New Mortgage Question

Discussion in 'Real Estate' started by fsanford, May 15, 2020.

  1. fsanford

    fsanford Well-Known Member

    Dec 22, 2007
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    In the process of building a new home and securing a new mortgage.

    Anybody else who is refinancing or applying for a new mortgage getting hit with a question about ability to work remotely or at home.

    Your employer needs to confirm you are allowed to maintain employment even if you cannot go to an office.

    Doubt if that questions was out there 6 months ago.
     
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  2. clone4life82

    clone4life82 Active Member
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    Dec 17, 2008
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    im not one to know the ins and outs of real estate and mortgages but I find it really interesting that the mortgage companies can (legally?) ask that. I’m guessing it would influence their decision by giving them more assurance that you’ll have a job if this pandemic continues (as I would think that would help that?).
     
  3. mynameisjonas

    mynameisjonas Active Member

    Jan 19, 2019
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    What law would they be breaking by asking that?
     
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  4. clone4life82

    clone4life82 Active Member
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    There likely isn’t one but I would think a person doesn’t have to legally supply that information would they?
     
  5. 3TrueFans

    3TrueFans Just a Man in the Middle
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    Only if they want a loan.
     
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  6. HFCS

    HFCS Well-Known Member

    Aug 13, 2010
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    Mine didn't ask me, closed Tuesday. I don't know if I actually got a call into employer but it would make more sense if they asked the employer your question directly rather than asking you or me.

    My area still pretty heavily shut down. Escrow had a picnic table set up outside their office.
     
  7. BWRhasnoAC

    BWRhasnoAC Well-Known Member
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    It's fine just no gay wedding cakes.
     
  8. MeanDean

    MeanDean Well-Known Member
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    So, just say "yes." Are they going to call your employer and verify? Maybe,but I doubt it.
     
  9. mynameisjonas

    mynameisjonas Active Member

    Jan 19, 2019
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    I’m guessing the reason they asked was due to the construction loan. The bank just needs to secure the employment so that after the house is built the construction loan can be flipped into permanent financing. The bank doesn’t want to be stuck with the construction loan without the ability to convert it into a 30 year or 15 year fixed loan.
     
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  10. clone4life82

    clone4life82 Active Member
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    I feel like maybe that would be a legal problem for the mortgage company if they’re disqualifying people who check the box one way or the other on that type of a question but again I’m not a subject matter expert here. Just adding my thoughts there
     
  11. Bader

    Bader Well-Known Member

    Jul 25, 2007
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    A person isn't legally required to give up their SSN and bank records to get a mortgage, they just won't get a mortgage if they don't. The only way I could see a bank getting in trouble is if they start wading into HIPAA territory.
     
  12. cloneatlaw

    cloneatlaw Active Member

    Dec 4, 2006
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    I would recommend that you contact your favorite local legal professional before deciding to lie on a mortgage application.
     
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  13. fsanford

    fsanford Well-Known Member

    Dec 22, 2007
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    .
    They want a written letter.
    Actually my employer will send them a letter stating that working in an office is not required to maintain employment. So I will be fine.

    More curious if other people are seeing this.

    Rates are low, but compared to past mortgage discussions, this one has had many more questions, and I mean some crazy ones.. Even though I am putting down a decent chunk and have shown assets to protect them.

    Maybe because this is a new mortgage and not a refi, is making it more challenging.
     
  14. BCClone

    BCClone Well-Known Member

    Sep 4, 2011
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    You saying I was wrong asking all the attractive women who asked for a loan while I was a loan officer, what STDs they had? I believe I was before HIPAA so I was probably fine.
     
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  15. Bader

    Bader Well-Known Member

    Jul 25, 2007
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    You might need to shop this material a bit more before you take it out on the road
     
  16. Gossamer

    Gossamer Well-Known Member

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    #16 Gossamer, May 15, 2020
    Last edited: May 15, 2020
    This is a relatively new question that some lenders may be asking because of the large number of companies that have decided to allow staff to work remotely.

    While the question itself may seem invasive, it's really nothing more than this particular lender trying to satisfy the GSE's (Fannie Mae/Freddie Mac) requirement to illustrate that you will continue to work and receive the income you provided on the initial application, going forward.

    The GSE's require that a verification of employment (VOE) is conducted within 10 days of closing. With certain industries being shut down and some not, it's become a hot topic that has caused some investors to add additional requirements to "prove" or show that it's likely to continue. These are called additional overlays. Some have them some do not.

    Here's the rub...if it were me, I'd ask the question "How can I prove that and what are you requiring me/my employer to provide?". Most of the time, the VOE itself will suffice and I've not heard of someone asking for something like this...but it doesn't surprise me.

    In the end, they may simply be asking for you to say "yes, my employer has said that I can work remotely" and they are putting it in the file as an additional layer of risk mitigation. Although, at the end of the day, they know deep down that it doesn't really matter because the ONLY thing they are required to prove is that your employment is what you said it was on the initial application.

    Edit: here's the thing to remember. It's their money...how they interpret certain secondary market requirements isn't debatable...it's their decision.

    Edit 2: sorry, I see they want a letter. Not surprising.
     
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  17. jdcyclone19

    jdcyclone19 Well-Known Member

    Apr 14, 2017
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    Whats everyone getting quoted at for refinancing?
     
  18. HFCS

    HFCS Well-Known Member

    Aug 13, 2010
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    Mine took an extra week vs typical. We submitted everything within minutes. A few typical mundane checks took 3-4 days instead of one. Inspections and appraisals were fast though.
     
  19. fsanford

    fsanford Well-Known Member

    Dec 22, 2007
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    Thanks for timeline expectations... I have conditional approval, and have supplied most of the follow up stuff asked for, there is one request I am still waiting for clarity on as it makes no sense given the details they provided
     
  20. moores2

    moores2 Well-Known Member

    Nov 9, 2018
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    2.75% 15 yr, 3.25% 30 year.
     

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