I may have an underwriting problem!!!!!

I may have an underwriting problem!!!!!

Bronx, NY · Member since 2014 · 103 posts · 9 votes

Hello, I have a question. I am in the process of closing a deal and I just got a few questions from the underwriter, and I need to know how do I let them know whats going on without them bailing? I intend to be honest but Im not sure what they want. Here is the situation, they have 3 addresses for me my primary, and old primary I still use for mail from my employer and a p.o. box I get other mail and also my credit cards are home there.

1) My primary address is what I used for the loan

2) My old primary is what I continued to use for my job because other employees were privy to my personal information, so when I moved I just kept my work mail going there, which includes my w-2 unfortunately

3) and finally my P.O. Box which is in an old city not far from where I currently reside, this is an issue because I did my own taxes a year or two ago and the software locked in my p.o. box city somehow as my primary, when I realized it I tried to change it but couldn't figure it out, so even though I paid a little more in tax because of the address I just left it because it was frustrating trying to fix it.

Now these addresses are coming up and are red flagged I guess, how should I tell this to the Underwriters so they don't think I intentionally am trying to fraud anyone?

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  • Specialist · Baltimore, MD · Member since 2016 · 388 posts · 318 votes
    10y

    I have complicated taxes because I move around for my job and I invest so I feel your pain.

    Normally, any "Red flags" like this are resolved with an LOE (Letter of Explanation). It's nothing fancy, just a Word doc with an explanation about why you have multiple primary residence addresses coming up. You can probably just copy/paste what you wrote here, into the body of the LOE and be fine. Or, you can get a little more detailed in the letter if you want to be more clear. It sounds like you don't have 3 primary addresses. You have your current primary address, a mailing address for work correspondence and a P.O. Box (which got entered into your taxes incorrectly). That's all. Shouldn't be too difficult to explain.

  • Flipper/Rehabber · Pittsburgh, PA · Member since 2014 · 144 posts · 21 votes
    10y

    Hi Charles:

    Are you renting out your old house, but you still use it on your employment docs?  I think if you update your address with your employer, this scenario might seem a bit more believable.  Also, are you refinancing your 'primary' or doing a loan for some other purpose?

    In the end, all underwriters would have an issue with this scenario.  The best thing to do is consult with your broker/ loan officer to ask them what their underwriter needs you to do.  Sometimes writing a letter of explanation is the solution, sometimes the solution is much more difficult.

  • Bronx, NY · Member since 2014 · 103 posts · 9 votes
    10y

    Thank you guys, and to answer your question the old address was an apartment I stayed at with a friend 10 yrs ago when originally moved that areaI moved from there 8yrs ago I.  Just kept that address for my work mail and forms. My job still uses tha address for everything. 

  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    10y

    Sounds like your three addresses are result of a completly innocent situation, but anything out of the ordinary is a red flag as to (a) mortgage fraud or (b) illegal monry transfers or (c) tax evasion.

    A letter of explanation may be enough; it will be up to the underwriters interpretation of compliance regulations.  

    Private Mortgage Financing Partners, LLC
  • Investor · Hoffman Estates, IL · Member since 2014 · 434 posts · 185 votes
    10y

    Agreed.  Just do a letter, and be prepared to provide some supporting documents to prove where you really live.

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