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Irrational and Frustrating Conditions – Today’s Fannie Mae

We had a buyer tell one of our top Realtors yesterday that we are the most ignorant and incompetent buffoons to ever walk the face of the planet. She was utterly convinced that we were looking for a reason to NOT approve her loan. She was livid because we were trying to paper-trail all of her deposits even though it was “obvious that (she) clearly had more than enough money to buy the home.”

Because we tout our skill so often, we are hesitant to share the above info. But the info is necessary so we can make a point. The borrower was so frustrated simply because we were trying to meet Fannie Mae’s irrational, nit-picky and unnecessary conditions. The buyer was convinced it was our incompetence that was driving her frustration, but she did not understand how much detail Fannie Mae requires with respect to creating paper-trails for every large deposit that showed up on her bank statements. Paper-trail obsessions are one of many Fannie Mae conditions that go beyond the absurd.

We bring this up often, but it is essential for all Realtors and borrowers to understand. Today’s conventional and FHA lenders often ask for conditions that seem to go far beyond proving a borrower’s ability to repay a loan. When highly qualified borrowers feel ridiculously harassed, it is usually not because their loan officer or loan processor is incompetent (at least at JVM). It is almost always because a paranoid underwriter is trying to comply with every Fannie Mae condition with the detail necessary to avoid a compliance problem down the road.

Jay Voorhees
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646