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Mortgage Lenders Now Asking For PROOF!!!

Posted by Eric Mieles on September 13, 2011 at 10:21am in Short Sale Discussions

Wondering if anyone has been dealing with mortgage lenders requesting that whoever signed the short sale approval provide proof that they have authorization to sign an approval??

They are saying they wont fund a loan without it and to be on the lookout for more lenders requesting. Thoughts??

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  • Eric Mieles September 13, 2011 at 3:28pm
    Just to clarify not a signature at closing from the short sale lender, once I get my approval letter issued I have several that are signed once issued to me. I then sent over the approval letter to the buyers lender and that's when all this occured. Hope that's a little more clear.
    • Smitty > Eric Mieles September 14, 2011 at 2:17am
      Ok, that explains it a bit.  LOL.. I kinda like this.  The lenders make us jump through hoops PROVING things.  Let them do a bit of work.  I would imagine all she has to do is have a superior sign something on letterhead stating she's an authorized signor, however, getting a lender to do ANYTHING extra on top of an approval is NOT easy.
      • Jeff Payne > Smitty September 14, 2011 at 2:51am

        Smitty, I have found that the larger lenders are the ones asking for this.  Eric referred to Wachovia and since they are part of Wells Fargo, it does not surprise me that they would ask for something that means NOTHING.   Clear title is all they need to be worried about, if the title company is OK with it and will insure the title, why would the buyers lender care.  This is the exact reason that I use local lenders who have underwriters that are also local.  Got too tired of hearing, it is the underwriters fault, or hearing that we can not do the deal without good reasons, most of that came from WF and BofA.   With local lenders, we can sit right in front of the underwriter and see what the real issue is.

        I believe that the large lenders have a % of the files that they close and anything beyond that is a crap shoot.  They originate hundreds of thousands of applications and only have to close a % of them.  I had a major lender recently, I had the REO listing and the buyer.  OVER qualified buyer, took the lender almost 3 months to get the buyer closed, excuse after excuse.  I think the bottom line was that they never intended to finance him but ended up doing it because he pushed to the the executives at this lender.  I found that there was little accountability with the lender also, they really didn't care that the buyer was overqualified

  • Eric Mieles September 13, 2011 at 3:25pm
    Smitty thanks. I'm not so much worried cause I have a great relationship with my negotiator at Wachovia however I just like to get a pulse if you guys are seeing trends and it helps me to be prepared or converse on these changes.

    Smutty I do have several approvals including my Wachovia deals where the negotiator signs the approval letter. So this mortgage company for the buyers sends me an email asking for proof the negotiator is authorized to sign approvals.....lol. I said WHAT! Never been asked for that and she said "be prepared other lenders are going to start requesting it" I asked her if she gets push back from negotiators and agents (it's not like it's not hard enough to get one doc they now want us to bug em for proof) crazy!!
    • Joshua Gayman > Eric Mieles September 13, 2011 at 3:49pm
      i am guessing it is either that more and more lenders will request it, OR that she is a rookie and doing her job to the T while other experienced mortgage lender's are skipping over some of the small details, lol. Either way it's an interesting topic for conversation and I am curious if we actually will start hearing this more. Thanks for sharing
  • Joshua Gayman September 13, 2011 at 3:20pm
    Not sure how they "prove" that they have authorization to sign the approval, seems silly. I did close on a listing last month in which the buyer's mortgage lender required that the aproval have a signature from someone of the seller's lender. Our approval letter had a place to sign at the bottom but there wasn't an actual signature. I emailed the closing officer and she signed it and we send it to the buyer's mortgage lender, but I thought that was silly too.
  • Smitty September 13, 2011 at 11:26am

    I would imagine all you have to do is pull the deed.  Isn't that proof that they can sign the short sale approval?? OR pull the note from the registry of deeds? 

     

    Maybe I'm misunderstanding your question.

    • Eric Mieles > Smitty September 13, 2011 at 11:48am

      Lender for the buyer is asking for proof from the negotiator/closing coordinator..etc. people from the short sale lender to prove who they are and that they are authorized to sign an approval. Not the sellers.

      Maybe it's me but I have never run into this...lol.

      • Smitty > Eric Mieles September 13, 2011 at 12:54pm

        The seller's lender doesn't usually sign the approval.  Approvals are for the sellers.  I'm kinda confused.  Is there a space on the approval for the lender to sign?

         

        If it helps, I once has a closing attorney for a buyer ask the lender to prove they were authorized to service the account.  I was stumped but thankfully the loan had a MIN# and I directed him to the MERS site with the loan lookup and MIN# and he was able to obtain who was the servicer.

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