Financing in 55111>Question Details

Omarcus77, Other/Just Looking in 55111

I want to know how to write a fnma repurchase letter with the sscenario below.

Asked by Omarcus77, 55111 Tue Oct 26, 2010

According to the loan application; the borrower earned $6,950 per month. Using a search of, the median salary for a Crisis Intervention Supervisor in Jonesville, Florida is $29,000. At 110%, the monthly salary would be $2,658.33. Therefore the borrower fails the reasonableness test. Using the decreased salary, the DTI would be 107.56%, therefore the borrower fails materiality. We reverified income by contacting Human Resources on 04/27/2010, and Jane Doe provided a written VOE indicating the salary for the borrower in 2007 was $41,715, which equates to $3,476.25 monthly. According to TWN, borrower is no longer employed as of 12/2007. The reverified income increased the borrowers DTI to 82.25% which exceeds guidelines.

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Agreed, I am not sure what the original person, that posted this, was trying to accomplish? I would think he is trying to refute the repurchase letter issued by FNMA to either his company or the investor he sold or closed the loan with who was in receipt of the repurchase letter. It doesn't seem that the can refute this request because they income was actually inflated and a third party source was used to verify. Would actually need to know whent he loan actual closed to see if the borrower was actually still employed at the time of origination. The issue regarding the income was that this loan probable was a stated loan and FNMA conducted a reasonable test as well as being in receipt of a the borrower's actual income which is a misrep of income and a breach of the reps and warrants. Just because the loan went into default to make it an automatic repurchase, the misrep of income is the reason for the repurchase.
0 votes Thank Flag Link Tue Dec 28, 2010
I'm not quite sure of your role in this. FNMA will issue the repurchase letter to the broker or lender. Are you referring to some sort of response or rebuttal? I'm missing the point of the income being in question because if the borrower has defaulted it's up to the originating lender or broker to resolve the issue now.
0 votes Thank Flag Link Tue Dec 28, 2010
Shouldn't you be able to do this on your own. Having someone else write the letter will not get you in for the itnerview. The process is more intense then just the initial upfront letter. Don't you think the folks from FNMA are looking on the internet as well.....
0 votes Thank Flag Link Tue Dec 28, 2010
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