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#1898482 - 02/20/14 04:16 PM Rapid Response -HELOC 2nd with Investor 1st
Norman Paperman Offline
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Norman Paperman
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Hello

I'm looking for some creative solutions to an issue we are dealing with.

Our mortgage sub is providing permanent financing for a construction loan that we did at the bank. We are providing the 2nd and there will be about $1700 in additional funds (cash out) that go to the borrower. Those funds should be subject to rescission.

Our Investor is stating that they will not close a non rescission first with a rescindable second. This has all come to light today (the day of closing).

Any ideas on how to get around this without resubmitting the loan to investor underwriting?
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#1898484 - 02/20/14 04:20 PM Re: Rapid Response -HELOC 2nd with Investor 1st Norman Paperman
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
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Make the $1700 as a third unsecured loan?
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#1898487 - 02/20/14 04:23 PM Re: Rapid Response -HELOC 2nd with Investor 1st Norman Paperman
Norman Paperman Offline
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Norman Paperman
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Interesting. The Investor is saying that the draw must match their previously approved documents. In other words, the 1700 must be included, but not rescindable.

Can I apply my 1700 from the second toward a voluntary escrow for the first? Full draw and not rescindable.

Forgive me for misspellings. I'm working off if my phone.
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Maybe you just wanna fly the plane yourself. Well good luck pressing take off, then auto pilot, then land.


CRCM

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#1898491 - 02/20/14 04:28 PM Re: Rapid Response -HELOC 2nd with Investor 1st Norman Paperman
Kathleen O. Blanchard Offline

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If the customer can afford to not receive the $1700, why can't they just let it go and borrow $1700 less? Why should the investor care about less risk?
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HMDA/CRA Training/Consulting/Mapping
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#1898495 - 02/20/14 04:37 PM Re: Rapid Response -HELOC 2nd with Investor 1st Norman Paperman
Norman Paperman Offline
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Norman Paperman
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48.934476, -114.343735
Yeah this is a weird deal. It sounds like since it was previously approved with the $1700, they won't budge without it being resubmitted through underwriting. Makes no sense.
_________________________
Maybe you just wanna fly the plane yourself. Well good luck pressing take off, then auto pilot, then land.


CRCM

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#1898496 - 02/20/14 04:39 PM Re: Rapid Response -HELOC 2nd with Investor 1st Norman Paperman
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
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I see no exemption re use of funds for increasing a HELOC plan limit.

You could go waaaaaay out on a limb and see if they want to waive rescission so they don't lose the financing on the first.

Otherwise, dry close and nothing funds for three days?
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Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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#1898498 - 02/20/14 04:48 PM Re: Rapid Response -HELOC 2nd with Investor 1st Norman Paperman
Norman Paperman Offline
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Norman Paperman
Joined: Aug 2012
Posts: 1,700
48.934476, -114.343735
Thanks for the rapid response Kaybee. Turns out our processor hadn't exhausted all of her options yet. She was able to get the Investor to reduce the first so that there would be no cash out on the second.

Thanks again.
_________________________
Maybe you just wanna fly the plane yourself. Well good luck pressing take off, then auto pilot, then land.


CRCM

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#1898504 - 02/20/14 05:00 PM Re: Rapid Response -HELOC 2nd with Investor 1st Norman Paperman
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
Congratulations.
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Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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