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#1687516 - 04/10/12 06:28 PM Change in investor
Relax Offline
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What action should our F.I. take, if any to the following scenario.

Customer applies for a gov. loan. After a typo and change of address, etc etc, the investor says, we don't want to loan. We then took the loan to another investor who said they would purchase the loan and the loan closed.

Should we do an action taken/counteroffer (stating our reasons under "other"), or make a note and do nothing at all?

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#1687526 - 04/10/12 06:38 PM Re: Change in investor Relax
SMQ, CRCM Offline
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Between the lines
We process applications ourselves and then try to figure which investor is the best fit, rates, conditions, etc. For us the only thing that might change is the code for who we sold it to.

We don't process as denial until we have to turn it down.

A lot depends though on who makes the decision.
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#1687528 - 04/10/12 06:41 PM Re: Change in investor Relax
Truffle Royale Offline

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If government investor actually underwrote the loan, they'll report the denial.

You report the application if you underwrote it and then presented it to the second investor who purchased it.

If the second investor underwrote it, they report it.

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#1688177 - 04/12/12 01:23 PM Re: Change in investor Relax
Wonderofitall Offline
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What would your bank do if the investor tells you that they are denying the loan "on your behalf" and it's your job to handle the denial?
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#1688250 - 04/12/12 02:59 PM Re: Change in investor Relax
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Between the lines
Are you asking me or Truffle?

If I send the denial, I report it on my LAR.

You can try to ask them if they will be reporting that on their LAR or not. You will probably have to talk to several people to get an answer and then most likely they will tell you that you have to report it because you sent the denial. Is that right? No, if they make the decision, they should be sending the denial and reporting on the LAR.

What they are really saying is that they are refusing to buy the loan from you and you are still free to make or deny the loan on behalf of your bank; therefore, you report.
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#1688354 - 04/12/12 05:44 PM Re: Change in investor Relax
Truffle Royale Offline

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I disagree.
The investor underwrote the loan and denied it.
They should report the denial.
If they don't, that's their problem, not mine.
If they do and you do too, you're double reporting.

If you re-underwrite the loan to your in-house standards and go ahead and originate it, you report it as an origination.

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