Gene Perez Your Real Estate Consultant, Santa Maria Homes: NEW UNDERWRITING GUIDELINES THAT WILL WREAK HAVOC FOR REALTORS AND LENDERS **

NEW UNDERWRITING GUIDELINES THAT WILL WREAK HAVOC FOR REALTORS AND LENDERS **

 

Just received an email from a Underwriter friend today. NAR should step in and put a stop on these statutes. I am going to write a letter to my Congressman tomorrow morning and I encourage everyone to take heed to this suggestion. We must all unite and put a stop to this nonsense! It is just mind boggling some of the new underwriting regulations that are being implemented. This will only create more problems and be detrimental to both the mortgage and real estate industry.

 

New Underwriting Guidelines effective 4/1/10 -

* Verification of deposit will be acceptable only if Bank representative is present at the closing.(witness required to ensure authentic funds are made)

* Copy of Pay stubs and W2 will only be acceptable through IRS only with a wax sealed envelope mailed directly to the lender. (to ensure it's the official documents and not tampered)

* All Borrowers' Birth Certificate will be required with Pictures taken in the hospital with medical staff. Birth certificate with a live home delivery will not be eligible for first time home buyers. (to prevent fraudulent activities within the lending industry)

* Marriage certificate with bridal dress will be required if both husband and wife are required to qualify for the loan (if bridal dress is a rental, a receipt of rental is required)

* GFE will not require signature but will require blood sampling from a recognized institution within three days of application (as part of the new mandate from the Patriot Act)

* DNA test will be performed at closing to avoid any non-ARM length transaction. Loan funding will be contingent upon satisfactory receipt of DNA results. (this preventive measure is to ensure that families are not selling to their own blood relatives for short sales)

* 7 Witnesses from neighborhood will be required as proof of primary residence in case Borrower owns more than 1 property. (preventive measures to deter falsification of 1003 loan application)

* All appraisers will be required to use Mask and ear plugs at the time of inspection to avoid any personal influence by the Borrower for the appraised value. (as part of the new rules adopted under HVCC)

* In order to correctly calculate DTI and true house running ratio a list of Grocery items, monthly usage and brand names will be required with receipts and projected 12 months consumption chart. (as a means to accurately track expenses should homeowners apply for a loan modification)

* Closing will not occur without loan officer presence at settlement and Loan officer picture will be taken at the closing in a Mug shot format with loan number. Picture should meet standard guideline of 2 X 2 inch in color format with one facing and one side view. (to discourage fraudulent lending activities for added measures)

* Loan officer picture will be attached to the Deed and note and will be made available for general public and security agencies in case Borrower defaults on the loan. (holding loan officer/mortgage broker accountable should buyer default on the loan)

 

Ok, just a little humor! (my comments in parentheses above). hahaaa   But with the new GFE and who knows what else lenders have in mind, this may not seemed farfetched. :D

 

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For FORECLOSURE Prevention & all your Real Estate Services,

Contact: 

 

DAVID DEE
(626) 203-5676
 

"Client 1st. That's the David Dee Guarantee."

Specializing in: (SAN GABRIEL VALLEY) San Gabriel, Rosemead, Alhambra, Monterey Park, Arcadia, Temple City, El Monte, Hacienda Heights, Rowland Heights, Walnut, West Covina and

(N. ORANGE COUNTY) Anaheim, Buena Park, Westminster, Garden Grove, Fountain Valley and other surrounding areas.                                                                  

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