Most major banks have implemented a pre-funding audit for all borrowers refinancing or purchasing. What your borrower may not see as a big question could be a deal killer so beware. So far Washington Mutual, Indy Mac and most major banks have impletmented this process and expect it to be a standard policy throughout the industry....
· The Bank Representative will introduce themselves and tell the borrower they are calling from the Bank regarding the application that was submitted through _________ broker. They will explain that they are calling in an effort to protect the client from identity theft and fraud. They will then ask the following questions depending on the type of loan and key concerns:
1. May I verify your contact info?
* Address
* Home Phone
* Work Phone
* Employer
* Position
* Monthly Income
2. For Purchase Transactions:
Primary Residence
* Are you planning on occupy the property---if yes when? (If your borrower answers oohh in a couple months, it will be considered a non-owner. They are required to occupy within 30 days of closing)
* Do you plan on renting the property out? (They sign an occupancy agreement stating they will occupy for a minimum of 1-2 years)
2nd Home
* Are you planning on renting out the property and do you already have tenants (This question would confirm whether borrower is trying to get a better deal by noting a 2nd home rather it really intends to be an investment property.
For both doc types
* Has the seller agreed to pay you any money outside of closing? (This is deemed illegal so interesting they are asking this question to)
For Refinance transactions
* Primary---Are you currently occupying the property?
* 2nd Home or Investment-Is the house currently rented or listed for sale? (They want to make sure that someone will be occupying to offset the negative rents on the property)
* Refi-Cash out---Is the house currently rented or listed for sale? (Currently listed properties cannot receive financing, although the rule in the past was the property can not be listed within the last 12 months but now the lenders just want to know the listing was cancelled and the sign is down.
Together we prosper and do so by keeping up with the politics. Keep your borrowers informed as sometimes you may use a lender who doesn't look at the fine print like I do. Being ahead of the game in this market is crucial. This is the best time to be a broker. Banks are changing their policies everyday and when that happens your client has to start all over if they decline the borrower or the property. As a broker I always have a dozen back ups to assure your deals close on time and with ease. After 17 years in the business this is the most crucial time to have a qualified and experienced broker working your deals. Appraisals, rates, conforming limits going up..the list goes on and it is important to be in the loop every minute. It is not just about the rate anymore it's whether or not a qualified borrower can even qualify. I guarantee results and service!
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