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Underwriter Requests AFTER Closing

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Anonymous
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Underwriter Requests AFTER Closing

Forum members,

 

Question for you - my fiancee and I just closed on our first house (yay!) on Tuesday, but low and behold our friendly bank underwriter called us several hours later requesting some additional. more recent bank statement copies. Throughout the mortgage process we've been cautious, but prompt and accomidating to all the bank's requests for documentation and information, but this one really rubbed us the wrong way.

 

Since the application, underwriting, and indeed closing for our house have all been completed, are we under any (legal) obligation to respond to underwriting's request(s)? (The request came verbally, well after our closing) We have a sneaky suspicion that this underwriter either is, or is expecting to be audited - he screwed up and didn't get a particular document, and is now chasing it to cover his rear end and complete his package after the closing bell has rung. We've searched through our disclosure/closing documents and found nothing requiring us to furnish information outside of the application/underwriting process.

 

We've got nothing to hide on this or any other statement, but we were very put off by the congressional inquisition that the bank made into our lives as we worked through the mortgage process. Now that it is complete, we are having challenges reconciling our principles of privacy vs. what might be one person's need to C.Y.A.

 

Your input will be appreciated!

Message 1 of 9
8 REPLIES 8
ShanetheMortgageMan
Super Contributor

Re: Underwriter Requests AFTER Closing

Your suspicions are probably correct, they either didn't get the last bank statement from you prior to closing, or they are trying to sell the loan to an investor and need the updated bank statement to do so.  

 

Did the mortgage process go to your expectations, and was it handled in a respectful way?  If so, then you may want to consider doing a favor and helping them out as well.  If they were many mistakes and they were being rude about the process, you may not want to help them.  It's completely your call.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 2 of 9
Anonymous
Not applicable

Re: Underwriter Requests AFTER Closing

I am learning that one of the statements we had previously submitted ended up "expiring" the day before our closing and was subsequently too old to use, prompting them to need to request a newer one. Apparently this wasn't noticed until after closing, and spawned an after-time-expired request.

 

They haven't been full-on jackasses about it. Our realtor and loan officer both commented that this was one of the smoothest home purchases/mortgages they'd ever seen, despite our feelings on it. As first-time homebuyers our expectations were clearly off-base regarding what we would go through during the underwriting process. Lots of the process and required items we anticipated, but conversely a lot of it we didn't, and in the end it really put us off. To have another request lofted our way after closing really was just the last straw.

 

In the end, we have elected to send in the requested item, along with a polite but succinct letter indicating that the process is now complete.

 

Our experience with this process showed that 1piece of requested information spawned 3 questions, so we are hoping that the statement is only needed to complete a package to someones specification, and the $8.21 refund deposit made from the local store doesn't need after the fact  "gift letter" documentation. (eyeroll) 

 

Thanks for the input, Shane...

 

 

Message 3 of 9
ShanetheMortgageMan
Super Contributor

Re: Underwriter Requests AFTER Closing

I understand your frustration, but understand that your situation is quite the norm with the spawning of additional conditions.  It's not uncommon for a loan approval to start off asking for 10 items, and then after submitting those items, additional conditions result from what was provided.  You also have to understand that not many loan officers will tell you that upfront, as in this business it's the loan officer who provides the borrower what they want to hear who will likely get the borrower to go with them for the mortgage, it's the wrong way to do business in my eyes, but it happens all the time, particular with big name banks who want their loan officers not to be processors, but salespeople instead.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 4 of 9
Anonymous
Not applicable

Re: Underwriter Requests AFTER Closing

At my closing one form I had to sign said that I would respond to any reasonable requests for missing info/etc. I'm guessing you probably signed something like that as well (ie if you forget to sign something, etc, you can't refuse to do it later).

Message 5 of 9
Anonymous
Not applicable

Re: Underwriter Requests AFTER Closing

Shane - Indeed. It was just a bit of a shock to the system for us, I guess. We certainly don't want to be jerks about it ourselves, but after feeling like we were put under the proverbial microscope, having late-coming requests like this just add salt to the wounds. Perhaps that is what we get for being first time homebuyers in the post-crash marketplace....

 

Juggler - That rings a bell. I'll track back through the documents to see if I can find that item.

 

Setting it all aside, we did decide to send in the requested item, so hopefully that ends up being the last request we get until the first mortgage bill comes in!


Thanks for your contributions.

Message 6 of 9
Anonymous
Not applicable

Re: Underwriter Requests AFTER Closing

 "Shock to the system" at a simple paperwork request?  You describe a standard underwriting process and call it "Congressional inquisition" ?     "Salt to the wounds"?  "Sneaky suspicion"?

 

That's a lot of hyperbole from a home buying newbie. 

 

You were put under the microscope because you were a supplicant, asking someone to loan you a giant boatload of money.   Be happy someone decided you were a good risk in this credit market and enjoy your new home.   

Message 7 of 9
Anonymous
Not applicable

Re: Underwriter Requests AFTER Closing

>That's a lot of hyperbole from a home buying newbie.

 

Admittedly true. Especially the newbie part.

 

Obviously we understood that a good portion of our recent financial history would be fair game and likely requested during the mortgage process, but what we didn't really know (or understand) was how deep they would go into past and present financial data. Like you said, they're lending us a boatload of money, so the bank would indeed need to get as much background on us as possible. I took pride in knowing as much about the process as I could before we started, but we really did get taken by surprise by the amount of requests and documentation needs that we would need.

 

We also didn't anticipate that one request begets two more... we'd respond to a request, then as a result they'd want a few other items. This was just fine the first few times, but it seemed as though everything we submitted ended up needing followups (or follow-ups of follow-ups). Although the last request which spawned this thread was indeed a simple one, it came after a couple of months of similar requests. Considering the loan was signed, sealed, and delivered, we felt more like we were being badgered instead of being vetted for the loan at that point, so we balked.

 

Underwriting is probably a thankless job - people who fail to qualify will pin the blame squarely on underwriters, and people who do qualify might have had expectations like I did and hold them accoutable for what might feel like a drawn out, nit-picky ticky tack process.... all the while underwriters have the newly added pressures of today's marketplace to make certain that the borrowers are qualified for the loan.

 

Yes, I guess I did lay it on pretty thick... but first time homebuying is a very emotional process, and one that my fiancee and I took very seriously... perhaps too seriously. Next time, we'll have a better understanding of how the process works, we'll have equity in our home, and we'll remember to just go with the flow. We've learned a lot through all this.

 

As a footnote, I received confirmation while typing this that all is taken care of - they have our document, it is in order, and we should be done... and that's all we were really searching for. Closure after the closing. Smiley Happy

 

Again, thanks for the contributions.

 

Message 8 of 9
Lel
Moderator Emeritus

Re: Underwriter Requests AFTER Closing

greggerm, the purchase of one's first home can be a very stressful experience.  For most people, it's the single biggest financial transaction that they will ever make.  It's okay to vent some exasperation with a very taxing process, even if the sentiments are somewhat exaggerated.  Congratulations on your new home.

Message 9 of 9
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