Last night I had dinner with a highly competent and experienced loan broker who is also a friend. She was feeling terribly down about the lack of control she is experiencing the in current market. I suggested that she make a list of "can you believe" loan and appraisal stories to give to clients. I thought that if the clients could appreciate the difficulties of getting through underwriting as of May 2009, they might not take delays and additional inquiries so personally.
One of the examples she gave me was shocking. The underwriter, as a final loan condition not previously mentioned, wanted an explanation of why the borrowers did not have social security numbers from birth. The explanation was relatively easy: the borrowers were in their 70's and didn't get social security numbers until they obtained their first jobs as was the custom at the time. The problem: the result of the inquiry was to put the loan back on the underwriters table for an additional 4 days thereby taking the time period beyond the interest rate lock.
If you have other stories for me to pass along, I would love to hear them.
PS Yes, she did pay the required points to keep the interest rate.