What is the stupidest underwriting condition you have ever had?

Mortgage and Lending with AmeriFirst Financial, Inc. NMLS#222444

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?




Posted by

Amerifirst Financial

Please join my Tips and Advice Page for Realtor's on Facebook by clicking here.


Sr. Mortgage Loan Officer
NMLS# 222444



(661) 965-0088 Cell


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

Follow Me On:



Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Ellie McIntire 02/05/2013 10:27 AM
  2. Jeanne Kozak 02/05/2013 11:52 AM
  3. Brian Rugg 02/05/2013 11:55 AM
ActiveRain Community
California Contra Costa County Pleasant Hill
All About Mortgages/Mortgage Networking
Mortgage Bankers
The FHA Mortgage Group
VA Loan Group
realtor humor
tips and advice for realtors

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Ron Climer
Keller Williams Realty Mountain Partners - Tryon, NC

I am so glad I started my day by reading this post. You have to laugh to keep from crying.

Feb 05, 2013 06:52 PM #44
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA

My client wanted to REfi an investment property she built over 15 years ago in a gated lake community.  After requiring a termite inspection because the appraiser saw SQUIRREL damage on the siding, they wanted a copy of the TENANT'S water bill to verify that the property was not on a well

Feb 05, 2013 07:09 PM #45
Barbara Tattersall
Keller Williams Realty Metropolitan (Keene,NH) - Keene, NH

Here's a nightmare.  A VA buyer (and he worked for the VA!)  denied the loan 2 business days before closing because he "didn't like the way he paid his rent". The buyer rented his daughter's condo while she was in college and if he made any repairs, deducted the amount from the rent.  He had documentation and cancelled checks for everything. Seller was already flying in- moving van scheduled. None of it mattered. Huge mess.

Feb 05, 2013 07:09 PM #46
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I came back to read the comments to the post so that I could see what others have experienced.

Feb 05, 2013 07:55 PM #47
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

Wow!  What a list!  The stupidest condition I ever encountered was peeling paint on the door frame...  on the outbuilding.  The appraiser called this out the day of closing.  The sellers had already moved to another state and my buyers were both working 12 hour shifts.  I ended up driving down and scraping and painting the door frame.  I cursed the appraiser...  but we closed.  :)  

Feb 05, 2013 09:56 PM #48
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Jayne, you can't make this stuff up. Thanks for the humor this morning.

Feb 05, 2013 09:56 PM #49
Fernando Herboso - Broker for Maxus Realty Group
Maxus Realty Group - Broker 301-246-0001 - Gaithersburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

#48 reminded me of the time when a short sale could not close because of peeling paint on a window sill . . I went to the grocery store to buy white toothpaste and fixed the  small area of peeling paint that was stopping my client to avoid a foreclosure. . I used my credit card for both. .to purchase it and spread the toothpaste . .it looked beautiful, white. .shiny

We closed. .

I wonder what happened after the first rain. . 



Feb 05, 2013 10:49 PM #50
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Good post and reveals the lack of common sense and hands on that make all the difference in the world. Rookie at work

Feb 05, 2013 10:50 PM #51
Joan Congilose
Century 21 Action Plus Realty - Freehold Twp, NJ
Marlboro, Manalapan, Freehold NJ Homes

Good post, the stupidest condition I ever encountered was that the lender requested to see an engagement announcement from a newspaper in order to believe the couple buying the house was actually getting married. 

Feb 05, 2013 11:21 PM #52
Harry F. D'Elia
Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

Thanks for sharing your list. Plus, I have read others. I can see the underwriters really do control the closings in real estate. Either satisfy or do not close is name of the game.

Feb 05, 2013 11:27 PM #53
Karen Deis

Jayne, Thanks for posting my original blog and article.  I know that underwriters are under a lot of stress, especially when the company has to buy back a loan from Fannie or Freddie.  However, I wrote in with the spirit that some underwriters read it and see how ridculous some of these underwriting conditions are. You can find more articles like this www.LoanOfficerMagazine.com

Feb 05, 2013 11:47 PM #54
Rebecca Lee McAnallen
RGS Title, LLC - Culpeper, VA
Big city experience, small town service

Strangest I've seen: Same sex couple needing affidavits from relatives and friends that they were in a commited relationship to go on title and loan together.

Glad to know I'm not alone in seeing weird conditions!

Feb 05, 2013 11:59 PM #55
Real Access Pro Transaction Management Software
Real Access Pro - Clearwater, FL

I particularlly liked #18 -- WOW (your govt tax dollars at work)


I am reblogging this on my facebook !!!

Feb 06, 2013 01:04 AM #56
Virginia Hepp - Mesquite NV REALTOR
ERA - Mesquite NV Homes For Sale - Mesquite, NV
Mesquite NV Homes and Neighborhoods - Search MLS

Underwriter demanded pictures of a clear termite report.  Appraiser finally went back and took pics of the walls. 

Feb 06, 2013 01:38 AM #57
Gena Hatch
Keller Williams Realty - Carmel Valley, CA
Realtor, CHMS, CNS

Very funny! I enjoyed these - I thought I had seen a few unusual ones over the years, but I guess not!

Feb 06, 2013 03:33 AM #58
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

How hilarious!  Some of the funniest conditions I've ever seen, especially #21! 

Feb 06, 2013 05:16 AM #59
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

What an fun read!  You being in the loan business, you'd get a lot more of the crazy things, I'm sure.  I've had underwriters conditions which weren't weird, but what my client's lender told them to do to satisfy it WAS!

Feb 06, 2013 06:16 AM #60
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

This list is just comical. Underwriters know they control the transaction and come up with some bizarre conditions. I had one last month, there was a deposit of $2300.00 into checking and $2300.00 withdrawl from savings, escrow deposit was $2300.00, it was evident the $$ came from savings to checking for escrow deposit, underwriter wanted the buyer to write a letter explaining where the money came from.

Feb 06, 2013 10:36 AM #61
Rose King
David Tracy Real Estate - Friendswood, TX
Friendswood / Pearland / Houston Bay Area

This post is great! Here's mine: The underwriter made my client sign an affidavit saying all signatures on the documents were hers, because she dated some of them above the line and some of them on the line and her 3's didn't all look alike!

Feb 06, 2013 12:09 PM #62
Wika Hutchinson
Eugene, OR

Jayne, they are quite ridiculous and somewhat funny. I bet the borrower didn't think it was funny.

Feb 06, 2013 01:52 PM #63
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Jayne Combs NMLS#222444

Loan Officer & Cert. Divorce Lending Professional
Ask me a question
Spam prevention