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Mortgage Lenders Stymied by Additional Rules and Restrictions

As a mortgage broker, we have numerous options and lenders to work with to get your loan approved.

I had a mortgage denied last week. Both were loans that should have been made with little effort previously.

Our borrower was a waitress, that was denied because her debt ratio was considered too high. She was purchasing a home for $180,000, putting 20% down. Even though we had automated approval, with a 49% debt ratio the lender said no. Even though the lender knew that some of her tips were unreported income, they considered the loan too risky.

We had a couple of choices, put more money down, which she had but didn’t want to do, so I moved the loan to another lender that would do the loan, but the rate would be an 1/8 percent higher or an additional $9 per month.

Both lenders sell their conventional loan to Fannie Mae, but not every lender is willing to take certain risks, because of their history or buy back agreements.

We are fortunate that we have numerous options for our clients.

Mortgage Lenders of All Stripes Paralyzed by Flurry of New Rules

By: Kate Berry

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

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