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Underwriter asking for a document nobody can provide

Discussion in 'Bank of America Mortgage Help' started by va_newbie, Jun 19, 2010.

  1. va_newbie

    va_newbie LoanSafe Member

    So our underwriter at BoA delayed the settlement on our house because she won't get past one hurdle.

    Background:

    On the recommendation of our tax person, I wrote off my tuition for my MBA as a "unreimbursable expense" on my 2008 and 2009 taxes which is totally acceptable per IRS guidelines. I finished in Winter of 2009, so I no longer have any tuition to pay. The underwriter is saying that the adjusted gross income after claiming the tuition puts us at the threshold for approval on the loan, but since I am no longer in school I will never write off my tuition again and I make quite a bit more since graduating.

    The underwriter is requesting a document from my company to state on company letterhead that "I will no longer have any more unreimburseable expenses." How can I get my company to certify that I will no longer claim something on my taxes? They have no basis to make that statement, nor can they state that I will never go back to school, which I will not anyways.

    We provided the underwriter documentation that showed I graduated in Winter 2009 and that I am done with school, but that will not suffice for her and she will absolutely not budge on this matter. What else can I provide to get this final hurdle out of the way so we can close on our house?

    This is so frustrating as they have had our loan in underwriting forever. She ordered our tax transcripts from the IRS at the last minute on June 10 and didn't receive them until June 16 (we were supposed to close on June 18), she refused to review the other conditions until the tax transcripts came, then decided to leave early the day prior to our closing knowing we had to close at 10 am the following morning, and has now delayed our closing indefinitely until we clear this one remaining item. We stand to lose lots of money on this as everyday she waits it costs us a penalty to the seller...any suggestions would be greatly appreciated!!
  2. goldie

    goldie LoanSafe Member

    I think its time to escalate this complaint to the office of the president at your bank & let them deal with it. It not only sounds frustrating, but very bureaucratically RIDICULOUS.
  3. lisasxr

    lisasxr LoanSafe Member

    Unless your employer required you to have your MBA to keep your position, your tuition expense is not unreimbursed expense. Under what IRS code was your preparer thinking this is ok?

    This is a typical request of an underwrited for form 2106. Form 2106 is for business expenses that your employer will not cover - and many companies will provide a letter stating their reimbursement policy that will suffice this request. (I have had to request this from employer's previously - sometimes even the IRS will request this letter for expenses claimed on this form)
  4. va_newbie

    va_newbie LoanSafe Member

    This was written off on my taxes after my tax preparer did research on whether or not this was acceptable under IRS guidelines...hypothetically speaking, if the underwriter disagrees that I can write off the mba as an unreimbursed expense, can she disapprove the loan based off that?
  5. lisasxr

    lisasxr LoanSafe Member

    Ultimately, YES the underwriter has all the power to make the decision whether to accept or decline the transaction.

    Does your company have a reimbursement policy? If yes, get a copy. It can't hurt to at least attempt to appease her.
  6. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    I don't think the problem is with the fact that it has been written off in the past. The problem is probably ensuring that your future income is not going to be affected. You need to go above the underwriter, because there is no one who can guarantee that you won't spend money in the future.
  7. WBC2010

    WBC2010 LoanSafe Member

    I agree with Menace....go above her head and explain the situation. Your company (unless reimburses you for the tuition) has NOTHING to do with it. If you say you are not currently enrolled and no money is going out for tuition, it should be a non-issue. You have to email in the complaint as soon as possible for this not to drag on. Good Luck!!
  8. va_newbie

    va_newbie LoanSafe Member

    My broker doesn't feel want to go that route yet, how can I get contact info to go over the underwriters head?
  9. lisasxr

    lisasxr LoanSafe Member

    Have the broker contact his account executive for the lending institution. They can look into the situation and see if managerial review will sign off on the condition. Be sure the broker supplies to the account executive the condition from the lender and the supporting documentation sent to clear the condition.
  10. lisasxr

    lisasxr LoanSafe Member

    The "unreimbusable expense" is still really throwing me off. Can you share what form this was claimed on and what line of the 1040 it rolled to? I really want to research this.
  11. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    Unreimbursed employee expense is usually schedule A unless it is over a certain amount, like if you bought work clothes, or a computer that you used for work but were not re-imbursed for by your employer. I personally never heard of deducting educational expenses this way, but definitely never looked into it.
  12. va_newbie

    va_newbie LoanSafe Member

    I'd rather not get into a discussion about the merits of writing off tuition on taxes at this point, but rather how we can move this loan forward.

    I got an update at 4 pm yesterday that they would clear the condition if I sent a letter from me stating that I wrote my tuition in 2008 and 2009 on my taxes and now that I am done with school I will no longer be claiming that expense. That was great news and I sent in the letter to them ASAP.

    Fast forward to today and the underwriter is MIA. She is not responding to emails, or calls, from our broker or the account rep at BoA and I am losing money for every day that I do not close on the house.

    I am told that I just need to be patient and can't force the issue, but I do not accept that this underwriter holds that much clout at the bank that nobody can go over to her and ask her what she is doing or at least to give us a status update.

    Our broker and the account rep don't want to bother her for fears she is just going to get mad and make life even worse for me, which angered me even more. This is an underwriter we are talking about...not the Pope.

    I told my broker we need to go over her head and ask why we get no progress on this until 3-4 pm every day and then there is a flurry of emails with hopes it will be done the next day, but our broker does not want to talk to the underwriters manager.

    Who can we talk to at the bank to force this issue?

    I understand the "power" the underwriter holds in this process and that they are doing their due diligence to ensure no bogus loans are approved, but they have had plenty of time to address these issues and chose to wait until the last minute to address any concerns.

    I just want somebody to talk to at the bank who can give me answers.

    I'm so frustrated I'm shaking over here.
  13. gus616

    gus616 LoanSafe Member

    i'm doing a refi with B of A. we started the process at the end of March. we were assured it would be a breeze by our loan officer as we had all docs available, good credit score, good income....We've been going back and forth with the underwriter for about a month and a half now. they ask for one thing, we give it to them, they come up with something else, we give it to them, etc, etc. frankly we are at a loss of what to do. we'd also like to talk to someone above the underwriter to see what we can do, but we have no idea who we would contact for that.

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