We received this with the usual conditions email:
Congrats! We have received a conditional approval for your mortgage financing, the underwriter has approved your mortgage application and I've attached your conditional approval; however the list below is all that I need for you to take care of.
1) Credit inquiry letter- no big deal
2) 4506T, release of tax returns- no big deal
3) Cancelled rent checks last 2 months- no big deal
4) For me to provide explanation of BK7- no big deal
5) Confirm that you have set up homeowners insurance-no big deal
Here is the iffy part I always worry about although the VA doesn't require it to be paid just the mortgage company......
Please be aware that we will run your file thru AUS after the BK7 discharge waiting period (12/1/2016- 2 yr discharge date) has been met per VA guidelines and the finding MUST come back Approve/Eligible to receive final loan approval- Any chance on this not happeneing or just a mere formality?
Also, the AUS must properly read that Indigo Palms Apts is a collection account; otherwise, proof of payoff of the Indigo Palms Apts collection account may be required.
Anyone have any idea what AUS would decipher an apartment collection on the spouses CR as a collection from 5 years ago? Could it get past AUS as a collection_and it did say MAY have to be paid (required)
@VALoanMaster wrote:
@gsully00 wrote:We received this with the usual conditions email:
Congrats! We have received a conditional approval for your mortgage financing, the underwriter has approved your mortgage application and I've attached your conditional approval; however the list below is all that I need for you to take care of.
1) Credit inquiry letter- no big deal
2) 4506T, release of tax returns- no big deal
3) Cancelled rent checks last 2 months- no big deal
4) For me to provide explanation of BK7- no big deal
5) Confirm that you have set up homeowners insurance-no big deal
Here is the iffy part I always worry about although the VA doesn't require it to be paid just the mortgage company......
Please be aware that we will run your file thru AUS after the BK7 discharge waiting period (12/1/2016- 2 yr discharge date) has been met per VA guidelines and the finding MUST come back Approve/Eligible to receive final loan approval- Any chance on this not happeneing or just a mere formality?
Also, the AUS must properly read that Indigo Palms Apts is a collection account; otherwise, proof of payoff of the Indigo Palms Apts collection account may be required.
Anyone have any idea what AUS would decipher an apartment collection on the spouses CR as a collection from 5 years ago? Could it get past AUS as a collection_and it did say MAY have to be paid (required)
Hi Gsully,
My biggest concern is the lender is stating you have to get an approval through an AUS in order to get the final approval. Why is that? This lender doesn't do manual underwrites on VA loans? If not, why work with them?
Here is why this is a concern.
1) The AUS will not give you an Approve/Eligible until the month following the month of your bk discharge. For example;: If your bk was discharged in 12/2014 you would have to wait until 1/1/2017 to get an approval through the AUS.
2) The AUS can pick up info from the credit report to make it think the bk is less than 2 years old. Generally this happens when creditors continue to report an account every month after it was included in the bk. When this happens, the AUS picks up the bk listing on the account as recent causing the AUS to refer the file for a manual underwrite.
How does the Indigo Palms account report your credit? If it's reported as a collection, the AUS will pick it up & treat it as such. Whether or not it has to be paid off is generally the underwriter's call. The last time I had an underwriter require a collection be paid off prior to close on a VA loan was on a manual underwrite & the file borderline so the the collection had to go in order for the u/w to be comfortable approving the loan.
Sounds to me like you may have a super conservative lender.
Thank You VA for your response and here's what I just got back from them:
You have already received a tentative approval subject to your BK being 2 years old? Your concern regarding the AUS picking up things more recently typically only applies to individual accounts that report afterwards (especially in relation to mortgages with prior short sales or foreclosures). In your case, there are no individual accounts doing that…it’s only the actual discharge date the AUS is reading. So once we are in the month of December, the AUS should read that the discharge date was 2 years ago (we do this frequently with BK’s). You do not normally have to wait until the month after.
To answer your question, yes, an underwriter still has to touch the file…and yes, we can likely manually underwrite the file if the AUS still fires a Refer/Eligible for the BK being within 2 years when it’s not.
@VALoanMaster wrote:
@gsully00 wrote:
@VALoanMaster wrote:
@gsully00 wrote:We received this with the usual conditions email:
Congrats! We have received a conditional approval for your mortgage financing, the underwriter has approved your mortgage application and I've attached your conditional approval; however the list below is all that I need for you to take care of.
1) Credit inquiry letter- no big deal
2) 4506T, release of tax returns- no big deal
3) Cancelled rent checks last 2 months- no big deal
4) For me to provide explanation of BK7- no big deal
5) Confirm that you have set up homeowners insurance-no big deal
Here is the iffy part I always worry about although the VA doesn't require it to be paid just the mortgage company......
Please be aware that we will run your file thru AUS after the BK7 discharge waiting period (12/1/2016- 2 yr discharge date) has been met per VA guidelines and the finding MUST come back Approve/Eligible to receive final loan approval- Any chance on this not happeneing or just a mere formality?
Also, the AUS must properly read that Indigo Palms Apts is a collection account; otherwise, proof of payoff of the Indigo Palms Apts collection account may be required.
Anyone have any idea what AUS would decipher an apartment collection on the spouses CR as a collection from 5 years ago? Could it get past AUS as a collection_and it did say MAY have to be paid (required)
Hi Gsully,
My biggest concern is the lender is stating you have to get an approval through an AUS in order to get the final approval. Why is that? This lender doesn't do manual underwrites on VA loans? If not, why work with them?
Here is why this is a concern.
1) The AUS will not give you an Approve/Eligible until the month following the month of your bk discharge. For example;: If your bk was discharged in 12/2014 you would have to wait until 1/1/2017 to get an approval through the AUS.
2) The AUS can pick up info from the credit report to make it think the bk is less than 2 years old. Generally this happens when creditors continue to report an account every month after it was included in the bk. When this happens, the AUS picks up the bk listing on the account as recent causing the AUS to refer the file for a manual underwrite.
How does the Indigo Palms account report your credit? If it's reported as a collection, the AUS will pick it up & treat it as such. Whether or not it has to be paid off is generally the underwriter's call. The last time I had an underwriter require a collection be paid off prior to close on a VA loan was on a manual underwrite & the file borderline so the the collection had to go in order for the u/w to be comfortable approving the loan.
Sounds to me like you may have a super conservative lender.
Thank You VA for your response and here's what I just got back from them:You have already received a tentative approval subject to your BK being 2 years old? Your concern regarding the AUS picking up things more recently typically only applies to individual accounts that report afterwards (especially in relation to mortgages with prior short sales or foreclosures). In your case, there are no individual accounts doing that…it’s only the actual discharge date the AUS is reading. So once we are in the month of December, the AUS should read that the discharge date was 2 years ago (we do this frequently with BK’s). You do not normally have to wait until the month after.
To answer your question, yes, an underwriter still has to touch the file…and yes, we can likely manually underwrite the file if the AUS still fires a Refer/Eligible for the BK being within 2 years when it’s not.
What is a tentative approval to them? Does it mean the loan officer looked at your file and said eh looks good to me or does it mean an underwriter has reveiwed your file and approved it subject to meeting the 2 yr bk seasoning requirement?
Not true, any account that was included in the bk that reports after the fact can/will cause the AUS to refer.
Notice they said the AUS should read that the discharge date was 2 years ago. Should, not would. The AUS can only read the information that's provided through the credit report & application. The problem is the bk discharge date is reported on your credit report as month & year. It does not include that actual date which is why you have to run the AUS the following month. For example: Let's say your bk was discharged on 12/30/2014, you would not be "eligible" until 12/31/2016, right? Well since the AUS only sees 12/2014, it cannot say you meet the 2 yr requirement until the following month because it doesn't have the exact date of the discharge.
Does that make sense?
Notice again that they say, we can likely manually underwrite the file. Didn't say they would/could just likely. That's not very re-assuring to me.
In cases like this I make sure to cover the very real possibility that we may have to do a manual u/w before issuing a pre-approval because you just never know.
Hope for the best but plan for the worst.
On the 3B CR, only TU shows the date as 12/1/2014 (shows in column as date paid), this is a 20 year LO giving me the feedback. The loan processor (senior UW) is the one that sent me the email with those details, I did CC her on the last email and it was the LO that replied back. OnQ Financial is the mortgage company and I did see a lot of "maybe's" in the email.
And wouldn't they be waiting for the AUS on 12/2/2014 is because the UW guidelines are less stringent than an AUTO approve hence the reason of not pushing for a manual?
Once approved with AUS an UW is still going to view/touch the file anyway. A senior UW (processor of my loan) has looked at the file and sent it thru AUS 2 weeks ago and came back Eligible/Refer and they stated it was because computer was picking up BK prior to 2 years.
@VALoanMaster wrote:
@gsully00 wrote:
@VALoanMaster wrote:
@gsully00 wrote:
@VALoanMaster wrote:
@gsully00 wrote:We received this with the usual conditions email:
Congrats! We have received a conditional approval for your mortgage financing, the underwriter has approved your mortgage application and I've attached your conditional approval; however the list below is all that I need for you to take care of.
1) Credit inquiry letter- no big deal
2) 4506T, release of tax returns- no big deal
3) Cancelled rent checks last 2 months- no big deal
4) For me to provide explanation of BK7- no big deal
5) Confirm that you have set up homeowners insurance-no big deal
Here is the iffy part I always worry about although the VA doesn't require it to be paid just the mortgage company......
Please be aware that we will run your file thru AUS after the BK7 discharge waiting period (12/1/2016- 2 yr discharge date) has been met per VA guidelines and the finding MUST come back Approve/Eligible to receive final loan approval- Any chance on this not happeneing or just a mere formality?
Also, the AUS must properly read that Indigo Palms Apts is a collection account; otherwise, proof of payoff of the Indigo Palms Apts collection account may be required.
Anyone have any idea what AUS would decipher an apartment collection on the spouses CR as a collection from 5 years ago? Could it get past AUS as a collection_and it did say MAY have to be paid (required)
Hi Gsully,
My biggest concern is the lender is stating you have to get an approval through an AUS in order to get the final approval. Why is that? This lender doesn't do manual underwrites on VA loans? If not, why work with them?
Here is why this is a concern.
1) The AUS will not give you an Approve/Eligible until the month following the month of your bk discharge. For example;: If your bk was discharged in 12/2014 you would have to wait until 1/1/2017 to get an approval through the AUS.
2) The AUS can pick up info from the credit report to make it think the bk is less than 2 years old. Generally this happens when creditors continue to report an account every month after it was included in the bk. When this happens, the AUS picks up the bk listing on the account as recent causing the AUS to refer the file for a manual underwrite.
How does the Indigo Palms account report your credit? If it's reported as a collection, the AUS will pick it up & treat it as such. Whether or not it has to be paid off is generally the underwriter's call. The last time I had an underwriter require a collection be paid off prior to close on a VA loan was on a manual underwrite & the file borderline so the the collection had to go in order for the u/w to be comfortable approving the loan.
Sounds to me like you may have a super conservative lender.
Thank You VA for your response and here's what I just got back from them:You have already received a tentative approval subject to your BK being 2 years old? Your concern regarding the AUS picking up things more recently typically only applies to individual accounts that report afterwards (especially in relation to mortgages with prior short sales or foreclosures). In your case, there are no individual accounts doing that…it’s only the actual discharge date the AUS is reading. So once we are in the month of December, the AUS should read that the discharge date was 2 years ago (we do this frequently with BK’s). You do not normally have to wait until the month after.
To answer your question, yes, an underwriter still has to touch the file…and yes, we can likely manually underwrite the file if the AUS still fires a Refer/Eligible for the BK being within 2 years when it’s not.
What is a tentative approval to them? Does it mean the loan officer looked at your file and said eh looks good to me or does it mean an underwriter has reveiwed your file and approved it subject to meeting the 2 yr bk seasoning requirement?
Not true, any account that was included in the bk that reports after the fact can/will cause the AUS to refer.
Notice they said the AUS should read that the discharge date was 2 years ago. Should, not would. The AUS can only read the information that's provided through the credit report & application. The problem is the bk discharge date is reported on your credit report as month & year. It does not include that actual date which is why you have to run the AUS the following month. For example: Let's say your bk was discharged on 12/30/2014, you would not be "eligible" until 12/31/2016, right? Well since the AUS only sees 12/2014, it cannot say you meet the 2 yr requirement until the following month because it doesn't have the exact date of the discharge.
Does that make sense?
Notice again that they say, we can likely manually underwrite the file. Didn't say they would/could just likely. That's not very re-assuring to me.
In cases like this I make sure to cover the very real possibility that we may have to do a manual u/w before issuing a pre-approval because you just never know.
Hope for the best but plan for the worst.
On the 3B CR, only TU shows the date as 12/1/2014 (shows in column as date paid), this is a 20 year LO giving me the feedback. The loan processor (senior UW) is the one that sent me the email with those details, I did CC her on the last email and it was the LO that replied back. OnQ Financial is the mortgage company and I did see a lot of "maybe's" in the email.
What company provided the 3B CR?
Their loan processor is also a senior underwriter?
I've been a LO for 15 years so I'm very experienced with the AUS systems & processes.
Who is the LO & how did you get hooked up with them?
You asked for feedback. I think that speaks to the fact that you're not very confident that you'll be approved. In my opinion, that doubt comes from your lender & their inability or unwillingness to "commitment" to you with all of maybes they give you when you ask for re-assurance.
I was referred to the mortgage company from the builder which gave me 5 business cards and I contacted 2. First was imortgage (same company as LoanDepot) and that LO of 12 years wasn't very communicative so I stopped with him 3 weeks ago before I signed the docs after the 3 day disclosure, this guy I have now is 20 years as LO and after submitting all required paperwork and conditions that they asked for (assuming it was from an UW). I submitted app info on 10/19 and received papers on 10/21 and got email on 10/25 that loan process has begun and him doing what he had to do to get ready to send to UW, email on 10/27 that says your loan is in Underwriting. Got email from LO's coordinator and also Peggy (title is Loan Processor) which I assumed was the senior UW but apparently not just 3 days ago, met the 4 conditions and sent the docs that were needed then 2-3 days later got the email stating the tentative approval.
I'm confident that the loan will get done because the DTI is below standards 29/41 but just wanted more clarification on what that email was from. I'm sure you don't get to hear directly from the UW and that's what the loan processor is for-or not correct?
I just don't want to take someones word that my Dec 6th close is good to find out we have to close in Jan.
@VALoanMaster wrote:
@gsully00 wrote:
@VALoanMaster wrote:
@gsully00 wrote:
@VALoanMaster wrote:
@gsully00 wrote:We received this with the usual conditions email:
Congrats! We have received a conditional approval for your mortgage financing, the underwriter has approved your mortgage application and I've attached your conditional approval; however the list below is all that I need for you to take care of.
1) Credit inquiry letter- no big deal
2) 4506T, release of tax returns- no big deal
3) Cancelled rent checks last 2 months- no big deal
4) For me to provide explanation of BK7- no big deal
5) Confirm that you have set up homeowners insurance-no big deal
Here is the iffy part I always worry about although the VA doesn't require it to be paid just the mortgage company......
Please be aware that we will run your file thru AUS after the BK7 discharge waiting period (12/1/2016- 2 yr discharge date) has been met per VA guidelines and the finding MUST come back Approve/Eligible to receive final loan approval- Any chance on this not happeneing or just a mere formality?
Also, the AUS must properly read that Indigo Palms Apts is a collection account; otherwise, proof of payoff of the Indigo Palms Apts collection account may be required.
Anyone have any idea what AUS would decipher an apartment collection on the spouses CR as a collection from 5 years ago? Could it get past AUS as a collection_and it did say MAY have to be paid (required)
Hi Gsully,
My biggest concern is the lender is stating you have to get an approval through an AUS in order to get the final approval. Why is that? This lender doesn't do manual underwrites on VA loans? If not, why work with them?
Here is why this is a concern.
1) The AUS will not give you an Approve/Eligible until the month following the month of your bk discharge. For example;: If your bk was discharged in 12/2014 you would have to wait until 1/1/2017 to get an approval through the AUS.
2) The AUS can pick up info from the credit report to make it think the bk is less than 2 years old. Generally this happens when creditors continue to report an account every month after it was included in the bk. When this happens, the AUS picks up the bk listing on the account as recent causing the AUS to refer the file for a manual underwrite.
How does the Indigo Palms account report your credit? If it's reported as a collection, the AUS will pick it up & treat it as such. Whether or not it has to be paid off is generally the underwriter's call. The last time I had an underwriter require a collection be paid off prior to close on a VA loan was on a manual underwrite & the file borderline so the the collection had to go in order for the u/w to be comfortable approving the loan.
Sounds to me like you may have a super conservative lender.
Thank You VA for your response and here's what I just got back from them:You have already received a tentative approval subject to your BK being 2 years old? Your concern regarding the AUS picking up things more recently typically only applies to individual accounts that report afterwards (especially in relation to mortgages with prior short sales or foreclosures). In your case, there are no individual accounts doing that…it’s only the actual discharge date the AUS is reading. So once we are in the month of December, the AUS should read that the discharge date was 2 years ago (we do this frequently with BK’s). You do not normally have to wait until the month after.
To answer your question, yes, an underwriter still has to touch the file…and yes, we can likely manually underwrite the file if the AUS still fires a Refer/Eligible for the BK being within 2 years when it’s not.
What is a tentative approval to them? Does it mean the loan officer looked at your file and said eh looks good to me or does it mean an underwriter has reveiwed your file and approved it subject to meeting the 2 yr bk seasoning requirement?
Not true, any account that was included in the bk that reports after the fact can/will cause the AUS to refer.
Notice they said the AUS should read that the discharge date was 2 years ago. Should, not would. The AUS can only read the information that's provided through the credit report & application. The problem is the bk discharge date is reported on your credit report as month & year. It does not include that actual date which is why you have to run the AUS the following month. For example: Let's say your bk was discharged on 12/30/2014, you would not be "eligible" until 12/31/2016, right? Well since the AUS only sees 12/2014, it cannot say you meet the 2 yr requirement until the following month because it doesn't have the exact date of the discharge.
Does that make sense?
Notice again that they say, we can likely manually underwrite the file. Didn't say they would/could just likely. That's not very re-assuring to me.
In cases like this I make sure to cover the very real possibility that we may have to do a manual u/w before issuing a pre-approval because you just never know.
Hope for the best but plan for the worst.
On the 3B CR, only TU shows the date as 12/1/2014 (shows in column as date paid), this is a 20 year LO giving me the feedback. The loan processor (senior UW) is the one that sent me the email with those details, I did CC her on the last email and it was the LO that replied back. OnQ Financial is the mortgage company and I did see a lot of "maybe's" in the email.
What company provided the 3B CR?
Their loan processor is also a senior underwriter?
I've been a LO for 15 years so I'm very experienced with the AUS systems & processes.
Who is the LO & how did you get hooked up with them?
You asked for feedback. I think that speaks to the fact that you're not very confident that you'll be approved. In my opinion, that doubt comes from your lender & their inability or unwillingness to "commitment" to you with all of maybes they give you when you ask for re-assurance.
Here is the exact email and the subject title was: Loan Approval
Congratulations! We have received a conditional approval for your mortgage financing.
The underwriter has approved your mortgage application and I have attached your complete conditional approval; however, the list below is all that I need you to take care of:
- Sign and date the attached credit inquiry letter
- Sign and date the attached 4506T form – make sure that you mark the small box that says signatory attests….which is just above and to the left of the signature line
- Copy of front and back of August and September cancelled rent checks
- **** to provide brief signed and dated explanation letter regarding what caused the bankruptcy
- **** to provide brief signed and dated explanation letter as to why 2015/2014 income is lower than current income used in qualifying
- Confirm that you have set up the homeower insurance with GEICO
NOTE: Please be aware that we will run your file through the automated underwriting system (AUS) after the bankruptcy discharge waiting period has been met per VA guidelines and the findings MUST come back as Approve/Eligible to receive final loan approval. Also, the AUS must properly read that Indigo Palms Apts is a collection account; otherwise, proof of payoff of the Indigo Palms Apts collection account may be required.
Please send documentation to my secure efax (480-4) or my email address (@onqfinancial.com) as soon as possible so that I may resubmit your file back to the underwriter for final approval.
NOTE – VERY IMPORTANT: An updated credit report will be requested 10 days prior to the date that your closing documents are sent to the title company. It is important to maintain or lower any current credit balances between your initial credit pull and then. Please DO NOT incur new debt. It is important you notify us before opening any new debt during the process of your loan.
We appreciate you giving us the opportunity to assist you in the financing of your new home purchase and look forward to working with you. Please let us know if you have any questions that might come up during your home loan process.