The following items have been
identified as potential reasons for loan denial.
If any of the following items
exist in any loan file, please make sure they are thoroughly addressed in a letter to your underwriter and documented.
Our underwriters will be looking for these items and conditioning the
loan file(s) accordingly.
To ensure the fastest possible turn times and
best possible results, please review your files for these items and
provide all supporting documentation with the submission package.
Invalid AUS Income
·
Significant
decline in income from 2007 to 2008 using 2 yr average to qualify
·
Use of projected
income and/or employment
·
Undisclosed self
employed borrower
·
Taxable income
grossed up erroneously
·
Rental income for
qualifying borrower not reported on tax returns
·
Borrower no
longer employed
·
Average 2007/2006
income with no information for 2008/2009 in a high risk profession of declining
income trends
·
“Other”
income without 3yr continuance
·
Income not
reduced by losses verified on tax return
Invalid AUS Credit/Debts:
·
Invalid score
based on authorized user accounts
·
Defaulted
mortgage not being read by AUS identified as “Settled for less than full
balance”
·
Disputed trade
lines and DU findings not met
·
Debts erroneously
omitted. Omission of “individual” debts paid by third party
and not “cosigned”
·
Debts did not
include 1% payment on subordinate HELOC in debt ratio
Misrepresentation of
Occupancy
·
Ownership of
multiple properties in same location of similar or higher value
·
Existing loan
owner occupied
·
Two owner occupied
transactions submitted
·
Coinciding
cash-out refinance and purchase both as owner occupied
·
Tenant occupied
or vacant properties refinanced as owner occupied
·
Undisclosed
property ownership verified by MERS
Unacceptable Collateral:
·
Condo not
approved – All condos listed as subject property must be approved by
either FNMA or FHA/VA. We do not allow “spot approvals”.
·
Subject is
Condotel – Condotels are not eligible properties with GMG
·
Condition of
property is below average
·
TXa(6) on rural
property – not allowed
·
Non permitted
addition or conversions
·
Very unique
properties with limited marketability – i.e. log homes, earthbound homes,
etc.
Thank you for your business!
J. Whitney Barth
VP Credit/Product Development
Gateway Mortgage Group LLC