Mortgage Underwriters Are Not Scary

March 5th, 2013

It is time to report on another crazy underwriting story. The paperwork that people have to provide and the rigid underwriting guidelines that I have to put them through are really absurd at times. The fact that we cannot interject any small amount of logic into the discussion is really getting painful. It is not really the underwriters fault though, they are only interpreters of guidelines imposed on them (and all of us) by the rule makers, like Fannie Mae and Freddie Mac. I had what may be the strongest mortgage borrower of my life go through a four-month nightmare with a large bank.  Read the rest of this entry »

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Mortgage Applicants Are Money Laundering?

August 13th, 2012

brian-martucci-mortgage-large-depositI have found out another reason why documenting a mortgage loan application has become a nightmare. This story relates specifically to documenting assets and the bureaucratic, paper-laden gauntlet that it has become. Guess who is responsible? Come on, you only need one guess! The reason that documenting assets has become torture for mortgage applicants is the U.S. federal government. Yes, yet again, we have our overlords, nannies and protectors on Capitol Hill to thank for the latest round of insanity. Read the rest of this entry »

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Large Bank Deposits

June 21st, 2012

There is a new Fannie Mae underwriting rule related to large deposits. There has always been a Fannie Mae rule that made underwriters ask about a large deposit that was clearly not a paycheck deposit, and that is understandable. If someone has a $30,000 deposit on their bank statement, and their paycheck is $4,250 each pay period, then I can see asking where the $30,000 came from. And usually, the answer is that it is a gift, or a transfer from another account, and all we have to do is have the client document that with the proper documents. Documenting a large deposit is known in the industry as getting a “source of funds.” But recently, it has gotten more interesting. Read the rest of this entry »

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Back In The Old Days

May 8th, 2012

I always hear how people miss the good old days. I am not sure I do. I prefer progress. But lately, the mortgage industry has been regressing, and I would say that we have not been making progress; we have actually been going backwards. It seems the mortgage process has swung from too easy, to too strict, and now to downright ludicrous. There is nothing that Fannie Mae wants undocumented that is related to a mortgage borrower’s finances, and I mean that literally. So I understand when someone says to me the following, Read the rest of this entry »

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