Financing in 92056>Question Details

Wendy, Home Buyer in Oceanside, CA

My underwriter is requiring all kinds of minor health and safety repairs for a conventional loan. Can she do?

Asked by Wendy, Oceanside, CA Tue Mar 3, 2009

this?

My underwriter couldn't decide whether to approve my conventional loan only because she didn't believe I intended to occupy it. I sent a signed lease, copy of the deposit check, statements from neighbors and pictures of my packed boxes. She still didn't believe me. When all is said and done, my mortgage broker went over her head to her supervisor, explained the situation and I got approval. Now, the same underwriter is making my and my broker's life hell by nitpicking every little thing. The termite report stated there was some water damage on an exterior door (very minor section 2 item) so the underwriter wanted to see our physical inspection report. After getting the report, the exterior door is now a non-issue but she has pulled other minor items out of the report and is requiring that we get these things fixed before the loan will fund. Is this the way things are now for everyone getting a conventional loan or is this over the top even by today's standards?

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Hi Wendy,

I think it's over the top. Maybe the underwriter is new, or maybe....
Several years ago an underwriter on my Buyer's loan demanded the inspection report from me. I went
over his head and refused to send it. I got permission first from my Buyer. My fear then was exactly
what you are going through now - an underwriter who presumes to know what the property condition
needs to be to rightfully convey.

But at this point you only have 2 options: 1. Continue on to sale. (I imagine your agent can get
the cooperation of the seller; 2. Threaten to pull the loan away from this lender and give it to
another - if you and the seller have the time and patience required to start all over.

My first inclination, since the underwriter is only requiring a few minor things, is to press on and
get them fixed. You want to get on with your life.

Finally, put on your happy face. Keep your eye on the prize. Don't let the underwriter's grumping
spoil your good feelings about an exciting new chapter in your life. You are exactly who you
presented yourself as being. No worries. Everyone around you will be affected by your good
attitude.

PS: You have gone above and beyond in providing proofs to that underwriter. I hope this is not
the wave of the future. But lenders have to protect their investments and must make money.
Some investors are getting more nosy and underwriters must prove to those investors that their
investments are sound. Don't take it personal.

Best Wishes,

Marita Topmiller
Assoc Broker/ Realtor
Century 21 Realty Group
317-513-4652
marita@maritatopmiller.com
1 vote Thank Flag Link Wed Mar 4, 2009
Wendy,
With all the "toxic" loans out there lots of underwriters, appraisers and home inspectors have gotten very picky about properties. Since you are so far along in the process I would say keep on course. If the broker went over her head once it may be time again so everyone can get on the same page.

Realize that folks in the loan business are "afraid" of making the wrong decision. Just be patient. Believe me and I know how frustrating this can be.
1 vote Thank Flag Link Wed Mar 4, 2009
Hey Wendy,

It sounds like this U/W is going beyond the bounds of reality and is upset that you went over her head.

My suggestion is that your broker take your loan to another company or have another U/W clear the file.

Good luck!

Fred
Web Reference: http://fredglick.com
1 vote Thank Flag Link Wed Mar 4, 2009
Any lender has the right to question the security of their investment, though these requirements do seem a bit harsh. You can always take your business to a different vendor - at this point you might expect a couple of additional fees and a delay in closing....
1 vote Thank Flag Link Tue Mar 3, 2009
Its over the top, and YOUR representative should have fought it BEFORE it became an issue. Underwriters can always be over the top. The question is, who is representing your best interest? Now that the underwriter has seen the report, she cannot un-see it.

Your loan officer should have never sent it, and should have fought the condition FOR the inspection way before having to fight this stuff. Perfect reason why you need to shop for mortgage lenders by ADVICE not PRICE.

We all have relatively similar pricing, but the advice that you receive is a world apart.

Daniel Lehman
daniel.lehman@wjbradley.com
858-345-4725
0 votes Thank Flag Link Mon Jun 10, 2013
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