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#1800325 - 04/02/13 01:11 PM VOE Done AFTER Closing - Unemployed
Anonymous
Unregistered

We have a situation where a VOE did not get done till after closing, and it came back that one of our applicants is no longer employed for "health reasons." The loan is in the rescission phase and has not funded. Can we refuse to fund the loan based on the change in employment status (especially if it appears the borrower did not deal with us in good faith regarding their employment status)?

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#1800331 - 04/02/13 01:18 PM Re: VOE Done AFTER Closing - Unemployed Anonymous
Retired DQ Offline
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Loan fraud?
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#1800334 - 04/02/13 01:20 PM Re: VOE Done AFTER Closing - Unemployed Anonymous
rlcarey Online
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Galveston, TX
If they signed an affidavit that indicates that all financial information remains correct at the time of loan closing, you could contact them and tell them that you have uncovered this information and need to confirm that it is correct and that proceeding with the loan will be considered loan fraud and they are encouraged to rescind the transaction in order to avoid further issues. Then file your SAR.
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#1800340 - 04/02/13 01:29 PM Re: VOE Done AFTER Closing - Unemployed Anonymous
Anonymous
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In my experience, some borrowers are so "uninformed" they don't realize that quitting a job, changing jobs or even getting fired will affect their loan, typically we verify the new information and run it back through underwritting for a revised approval but have never accused the customer of fraud....just saying.

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#1800384 - 04/02/13 02:27 PM Re: VOE Done AFTER Closing - Unemployed Anonymous
Truffle Royale Offline

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Being 'uninformed' is putting it kindly.
We pull a VOE when preparing the closing docs.
Have still had one or two that came back with 'oh, they just quit yesterday' or were fired last week.
Thankfully, at this point, you can just cancel the closing.

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#1800388 - 04/02/13 02:29 PM Re: VOE Done AFTER Closing - Unemployed Anonymous
Matt_B Offline
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Originally Posted By: Anonymous
In my experience, some borrowers are so "uninformed" they don't realize that quitting a job, changing jobs or even getting fired will affect their loan, typically we verify the new information and run it back through underwritting for a revised approval but have never accused the customer of fraud....just saying.


They may not really realize that structuring or kiting is a big deal either, but they still get a SAR filed on them. It's suspicious, even if it's due to ignorance. Finding out during underwriting or prior to closing would be one thing, after closing, they've certified details they know to be false.
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#1800394 - 04/02/13 02:33 PM Re: VOE Done AFTER Closing - Unemployed Anonymous
rlcarey Online
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rlcarey
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Galveston, TX
In Texas, each borrower has to sign a "Notice of Penalties for Making False or Misleading Written Statement".

WARNING:

Intentionally or knowingly making a materially false or misleading statement to obtain property or credit, including a mortgage loan, is a violation of Section 32.32, of the Texas Penal Code, and, depending on the amount of the loan or value of the property, is punishable by imprisonment for a term of 2 years to 99 years and a fine not to exceed $10,000.00.

I/we, the undersigned home loan applicant(s), represent that I/we have received, read, and understand this notice of penalties for making a materially false or misleading written statement to obtain a home loan.

I/we represent that all statements and representations contained in my/our written home loan application, including statements or representations regarding my/our identity, employment, annual income, and intent to occupy the residential real property secured by the home loan, are true and correct as of the date of loan closing.
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#1800426 - 04/02/13 02:59 PM Re: VOE Done AFTER Closing - Unemployed Anonymous
HappyGilmore Offline
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Pulling people out of the ditc...
is it possible the applicant is on long-term leave or disbaility for the health reasons, and maybe they think that is considered employed? After all, they could still be receiving pay and benefits from their company...
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#1800427 - 04/02/13 03:01 PM Re: VOE Done AFTER Closing - Unemployed Anonymous
Anonymous
Unregistered

"Intentionally or knowingly" seems to be the key phrase....as has been pointed out above, most of the time they don't "know" what they are doing is fraud. Someone that is intentionally trying to commit fraud would be better at it!!

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#1800465 - 04/02/13 03:56 PM Re: VOE Done AFTER Closing - Unemployed Anonymous
John Burnett Offline
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Cape Cod
And that is the purpose for forcing an affirmation of the facts at closing. Putting the customer on notice that the change in his circumstances is a material fact and that there are penalties for false statements in connection with a federally-related mortgage loan escalates an "innocent/ignorant oversight" into fraud.

When I last did a refinancing of my home mortgage (more years ago than I recall) the closing attorney made a big deal out of asking whether any statement made in my application relating to my employment, debt or other financial information had changed in any material way since the application had been filed.
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#2134427 - 06/15/17 03:03 AM Re: VOE Done AFTER Closing - Unemployed Anonymous
Anonymous
Unregistered

I recently closed on my home loan and my loan will be sold to another lender. I have tow questions regarding this thread...
1. Will the new loan mortgage company do another VOE to serve my loan?

2. I currently work outside of the home, and had been working for the company for about a year, prior to that I worked self employed and made a better solid income, but because of the 2008 mortgage fall out, I would not be able to apply for a first time home buyers mortgage. Now that we have closed, would I be able to go back to being self employed? or will the lender be able to back out of the committment?

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#2134580 - 06/15/17 08:24 PM Re: VOE Done AFTER Closing - Unemployed Anonymous
madukes Offline
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Flyers Country
we've had mortgages where the servicing/mortgagor has changed and they've never required that we provide any updated information. We are notified of our new servicer, effective date and I'm pretty sure they did the notifying of our homeowner's insurance and tax authority because of the escrow.

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#2134597 - 06/15/17 09:48 PM Re: VOE Done AFTER Closing - Unemployed Anonymous
MScarn6942 Offline
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Land Lacking in Lakes, IL
"2. I currently work outside of the home, and had been working for the company for about a year, prior to that I worked self employed and made a better solid income, but because of the 2008 mortgage fall out, I would not be able to apply for a first time home buyers mortgage. Now that we have closed, would I be able to go back to being self employed? or will the lender be able to back out of the committment?"

Anon, I don't have an answer to the first question, but they can't back out of the commitment unless it's specified somewhere on your note that they can do so. Read through that to verify, but that's not something I have ever heard of.
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