Stated Income Documentation: Nevada Mortgage Industry

For those of you that do not know, the State of Nevada has severely crippled Banks, Lenders, and Brokers ability to do Stated Income and Low or No Doc Loans with Assembly Bill 440.  This bill has actually prompted banks like Credit Suisse to threaten to pull all loan programs from the State.  Others are no longer doing loans other than Full Doc.  This bill was NEVER meant to cause this type of reaction.  It was meant to halt and or curb loan fraud.  However, some banks and their attorneys have decided to look way to deep into this and err on the side of SCARED!  I know that is not an actual saying, but they are being way too cautious.  Who can really blame them with all of the defaults and litigation going on in the industry? 

Anyway, some banks have the stones to say, "That is not what the bill is designed for and we don't believe that the State will go after anyone or anything that is not fraudulent so we are going to continue to do these stated loans!  A couple of notables are US Bank and Chase.  This morning, I received this email from our Chase rep:

• CHASE CAN STILL GET A (Stated Income Stated Asset) FINDING ON THE JUMBO AND CONFORMING PRODUCTS FOR 1 LOAN TO A 90 LTV TO A $500K LOAN AMOUNT WITH A 700 SCORE (self employed
  AND salaried, NO First time home buyers), OR A 680 SCORE ON CONFORMING
  PRODUCTS.
  
  Respectfully,
  
  XXXX XXXXXX
  Account Executive
  Chase Home Finance

Great job Chase and US Bank for not backing down to over reactions in the market place!

Your mortgage partner for life,