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#2232990 - 03/15/20 09:42 PM Lower Loan Amount - Counter?
jlroberts Offline
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jlroberts
Joined: Sep 2009
Posts: 1,601
Ohio
No cash out Freddie refi. Borrower can not get more than 2% back so we had to lower the loan amount by 500.00. I say Counter Offer but others think no because we had to do it to meet Freddie guide - hum - seems like the reason for counter to me. I am being a REGB Nazi?

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#2232991 - 03/16/20 11:43 AM Re: Lower Loan Amount - Counter? jlroberts
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,225
Galveston, TX
We might need to know in what context you are asking? Did they not accept it? What is the concern?
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#2232994 - 03/16/20 01:13 PM Re: Lower Loan Amount - Counter? jlroberts
jlroberts Offline
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jlroberts
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Posts: 1,601
Ohio
We are requiring the loan amount be lowered in order to meet Freddie Mac requirements and we are not lending him the loan amount he requested. So that doesn't meet the requirements of a Counter Offer?
I'm positive he will accept since his rate is going from 5.25 to 3.00.

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#2232995 - 03/16/20 01:18 PM Re: Lower Loan Amount - Counter? jlroberts
rlcarey Online
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rlcarey
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Galveston, TX
I understand, but what is your concern if it is or it is not? What impact do you think it has if they accept the lower loan amount?
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#2232999 - 03/16/20 01:40 PM Re: Lower Loan Amount - Counter? jlroberts
jlroberts Offline
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jlroberts
Joined: Sep 2009
Posts: 1,601
Ohio
My thought is we will have a REGB violation for not issuing a Counter Offer.
Every Loan Officer will think that they can lower the loan amount without an Adverse Action Notice being issued. They will think there is not different between us lowering the loan amount because the borrower can not get cash out and lowering the loan amount because the appraisal came in low.

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#2233000 - 03/16/20 01:42 PM Re: Lower Loan Amount - Counter? jlroberts
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,225
Galveston, TX
There is no requirement to issue a counter offer in writing.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2233001 - 03/16/20 01:46 PM Re: Lower Loan Amount - Counter? jlroberts
jlroberts Offline
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jlroberts
Joined: Sep 2009
Posts: 1,601
Ohio
But if they do not accept it's a Denial. What proof do you have that they accepted? Prepare the closing packet and cross fingers they will sign the docs?

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#2233002 - 03/16/20 01:50 PM Re: Lower Loan Amount - Counter? jlroberts
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,225
Galveston, TX
"But if they do not accept it's a Denial. What proof do you have that they accepted?"

Either the loan closes or it does not. If it does not, then you owe them a AAN within 90 days.

1002.9 (a) Notification of action taken, ECOA notice, and statement of specific reasons. (1) When notification is required. A creditor shall notify an applicant of action taken within:


(iv) 90 days after notifying the applicant of a counteroffer if the applicant does not expressly accept or use the credit offered.
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#2233003 - 03/16/20 01:55 PM Re: Lower Loan Amount - Counter? jlroberts
jlroberts Offline
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jlroberts
Joined: Sep 2009
Posts: 1,601
Ohio
It is our policy to provide a combined denial/counter offer notice so that we don’t have to track all of our counter offers and then deliver denial notices to those applicants than don’t accept the counter offer.

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