Hi all: I've been in the mortgage business for 2 years now and found myself today needing to take a break. It all started when I had a borrower who is self-employed with a 700 credit score and significant assets send me their tax return. In the loan application, I documented all the income, ran it through DU (FNMA's desktop underwriter) and got an approval. I then submitted the loan to my preferred lender only to have the underwriter want to look at tax returns (even though DU didn't call for that). So I got the tax returns and, of course, they show a lot less income due to writeoffs. I called the underwriter and they stated that unless the income on the 2007 tax return is significantly higher, the loan probably won't get approved.

Here's the rub. My borrower got approved by her other lender (they had the mortgage on one of her rental properties which she refinanced) with no documentation at a very favorable rate. And I told my borrower there's a good chance that the current servicer might be able to get a refinance done without documentation. Again, this is a long-time borrower with good credit, significant assets, and a low loan-to-value. 3-6 months ago, I could do this loan at a great interest rate. Now, it doesn't make sense. Let's hope she has the patience to stick with me. If you're a consumer, you can still get a loan. This is contrary to public perception. You just need to be patient and make sure you're responsible with your credit and finances.

I'm glad tomorrow is a new day. I always know when I'm at the boiling point. Most of the time, I find I can't help people these days even though that's my goal. But I remain hopeful; who knows what tomorrow will bring! Have a great night!

Paul