All Forum Posts by: Account Closed

Ok Bryan
I will try to explain to you.

Commitee lending usually refers to a lender taking a look at the borrowers total finanial situation and relationship with the bank. A basic common sense approach. For example, the client might not have the income source "provable" to do a loan but the bank may say he has x anount in deposit, his income does not reflect as he writes a lot off and we know x customer and his business for years...a literal commitee takes a whole approach to approving a request.

When a LO says he has to give it to underwriter - this is not commitee. First off everything on the large bank side goes through an underwriter. Many banks have overlays or guidelines reflect that an underwriter has to give approval. For examples, an lo can have an approval in the system technically but say the dti is over 50% it is up to the underwriter to assess the file to have compensating factors.

Or say someone is out of Chapter 13 bankruptcy - the system will deny the file - but a lo following guideline procedures would submit the file manually for underwriter approval if he/she felt the loan qualified.

Banks operate under a deskwriting underwriting system that tells the LO whether or not the loan is approved - this is how pre approvals are done. A good lo knows how to structure the loan and understands what works or how to make it work.

But the system is only as good as the file that is input. From here a check and balance system - from processor (and all internal stuff checked corelogic/4506's etc) it goes to an underwriter who overlooks the file and signs off. Every file goes to an underwriter.

Hopefully that explains the difference.

Bryan
No lack of communication here. I am crystal clear,
I think I mentioned what you are saying. Yes, smaller banks etc can be a lot different - they can under their umbrella call it what they want - line of credit etc and yes provide you what you are saying. That is one way how they compete. I think its a great thing to have that relationship and the flexibilty that it brings.I was never disagreeing with that I'm sorry you took it that way. That was not what I was trying to say. Just pointing out lending in banking world in the "conventional" sense.

We all follow the same rules fnma, fha etc - some have tougher overlays. I was pointing out the way it is.

Smaller banks/lenders also do "commitee" lending - which is I think a better way to do lending. The bigger banks could use some of this common sense. Unfortunately they do not.

I was referring to large banks - all large banks. In fact, I even mentioned the names.

And clarifying for posters how it works with all portfolio, conventional and govie loans with banks and/or those without a relationship.

I also think it depends on what area one is these days as far as the stomach for lenders of any size to get into the game. I know down here in south florida real estate lending is tougher. Small or large an individual would find it more difficult here than some other states.

I

finance
boy i couldnt disagree more on many accounts. Boy are you off. Not going to play semantics with you. And your rant on what bank loan officers do and what they are...executives are forged??? huh - is so off. I will be sure to tell all my friends that they are not loan officers lol even though they are the leading loan officers in the country. And wow where did that come from and the point of it all and what does that have to do with the price of tea in China? Pure semantics and nothing to do with anything.

I saw your other points that a bank would view inquiries without extension of credit as a bad thing and would even turn down loans??? lol What is your reply their? Please inform me of the name of one bank who does this?

btw I would consider BOA, Wells, Chase etc Large Banks and Not one of the large banks does residential mortgage loans by commitee. NOT ONE.

Please name a large bank and or show me a underwriting guideline that does loans by committee and views inquiries without the extension of credit as a negative?

can be approved by a loan officer ???
In reply to financeexaminer: I will speak for Florida and most major cities and major banks - Wells, BOA, Chase, SunTrust, TD, etc

NOT ONE loan officer can approve a portfolio loan or any loan for that matter. Our regional heads cannot even do that! NO ONE PERSON CAN. Limits went away a looong time ago.

This is simply not how it works anymore - again I am speaking for these leading banks. I know I work there and all my friends work at these banks - things are pretty uniformed right now. This is in the residential mortgage department.

You say "Making applications on an ongoing basis and not showing any extension of credit will eventually look bad....and lenders will begin wondering why the other lender did not make the laon"

Never heard or seen such a thing. This is simply not true. Worked the past 7 years at Suntrust we had a local operation center - a complete non issue.Posters please dont take that information to heart and think you have a problem because you do not.

What an underwriter looks for and what lo's are instructed to look for is inquiries within 90 days - A client is then instructed to write an explanation letter.

What they are looking for is if the client has additional debt that is not included in the credit report. New item is that lenders can now pull your credit just before closing to see if you have incurred any additional debt as well.

"Not showing an extension of credit" ??

This has never been the reason for a residential loan being turned down, Never. In fact, never heard it mentioned. This is not true - dont want any poster to believe that making applications when/trying for refis and never close one will propose a problem.

Never has been a problem. And certainly not a problem now.

Never heard anyone "wonder" why another lender did not make a loan...happens all the time, client choice, other lo did not know how to structure etc...

Think about it...a consumer has a right to shop for loans and has a right to decide they dont want to go forward.

If anyone has a loan and are turned down because of these reasons ...Then please send us all these loans so we can close them lol...

Hi Mario,

My neck of the woods Pompano! I love Pompano. Insurance seems a bit low check coverages see if it is acceptable to you. How is the condition of the property? For 67k a unit they must be fairly nice and relatively new? Was it a condo conversion? Is it up near Palm Aire?

David Duong

Hi David,

I have a pretty good perspective having worked with SunTrust the past 7 years and recently with a Correspondent Lender.

I think as they say "it depends on the carpenter not the hammer"

I know how SunTrust prices their rates - so when comparing apples to apples I can look at their wholesale rates and I can get one much better rates on my side now. My clients who know me from Suntrust and trust me - I beat Suntrust retail rates by far and the funny part is I can still give them Suntrust Wholesale. They know I have their back and treat their transaction as if it was my own. They kick butt in the market and dont have to sweat, worry about anything - they go about their business.

But lenders these days have many overlays - so depending on the bank it helps to know where I can get a deal done rather than "rate" which is important.

For example, I could run a FHA deal through DU get an approval and have the overlays make the deal dead. Say a 54% back end ratio - from my bank side is no good as we had overlays - yes they said with compensating factors they would do above 50% but in bank speak that means - ah no - lol. Now on the wholesale side I can shop a lender and get it done.

The guy above who mentions that he goes to a smaller bank because the person he dealt with could make a decision? (by the way isnt everyone in the bank a VP lol). He must be in a real small bank. Everything these days is saleble with conventional mortgages -417k - FHA, Fannie and Freddie.

I assure you that no one has the ability to just okay a deal. They may give him that personal feeling and that is good. Banks are scared of broken loans - it can crush a smaller bank (the penalty is severe and you have to put the note back on your books). As far as portfolio money (the banks money) - you can imagine mortgage back securities on the banks books are not the most desirable to bank management and shareholders.

Sorry to beat around the bush - but to directly answer your question find a loan officer who you get along with and have a good repoire with. Develop a relationship with. You will do the best you can with that. Believe me, the folks who think they are "shopping around" calling everyone, emailing everyone have no clue. If you saw it from side of the table you would laugh at how futile their attempt is. Some folks beat things to death - we all know people like this in all business - no different here.

Advice, real answers, understand the marketplace to get you great rates, someone who answers the phone when you call and can provide timely "real" answers, understand the changing market, creative understands how to get things done etc etc - this is what is important...just like in all business I'm sure we can all relate...

This relationship will serve you well no matter of its a bank, broker, correspondent lender

Newlife I would not worry about it...
When shopping for a mortgage you have 2 weeks (last time I was told in a meeting with Fair Credco) where it will only count as one inquiry (credit score wise) even if you have multiple pulls and really one month where it would not effect your credit. This allows consumers to car/home shop. Makes sense.

I honestly feel people make too much of a few credit pulls...having to look at thousands of credit reports over the years. As you know credit scores are made out of a compilation of factors.

Recently I think they have tweaked the system - I have no proof - but I look credit reports and then see the scores and I'm like whoa that shouldn't be so low.

I wouldn't worry about it too much. Unless you are razor thin - more important would be the ratio of debt you carry especially unsecured.

Get a loan officer you feel comfortable with and who you trust - they can help you with pre approvals, situations etc

Unless you plan on locking that day - whats the point as not only do rates change everyday (sometimes more than once) They can tell you anything...honestly most LO's left in the biz are going to try and help you...better to have a trusted advisor.....rates especially non fha loans are like chinese arithmetic these days - the price adjustments can vary greatly. Get a LO you like/trust they can take of you - way better than shopping around...believe me it is very difficult...my friendly opinion from inside the biz.

Steve

I agree with you. My apologies for being too rough. Not an excuse but rough day - either that or after being in south fl real estate for the past years I'm like a punch drunk fighter who starts swinging when he hears a bell.

Kevin

That is a personal issue and belongs to the person who is qualifying.

You assume a lot with knowing little.

So, since you are the financing police and everyone has to get approval with your blessing...

Hmmmm...

So, if the husband is not on loan because of credit and he makes big $$ - would that be relevant?

If the person is just out of medical school and is expecting a big time contract, would that be relevant?

If a person just inherited the big bucks but dividend income could not be used....yet...would that be relevant?

If a spouse just went to a 1099 income and we could only use one income...what ya gotta say now?

I could go on and on...and on and on...I could give you plenty of scenarios...

Pretty narrow thinking Kevin...

Unfortunatley you don't know everything about your neighbor...maybe you can just support them by being a kind neighbor not some narrow thinking financial police who knows nothing.

You dont know what you dont know Kevin.

That was not a very smart comment. Shows your lack of knowledge, empathy and plain common sense.

But next time I need a loan I will contact you for your non knowing ethical compass...seeming you dont know my nor anyone else's life, family, situation, financial picture, assets, income situation etc etc...

Hi Duke,
the guidelines for FHA financing during the first 90 days when aquisition price is greater than 20% are pretty straightforward. Of course, different banks have overlays and everything at the end is up to underwriter discretion.

That being said - you should be able to get FHA financing for buyers as long as the property appraises out.

Here is what is required:

1) 2 appraisals will be needed
2) Full Home Inspection
3) Support file by showing what you have done to the property. Before and after photos, reciepts, list of improvements would all help support your case.

Yes it can be done and is being done every day. The lender just needs to know how to put together the file and submit it.

If you have any other questions please contact me.

Carter