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Old 06-15-2010, 06:37 PM
 
68 posts, read 263,841 times
Reputation: 24
Default If Loan Processor fails to get complete information

So here is my situation and hopefully you all can help me.

I got denied today from BOA based on "There was discrepancy between the VOE and my reported Salary income" NOT because I didn't make enough to qualify or everything else was all fine. just merely, your paystub and VOE doesn't match (final total match on YTD but calculation was different)

The problem is

Although I'm in sales,I have a base salary, this is my first year employment therefore they wanted explanation of my fluctuated paystub because since I don't have acculumated sick and vacation on my first year, all time off would be deducted. It wasn't even that I wasn't employed long enough either.

VOE final total YTD and paystub all matched up, but because my the calculation was more detailed than what I applied,

basically when a lender ask you what is your approximate salary, you give them an average. SO HOW can BOA call an estimate and the actual VOE with the same final total YTD a discrepancy?

I even asked if my salary was not enough to qualify and they said it wasn't the case. They have not given me the actual denial letter yet "probably trying to cover up their own excuse that loan processor failed to call my direct manager to clarify the VOE and salary variation and submitted an incomplete package to Underwriter"

So basically, the the past few days loan process has been ignoring phone calls and email, from me, realtor and my escrow agent, she said that she needed to verify employment which was already faxed over to her last week on the 8th and 9th for the explanation. She failed to call my manager to verify further and instead left the loan package incomplete and submitted that way.

How can a colleague of mine get her loan approved and verified and BOA can't verify mine ? If Salary wasn't an issue, what is?

I wrote an official email letter to re-open the case based on loan processor being incompetence in preparing the loan package, I'll know by tomorrow and see what their ACTUAL excuse is now...

I bet the loan processor used her emotions since we were all trying to rush her based on my deadline from seller/listing agent.

What do you guys all think?
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Old 06-16-2010, 01:49 PM
 
Location: Laguna Niguel, CA
768 posts, read 2,656,698 times
Reputation: 419
I think there was bad communication between the loan processor and underwriter, this should have been able to be cleared up by the underwriter asking for additional information to clarify the income reported on the VOE. When we get a VOE and the income doesn't match up to the last 2 year's W-2's, or the current YTD income on the paycheck stub, we get the person who completed the VOE to provide an explanation on why there is a discrepancy. Hopefully the BofA underwriter will see it that way and just ask for additional explanation, but you should be seeking out a backup lender just in case it doesn't work out... some of these situations take awhile for the lender who denies to recant it and go through the file again.
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Old 06-16-2010, 03:10 PM
 
68 posts, read 263,841 times
Reputation: 24
So guess what ?! Today I got my denial letter and the reason was DIFFERENT.

verbally yesterday was Verification discrepancy

letter today was : Debt-to-Income: Excessive Obligations in Relation to Income.

which is still BS because my debt to income would have been 39-40%
well within the range, and if in fact this was true, they could have NOT conditionally approved me and I could have added a co-applicant 2 weeks ago...

I emailed a final letter of complaint to them regarding the different denial reasons given, CC the SVP of home loans in Bank of America and random loan officers across the U.S stating the discrepancy in denial reason, and guess what it worked!

My previous loan processor's manager said will reopen the case and now the loan processor is going to do the verification again and get it reviewed again...

don't know how many people have been twirl around by them back and forth, but it's worth a try and reapplying another loan at the same time.





Quote:
Originally Posted by ShanetheMortgageMan View Post
I think there was bad communication between the loan processor and underwriter, this should have been able to be cleared up by the underwriter asking for additional information to clarify the income reported on the VOE. When we get a VOE and the income doesn't match up to the last 2 year's W-2's, or the current YTD income on the paycheck stub, we get the person who completed the VOE to provide an explanation on why there is a discrepancy. Hopefully the BofA underwriter will see it that way and just ask for additional explanation, but you should be seeking out a backup lender just in case it doesn't work out... some of these situations take awhile for the lender who denies to recant it and go through the file again.
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Old 06-16-2010, 06:15 PM
 
Location: MID ATLANTIC
3,846 posts, read 7,892,371 times
Reputation: 2801
Okay, it sounds like they are not accepting a portion of your income. How long have you been on the job? Less than 2 years, it's bare bones salary........and if the salary is a draw against commissions, you have another problem.

There just is not enough information here to tell you what's up.
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Old 06-16-2010, 06:51 PM
 
68 posts, read 263,841 times
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I've been on the job from April 2009 to present, denial did not say job length was a factor otherwise they could have not giving me the conditional approval 2 weeks ago. My manager signed a confirmation that I am getting base pay today with company letter head and copies of cancelled checks that I have deposited (monthly) for the past 5 months....

I still don't know why their verbal denial was totally different than the letter.

Does anyone know if the Denial letter would have the underwriters name and signature on it? Cos mine didn't so I replied to say
their denial letter was fake because it was a different reason they what was told to me by phone yesterday.


Quote:
Originally Posted by SmartMoney View Post
Okay, it sounds like they are not accepting a portion of your income. How long have you been on the job? Less than 2 years, it's bare bones salary........and if the salary is a draw against commissions, you have another problem.

There just is not enough information here to tell you what's up.
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Old 06-16-2010, 07:05 PM
 
Location: MID ATLANTIC
3,846 posts, read 7,892,371 times
Reputation: 2801
The underwriters are protected, for good reason.

First, those conditional approvals aren't worth the paper they are written on. Bank of America loan officers are under pressure to bring the loans in........not to make sure they get closed. That's what the processors are for (this is BofA's attitude). I use to work there, and more than once I was told not to get involved with the processing.

There are just too many possibilities other than they were wrong. BofA denials have to go thru 2 additional reviews before they are denied, beyond the processor. They don't want to turn down loans. Rates are lower than when you started at BofA, go see another lender. Tell them what happened. Tell them if they get the same results, to please review the details with you.
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Old 06-17-2010, 11:50 AM
 
68 posts, read 263,841 times
Reputation: 24
That's the point, on the denial letter, there was absolutely no explanation.
It was merely a ONE SENTENCE denial on a template.

Yes my boyfriend and I already applied with another loan brokers last night, so we'll have 2 way process.

In the mean time, the loan processor at BOA did call my manager to VOE again with official statements and company letter head (which she should have done last week and she didn't)

so now I'll be waiting to see how the reopening of case will be, I understand that banks protect the underwriter, but a ONE SENTENCE denial is not acceptable besides the fact that verbal and written reasons were different??? try explaining THAT to me, I calculated exactly how they would have done it and 39-40% debt to income ratio with excellent credit and payment history is not a impossibility, or they would have told me 2 weeks ago to add co-applicant.

Thanks for the inputs! We all (me, realtor, escrow company contact) feels that the loan processor put her emotions in the loan process when we all try to force her to expedite the process.


Quote:
Originally Posted by SmartMoney View Post
The underwriters are protected, for good reason.

First, those conditional approvals aren't worth the paper they are written on. Bank of America loan officers are under pressure to bring the loans in........not to make sure they get closed. That's what the processors are for (this is BofA's attitude). I use to work there, and more than once I was told not to get involved with the processing.

There are just too many possibilities other than they were wrong. BofA denials have to go thru 2 additional reviews before they are denied, beyond the processor. They don't want to turn down loans. Rates are lower than when you started at BofA, go see another lender. Tell them what happened. Tell them if they get the same results, to please review the details with you.
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Old 06-17-2010, 12:01 PM
 
Location: Laguna Niguel, CA
768 posts, read 2,656,698 times
Reputation: 419
The reason on the denial letter is a standard statement, often lenders are not allowed to elaborate more than the pre-printed reason. With my last company they forbid us to put any additional statements on a denial letter other than what was already on there, and we just put a check in the box by the reason. I am sure your denial letter looked very similar to:

https://download.flagstar.com/retail...n%20Denial.pdf
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Old 06-17-2010, 01:09 PM
 
68 posts, read 263,841 times
Reputation: 24
Nope, that's the point, the letter head of the letter is

"NOTICE OF ACTION TAKEN"
to assist you with your real estate financing needs. After careful consideration of your application we are unable to approve your request at this time. The reason(s) for our decision are:

DEBT-TO-INCOME : EXCESSIVE OBLIGATIONS IN RELATION TO INCOME

Please take a moment to review our Regulatory Disclosure information, which is set forth on the following page. This information is provided to inform you of your rights as a consumer.
We regret that we are unable to grant your request at this time. Many applicants who are not approved initially are able to resolve the issues causing the application denial and can obtain a home loan at a later time. We hope that you will consider us for your future financial needs. Should you have any questions or if you can provide any additional information that might assist us in re-evaluating your request, please contact us.


So I felt that it wasn't official. Another reason is Monday I escalated the file to the manager in the afternoon, LP calls me morning of Tuesday for denial....if it was that fast to deny, why couldn't they have done that last week? and wasted my whole week?
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Old 06-17-2010, 02:12 PM
 
Location: Laguna Niguel, CA
768 posts, read 2,656,698 times
Reputation: 419
Lenders like BofA, as well as Flagstar, are very hard headed if a denial has been issued and they have to go back through the file to un-deny it.

Just had a loan recently where an incorrect tax return (1 out of 3 returns) were provided by the borrower, and they denied based on "Unable to verify income". We provided the correct tax return, explained the situation, documented it top to bottom, and the underwriter said they would review to reconsider, and they came back denying saying "too many layered risks", the underwriter should have just said that from the beginning rather than issuing an approval, having me and the borrower provide mounds of paperwork. Some underwriters are just stubborn. It's good you found a backup lender, I'm sure it'll work out.
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