I don't know how one gets on this list but I shall keep digging.
Since you are applying for an FHA Insured mortgage loan we Lenders are required to verify that ALL participants in the transaction are vetted on the LDP or Limited Denial of Participation list with FHA/HUD before approving/closing an FHA loan.
Sounds like that is what happened here.
It does not matter what Lender you go to: if the Realtor is on the LDP list you cannot obtain an FHA mortgage.
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker â€“ NYS Dept. of Financial Services
Many applauds for hanging in there for the duration of the unrelenting abuse a buyer experiences in a short sale transaction. In this 'Wild, Wild, West of Real Estate," called short sales you have revealed yet another adoration emanating for the bowel of the financial industry.
Be aware, where short sales are involved, anything can and does happen.
Assess if you can purchase without FHA backing or get rid of Flagstar. (this may be time critical) However, I suspect this is more likely sourced from FHA.
GET IT IN WRITING!
On the letter head of the lender along with the name of the writer, get the "Black List' statement.
Please be prepared to share it, verbatim, with us here.
Present this document to your agents broker.
The broker will have the attorney who is on retainer OR the attorney for the local REALTOR (r) organization send urgent correspondence to the "Black List' originator.
Now, lets be honest about this. It is easy to cast condemnation on the agent. Banking institutions, since being robed in "too big to fail' regalia are free to do what ever they please to appease the investor to whom they intend to sell the mortgage. Too big to fail means to big to govern.
Of course there is an agent element to consider. The agent may have inadvertently, engaged an 'investor type': in the past who got dinged. Your agent may be deemed guilty by association. The agetn may have engaged someone who has engaged in 'simultaneous' closings or sheltering and obscuring strategies. We simply do not know. What I do know IS such lists are in existence with financing backed my major players. Your situation is the very first I have heard of such a list being asserted to derail a transaction.
Pleeeeeeasssssse keep us posted regarding how this progresses.
As the others have stated I have not heard of this occuring with Flagstar or any other lender. It certainly would be interesting to know how one goes about being on a lender's "blacklist", yet still be an actively licensed realtor.
When is our contract due to close on this transaction? Will the seller's short sale lender allow you to obtain an extension to the contract to allow you time to seek your financing elsewhere? I would ask that to be requested. You can then search for a new lender that can hopfully move forward for you in a short period of time. I do have a loan officer that I have worked with on several FHA transactions and he is the utmost professional and would walk your loan through all the way to a quick closing.
If for some reason you are not quite comfortable with the realtor that you are using, then you will want to check with friends, family or co-workers to see who else they can reccommend. For you to have another agent place their name on your contract, yet keep your current agent in the background could place you in a position you do not wish to be in. It is always best to handle things in a forthright manner.
Please feel to contact me and I can provide you with the name of the loan officer I have in mind. You can reach me at 305-772-2521.
Lila V. Lopez, CRS, CDPE, E-pro
RE/MAX Advance Realty
Immediately contact a credit union.. they may be able to get it closed FAST!
Also if you can come up with 5% down, get a conventional with http://www.AimLoan.com and they may be able to close in only 10 days.
Contact your Realtor and see if another Realtor in his office can assist you if his name must be removed from the contract.
All the best,
Q: What are some of the program violations that can lead to suspension and debarment?
A: Suspension and debarment are imposed for serious HUD program violations, which include bribery, false statements, embezzlement, theft and forgery. For more information, see Title 2, Code of Federal Regulations (CFR), Parts 180 and 2424.
Q: What occupations could be sanctioned by HUD?
A: Generally, all occupations relating to the area of housing. Some of these include: appraisers, home inspectors, real estate agents, brokers, loan officers, builders, developers, landlords, investors, and management agents.
This volumes of disclosures regarding 'arms length' transactions need to be taken seriously.