TM - Is this Discriminatory?

[incognito]

I don't want to go into issues specific to my application in case the TMHF rep I am using is trolling this forum.  However, one item that should be safe to mention is that TMHF wants me to obtain a written letter from a lender that I got pre-approved with months ago stating that the mortgage lender has closed my file with no further action.  When I approached the lender for such a letter, the rep at that lender said that all I needed to do was write a letter to TMHF stating that we did not pursue that loan and that no loan was ever originated.  When I went back to TMHF with this, I was told that TMHF needed the letter from the lender, not me, as it was a Fannie Mae requirement.  I went back to this other lender and was told that there is no such Fannie requirement.  I spoke to a mortgage broker, who asked an underwriter at a big bank, and was told that there was no such Fannie requirement; and that a letter from me addressing this previous application should suffice.

Why not ask the TMHF loan officer to quote you the Fannie Mae requirement for it and see if they can produce it? If it's actually not, I'm sure they will eventually fold and pass on it. Or will finally admit that it's their own requirement. My guess is that it's the latter because they want to:

1. guarantee that they are the only lender working on your purchase
2. related to #1, if you should decide to choose another lender down the road, it will make it more difficult for you as the the lead time for another bank to start and process all the necessary paperworks is significantly reduced; and thus more likely to stay with them as the lender

Basically, tactic to ensure that you go through their lender as much as possible. I usually negotiate upfront before signing a new build sales contract that the builder remove any contingency related to an incentive that's tied to going with their in-house lender.

 

[sgip]

Whenever a lender says "it's a Fannie Mae / Freddie Mac rule", you can ask for them to get the chapter and verse from AllRegs, a resource that lists all of the FN/FHLMC guidelines. With that in mind, every lender has overlays - also in writing - that supercede the Agencies rules. Overlays are based on what the funding lender believes to be greater risk issues. For example, Fannie/Freddie can allow a lender to collect 30 days of pay stubs and a W-2 to justify income. Most lenders will ask for 30 days of stubs and 2 years W-2's, or even 2 years of 1040's. The base guidelines say one thing, but the overlays will trump them. No matter what, these are all in writing and can be burped up if requested without too many panties getting in a twist.

My .02c

 

[Irvine Dream]

I am in contract with a home at TM.  They originally approved me and now they are saying the loan may not go through.  Rep from TMHF is saying they will put it on Sales VP to determine, what the interest is on my lot.  i.e. if there is interest, they may just push us to future phases when we can qualify or they may make an exception.

Isn't that discriminatory?  I have not signed waiver to release my lot.  They were the ones who pre approved me and now they cannot get it done.  No simple yes or no answer.  He deferred it to the sales reps' VP to make the decision based on the interest (back log) on my lot.  Please advise.

You will have to qualify for a loan and make sure you can afford the loan too. I know of people who applied for Capella but was also put on the pre-qualified list for Saviero even though they didn't request it and for sure they know they can't afford Saviero.  If you don't qualify take that as a blessing and find something you can actually afford and sleep better at night

no.. you need to fully qualify for a loan.

 

[jmoney74]

sounds like BS.

 

[eyephone]

Unless you really really like the place, I would walk and look for a new place.

 

[jmoney74]

Unless you really really like the place, I would walk and look for a new place.

you mean.. unless your wife really really likes the place. 

 

[Bullsback]

Unless you really really like the place, I would walk and look for a new place.

Depending on the model and plan, maybe I can come in and buy it, haha.  In all seriousness, echo sentiments of the others, you might want to find a new lender and fast. Whatever you do, you want to make sure whomever you use is good and knows how to get everything lined up so you don't run into any issues. I'm presuming whatever you are buying you have a fair price on it so lender isn't overly concerned about you walking away as they could likely mark it up a bit and make more (although rarely do lenders ever take that sort of approach...so it seems odd to me the reference back to risk officer, blah blah blah). Usually, they aren't going to ding you if something goes a few days late, etc, they ultimately want the deal done and closed. 

But last time I worked in the loan space was in the old world, back when my pet could get a loan.