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Subject:  FYI: When Rules Collide Date:  7/12/2013  6:29 PM
Author:  CCinOC Number:  125756 of 128887

I feel so sorry for today's mortgage consumer. Here's what I just had to explain to one of my customers.

My processor and I have not been doing nothing for the past 1.5 days. Many back-and-forth communications have taken place to get your loan out of QC [quality control]. At this time, it’s still not out of QC, so I can’t order the loan docs.

Before the appraised value came in, your file was submitted under United Wholesale Mortgage’s “Elite” program. The Elite program requires three features:

760+ FICO score
70% LTV or less
$250,000+ loan amount

As you know, Fannie Mae requires that disputed credit bureau accounts be deleted from the consumer’s credit report. However, due to the three credit pulls we had to make while we were working on this issue, for reasons you're well aware of, you lost FICO points. Your governing score is no longer 760; it’s 748. While a loan is now possible, whereas it wasn’t before, there’s no advantage to lowering the loan amount to 70% LTV ($336,000).

I also determined that UWM charges an impound waiver fee no matter how low the LTV is. This is a bit unusual in the lending industry, but that’s their rule and we must accept it.

As a result of the clarifications we sought regarding credit and appraisal issues, we chewed up a lot of lock time. As of today, it’s not possible to close this loan before your lock expires on July 18. Therefore, we must extend the rate lock to accommodate the Federally mandated 3-day right of rescission. The fee for extending the rate lock is...

2 days = .125
7 days = .25
15 days = .375

I’m working with the wholesale rep to determine how many days extension would be reasonable considering work flow demands on UWM’s pipeline. I’ll get back to you about this as soon as I hear from someone at UWM.

A consumer has the right to dispute incorrect information on his/her credit profile, but the Agencies don't care about that. They want the notation removed, end of story, or the loan is not sellable.

At least this borrower locked before the recent run-up in rates.
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