not fully disclosing all liabilities. |
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ptrading
413 Posts |
Posted - 07/05/2009 : 09:04:11 AM
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quote:
Originally posted by jfrederick
Oh, and there are mortgages on both properties in France; so essentially, they are not fully disclosing all liabilities.
Gee, I thought mortgage brokers committed all the fraud?? |
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jfrederick
580 Posts |
Posted - 07/05/2009 : 09:38:22 AM
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quote:
Originally posted by ptrading
quote:
Originally posted by jfrederick
Oh, and there are mortgages on both properties in France; so essentially, they are not fully disclosing all liabilities.
Gee, I thought mortgage brokers committed all the fraud??
Exactly! my concern is that this WILL get noticed and the borrower (friend of mine) is going to get into quite a bit of trouble despite being instructed by people @ WF to do this. In the "Ol' days" this would only pop up if the borrower defaulted.
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dnuex2
3019 Posts |
Posted - 07/05/2009 : 11:02:56 AM
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| It looks like Wells may have just gave him enough rope to hang himself, who knows. I could be wrong, but If the income being generated is in France, I would think it would only show on his french tax filing. I don't think it would need to be reported on IRS filing. |
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jfrederick
580 Posts |
Posted - 07/05/2009 : 12:16:00 PM
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You must claim foreign income on your US tax returns. I have looked at his US returns and it shows dividend income from France, as well as depreciating one of his properties in France and income generated from the property. I would think that would raise a red flag in that he has 2 mortgages on those properties. Schedule E shows Supplemental Income and lists residential rental properties in France. I would think the UW would want a international credit report to show no liabilities on these properties or some proof that they are free and clear. Actually, Form 1116 shows Foreign Tax Credit, and a deduction for mortgage interest.
I can't see how Wells is going to get this through; but if they do, this pretty much goes against the theory that only mortgage brokers commit fraud. I wasn't willing to do this for a 6K commission, even in this tough market. If this guy wasn't a close friend of mine, I would blow the whistle on the c r a p. |
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velecico
5311 Posts |
Posted - 07/05/2009 : 8:20:47 PM
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| Wells retail does not require tax returns or 4506 , its " fastrack " , as long as score is over 700 , just a verbal VOE with one paystub , dont even need bank statements |
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frank drigotas j
3871 Posts |
Posted - 07/05/2009 : 8:29:18 PM
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Disclose everything. Period.
Plus, it is not all clear to me how listing these assets can hurt his application.
But, disclose everything.
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velecico
5311 Posts |
Posted - 07/06/2009 : 11:06:58 AM
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Remember what your govt preaches : DONT ASK / DONT TELL
If the app dont ask for it , dont volunteer info |
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jfrederick
580 Posts |
Posted - 07/06/2009 : 11:17:49 AM
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quote:
Originally posted by velecico
Remember what your govt preaches : DONT ASK / DONT TELL
If the app dont ask for it , dont volunteer info
If the tax returns show it, you must disclose it. |
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mbartels
120 Posts |
Posted - 07/06/2009 : 12:30:59 PM
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quote:
Originally posted by ptrading
quote:
Originally posted by jfrederick
Oh, and there are mortgages on both properties in France; so essentially, they are not fully disclosing all liabilities.
Gee, I thought mortgage brokers committed all the fraud??
Nice. I like that one. |
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