Not on the loan?

[Anonymous]

We got prequalified on just my DH's income due to my being on medical leave.  We dropped off the first round of requested paperwork on Tuesday, and were given the general impression that if anything was wrong, we would hear within 24 hours.  The main LO went out of town yesterday.  The person he left in charge of our application called around 2PM today to tell us that DH's income verification came back with a lot of it categorized as "other income."  She said that we needed this better explained by our employer, in writing.  She then said that we could get approved on "what she thinks they will count as his income" if they remove me from the loan.

She was talking fast, and interrupting me before I could fully convey my concerns.  This wasn't the loan package/process that was presented to us on Tuesday, and sudden changes without time to process make me very nervous.  I felt like she was verbally patting me on the head, and giving me the "don't worry your pretty little head" vibe.  She said that the only impact was that I wouldn't be financially responsible, but in TN, I would still be 50/50 owner (and will be on the title/deed).

I just made an a** of myself on the phone to her because I told her how I am very cautious, and that I didn't trust the way that things were changing without detailed explanation.  And the way she's rushing to get the disclosures/disclaimers requested before the changes coming Oct. 3rd doesn't leave much time to think or process.

Is this normal?  Not the a** part--the taking me off the loan w/o any valid serious concerns?

[Anonymous]

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@Anonymous wrote:

We got prequalified on just my DH's income due to my being on medical leave.  We dropped off the first round of requested paperwork on Tuesday, and were given the general impression that if anything was wrong, we would hear within 24 hours.  The main LO went out of town yesterday.  The person he left in charge of our application called around 2PM today to tell us that DH's income verification came back with a lot of it categorized as "other income."  She said that we needed this better explained by our employer, in writing.  She then said that we could get approved on "what she thinks they will count as his income" if they remove me from the loan.

She was talking fast, and interrupting me before I could fully convey my concerns.  This wasn't the loan package/process that was presented to us on Tuesday, and sudden changes without time to process make me very nervous.  I felt like she was verbally patting me on the head, and giving me the "don't worry your pretty little head" vibe.  She said that the only impact was that I wouldn't be financially responsible, but in TN, I would still be 50/50 owner (and will be on the title/deed).

I just made an a** of myself on the phone to her because I told her how I am very cautious, and that I didn't trust the way that things were changing without detailed explanation.  And the way she's rushing to get the disclosures/disclaimers requested before the changes coming Oct. 3rd doesn't leave much time to think or process.

Is this normal?  Not the a** part--the taking me off the loan w/o any valid serious concerns?

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She probably could have explained it better, but if your income is not being used it is actually easier to leave you off the loan since you will only have potential hurdles for one borrower instead of two. Also, if you have any individual debts they wont have to be factored in this way.

You can still be added to title of course.
 

[DallasLoanGuy]

you are in the prequal stage?

find another lender with a better personality

[ezdriver]

The loan officer's stand-in, a process I believe, is actually doing ok. There is no need for you to be on the mortgage application without having any income to support the application.

You did not state how your husband's income was represented in the mortgage application. Sounds like it is not all base earnings and that is a detail that triggers additional explanations/documentation. The fact that she said that there was sufficient qualifying income to support the loan request is a good thing. It sounded like some clarifying documentation from your husband's employer may be needed. I don't see any reason to switch lenders at this point. It is a common phenomenon that many originators/processors in the industry lack good communication skills. Switching lenders don't guarantee that it would be any different. By the way, is the lender one of the mega banks? If yes, then I recommend switching lenders.

All the best to you.

[Anonymous]

You hit the nail on the head.  My DH's employer uses The Work Number for payroll.  The document they sent to the lender was quite simplistic, and only specified his base pay and overtime.  All other pays were lumped into "other pay," and she believed that without further breakdown, the underwriter wouldn't count it.  We ended up not being able to get more explanation from his employer, so we're stuck.

You make a valid point about changing lenders.  We're already under contract, too.  Plus, as stated before, I don't do sudden changes very well. 

I ended up speaking to a family friend who is an attorney about leaving me off of the loan.  It just sounded too easy and simple.  It sounded like the kind of thing that would get us what we want today, but would bite me in the butt down the road.  He said that it was not as onerous or suspect as I thought...with one caveat that, in the event of a divorce, DH could TRY to claim that he has a greater stake in the property due to financial responsibility.  He didn't think even that was something to worry with, so forward we go.

Oh--and it's not a mega bank.  It's a company called Brand Mortgage.  I'm not sure of their industry footprint.

[ezdriver]

Is it a mortgage broker? If yes, you want to ask for the name of the actual lender that will be funding your loan. Also make sure they list ALL fees in a GFE for you...if not already done.

Can you describe what the "other income" represents?

If base in come and overtime are listed separate, it is not unusual to categorize the rest as "other". Just so you know, the concern an underwrite has with such undefined income is that they don't know if it is consistent and sustainable.

[Anonymous]

Is it a broker?  I was told "somewhat."  They fund their own loans, keep approx. 25% of their loans in-house, and sell the rest off in bundles.  I was told to expect that it will be sold within 6-12 months.  The fees have been spelled out, closing costs have been calculated, and the seller is paying them.  For our loan type (VA), it is under the allowed percentage.

The "other income" is something his employer calls "health & wellness."  The pay structure is a set rate on a set schedule, independent of title/position.  It is offered in lieu of a health insurance plan.

They've already told us that the u/w won't count it since we cannot get the employer to give better/more explanation.  Since they are telling us that they can approve him on the reduced income for the same amount, I'm attempting to shelf any knee-jerk reactions to it.  What mildly miffs me about that is that they still want him to explain his work schedule, pay types and amounts, in detailed, written statement.