topic Re: UPDATE!! in Mortgage Loans

In Underwriting...PLEASE HELP ME MAKE SENSE OF THIS!!!

Anonymous — Wed, 19 Dec 2012 16:33:01 GMT

I am a long time lurker here and I am very thankful to everyone on this board who have helped our family. Here is our situation.

My husband is buying a house for us $149K, USDA Guaranteed. Our lender is Mid-America Mortgage we are in NC. His scores are all lender pulled Eq- 653, Ex- 679, Tr- 651. His CR is pretty clean with no lates, repos, EXCEPT here recently his student loan reported Sept, Oct, Nov as late. When he found this out, he got another deferrment until next year. However, ACS Education is refusing to correct his CR. So, that worries us.... Also, one small paid collection $78 from 2009.

Secondly, his DTI is very high like 48% with the mortgage. The LO was confident with his scores, salary that she could present positive factors. Including the plan to pay off at least 7K in debt in Feb/Mar 2013.

The house is a new build and we are about 96% of completion. I am very confused and frustrated with the process. We are in our lenders underwriting now for 2 weeks and we have submitted everything they have asked for. I am wondering how USDA underwriting will go, if this new recent reporting of late will affect us badly, do we have any other options as far as a new lender, builder financing..... Any experiences, advice??? What can I expect now?

Help me PLEASE!!!

Re: In Underwriting...PLEASE HELP ME MAKE SENSE OF THIS!!!

Anonymous — Wed, 19 Dec 2012 16:47:21 GMT

Are those credit scores you posted from before or after the lates were reported? I'm not sure how they will look at the actual late payments, but if they caused the scores to drop, that will be a problem as there is a minimum credit score that they need to make it go through. When is your scheduled close date?

Re: In Underwriting...PLEASE HELP ME MAKE SENSE OF THIS!!!

Anonymous — Wed, 19 Dec 2012 17:40:48 GMT

These scores are before the reported lates. I just talked with my LO and she says his Exp score has DROPPED to a 541! His Equifax score DROPPED to a 610! I can not believe this!!! I am majorly worried at this point. She says she want to send the deferrement notice to the CB and rescore. She is thinking the CB will remove the lates with the letter. I am not confident at this point. I don't know what to do or think. She says if the CB do not remove the lates, then we will need to pay a large portion of debt before we close. Our closing date was scheduled for Dec 30, but I know we are not making that date because USDA in this area is 4 weeks behind. Any advice of what we should do??

Re: In Underwriting...PLEASE HELP ME MAKE SENSE OF THIS!!!

Anonymous — Wed, 19 Dec 2012 19:44:22 GMT

What is the new score with TransUnion? What is the minimum score you need for the loan to move forward? That's a pretty tough spot to be in, hopefully that letter will help out.

Re: In Underwriting...PLEASE HELP ME MAKE SENSE OF THIS!!!

jules0580 — Thu, 20 Dec 2012 15:54:05 GMT

From what I was told USDA will not take any late payments at all in the past year, so hopefully they can get the CB to remove them, otherwise one thing that may help you rest easier, is that when I was going through it in July, my lender said that she never saw USDA deny one after lender approved it. and I was a nervous wreck for the month it took going back and forth

Re: In Underwriting...PLEASE HELP ME MAKE SENSE OF THIS!!!

Anonymous — Thu, 20 Dec 2012 18:07:34 GMT

Ok Thank you. I am not sure about any of this, I am hoping the CB removes it. Any other experiences??

Re: In Underwriting...PLEASE HELP ME MAKE SENSE OF THIS!!!

Anonymous — Thu, 20 Dec 2012 18:08:39 GMT

His Transunion score did not go down, 665. I am not sure about none of this actually. I am a wreck.....

Re: In Underwriting...PLEASE HELP ME MAKE SENSE OF THIS!!!

jules0580 — Fri, 21 Dec 2012 16:11:45 GMT

It depends alot on your lender and the info they send to USDA.. Our lender did not repull our credit after the first time, but they warned us that it was possible and not to open any new lines of credits or have any new lates because that could squash the whole deal. If you have a letter explaining the situation coming from the student loan lender they may take that. I know its such a stressful time..I was going crazy for two months waiting for ours. I would keep calling and contacting the student loan place to see if you can get them to remove it, they are your best bet

Re: In Underwriting...PLEASE HELP ME MAKE SENSE OF THIS!!!

Anonymous — Fri, 21 Dec 2012 16:14:53 GMT

This is a VERY stressful time and this happens. We have tried ACS several times, no success. My LO seems as if in 20 years she has never had this happen before.... Husband wants to give up already... I don't know what way to turn..

Re: In Underwriting...PLEASE HELP ME MAKE SENSE OF THIS!!!

tooleman694 — Fri, 21 Dec 2012 17:19:20 GMT

You really need the late removed.

Re: In Underwriting...PLEASE HELP ME MAKE SENSE OF THIS!!!

Anonymous — Fri, 21 Dec 2012 17:21:06 GMT

Yeah, tell me something I don't already know. I am hoping the rescore with the CB works..

Re: In Underwriting...PLEASE HELP ME MAKE SENSE OF THIS!!!

tooleman694 — Fri, 21 Dec 2012 17:22:34 GMT

do you have records showing it was on time.

Re: In Underwriting...PLEASE HELP ME MAKE SENSE OF THIS!!!

Anonymous — Fri, 21 Dec 2012 17:24:10 GMT

We have a deferrment notice that the deferrment was back dated to Sept. ACS says that although they have back dated it in their system, they will not fix the CBR. I don't get it.

Re: In Underwriting...PLEASE HELP ME MAKE SENSE OF THIS!!!

Anonymous — Fri, 21 Dec 2012 17:28:04 GMT

If it didn't affect the credit score, and you have proof that it was back dated, then why does it matter? Is Underwriting saying "Well, the credit score is fine, but there is a late payment reported on the credit report so this can't be approved?" And even if they say that, can't you write a letter of explination telling them the reporting is incorrect and attached the proof you have?

Re: In Underwriting...PLEASE HELP ME MAKE SENSE OF THIS!!!

tooleman694 — Fri, 21 Dec 2012 17:29:49 GMT

But now you have opened up a new problem, even if the rescore fixes the problem with the lates. The UW is probably gonna flip out about the deferrment.

Not sure what to do here.

Re: In Underwriting...PLEASE HELP ME MAKE SENSE OF THIS!!!

Anonymous — Fri, 21 Dec 2012 17:30:00 GMT

His score was affected. It dropped his Experian score 130 pts and his Equifax score about 50 pts. That is our problem. The LO is going to dispute it throught the CB with rapid rescore.

Re: In Underwriting...PLEASE HELP ME MAKE SENSE OF THIS!!!

Anonymous — Fri, 21 Dec 2012 17:31:42 GMT

Why? This loan was already in deferrment to begin with. It came out of deferment and he didn't know about it. When he did he extended his deferrment for another year.

Re: In Underwriting...PLEASE HELP ME MAKE SENSE OF THIS!!!

Anonymous — Fri, 21 Dec 2012 17:32:40 GMT

@Anonymous wrote:
His score was affected. It dropped his Experian score 130 pts and his Equifax score about 50 pts. That is our problem. The LO is going to dispute it throught the CB with rapid rescore.

Oh, I misread where you said the score did not drop, but I guess that was only for TransUnion. What are all his current scores?

Re: In Underwriting...PLEASE HELP ME MAKE SENSE OF THIS!!!

Anonymous — Fri, 21 Dec 2012 17:34:46 GMT

No problem, his scores as of Tuesday is Exp- 541, Equ- 610, Trans- 665. The LO wants to rapid rescore Exp and Equ.

Re: In Underwriting...PLEASE HELP ME MAKE SENSE OF THIS!!!

tooleman694 — Fri, 21 Dec 2012 17:35:07 GMT

How are you going to explain to the UW why you cant pay the student loans but now you want a mortgage.

A deferrment is a big no no.