Home Buying in Northglenn>Question Details

Barbara J No…, Home Buyer in 80229

What can I do if a mortage broker wont issue a denial letter after he tells me that the underwriter?

Asked by Barbara J Northcross, 80229 Fri Feb 8, 2013

wont appove our loan. The LO states underwriting had a problem with 3 overdrafts from 3 months ago and now I'm affraid we will lose our earnest money.

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If your loan isn't approved, then you should ask what can you do to get it approved with the lender it's currently with. If their answer is "nothing", then you need to tell them to get a copy of the "Statement of Denial" letter from the lender that didn't approve your loan. The mortgage broker is probably waiting for the lender to issue that document, so they can relay it to you. Since your mortgage broker is technically not the creditor, they may still feel your loan can be approved with another lender and want to still attempt to get it done for you, so even if one lender denies your loan they can still try a different one since mortgage brokers are typically approved with many (even dozens) of wholesale lenders that they broker loans to.

I question why you had to provide a bank statement from 3 months ago though - normally you just have to provide the most recent 2 months of statements, not most recent 3 months of statements. Has your loan been going on for that long? Further, overdrafts alone are usually not enough of a reason to deny a loan, however if there are other negatives on credit then combined with the overdrafts it can make an underwriter deny a loan. I'd ask your loan officer if they have other lenders that could do your loan, considering the overdrafts. Or because more time has elapsed, you should be able to use the most recent 2 months of bank statements so the 3rd month with the overdrafts wouldn't even be an issue.

Shane Milne | Lending in all 50 states | NMLS #81195
shane@thebesthomeloans | 949-273-4161 direct
0 votes Thank Flag Link Fri Feb 8, 2013
Well the LO never issued the denial letter but luckily the listing agent has agreed to release the earnest money and because I did have to pay for appraisal I agreed to release to the listing agent.Because Franklin American Mortgage is unethical doent mean I have to be. Do not ever deal with Mark Barnet or Tim Moore, both total scumags.Its sad the mortgage industry had to be this way.
Flag Sat Feb 9, 2013
The lender should want to protect your earnest money. Document your requests and concerns in writing. Hopefully you have a Realtor to help comvince the lender to do their job. If need a referral to a trustworthy, local lender, please let me know. If they jeopardize your earnest money and you feel they were negligent, you can file a complaint with the Colorado Division of Regulatory Agencies. Hope this helps you.
0 votes Thank Flag Link Fri Feb 8, 2013
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