#2000300 - 03/06/1506:09 PMPapers signed-found out borrower was fired
Anonymous
Unregistered
We have a situation where a loan was closed and it was found out that the borrower was let go from their job. The "verbal" (faxed) verification of employement was not received until after the closing. The loan is currently in rescission. Is there anything that can be done?
When did they lose their job? Before closing? Review your closing package, did the borrower sign anything that attested to the fact that no financial information had changed or did they sign a new completed application in which they attested to the accuracy of the information on the form?
In either case, cancel the transaction and send them an adverse action notice stating you where unable to verify the information they provided. Then get out your SAR for mortgage fraud.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
#2000334 - 03/06/1507:11 PMRe: Papers signed-found out borrower was fired Anonymous
Anonymous
Unregistered
The VOE was performed, unfortunately it was one that had to be sent out via fax yada yada yada and we couldn't have possibly waited to close until after the voe was sent back. He was terminated prior to the closing, knew about it, just didn't think it was an important enough detail to communicate to the lender. Swearing up and down that it won't matter because he does a lot of "side" jobs, etc....***FacePalm***
So yes, culpability on both sides, why the heck didn't we wait to close, and what is up with this borrower???
so can we just terminate it even though the docs are signed or should we strongly encourage him to rescind it?
The bank should just tell the borrower that the transaction has been cancelled as this is a case of mortgage loan fraud which "does matter" as it is a felony offense.
What you do about your ex-loan officer, I'll leave that up to you.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
#2000351 - 03/06/1508:05 PMRe: Papers signed-found out borrower was fired Anonymous
Anonymous
Unregistered
I apprecaite your answer rlcarey, but in this environment where the consumer is protected and the big bad bank is always out to get them, this approach is problematic. We let him sign the papers...what are we going to say?
Nine time out of ten is that language pointed out during a regular closing? Probably not. COuld the borrower go into court and show a few different ways where we weren't "fair" to them if we just terminate the loan at this point? Probably.
But then, conversley, now we have opened ourselves up, litigation-wise to not being able to prove ATR?
I just don't think it is as easy as cancelling the transaction...perhaps I am reading into it to much?
You need to talk to your attorney since you are reluctant to take the advice given here.
But Randy is correct. If they signed an application at closing attesting everything is accurate on that application they committed fraud and regardless what you decide to do with the loan you need to file a SAR.
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The opinions expressed are mine and they are not to be taken as legal advice.
You are free to do what you want and Dan gave you the best advice of all - talk to your attorney.
But having stood in a front of a judge a few times and talked to many a client attorney, I would have no problem defending any action the bank took to unwind this transaction.
A client cannot commit fraud and then think they can sue the bank for some sort of damages - even in our screwed up world. If they did, I would tell them to bring it on as I picked-up the phone to the DAs office.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
#2000429 - 03/07/1512:05 AMRe: Papers signed-found out borrower was fired Anonymous
Rocky P
Power Poster
Joined: Jun 2003
Posts: 7,650
Florida
Agree with all posts and if you close and sell the loan on the secondary market, and they perform due-diligence on it, your bank will: 1 - be buying it back (with a penalty) 2 - be subject to scrutiny from the correspondent for every loan - forever.
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Integrity. With it, nothing else matters. Without it, nothing else matters.
Can he sue? Sure, anybody can sue, doesn't mean he has a good case, heck, he doesn't have a job and attorneys don't work for free.
The bank has an obligation to its depositors, shareholders, etc which is more important than some possible bad press from this guy. And it wouldn't be so bad if the public knows that they can't defraud the bank.