Please be warned that Underwriters are more out of control then ever, as they worry about taking the blame for a missed condition that results in a loan getting “kicked back” by Fannie or Freddie. As a result, we frequently get extraordinarily “nit-picky” and nonsensical conditions that delay transactions for no reason whatsoever. Making this extra painful is the fact that these conditions often have zero bearing on credit quality, and they are added at the 11th hour. ALL LENDERS are doing this now.
Case in point: The following is an actual underwriting condition from a major lender: ‘Please provide a signed letter from CPA stating if the client has 25% or more ownership in the Federal Reserve Bank. If ‘yes’ he should be run as self employed.'” The borrower subjected to this ridiculous condition is a Staff Attorney for the Federal Reserve Bank.
We take enormous pride in our ability to spot all issues up front, but sometimes even we cannot foresee the ignorance of some underwriters.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167