Again, someone is selling their integrity…what is the price?
Personally, mine is not for sale.
Keith
So, with stated income, are they still doing a dti but based on your stated income?
the.
Yes stated still works off of the DTI that you CLAIM!!!. So the gist of this story is according to some it’s ok to do a NO DOC and not even ASK the client how much they make, but it’s wrong to ask the client even if he could be lying. YEAH, THAT RATIONALE IS GREAT!!!
Some people will do anything to make a buck. Me personally, I don’t deny many files but rather use a different type of loan which is a “no ratio” structure.
It appears that most of your lenders listed are subprime so you may not know too much about this program type.
On a no doc loan the lender tells you not to disclose anything.
On a stated loan the lender is giving your client a way to not have to verify their income. This is not a means to inflate the income. As a broker, your not even supposed to be coaching your clients on what to put in for income.
Here’s a scenario. Tell us how you’d handle it. Your client “states” he makes $5k per month; after running his credit and reviewing all liabilities (including other properties) you’ve found his dti is too high. The income really needs to be at $7k to make it work. What do you do?
When you say the lenders are telling you that over stating is ok, do you mean the AE or the underwriter. I highly suggest speaking directly to the underwriter getting what they’ve told you in writing. You should probably even call your corporate office at AAPEX to ask their opinion.
Hey y&f
I’m not passing any judgement here. It’s just my call on lying, that’s all.
These no ratio loans, who has them and would they apply to this type of situation?
Colin,
You just keep committing fraud and eventually one or many of those loans is going to go into default and the borrower is going to throw you totally under the bus. The scariest thing about your whole sequences of postings is that you are a branch president and you are most likely training other loan officers that it is ok to risk their freedom and their livelihood to make a dollar. I am sure that the people at the AAPEX Mortgage company would love to know what is going on at your office.
Kane,
The no ratio loan can work for most situations. I am purchasing a new home right now and I am actually using a no ratio loan due to not having sold my previous home yet. What you do with this type of loan is not state income at all, just job history. My rate is a bit higher than stated income, but I am not going to state a higher income than I make just to get the loan done. Most likely you could qualify for a NOO 95% LTV no ratio.