Forms needed for Non-traditional Mortgage Origination

[Lupe Santiago]

Hello! Kind of a simple question here so maybe someone can help me answer it. If a broker brings me a loan for an interest-only, short-term note that balloons, which forms does that broker need to provide to me, the originator?

It seems to me that the broker needs to provide a form DRE 851A (Lender/Purchaser Disclosure Statement for Loan Origination)

and also a form DRE 885 (Mortgage Loan Disclosure Statement/Good Faith Estimate, Nontraditional Mortgage product)

Is this correct? Thanks!

[Bill Gulley]

I think you're right Ann, that's how I read it.

If you are the "lender" what's the relationship to the originator, you loaning to them and they loan the money out or are you a direct lender to the borrower? What you need.....is everthing you can think of! LOL If your originator is involved at all, you need an origination agreement spelling out those responsibilities and liabilities accepted as well as the borrower info.

I think you need to back up and make sure you understand the scope of the lending arrangements before you think about asking what form to do your underwriting from, just sounds like you are kinda lost at this point which means the underlying relationship is probably not sufficiently addressed.

Just because you have money doesn't mean you can make a good loan..... :)