Underwriting Condition

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  • #66560
    kjenkins79
    Participant

    I received the following condition “Provide LOE for all non payroll/non transfer deposits in bank statement”

    My question is are the asking for documentation for every zelle paypal or the like deposits? Also if I sell items no longer being used on Mecari and transfer funds to my account do they each have to be accounted for?

    #66561
    Nelsont
    Member

    Yes.

    Cash transfer apps are generally frowned upon. As are withdrawals and deposits over a certain amount. They want to see your only income being from a W2/1099 employer. They also want to see if you withdrawal a fair amount that it is not a habit that cause financial issues such as being late on rent. So any transaction over about $100 will need to be explained and any transaction from an app will also need to be explained.

    This is really no big deal. They just want one 1 separate LOE for each individual transaction. You cannot do 1 LOE that explains everything or 1 LOE for each app. It’s a pain but, it will get you approved.

    • This reply was modified 8 months, 1 week ago by Nelsont.
    #66563
    kjenkins79
    Participant

    Wow wish I would have know sooner. Its no way I am going to remember what each Zelle transferred or received from my daughter was for 🤦🏽‍♀️

    #66564
    Nelsont
    Member

    You might be able to get away with just the larger transactions.

    #66577
    kjenkins79
    Participant

    @NelsonT as the counselor address conditions do they disappear as they are approved? How does that work. I originally had 11 and some which I could not address like employment verification. Just trying to get an idea of what to expect

    #66579
    Nelsont
    Member

    Your counselor does not address conditions. An underwriter working at naca HQ either in NC LA or Boston I think is addressing your conditions. If you are in the bank app stage then an underwriter at bank of America’s office in Texas or Charlotte I believe is addressing your conditions. Your counselor is ONLY passing the information along since you can’t talk to the underwriters and they can’t talk to you.

    They may disappear. My experience is that they were never in my webfile. They were copied and pasted into an email from my counselor and addressed all at once.

    #66581
    kjenkins79
    Participant

    Thanks. I received a text telling me I had conditions round 6:30pm yesterday when I logged in the conditions were already there. Mostly things I had already written LOE for so I just resent the previous emails. When I checked a today everything previously submitted disappeared and just left the new items

    #66582
    rashad3000
    Participant

    I know it doesn’t help you now, but when I went through the process in 2014-2015, I found a way around the cash withdrawal thing. I didn’t think it was their business when I withdrew over $100 and I didn’t have to justify it. So what I would do is go to Walmart. If I needed $300, I would get 3 packs of gum and buy them in 3 separate transactions, getting $100 cashback on each one. That way, when NACA did the forensic audit on my account, they would see 3 transactions and wouldn’t have any questions, since cash withdrawals were not evident.

    #66584
    kjenkins79
    Participant

    @rashad3000 I never even thought about using a cashback option. I didn’t realize that I had to tell them where every dollar I withdrew went to as long as it was not for a bill. I will keep that in mind if I need to pull cash out

    #66587
    Nelsont
    Member

    @rashad3000 do you or have you ever worked with non-naca clients? This is not a naca requirement to go over your bank statements it is a federal requirement as I have purchased 3 houses since 2008 (FHA, Conventional, Naca). True they don’t ask for LOEs but they do ask why. If you really think it’s none of their business then petition the mortgage lending industry or your local representative to introduce a bill to change it.

    #66588
    rashad3000
    Participant

    @Nelsont, this is actually the first NACA client I’ve had. I’ve never heard of this before. It doesn’t mean it doesn’t happen, it just means that it wasn’t a big enough deal for my clients to mention anything about it to me.

    The only red flag I’ve ever heard about was with cash deposits of $5000 or $10000 (can’t remember which one). I just had no idea that $100 would trigger anything.

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