I would not respond to it. I would call my original loan officer and ask him/her what is up. Especially post closing. Kyle Stancato here in University Place Wa. Bayview Home Loans
This sounds like an asset that has had a transfer out of funds to another account that was used for the funds to close. The investor is probably the one asking for it before they will purchase the loan from the originating lender. At closing the borrower signed a compliance agreement where the borrower agreed to help with post closing audits, etc. I would give them what they are asking for if it were me.
My recommendation would be to go back to the loan officer as Christopher mentioned to get clarification as to exactly why additional documentation is needed. If your loan is being sold to an investor and something came up in a QC Audit of that loan package, it's possible that the lender may have missed something. Without knowing the details it sounds like they may have not properly documented an asset... for instance, maybe liquid reserves that were needed to qualify for the loan if it's not something that needed to be verified as funds to close. It sounds like an error in underwriting and if it's 6 weeks after closing, it is most likely coming up while they are trying to sell the conventional loan or to meet HUD Guidelines so they will insure the gov't loan. Lorne is also correct that a compliance agreement document is usually included in your final loan documents so if there is an error made, the borrowers agree to help the lender by correcting any errors. I suppose honest mistakes can happen, especially when people are rushing at the end. We don't hear of this happening often though. Without knowing specifics, we are of course all speculating, so I'd go back to your originating loan officer. ;)
Yes.. the lender can ask, and you also sign a document when you closed on your loan that stated you would cooperate if the lender comes back to you for additional documentation after the close. But there's no need to worry.. Unless you have committed loan fraud, anything you provided would not cause your lender to call your note due.. I would give them what they want so they will go away.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com
Call the loan officer, if any post closing verification's are being asked for they will know about it. It could be a situation where the service did an audit and has found something they want more information on.
Cathleen this sounds like there was either an error by an Underwriter in how they calculated your ratios or reserves required on the new property and or a miss representation by the LO on how they stated assets you had on the 1003. I would maybe try asking the title company on your old home for an estimated HUD1 statement to show the funds you will receive on that transaction. Not being in the situation fully and seeing all the moving parts it is very hard to say 100% what the post funding conditions are a part of.
It sounds to me like you qualified for both homes with your current income. There may be a reserve requirement that the investor is needing to meet, thus the copy of the final settlement statement, which is not yet available. If your loan officer does not know the reason that is strange, because he or she would have a post closing person asking the loan officer to contact you and should be able to provide an explanation as to why they need your final HUD. We are all a bit stumped over this one.
I'm pretty sure that your underwriter definitely missed something.. Typically, your lender would have asked for a HUD-1 on your exiting property to verify the funds you were using for down payment.. and you would have needed to close on that property prior to you completing the purchase on your new home.. if they didn't ask for the HUD-1, then someone messed up.. and now they are trying to fix it.. give them what they ask for, and continue to be honest about it.. if it becomes a real nuisance, then I would call the loan officers manager and talk directly to the person in charge.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com
We as loan officers hear about borrowers using internet or long distance companies for various reasons, and we all cringe. I think we would all agree that as borrowers, we should all be able to set down at the loan officers desk and deal face to face. It just makes things much smoother, and typically trying to save maybe a eighth of a point and go long distance is definitely not worth it! Just my 2 cents... :)
Thank you, I completely understand. It is always best to get a referral to a loan officer who has a proven track record of closing, and on time. One of the best ways to find a competent loan officer is to call around and poll the local realtors.We are all here to help guide our borrowers!! Glad you found this site!
Yes, no, and maybe.... There is too much information missing to give a good answer. Then, as it is after closing, you technically have a closed loan and really don't need to do anything. You will still have and keep your loan. With that said, it means something was not underwritten correctly, and they are trying to get it corrected after closing. It won't hurt you, but if can be a big financial disaster to the lender. If it isn't a big deal, I would say go ahead and provide the document to assist your loan officer.
OK, that explains a lot... So does apparently who you used for a lender. Those sort. It would appear to me that they screwed up. You ALWAYS need to prove and document your source of cash to close. If you cashed out an account, that is fine. But you need to prove it and paper trail it. If you documented all the money, including cashing out an account, in the bank WITHOUT the sale of the house, that should be sufficient. BUT, maybe you needed some MORE MONEY to meet reserves requirements that would have come from the sale that they missed, and are now trying to fix. If whatever it is isn't fixed, and it sounds like it won't be for now, they will not be able to get VA insurance on the loan, and will likely have to sell it for a loss on the mortgage scratch and dent market. If your application was honest, and they made a mistake that can not be fixed, it is their fault and their issue - not yours. Once it is closed, it is closed.
I doubt seriously that the lender can call the note due. If anything it would be there fault. I used to work for a lender and it does happen where underwriters miss information. It is always good to try and help the lender out for many reasons. One is we want to keep lenders in business. If lenders are missing a piece of info post close then their audit team may catch it or the lender who is buying that loan like a Wells Fargo or other servicing company. They will require the document or the lender has to buy the loan back for pennies on the dollar. If you get too many of these then you risk eventually going out of business. The way I look at it is we are all human and all make mistakes. So try and help the lender out. But go thru your broker and get their opinion. You many thing it has nothing to do with funds verified but if it is somehow linked to any other funds that were not used for closing it would still be needed. All funds have to be verified over and beyond what is needed to close. Good luck to you - Mark 303-955-5606
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