Virginia Beach Home Loans: My heart sank and my borrowers don't even know.

My heart sank and my borrowers don't even know.


This business is not for the faint of heart. If you have trouble handling stress then get the heck out of this industry! I feel that applies to real estate professionals, mortgage professionals, title professionals and anyone else involved in the transfer of real estate.

It's not getting any easier!

But it is getting a lot harder every day. Underwriting departments across the board are tightening their standards and guidelines. Some lenders are looking for excuses not to fund loans and programs are being cut left and right.

I have a file in process that has been in process since last summer including the time that it took the couple to find a home to their liking. The actual file has been in process since mid last month; I got everything on my end done in 5 days then I just had to wait on everyone else to get their end done to schedule a closing.

We all knew about the new PMI restrictions that we queued to to go into effect on the 31st of last month. This file in particular is 100% financing which does not exist as of the 31st of March 2008. Because we knew that these changes would be going into effect on the 31st we (Lake City Mortgage Staff) called all of our lenders that we have files in process with and told them to order MI on any loan that is above 97% well before the 31st.

 Tuesday I received the last condition that I was waiting on from a third party involved; 24 hour turn time on condition review and yesterday I was given the authorization to close. After receiving the clear to close I got an email from the UWA (underwriter assistant) telling me that she is trying to get the MI certificate but is not having any luck with 100% and that I may need to re-work the deal!

I couldn't believe it; my heart sank! This is after having trouble with UW on my files all week, this felt like the final blow. I just wanted to lay back in my big leather chair and give up on it all. I felt like such an ass for relaying to the borrowers and attorneys that we were cleared then to find something like this out.

I sat and spent a few minutes gathering my thoughts and planning my next course of action. I picked up the phone and called the UWA; left a message. Next I whipped up an email demanding answers for why this loan did not already have an MI cert when we're cleared by the 2nd and had been in process and almost finished well before the 31st.

I got an email back from the UWA shortly after sending mine to her. All the email said was "call me". I called her to find out what it is that she wanted or to find out what kind of a solution she had for me. When she answered she apologized and she said that she did not realize but that someone else had ordered the MI in time and that it is in the file, she just had not signed off on it yet.

Now tentatively I will be closing this loan on the 11th of this month; the attorney's want to close the 11th and I am waiting to hear back from the buyers as to whether or not that is a good day for them. Rate lock does not expire till the end of the month so on my end this file is done and awaiting a final closing date.

No one but the bank and I know how close this file came to getting killed and now you all know. Loan origination is risky business now-a-days. If you do not handle stress very well; run, don't walk, RUN!

Christopher Ohlsen

37 Boynton Ave

(845) 243-5293 (Office)

(518) 565-0799 (Cell)



Comment balloon 6 commentsChristopher Ohlsen • April 03 2008 08:52AM



Glad to hear that you have a happy ending. I agree this business can try the Patience of a saint.

Posted by Lorraine or Loretta Kratz, Certified Negotiation Consultants (Crescent Moon Realty, Inc. & Land N Sea Auctions.) about 11 years ago
Christopher. good post. I agree. It is a very hard stressful business and a very rewarding business. The good thing about this business is it is never the same. At my office, we have a rule. If we get any kind of conditions, drop what you are doing and get them done. Looks like you do the same thing. That way they are off of your desk. Call everybody involved at least 2-3 times a week to see where it is. See if you can do anything to speed up the process. This has helped here. Thanks for your post, Royal..
Posted by Royal Goodman, "We Treat You Like a King" (Royalty Home Solutions) about 11 years ago
That is a great example of issues that come up at the last minute and the buyer and the agent sometimes have no clue what you are going through just that we need additional documentation or a change to the deal we presented to you. Thanks for sharing and Good Job.
Posted by Terry & Bonnie Westbrook, Westbrook Realty - Grand Rapids Forest Hills MI Re (Westbrook Realty Broker-Owner) about 11 years ago
Yes, this business is often like a roller coaster ride.
Posted by Rosario Lewis, GRI, SRES - DDR Realty - Orange County, NY (DDR Realty) about 11 years ago


 Lorraine & Loretta - Thank you! I love the happy endings as well and I am very happy that I was able to write this post the way that I wrote it. A split hair off and this could've been a very different post.

Royal - Excellent rule, and yes I adhere to a similar work structure. I give precedence to loans that I have in process and I will drop everything (and come back to it later) to clear a condition that needs to be cleared. We all hate the idea of "kicking a dead horse" right?

Terry - Your welcome, I appreciate your comment. I am sure that you have been on the other side and probably become frustrated with the Mortgage Professional (or loan officer) you are working with. It is very interesting on the finance end because it is my responsibility to estimate what everyone else is going to charge on the deal and to make sure that everything goes smoothly. I'm sure that there are exceptions but in my experience if the payoff comes in higher than reflected on the credit report it is my job to put up with the borrower complaints and they seem to think its my fault, if there is a recent tax assessment that affects the bottom line that the borrower needs to bring I take the heat, if the appraiser comes back with a value that is not consistent with their expectations I get drilled about it... In this profession it seems that I need to have a working knowledge of mortgage finance, real estate, real estate law, compliance, accounting, property valuation... The list goes on and on. I love doing what I do and I really do not mind all of the things that I am required to do. I think a big part of it is that I usually have the most contact with the borrower because there is so much that needs to be verified so they view me as their point of contact throughout the transaction. I hope this does not sound like complaining but you brought up a great topic of conversation and again I appreciate your comment and the fact that as a Realtor® you recognize some of the "silent" struggles we as mortgage people go through.

Rosario - I love roller coasters! and yes this business is very much like one:)

Posted by Christopher Ohlsen (Credit Werx, LLC.) about 11 years ago
I  would like the chance to update all of you whom have expressed interest and left a comment for me. This transaction closed smoothly on the 11th as it was suppose to at a time that was well met by everyone involved. The PMI was not an issue and everything went well. I have since spoken with the happy new homeowners and they are very happy with their new home and the way that I conducted my end of the transaction and the way that they always knew what was going on throughout! I have told them to get in touch with me any time... And it really makes me happy to have been a part of helping someone achieve the independence of home ownership!... After 6 years of a fantastic marriage and many more years to come it always makes me happy to see a young couple start out their lives together on a bright note. Yahoo to a happy ending!
Posted by Christopher Ohlsen (Credit Werx, LLC.) about 11 years ago