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Wait, I though the bailout was supposed to help loosen up credit markets again??? What's going on here??? ;)
- Brian W Needham, "BNeed"
- Contributions:22
Isn't the lier loan a major reason we have loan defaults? And you're complaning about it going away?
- John Paunan, "John Paunan"
- Contributions:1145
oooh, I haven't had popcorn in a while.
- Nic Netherton, "Colorado Lender"
- Contributions:7219
Try sprinklin some cheese powder on top John....
- Ken Kopper
- Contributions:1578
No Brian I am not mad that is going away, everything I do is full doc.
But thanks for making an assumption that I was complaining (where in my post would you get that idea)
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
Personally, I loved the Pick a Pay and wish they'd bring it back with more stringent guidelines.
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
Sorry, I meant the SIVA/SISA program.....to many threads, not enough time.
- Ken Kopper
- Contributions:1578
Trust me..I am heading to ER to have my tongue stitched up from biting it.
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
Oh Ken, just let it fly......
- Brian W Needham, "BNeed"
- Contributions:22
Ken..sorry, my comment was to Jennifer.
- Paul Mondello, "Paul Mondello"
- Contributions:2093
Brian - careful... the self-rightous balance beam contains many slippery spots
you're from Ohio ay?
bneed- and I was complaining how? I understand you may not be able to read sarcasm, but like Ken stated, don't jump to conclusions. No one was complaining. Pleasure to meet your acquaintance.
- shapiroamg
- Contributions:3058
Stated is no good. A good No Ratio for high ficos/low ltvs would be better.
Jen, the credit markets are easing... this greasing the skids was never about us or individuals.
- Ken Kopper
- Contributions:1578
Brain, Jennifer was being sarcastic, sorry you missed that one. But on another note, I did hear in a recent Congressional hearing that some were suggesting that once proper lending regulation is in place that everyone who applies 1st qualify for a tradtional 30yr fixed and then other "exotic" products would be made available to certain borrowers but they would need to undergo a thorough review and disclosure process in order for those products to be made available..(ie PICK A PAY)
- Ken Kopper
- Contributions:1578
stated is good in certain situations, but I won't miss it. No Ratio makes much more sense.
Ken- what bothers me about these too-little-too-late plans is that they are practically unenforceable. Sounds like an unfunded mandate waiting to happen. Who would review the reviewers??
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Stated income = Liar loan? Not always! Buyer is putting 25% down on $900K purchase, has tons of assets, been in business over 10 years and has a 780 mid-score going stated because tax returns doesn't substantiate enough income. Is their more risk that a 97% ltv on a FHA $300K purchase with a 620 mid-score?
oh my that was funny... nice hair, great pants... what else could you ask for in a rock star?
- Rob Cochems
- Contributions:3523
Chinese Democracy is actually being released at Best Buy, for those of you interested.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3421
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Justin, there still are a few SIVAs around. Like you say, No Ratio's may come back. Until then, SIVA is my only solution. I didn't say falsified income. What I said is we can't document it. Besides excellent credit and bountiful assets, he's putting 25% down.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Also, I feel there's less risk in that example than in 75% of the FHA loans originated and funded, don't you think so too?
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3421
I totally agree, but if the government wants to insure the 3% down loans I'm not going to argue with them. I know my paper would be salable and the buyers are happy to get the loans.
Lots of gray areas in this subject. If someones tax returns do NOT substantiate the needed income, then stating the income to be higher so they qualify SIVA would be risky for the originator especially if they have seen the returns.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
In your opinion Justin why is this product offered and for what type of borrower?
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3421
In many cases exactly the borrower your describle with a bit of "nudge-nudge - wink-wink" on both sides. I just don't want to get caught in the middle of the unspoken agreement.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Justin, nothing wrong with that! As the ole' adage "better safe than sorry."
- Andrew Adams, "203K Specialist"
- Contributions:9349
"going stated because tax returns doesn't substantiate enough income"
I could really use someone to explain to me how this is not bank fraud. Stating an income that cannot be documented....
Rudi,
Does your client agreement come with a money back guarantee if you get locked up for bank fraud?
- Chris Corica, "Chris Corica"
- Contributions:1075
Bank Fraud and Tax Evasion..... maybe they can share a cell?
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
The subject of Stated Income loans comes up often. How is the LO committing any type of fraud when he/she most likely does not have the tax returns in front of them. I can honestly say that I have done many SIVA loans (in which not one single client has defaulted by the way), the clients know they want SIVA's before they even got to me. I never see the returns. They fill out the 1003, and it gets underwritten with what income is stated on the 1003. So am I at fault on all the SIVA's I've done because I cannot prove the income stated? Did I give final approval on the file? I realize there are some rotten LO's who talked people into loans they could not afford, I didn't do that. I had a vast number of clients who were SIVA clients, they were good loans, easy loans.
- Andrew Adams, "203K Specialist"
- Contributions:9349
Tammy,
Every stated loan guideline I know of always had the caveat that the program was not to be used for someone that would not qualify otherwise. If you know the borrower is stating an income that they cannot prove you are condoning the practice of falsifying the application.
I never saw the tax returns is how you justify it.
And then there were none
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- 5.0/5.0
- (1 review)
Contributions:1578ELIMINATION OF STATED INCOME PROGRAMS
As a result of the current conditions in the mortgage markets, HSBC will be eliminating the Freddie Mac Stated Income Fixed Rate Program. The last day HSBC will accept registrations is Monday, October 27, 2008. All loans must be locked no later than Friday, October 31, 2008. Lock periods greater than 60 days will not be permitted. No extensions will be permitted. All packages must be received no later than 10 days prior to the loan expiration date. Please refer any questions to your Account Executive.
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