DISQUS

Guest · 2 months ago

The sad part about the obvious solution in cases like this is that poorly run companies with stupid policies usually don't know how to handle employees who have ideas that are better than their superiors' ideas, and as a result, often shut their mouths for fear of losing their job.

It's insane, but I've lost my job for applying common sense and raising my hand at just the right time. There are idiots in every sector of the housing industry and unfortunately for you and me, we have to deal with them. GRRRR.

I'm on the same page with you Jay. Get rid of duplication, get rid of paper, get rid of the chaff and apply "uncommon" sense in a world where common sense has vanished.

Guest · 2 months ago

Woo Hoo! Did I just break 15,000 on your comment meter?

Cindy Knight · 2 months ago

Yep it seems underwriters these days are ABC people - they go by the book ABC - no thought goes into what they ask for - it's simply ABC ABC. Makes me wonder sometimes if we are dealing with real live people or just some computer. Kinda funny considering these same underwriters were asking NO questions a few years ago.

Portland Real Estate · 2 months ago

We cant change it because ridiculous policies employ lawyers. The law is specifically orchestrated to be complicated so that we have a seemingly valid excuse to create the law industry and all of the horror that it brings. That industry then further clouds everything with lobbying power to make sure that they have their jobs and also so that we cant just have the courts, we have to have layers and layers and layers of courts all on top of each other staffing yet more lawyers. Its just sad.

-Tyler

Hawaii real estate · 2 months ago

You made me laugh and almost cry at the same time. Lenders have gotten so incredibly tight on their approvals it's laughable, as if that was the problem. They went from asking for nothing but a SS# to asking for DNA samples from next of kin.

The real problem was not the approvals but the investor who were willing to create crazy loan programs that nobody should have been able to get no matter what they provided.

Common sense - it doesn't exist in Lender land.

Bruce Dietz · 2 months ago

This is a prime example that is easier to maintain the status quo versus initiating change. The problem with the status quo is that it is a breeding ground for mediocrity. The discovery of this irrevelant loan document should be spur us to review our own policies...I am sure we all have an equally irrevelant document floating around just waiting to make us look foolish.

deanouellette · 2 months ago

Jay I feel your pain, it seems every lender with every deal comes up with something new such as "we need proof that the person (asset manager) actually has permission as asset manager to sell the house... really? Do you just makes these up as we go? My first 22 foreclosure sales of the year didnt need that, now we do?

Ted Mackel · 2 months ago

Jay,

I thought that part of the purpose of the HVCC was to take the Loan Officer out of the the Appraisal discussion. Wasn't the concern that the Loan Officers were skewing appraisals?

Laguna Beach Realty · 2 months ago

Spare a thought for the underwriters as well. They are just not getting anything in their mind so let them take a good breather for a while.

Lori Bee · 2 months ago

I also love it when they tell you the contract they received from you is "illegible," on the day of scheduled closing - esp when you scanned it and e-mailed it. Frickin' stall techniques, all of it.

Shar Rundio · 2 months ago

I love when they tell you the contract is illegible but the document would have been beautifully legible if they would have accepted the electronic signature initially submitted.

Highest CD Rates · 2 months ago

Exactly, i agree with you completely. Taking loan seems to be a big mess if we keep on collecting these documents and records. Certain time i think they want us to submit everything with our hands, so as to keep us under pressure that too for the proofs they already have.

martyboardman · 2 months ago

My favorite is the review appraisal of the review appraisal:

Loan Underwriter: "What, this home appraised for that? Order a review."
Review Appraiser" "I find that the original appraisal is accurate."
Loan Underwriter: "This home can't be worth that. I read the newspaper. Home values are down everywhere. Order another review".

It's all about CYA these days.

dylandarling · 2 months ago

I want to meet these underwriters in person. They're the only people in the real estate tranasaction that don't deal with anyone on a personal level.

I love the Lead Based Paint disclosure on new homes. What the heck??? If a home was built new in 2002 the odds of it having lead based paint in it are... NONE!

Bill Iannelli · 2 months ago

Common sense? That's funny. I love the "I just work here excuse". It continues to frustate everyone in the business. These people go to work like robots, never ask why and make our life insane. I just rant on my video camera to unload the stress. Keep up the good work.

Shannon Pham · 2 months ago

This reminds me of why we have to take our shoes off at airport security. Something crazy happens then we all have to pay for it!

DougFrancis · 2 months ago

I had to pull out our Association's version of the "VA Financing Contingency Addendum" in May (last revised 3/09). Done!

One large brokerage in Virginia requires their agents to have lead-based paint disclosure forms with all offers. Saw it with an offer today!

Extra comps? Now that's crossing the line.

DougFrancis · 2 months ago

And now I read that FHA wants "wet signatures"... not DocuSign digital signatures. What?

rerockstar · 2 months ago

Jay - Can I get a copy of this post in bronze to hang on my wall? Thanks.

Lutherville Homes · 2 months ago

Lending stipulations and underwriters are similar to government employees these days. If its on their checklist you need to provide it. Most underwriters get their criteria from the secondary market. Why you ask? So they can sell the loan as quick as they close on it. If we want any positive and logical change it will neeed to come from the secondary buyers of loans - who by the way are the same people you created CDO's.

UpstartAgent · 2 months ago

This is something we all struggle with - why doesn't anybody think about these policies that make no sense?

Kind of reminds me of the letter my son's school sends me every month stating he owes the cafeteria $3 - they've already spent $8 in postage.

And people wonder why banks are in so much trouble?

Brian @ Blythewood Real Estate · 2 months ago

This has to be the post of the year! Is there any logic to obtaining a loan anymore? Local lending may be the only solution. At least local banks would have an opportunity to physically research the property they are lending for. Is this such an obvious concept that no one has considered it?

SpokaneHomeGuy · 2 months ago

I had an underwriter throw out the appraisal (came in at value + 1,000) and "reformulate" the value to $2,000 less than the negotiated price - $2,000... seriously. Was a mess.

Clovis Real Estate · 2 months ago

Bank of America is one of those underwriter's we're have a nightmare with. I have no problem with them asking for legitimate information, but it's obvious bank are intentionally doing this. Anyone have any ideas as to why? They've drawn out our closing going on 70 days now!

brandyrude · 2 months ago

I totally agree! I'm still waiting to get an approval. The next thing our uw will ask for is probably a blood sample followed by a stool sample. Get real!