topic Re: Refer/ eligible is all hope lost? in Mortgage Loans

Refer/ eligible is all hope lost?

capricornchanges — Fri, 18 May 2018 09:56:40 GMT

So, I’m finally nearing the end of this journey and supposed to close on June 7. Yesterday, my loan officer ran it through desktop underwriter and got the above. My lender does do manual underwriting But my understanding is that manual underwriting is harder, so I guess I’m thinking what’s the point? If DU has a problem surely a human underwriter will too. I’m so nervous and frustrated.

Re: Refer/ eligible is all hope lost?

homeloanexpert — Fri, 18 May 2018 13:30:51 GMT

That can happen if the data originally was input was inaccurate by the LO or their Processor. For example, higher income, or rerunning credit and scores have dropped. A downgraded or Manualy Underwritten loan is not the end of the world, I do them all the time! It just means there will be more pieces of the puzzle to make the loan work. When I get a Refer/Eligible, I'm pretty transparent. I will send the findings (the numbered conditions) to the borrower so we can go over them one by one. You'll need to be cautious, some lenders will have extra layer or overlays of additional requirements due to investor guidelines. PM me if you need additional assistance.

Best Wishes!

Re: Refer/ eligible is all hope lost?

NC_Mtg_Loaner — Fri, 18 May 2018 14:09:26 GMT

Hope is eternal. Answers and solutions to problems are often hidden until found.

Did your LO explain why you are now REFER/ELIGIBLE and not APPROVE/ELIGIBLE? It's usually right there on the first page of the findings and can be a result of insufficient information provided at Origination that was discovered to be different while processing/underwriting.

I wouldn't panic yet, so come back and keep us posted.

Re: Refer/ eligible is all hope lost?

capricornchanges — Fri, 18 May 2018 14:15:24 GMT

No, he didn’t, all he said was that he was going to keep at it until he has an answer, whatever that means. He figured everything high at the initial meeting and my mid only dropped 6 pts from 685 to 679, no new debt, I don’t know what to think.

Re: Refer/ eligible is all hope lost?

kc0039 — Fri, 18 May 2018 16:06:11 GMT

@capricornchanges wrote:
No, he didn’t, all he said was that he was going to keep at it until he has an answer, whatever that means. He figured everything high at the initial meeting and my mid only dropped 6 pts from 685 to 679, no new debt, I don’t know what to think.

Ouch... maybe dropping below 680 was the one that hurt your AUS eligibility.

Re: Refer/ eligible is all hope lost?

capricornchanges — Fri, 18 May 2018 16:11:07 GMT

Could be, didn’t think of that, but I’m going HomeReady, I think their minimum is 620

Re: Refer/ eligible is all hope lost?

NC_Mtg_Loaner — Fri, 18 May 2018 16:12:31 GMT

@kc0039 wrote:
@capricornchanges wrote:
No, he didn’t, all he said was that he was going to keep at it until he has an answer, whatever that means. He figured everything high at the initial meeting and my mid only dropped 6 pts from 685 to 679, no new debt, I don’t know what to think.
Ouch... maybe dropping below 680 was the one that hurt your AUS eligibility.

Well, not having an LO that can read and share the DU Findings with him doesn't help either. That part isn't Rocket Science.

Re: Refer/ eligible is all hope lost?

kc0039 — Fri, 18 May 2018 18:12:03 GMT

@NC_Mtg_Loaner wrote:
@kc0039 wrote:
@capricornchanges wrote:
No, he didn’t, all he said was that he was going to keep at it until he has an answer, whatever that means. He figured everything high at the initial meeting and my mid only dropped 6 pts from 685 to 679, no new debt, I don’t know what to think.
Ouch... maybe dropping below 680 was the one that hurt your AUS eligibility.
Well, not having an LO that can read and share the DU Findings with him doesn't help either. That part isn't Rocket Science.

I don't share DU findings because it can be too much for borrower. I do know that DU can be fickle.

OFF topic tangent: I had a refi where it was approve/eligible with a 686 score. It went refer/ineligible a week before closing. It didn't like the amount of inquiries on the credit report.

Anyway, Home Ready does goes down to 620, but unless I read the findings, I can't really say what made it refer/eligible. Since the only information that was given was that the score becoming lower and nothing else, I assumed that the score lowering would have made the system cause a refer/eligible outcome.

Re: Refer/ eligible is all hope lost?

capricornchanges — Mon, 21 May 2018 20:14:38 GMT

He said the following:
Bk dismissed 2012
Forclosure on heloc from 08/08
No reserves ( first I’ve been told to have them)
And my ratio is 44.9%

So he’s now saying I have a 50-50 shot. I’m so depressed right now , we are supposed to close in two weeks and he’s hesitant to send it for manual UW because he thinks the risk is too great

Re: Refer/ eligible is all hope lost?

kc0039 — Mon, 21 May 2018 20:29:41 GMT

@capricornchanges wrote:
He said the following:
Bk dismissed 2012
Forclosure on heloc from 08/08
No reserves ( first I’ve been told to have them)
And my ratio is 44.9%

So he’s now saying I have a 50-50 shot. I’m so depressed right now , we are supposed to close in two weeks and he’s hesitant to send it for manual UW because he thinks the risk is too great

44.9%. Do you have any reserves? 401K, stocks, etc?

Re: Refer/ eligible is all hope lost?

NC_Mtg_Loaner — Mon, 21 May 2018 20:32:46 GMT

Sorry you are having an issue but I still contend that the DU findings will explain why the loan "doesn't meet FNMA acceptable levels of risk"--right on the first page of the results, but there might be some kind of internal 'overlay' as reserves are not typically required although they are always good to have on hand in case of an emergency.

Re: Refer/ eligible is all hope lost?

capricornchanges — Mon, 21 May 2018 20:59:39 GMT

I just got a pension statement for approx 3k, payments are approx 950

Re: Refer/ eligible is all hope lost?

capricornchanges — Mon, 21 May 2018 21:04:26 GMT

I asked about that And his response was that on the front page it doesn’t say if you do this then it will approve, it just says that the bankruptcy that was dismissed in 2012, the home equity for closure in 2008, and my ratio at 44.9% is preventing an approve/eligible, he said he’s afraid to send it up to underwriting because the risk is too great that it does it make guidelines, but my argument is number one, you told me to keep my ratio under 45%, it’s at 44.9%. Fannie Mae is guidelines for foreclosures is seven years it’s been nine years and nine months, and bankruptcy guidelines or four years, it’s been six, so where am I going wrong with the guidelines?