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#2015427 - 05/21/15 02:55 PM Denial Reason?
Anonymous
Unregistered

We have an application submitted by a qualified borrower (good credit score, strong financials, etc.), however, because the borrower's income is from "speculative" sources, we do not wish to make the loan.

What is our best denial reason?

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#2015443 - 05/21/15 03:30 PM Re: Denial Reason? Anonymous
NotALawyer Offline
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NotALawyer
Joined: Nov 2001
Posts: 455
Will you define "speculative"? Day trader? Gold prospector? Panhandler? Mortgage loan officer?

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#2015458 - 05/21/15 04:08 PM Re: Denial Reason? Anonymous
Anonymous
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Generic...could be anything.

In this case, oil & gas investments.

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#2015532 - 05/21/15 07:04 PM Re: Denial Reason? Anonymous
TB 12 Offline
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TB 12
Joined: Feb 2005
Posts: 6,559
Foxboro
A couple of options, depending on the specific concern:

Temporary or irregular employment;
Unable to verify income.
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#2015556 - 05/21/15 07:38 PM Re: Denial Reason? Anonymous
Anonymous
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The individual in question has been employed for several decades and has tax documents to verify the income.

Unfortunately, the situation is a little more complex than I care to divulge in a public forum.

Would "Other: Speculative __________ Income" (where the blank is filled with the particular type of "investment" income) be sufficient/acceptable?

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#2015629 - 05/22/15 12:24 AM Re: Denial Reason? Anonymous
Rocky P Online
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Florida
IMHO, it seems like the applicant has all of the qualities of a loan and the income is not really an issue, but an excuse not to make the loan. It also appears that there are other circumstances (rather than the income, but the income may be the easiest to explain) not to make the loan.

Deny the loan and document the file for the actual reasons for a regulator. (Remember, that it may be discoverable in a court case). Send an AAN indicating that the loan is denied, and give the applicant the option of asking the bank for the reasons. If not, see Sox in '13.
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#2015676 - 05/22/15 02:10 PM Re: Denial Reason? Anonymous
edAudit Offline
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edAudit
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You are here
Warren Buffett over the years has derived a good portion of his salary from investment. would anyone care to call his income speculative and reject his app.

There is a good chance that there is not enough info given for us to comment.
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#2015678 - 05/22/15 02:17 PM Re: Denial Reason? Anonymous
TB 12 Offline
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TB 12
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Foxboro
I agree with Ed. It isn't clear as to the exact reason for the concern.

Is the applicant self employed and shows inconsistent income? Is the applicant an investment manager that receives mostly commission or bonus income?
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#2015709 - 05/22/15 03:31 PM Re: Denial Reason? Anonymous
Anonymous
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Let's just say there might be litigation to disrupt this applicant's income stream in the near future.

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#2015712 - 05/22/15 03:43 PM Re: Denial Reason? Anonymous
#Just Jay Offline
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Cheeseheadland
It sounds like their might be pieces to this puzzle that you are not willing to share, and that is fine. That said, not sure how any of us can really help you then.

You all just need to make a decision and be ready to stand by it.
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#2015715 - 05/22/15 03:46 PM Re: Denial Reason? Anonymous
Anonymous
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Okay. Thank you.

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#2015906 - 05/26/15 01:01 PM Re: Denial Reason? Anonymous
HappyGilmore Offline
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Joined: Jun 2004
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Pulling people out of the ditc...
Originally Posted By Anonymous


Unfortunately, the situation is a little more complex than I care to divulge in a public forum.



then no answer we can provide here would be accurate to provide assistance to you
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#2016443 - 05/27/15 10:56 PM Re: Denial Reason? Anonymous
Moman Offline
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Joined: Jul 2004
Posts: 505
WA
Is it time to discuss the circumstances with your attorney?

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#2016858 - 05/29/15 12:58 PM Re: Denial Reason? Anonymous
Anonymous
Unregistered

It's in the hands of upper management now. Don't know how far they'll escalate it.

Thanks.

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