@ezdriver wrote:When applicants are asked to CLOSE cc accounts, it is generally due to the borderline strength of the file. The underwriter is concerned that a paid-down cc can be run up again the day after closing. I don't think it is a weird or crazy condition.
And what's to prevent said consumer just opening up another CC in today's market once keys are in hand? That's absolutely no predictor of future consumer behavior and unless I'm mistaken the lender can't pull the mortgage back on a review, just if it goes sideways in the six months till they can dump it elsewhere then it's a problem and this particular mandate doesn't help.
Maybe that made sense in downturns, but it doesn't right now when looked at rationally I think. I'm a little more hardcore than most folks when it comes to FICO scoring, but if I had an anchor tradeline I actually cared about (30 year positive credit card, you'd have to pry that from my cold dead fingers) but if it necessitated finding a different lender I would. That's me.
Good grief, of course credit cards are going to be run up post closing, most people just spent whatever assets they had getting into the house with very few exceptions, and unless they're downsizing, they're going to need something like a couch even if they don't need to do some immediate repairs. Really doesn't make sense 
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@Revelate wrote:
@ezdriver wrote:When applicants are asked to CLOSE cc accounts, it is generally due to the borderline strength of the file. The underwriter is concerned that a paid-down cc can be run up again the day after closing. I don't think it is a weird or crazy condition.
And what's to prevent said consumer just opening up another CC in today's market once keys are in hand? That's absolutely no predictor of future consumer behavior and unless I'm mistaken the lender can't pull the mortgage back on a review, just if it goes sideways in the six months till they can dump it elsewhere then it's a problem and this particular mandate doesn't help.
Maybe that made sense in downturns, but it doesn't right now when looked at rationally I think. I'm a little more hardcore than most folks when it comes to FICO scoring, but if I had an anchor tradeline I actually cared about (30 year positive credit card, you'd have to pry that from my cold dead fingers) but if it necessitated finding a different lender I would. That's me.
Good grief, of course credit cards are going to be run up post closing, most people just spent whatever assets they had getting into the house with very few exceptions, and unless they're downsizing, they're going to need something like a couch even if they don't need to do some immediate repairs. Really doesn't make sense
Your arguments are irrelevant to an underwriter. Their rules and guidelines do not have to make sense. Buyers can always choose to move on to another lender if they can't change an underwriter's mind. Only the underwriter has the borrower's complete file in front of them so I cannot comment on the WHY behind the underwriter's request.
@ezdriver wrote:
@Revelate wrote:
@ezdriver wrote:When applicants are asked to CLOSE cc accounts, it is generally due to the borderline strength of the file. The underwriter is concerned that a paid-down cc can be run up again the day after closing. I don't think it is a weird or crazy condition.
And what's to prevent said consumer just opening up another CC in today's market once keys are in hand? That's absolutely no predictor of future consumer behavior and unless I'm mistaken the lender can't pull the mortgage back on a review, just if it goes sideways in the six months till they can dump it elsewhere then it's a problem and this particular mandate doesn't help.
Maybe that made sense in downturns, but it doesn't right now when looked at rationally I think. I'm a little more hardcore than most folks when it comes to FICO scoring, but if I had an anchor tradeline I actually cared about (30 year positive credit card, you'd have to pry that from my cold dead fingers) but if it necessitated finding a different lender I would. That's me.
Good grief, of course credit cards are going to be run up post closing, most people just spent whatever assets they had getting into the house with very few exceptions, and unless they're downsizing, they're going to need something like a couch even if they don't need to do some immediate repairs. Really doesn't make sense
Your arguments are irrelevant to an underwriter. Their rules and guidelines do not have to make sense. Buyers can always choose to move on to another lender if they can't change an underwriter's mind. Only the underwriter has the borrower's complete file in front of them so I cannot comment on the WHY behind the underwriter's request.
Not my point, couldn't care less regarding a particular UW.
We know that there are lenders which don't do this, and as such it's UW or lender specific. Either way, it's therefore obviously not set in stone by the Lord and Lady of Mortgages, and I was therefore pointing out why it was ridiculous rather than attempting to make sense of any random UW on whatever random crappy day they're having.
Admittedly UW will do what UW wants, but that doesn't mean their actions aren't subject to criticism by the peanut gallery.
What fun would this forum let alone life be if there weren't a difference of opinion anyway?
