April 6, 2020 at 2:25 pm #66793sgraham6219Participant
Hey I’m hoping that someone could help me with some questions about changes to BOA process during the current health crisis. I am currently in contract and have submitted my loan application to BOA. We have also been cleared by HAND, so we dont expect any delay from there.
I’ve just been informed that my company will be cutting salaries by 30% over the next 2 months to alleviate some of the revenue loss. Luckily, with this decrease we are still above our needed income for qualification. We did not go for our maximum qualification amount, but instead choose a conservative mortgage that could be managed if either me or my spouse were unemployed. Since my new salary is not currently reflected in my paycheck, how do I address this with my loan application? Do I want until I have a new paycheck that reflects the change, or do I provide the email communications with management notifying me with the change? Could this also be a reason for BOA to not approve our mortgage since the income has changed (even though its above our required income limit). Is BOA underwriters using other means of communication for employee income verification since many offices are closed and working remotely. I’ve been told that they will not leave voicemails and require someone to answer the general line.
Any help would be greatly appreciated. I tried to do some of my own research but dont really see updates regarding BOA mortgage process updates during the pandemic.
ThanksApril 6, 2020 at 2:54 pm #66794
There have been no changes to the process or the requirements outside of virtual meetings. The timeline and everything else remains the same as pretty much everyone is indeed working.
Your MC will communicate what you need to do via email or video chat. I suspect since your income decrease will not require more than a new paycheck and a LOE possibly from your employer on company letterhead. Email is almost never accepted and it has to do with fraud/forgery. A signed and dated letter has more legal weight.
This can be a reason to be denied a loan but, only if your income dips below what is required. For the loan.
As far as I know the verification methods have not changed nor will they change. It is called the VOICE verification of employment (VVOE). They need someone to physically speak to your employment status. Again it’s a fraud thing.
While it’s true we are all working a little differently in my experience across my industry employees are expected to be at their computers with internet, an in-service cell phone or landline and video capabilities if they are not going into the office. Which is a long way of saying there should be no delays or trouble reaching anyone…in fact in my experience people are more available and are at their computers all day and all night.April 6, 2020 at 4:14 pm #66796KHURTParticipant
I have been having the hardest time trying to get any info. I think I’m just waiting on a CTC, at least that is what processing said when I called them on Friday. Called back today and it transferred me to member services and a young lady told me that no one was available today for processing. Is BOA still processing?April 6, 2020 at 4:16 pm #66797BakerTheBakerMember
There are quite a few other threads where people are clearly showing BOA is still processing, as well as reassurance from Tim on the subject. Everyone is still working to help us get our homes.April 6, 2020 at 4:34 pm #66798AlikayMember
They are still processing. I’m supposed to close tomorrow… So there have been many back and forth emails with my Closing coordinator relaying info to and from the bank be today. For VOE bank reached out asking for email addresses of our HR since no one is in office to answer the work phone. MY voe was done via email… For my husband who we had considerable issues getting voe for, we had to do a multitude of things that were specific to our case to prove he was still employed with the same income. Make sure you have a verifiable way of getting voe. We’ve been CTC final for 4 WEEKS trying to close because of this.April 6, 2020 at 4:36 pm #66799
@KHURT the point int he process you are at even under normal circumstances you will hear nothing no matter how hard you try to get a response. This is why they call it the closing crazies. If you are waiting on the CTC you are likely waiting on your employer to answer the phone. You will not hear anything more than likely until the witching hour. In fact if you hear something at all that isn’t regarding your CTC then it will be negative. Quite often you go from will I close on time? or even its been a week since I was supposed to close what is going on? to finding out at 8pm you will close at 9am tomorrow morning.April 6, 2020 at 4:45 pm #66802KHURTParticipant
@NELSONT THANKS, I JUST DON’T WANT TO LOSE THIS HOUSE. THE SELLER HAS PULLED OUT ONCE BEFORE AND I BEGGED THEM TO DO AN EXTENSION AND TODAY IS THE DAY WITH NOTHING. THIS IS SO STRESSFUL, ESPECIALLY DURING THIS HARD TIMEApril 6, 2020 at 5:17 pm #66803sgraham6219Participant
Thanks everyone for your feedback. I work for a startup, and our CEO will pretty much be who they end up reaching to. He never answers the phone, and about 90% of our communications is done online. Now that everyone is remote, I’m sure he’s less inclined to answer. I hope they do ask for an email address as an alternative, at least that way I know he’ll see it come in.
I just spoke with my MC and she did confirm that BOA is still processing and can take 2-3 weeks before we get an update. I guess I’ll just play the waiting game to see what happens. During our contract signing we requested a 45 extension from the closing date 4/30 in an addendum. Given the current uncertainty, our attorneythought it was best to add it just in case. This way we are safe guarded by some delay in processing.
Fingers crossed ×April 7, 2020 at 2:17 pm #66813TTrumbleMember
Nothing has changed with the NACA process as a result of the pandemic other than all counseling is being done through videoconferencing.
As to your question regarding dealing with the salary reduction, since it is not reflected in your paycheck yet, at this moment in time the only thing you should do is submit a copy of your email announcing the paycut to your NACA file.
The timing of how this all plays out in relation to closing on your home is critical here. Your post was vague as to when the pay cut will actually affect you, stating it would be over the next two months. However, if you can close before the pay cut kicks in, you may not need to do anything at all. Let’s be clear though. This doesn’t mean you’re hiding the pay cut, just hoping you don’t have to deal with something that hasn’t actually happened yet.
If the pay cut kicks in before you close on your home, then you must let your counselor know immediately. You are going to be set back several steps in the process and would most likely have to re-qualify. Since you state the mortgae is still affordable on the reduced income, there shouldn’t be any major bumps in the road to requalifying. After that, a Change of Circumstance form may be all that’s needed to be sent to the bank. While there are means of expediting the requalification, there is still a very good chance you will lose the property unless you have an extremely understanding seller.
In the meantime, get a letter from your employer on letterhead verifying the pay cut. Even if it’s from your immediate supervisor saying, “This will verify that our company has announced 30% pay cuts…”, etc. You will need it if the pay cut takes effect and you have to qualify again, along with the pay stub with that first reduced paycheck.
Regarding the Verbal VOE, again, there have been no procedural changes. Once again, if a different means of contact is going to be required, you will need to provide that information and how it can be verified.
You’re going to be walking a tightrope, especially where the timing of all this is concerned. Please keep me updated on how things are progressing.April 8, 2020 at 3:27 pm #66854hayes4Participant
I am waiting on BOA also. But as far as I know they are still updating. I received conditions yesterday – for the 2nd time around, which my file says:Lender Status: Underwriting-2nd Opportunity, is this normal?
They have already gotten the VOE verbal, cleared hand, and my first closing was set for end of march but now I dont know what my date is. What should i be looking for to happen next?April 8, 2020 at 3:54 pm #66855
They will probably need to do another VOE. They need the verification at essentially the moment they issue the CTC.
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