Phil Grossfield's Blog

My Schedule…and Very Little Extra:   I got back in town late last night…I’m dealing with water heater issues…you get it….  I’m behind the computer all day, but today’s daily email is limited.
My Market Watch:  Rates continue to look good and things appear quiet.
My Schedule:  Behind the computer all day….

Read For a Clean Underwriting Decision:

• FOLLOW YOUR DU EXACTLY…do not send documents DU does not require.
• We follow DU findings on Tax Returns but we always require 2-years 4506T…if DU only requires one year of returns, then only send one year.  EXCEPTIONS:  please keep in mind that if there is Interest/Dividend income, then two years are required per FNMA and DU should capture this.  If you have Schedule E income or unreimbursed expenses are filed, then two years tax returns are required to validate 2 year history/trend.  The UW also has discretion to request 2 years if there is a compelling reason…for example, if the borrower works for a spouse, then 2 years would be required.
• Always send the K-1s along with the returns, whether or not the income is used.
• Only send the asset statements required to close the loan. Do not send retirement accounts, or more than one (1) months bank statements, unless the DU requires additional statements.
• Send all pages of bank statements.
• Large deposits must be sourced and documented.  Large deposits are defined as deposits exceeding 50% of the borrower’s gross monthly income, in either a single deposit, or cumulative deposits in a month.
• If the borrower owns other property(s), then you must always document the tax/insurance/HOA expenses. The best method is with the tax returns Schedule E.  It is highly recommended you get tax returns if the borrower owns rental property, even if you document these expenses otherwise, as the transcripts will show Schedule E earnings, causing Interbank to require the returns; but only one (1) year of returns is required.
• We always require a letter of explanation on any inquiries, excluding the mortgage inquiry, or inquiries within the last 120 days.
• We always require proof of borrower’s residency status as a prior to close condition.

Our Lender Fee is only $699 “All-In”

• There is no flood fee, tax fee, etc.
• Appraisal Waivers accepted with $75 waiver fee
• Appraisal Fees may be reimbursed at closing.
• Processing Fees may be charged to the borrower on borrower-paid transactions.  For lender-paid transactions, outsourced contract processing (NMLS Licensed) is considered a 3rd-Party Fee and therefore may be covered by YSP overage/excess rebate.
• YSP overage (excess rebate) may be used towards 3rd-Party Fees, Contract Processing (NMLS licensed), Prepaid Interest, Property Taxes, Hazard, and max $500 towards principal reduction.