Jsa, Other/Just Looking in Corpus Christi, TX

Why do FHA and/or VA repos ask for a prequalification letter from Countrywide Home Loans?

Asked by Jsa, Corpus Christi, TX Mon Feb 2, 2009

Are they now the governments preferred lender. Based on their record I hardly think they have this right...

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I suspect that Countrywide is the lender of the record on the homes that are FHA or VA foreclosures which is why Countrywide is the company you are instructed to work through for pre-approval. Usually, they want you to become pre-approved with them to make sure you meet their standards, but you do not need to use them as your lender for the purchase.

Countrywide, for all its previous issues, was and is one of the most comprehensible sources of mortgages. When no one else would work with an FHA or VA loan, they would and they had the trained personnel to do it.
0 votes Thank Flag Link Wed Feb 4, 2009
The seller (HUD or VA) wants to make sure that the buyer is truly pre-qualified or pre-approved to buy the property that they are making an offer on.

Any lender should work, but unfortunately so many lenders issue pre-approval letters that actually are only pre-qualification letters that the seller wants a letter he can rely on. Countrywide was sold to Bank of America a year ago and has undergone a dramatic overhaul.

If you were flying when the DC-10s starting dropping out of the sky, which plane would you pick -- one of those thoroughly inspected by FAA and inspectors (DC-10) or one that had not yet undergone its normal inspection (all others)? Countrywide has been deeply inspected now, and as a lender is still the most organized and reliable, despite the catastrophe that started in 2007.

If you don't like Countrywide, you could try using a letter from your own lender IF they are a well-known and respected one. If you have a mortgage broker with typical weak letter, don't expect HUD or VA to accept it, though. Countrywide does what should be done and verifies facts to pre-qualifiy you. Once Countrywide pre-qualifies you, you do not have to use them to get a loan. No, they are not the government's preferred lender.
Web Reference: http://www.Mortgages-TX.com
0 votes Thank Flag Link Tue Feb 3, 2009
They are not a preferred lender for the government. They may be for a particular company who is handling the sale though. Or maybe the orginal mortgage is through CW and the realtor or servicing company feels that CW will be more acceptable to a person who has gone through their screening process. There are many reasons why you need to be pre approved through a particular lender, but it is not because the government requires it. Even though you are prequalified through CW does not mean you are required to use them.
0 votes Thank Flag Link Mon Feb 2, 2009
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