What is the stupidest underwriting condition you have ever had?

Karen Deiss asked on her facebook page for lenders, what were some of the stupidest underwriting conditions you have ever had.  Here's what the top 24 answers were:

1. Underwriter wanted “high school transcripts.”
2. Underwriter would not allow escrow for scraping and painting condition on appraisal. It’s Michigan in January and underwriter was in Arizona.
3. Underwriter wanted proof that borrower was no longer under house arrest.
4. The 1003 showed they had a 1-year old child. Underwriter wanted LOX explaining why the child was not listed as a dependent on the previous year’s tax return. Then when the letter was written saying that the child was born after the tax return was filed, the underwriter wanted a copy of the birth certificate.
5. Underwriter wanted the death certificate of a borrower’s husband and a LOX as to why her social security benefits were reduced.
6. Underwriter wanted a letter from a bank teller confirming that she was the one who helped the “gift donor” purchase cashiers’ checks for the gift funds.
7. I had a teacher who taught at a Catholic High School and the underwriter wanted a letter to prove that the school was part of the local Catholic school system.
8. LOX from a single dad who had custody of his child, that he did not have to pay child support. (Never saw a condition that a single mom had to write such a letter.)
9. The VA Appraiser wanted a “red colored” room repainted a neutral color.
10. Borrower wrote a check for $167 to Kroger’s for groceries. The underwriter wanted us to verify that they did not have a loan with Kroger’s.
11. Underwriter made a comment they wanted an updated appraisal, even though it was not expired. Said that it must be old because in the picture the trees in the background were still green. They were evergreen trees.
12. A source of funds letter for a $12 deposit.
13. LOX from a borrower as to why she changed her name after she got married.
14. Proof that a borrower does not own a home they sold 10 years ago. It’s hard to prove something you don’t own.
15. Borrower’s mailing address is a PO Box. Letter from USPS that they actually own a 10” post office box and that it’s their primary address.
16. LOX as to why a borrower who works for Microsoft (or any major company) works in a different location than the address listed on the paycheck stub.
17. The underwriter asked for an updated bank statement (which is normal). The borrower wrote a letter explaining the dollar amount he had in the bank.
18. I called HUD to ask them a RESPA question and the guy at HUD asked me to explain what RESPA was.
19. LOX from a doctor that the borrower has been healed and his illness will not come back.
20. LOX on a $6 deposit from a borrower who made $10K per month.
21. VA loan. Borrower was a hooker and declared her income on income tax returns. Had to get affidavits from her “regulars” that they were her clients.
22. A photo of a “Radon Test.”
23. Borrower’s occupation was a “homemaker.” Underwriter wanted a VOE.
24. Borrower deposited $235 in checking account from garage sale money. UW wanted copy of an ad proving she had a garage sale.

After reading some of these, now I don't feel so bad when I get some of what I think are stupid underwriting conditions.  These are pretty bad.  What is the stupidest underwriting condition you have ever run across?

 

 

 

Home of the Diamond Express same day Underwriting!  Call today if your tired of your loans not closing on time!

 

JAYNE COMBS
Sr. Loan Officer
CA-DOC222444
(661) 965-0088 Cell
jcombs@firstcal.net

 

Impossible is just a reason for someone not to try.......

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