2 scenarios that just came up today and I cant find anything on it. Please help

1- Arrested: it has come to our attention that a borrower was just arrested and is incarcerated after we sent out the commitment. Now we want to deny the loan. I just dont know what is an acceptable reason. "other- Incarceration??"

2- Death: After commitment sent, one of the borrowers passed away. We obviously cant send a AAN notice the the one borrower so how would one proceed. We cant close the loan until all the probate has been completed.

Or are both of these approved not accepted as the commitments were sent. Let me know your thoughts and where I can find some of this info. Thanks

1: unable to verify employment kinda comes to mind...but they may be out in a matter of hours, so not really sure about that. You may find the following thread useful:

http://www.bankersonline.com/forum/ubbth...rue#Post1745830

2: Not following you...if you are simply going to delay closing until probate is complete...then just wait. If the lone borrower doesn't qualify on their own, it's a denial.

Neither are approved not accepted, in my opinion. They are either denials or they are going to originate.

Thank you.
Scenario 1- I understand the thread, and glad she was no customer of ours. I just know hitting the other button is cautioned
Scenario 2- borrower is actually a guarantor to an LLC- so we will have to underwriting review the file again and see if the loan qualifies without the borrower.

Check your commitments for a material adverse change clause. Fixed!

Kathleen must be replying from her phone...just in case you can't make that other language out, amirudds...I believe it says:

Check your commitments for a "material adverse change" clause.


As far as Scene 2 clarification goes...I would go ahead and adjust the underwriting and then make the decision based on the change in circumstances. I'm sure your commitment is no longer valid since both parties no longer exist.