Posted by Christine Gibson on July 28, 1997 at 17:29:22:
In Reply to: Re: FICO Scoring -- A mortgage broker's nightmare posted by Christine Baker on July 28, 1997 at 17:19:33:
Updated 3/12/97 by Christine Gibson:
Believe it or not, I actually found a non-conforming lender (FHB out of California) who underwrote it as an A- loan to 80% LTV. The clients were very happy with it, since it is only a $76,000 loan, which they plan to pay off rapidly to get out of debt completely. They wanted an ARM. The 1-year T-Bill start rate was 7%, much higher than what I could have gotten through the original lender in the low 4% range; but, about what is available locally in the conforming market otherwise. Margin 3.25%.
HAD TO GET THREE APPRAISALS (1 original, and 2 appraisal reviews) to document the value of $95,000! The original appraiser had even supported the value with 5 comps. They allowed absolutely no variance in the value and much squabbling occurred over what is the value of a bathroom! My clients purchased this home 1 year ago for $89,500 and the appraisal at that time was $90,000.
The appraisal reviews came in at $94,000, and this underwriter maintained the head office would not cut ANY SLACK, even though it was underwritten as an A- non-conforming loan! The local underwriter is rapidly working to get complete control of the process after approval because the head office has a multiplicity of stupidity going on. It took almost 4 weeks AFTER loan approval, and 5 sets of docs were sent all over the countryside, before my clients could come in and sign.
I'm still working on cleaning their credit.