Suspended app???

[Anonymous]

Anyone have experience with their mortgage app being suspended, then go on to approval and closing?

Mine was suspended a few days ago due to dti. It was revived yesterday by a little restructuring and some more money down (sigh of relief....I think).

From reading around on the big bad Internet I found that most times you come out of a suspended app with a denial or approval. Since I didn't get a denial I figured great, I'm conditionally approved. Well my LO says that's not so. I just get to go back to underwriting. Is this good, bad, or irrelevant?

I wish this process came with free shots!!!!

[StartingOver10]

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@Anonymous wrote:
Anyone have experience with their mortgage app being suspended, then go on to approval and closing?

Mine was suspended a few days ago due to dti. It was revived yesterday by a little restructuring and some more money down (sigh of relief....I think).

From reading around on the big bad Internet I found that most times you come out of a suspended app with a denial or approval. Since I didn't get a denial I figured great, I'm conditionally approved. Well my LO says that's not so. I just get to go back to underwriting. Is this good, bad, or irrelevant?

I wish this process came with free shots!!!!

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Suspended for a DTI issue is a little bit of a surprise as your LO should have caught it early in the application process. But sounds like you have taken care of it by increasing your down payment. It does have to go back to underwriting, that is just a normal part of the process.

[Anonymous]

OK that's good that it is normal. He had it figured out but I'm paid commission, so there was no way of knowing how much of it they would accept without submitting it. At least that is what he said. Apparently their underwriters won't look at anything until it's a complete file and has been processed.

The LOs are also the processors. They send it to their office administrator for a review. Then it makes it to underwriting. Everyone thought my commission was fine except the underwriter.

[StartingOver10]

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@Anonymous wrote:
OK that's good that it is normal. He had it figured out but I'm paid commission, so there was no way of knowing how much of it they would accept without submitting it. At least that is what he said. Apparently their underwriters won't look at anything until it's a complete file and has been processed.

The LOs are also the processors. They send it to their office administrator for a review. Then it makes it to underwriting. Everyone thought my commission was fine except the underwriter.

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And the u/w is the one that counts

Sounds like there is a little bit of communication error if the entire office thought everything was okay but the u/w.  Commissions are handled differently. 

[Anonymous]

I think there was too. I've always been in sales and made commission but the underwriter wanted it all at the same job to feel OK counting it. Luckily I do make a small salary in addition to my commission. It's not a lot but for the price range we were shopping in and with the 55k we have saved it still was able to work.

[Anonymous]

Suspended means "on hold" until further information is gathered. Usually it means that the loan would be denied if nothing is changed from the current state, but UW wants to give the LO/processor a chance to fix the issues or give an explanation.

[ezdriver]

Lender have specific guidelines regarding how long a file remains open and active without having been underwritten. Also, when te file is submitted to the underwriter, it cannot remain in the underwriter's hands indefinitely. They way that lenders address this guideline issue is to simply suspend the file and return it to processing for further work [eg: waiting of requested docs, taking steps to change FICO scores, etc.]. What a buyer really cares about is APPROVAL or DENIAL.