Virginia Beach Home Loans: The disclosure process

The disclosure process

I posted a blog yesterday about a borrower who was laid off a month ago and never disclosed that to me. He called me today and asked me a few questions about why he is no longer approved. In the very of beginning I informed him as I inform all of my clients who are W2 full income verified that I may need an additional pay-stub dated within 30 days of the closing. I have been doing this for a while and that is something that I have come to expect. He told me this morning that if he had known that I was going to send him more papers to sign (disclosures) and if he had known that I was going to require additional supporting documentation he'd not have gone this far. I asked him if he remembers me telling him that he may need an additional pay-stub and he said "yeah I kind of remember that". As far as the additional paper work that I needed him to sign after approval; those were the disclosures. I also told him that upon issuing the conditional approval I may need additional documentation and that I would send out full disclosures including the TIL to be signed and returned. I guess he thought despite what I had told him in the very beginning that he may just be able to get past the underwriting process without any hitches. He did tell me though that he was "nervous" about the employment thing and was hoping that it would not come up because he can prove his annual income because he works through the summer and gets laid off most winters. He said he also has income that is not reported. I truly feel that I was 100% up front with this borrower as I am with all of my borrowers. I have been doing this long enough that I do not like doing busy work and I do not like to work on dead files. If I'd of known that he had been laid off a month ago I would not have gone this far into the process with him. Instead I'd of given him some good advice and told him to come back to me when he is ready. This is a highly regulated industry and everything is verified unless you are doing a niche' loan where less documentation is required but even then there are compensating factors and there is still a verification process. I will list the details of the deal below. If anyone knows of a lender that will allow this deal to go through please let me know

90% LTV

NOO investment property

Property in "fair" condition at best

Collecting unemployment

738 mid score


I know that I can get the loan approved on another property, but it took me a while to get the condition of this property cleared. I would love to be able to do this loan, but the roof is "at the end of its useful life" there are cracks in the piping that cause leaky plumbing. The deck is in poor condition. The kitchen cabinets, flooring, and foundation are all in poor condition and there is a single wide (axle tongue and groove in tact) that holds no value is on the property. Also all comps are over a year old. So if someone knows of a lender that will do a no-doc on this type of property please let me know. Thanks for reading and have a great day!

Christopher Ohlsen

37 Boynton Ave

(845) 243-5293 (Office)

(518) 565-0799 (Cell)



Comment balloon 0 commentsChristopher Ohlsen • September 13 2007 09:54AM