| Guest | Re: MY STORY - Please Help
Thank you for telling your story and welcome to the forum....
The Closing of the refinance with Wilshire in 7/2007 was a bit tricky as there is that 3 day cancellation period that fell between the signing and the actual funding, even with wiring that can go awry....and the title folks do not proceed as instructed. The issue with that payment is not an issue with Wilshire it is with the Title Company as it was incumbent for them to have wired, not mailed. Wilshire is only reporting an accurate representation of what they have of record. The error was a Title error. Now having said that when we are underwriting a file, we are painfully aware that these things happen, we can see that a refinance has occurred and that the 3 day was at the end of the month and as such we will discount the late payment due to just what happened to you.
This is on a manual underwrite, now there are more and more that are forced to be done through the automated systems, the automated system does not think.....it is a machine and can not consider that issue. We are forced to use the Automated systems as now we are not doing the nichy, manual EMC, Wilshire, ALS....ALT-A product, they are gone, hopefully not to return. The Agency products require an AUS (Automated Underwriting System) to review the file and return findings. We do it on just about every loan and the decision that the machine arrives at is GOD. We can not change it unless it is seriously egregious and proven to be seriously egregious, like a foreclosure that did not happen or repossession that did not happen....not for late payments can we overturn the AUS findings. Our hands are tied. We are using AUS for every loan that we look at just about, even the more esoteric loans have an AUS behind them with certain findings....we are bound by the decision of the machine. We use the AUS on jumbo, conforming, FHA, everything, nothing is really not run through the AUS. FHA will allow a manual underwrite on a Refer, the underwriters are quite careful on them or should be, we are very paranoid. With your situation I would discount the 30 day in July, but not the 30 day in January and would not be able to approve the loan until the January 30 day was removed....I could not do it without danger to my DE Underwriting status. So you do have to get that January 1X30 day off.
So you have the problem with the EMC loan that did not post the payment sent...if you can without a doubt prove that the check cleared your account prior to the end of the month....then you can compel EMC to remove the 1X30 mortgage rating. Not hard, just do not speak to the clone who answers the phone, get the manager of the department and fax them directly that documentation so that the rating can be repaired.
Now you used a Credit Cleaner....NO NO NO, you spent a lot of money to line the pockets of SCUM, anything that they did you can do...it is work, but you can do it and frankly the one thing that they do not tell you is that they can get it off for the time being....but in the long run some of it may reappear on the credit report in time. Is this legal, well, there are loop holes, cracks in the system and the old saying garbage in garbage out. The data contained in the credit reports are generally tape to tape and you have to monitor the credit reports to let the bureaus know that if a derogatory trade line that was removed shows up....you had it removed before, that it now has to be removed again. They can not pick and choose to take the trade line off one month, then reestablish the same trade line 60 to 90 days later due to the tape reattaching it to your credit file. Once disputed and removed through proper dispute channels, then OFF it goes permanently. Anything that you paid the 2200.00 for to "fix" your credit report you could have done fairly easily and without tremendous brain damage, just a raft of tedious work on your part.
The broker that said "Oh, take this and refinance in 2 months or so...." that is known in the industry as "Churning", highly naughty....if you had taken the new loan with extreme financial benefit to the Broker i.e. refinanced one month then 2 months later.....Broker is in deep whatever if they lined their pockets with buckets of change. Churning will in concentrated amounts in one shop land Brokers in prison and rightfully so. Since they did not do a back to back refinance on you with this loan there is only the issue that they told you they could and will....but did not. This is a constant refrain, oh they told us in 2 months, 1 year, 2 years that they would refinance this awful loan and we would be OK, well they could not, did not and you are not OK.
I am sorry to say that with Jumbo loans 680 FICO(that magic figure was history about November or December of 2007) is no longer the magic number, Jumbo product is harder than heck to place, the markets for it are very tight and very picky. The best you can hope for and the best that will be available is the new mandate by FHA and FNMA/FHLMC of the chance of 729,750.00 conforming loan amounts for certain high cost markets in the next 30 days or so. They have not defined the high cost markets yet.....soon we hope. So in this case the thing that is highest and utmost is to keep the payment current at this time toward that product being available to you for a refinance.
You can not get the 1X30 day off from July of 2007, it will not come off, it is what it is. The January 30 day should drop if you have a canceled check that reflects clearing your account prior to the end of the month, if not it will have to remain. If you do have the 2X30 in the last 12 months then even the higher loan amounts are not going to help, we would not be able to approve the loan due to the 2X30 in prior 12 months and even 24 months at this loan amount is going to be tough.
So....get that January 1X30 off, the 7/2007 1X30 will be explainable to an FHA product, they can and will be underwritten manually on many levels. Of course there are investors out there that will require an Accept/Approve on the Scorecard AUS for the Jumbo FHA's, but there will be some that will accept a manual underwrite on the Refer finding. There the underwriter can discount the 1X30 in July due to the refinance. We are hoping that the jumbo FHA product will have manual outlets built in, we are very concerned that the investors will purely take and only take the Accept/Approve findings on these large loans. Frankly we do not know, the programs are not up and running, and it has never been done before. I can tell you that FNMA/FHLMC will not be the same as the FHA and that those will have to be run through the AUS and the findings can not be manually changed with that product.
It remains to be seen how they are going to do the FHA, the situation that you find yourself in is a wait and see position. Until the investors, lenders and TSA's determine how they are going to handle these high loan amounts, we are all in limbo on them. However, the best product for you if you are in the high cost area, can remove the 1X30 in January and have the income, DTI 33/41%, consumer credit that is well rated, to qualify with collateral (property value) support for the request would be the FHA product, manually underwritten by a LENDER. Do not go back to a Broker ever again in your life. Find a Direct Lender to make loan application to from here on out. Stay away from Credit Repair and the silky smooth Oh we can help you crap. They help themselves and their pocket book, not your best interests.
Sometime in late March they should have at least identified the High Cost Areas, by early April hopefully some of the investors will be on board with their guidelines for these products...this is the best time line that I can provide for you.
Last edited by Mary Salzer; 02-21-2008 at 09:34 AM..
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