Gene Mundt - Let's Talk Mortgages & Real Estate!

     Whether buying or pursuing a mortgage for a home through my services in Naperville, IL ... Joliet, IL ... or any other place across America, the underwriting demand for more detailed documentation has grown immensely.  Much of this demand has grown in direct response to the current economic and mortgage debacle.

    HUD's recent release regarding a new guidelines revising the HUD-1 Settlement Statement for HECM closings, is of particular interest to me right now.  I've presently got a buyer/borrower that just doesn't ...

     A.  See the Need to Comply   B.  Understand             C.  Refuses to Understand   D.  "Doesn't Wanna" Comply   E.  Is just plain obstinate    F.  Has a Grudge with Banks and Anyone Associated With Them and Thinks They are the Devil Incarnate

     I'm not sure which of the above is the answer, but these clients are making my life, and everyone else's in the deal, miserable.  We should have closed over a week ago.  Their total disconcern for the requests made, and/or lack of understanding as to why they are being requested, totally befuddles me and is frustrating to me too.

     The HUD-1 guidelines read ... Mortgagee Letter 2010-39 requires new certification language to be added to the HUD-1 certifying that the source of funds ...  "used for the the monetary investment or closing costs was not provided by the seller, or any other person or entity that financially benefits from the transaction."  It also states that ... the seller is required to certify that the borrower will not be paid or reimbursed for any part of their monetary investment prior to, during, or after the loan closing.

     This portion of the changes made to HUD-1 (made in once again in reaction to the current mortgage crisis) ... and all the other changes made to HUD-1's ... is just further proof that "Documentation ... Documentation ... Documentation" is the new catch-phrase for mortgage processing and buying a home.

     To my mind, this has been pretty well-covered in the media/news and on the streets.  How could my clients possibly not know or understand some of what is the present reality of the real estate market and home buying process?  Especially if the decision has been made to enter the home buying process?   IMO, the homebuyer should bear some of the responsibility for educating themselves as best as possible ... before and during the process of home buying.  It's only smart that they take those measures to protect their interests. 

      But to clients that are reluctant to do so?

      Simply stated folks ... if you don't want to be bothered with producing documents and proof of finances, employment, and more ... don't buy a home or go anywhere near a mortgage application. 

    These days, it will prove to be a waste of yours and everyone else's time.  You won't get approved and past underwriting without the documentation requested and full compliance. 

   You'll be a modern day Don Quixote should you persist.

     Listen, I do so understand the hassle of having to comply with the numerous and sometimes outrageous requests made for documentation while in processing.  I'm not so happy with it either ... or the idea of having to (sometimes once again) ask a borrower for more info and paperwork.  Regardless of what is thought, it's not an easy thing to do  ... or something a lender wants to do TO you.

     But the harsh reality is, you either comply ... or it's "Bye-Bye".  You don't change underwriters' minds.  And, many times that is rightfully so.  

     So, as they say in the movies and TV ... "GET OVER YOURSELF"!   YOU the client, have much of the power as to how easily or painfully the processing will be when you choose how to address it and pursue it.   And, you either want the home and the closing to take place in a relatively sane timeline badly enough ... and will do your best to facilitate that with the required documentation and info requested  ... or you won't.  

     Make up your mind ... as these are now the present and new hardline playing rules.  We ALL get the picture.  We ALL understand your angst.  We ALL see the out-and-out silliness of the process at times. 

    We also see the utter futility in the arguments and reluctance to comply and will grow weary of them.  

     So please ... understand these harsh realities PRIOR to going into any home purchase transaction.  If you decide to proceed, please don't make life hard on yourself and everyone involved in the transaction.  Provide the proof.  Provide the Documentation requested.  (And yes, in a timely fashion.)  Get the mortgage processing completed and closing set.  Spare us the drama and quit dragging your feet ... 

 And ... "JUST DO IT"!    (I acknowledge and bow to Nike)