May 5, 2020

FYI: Some temporary changes to our loan process

We here on the Dean Hayes Team at Bay Equity wanted to give you a quick update.

The current crisis has shaken up economies, jobs, and ways-of-life. As it pertains to us in the mortgage industry, here's what's happening.

Lenders, investors, and underwriters all want to make sure that any loan that we close is going to be paid back. In order to make sure this accomplished, they're doubling down on their efforts to make sure that all the documentation is in place and verify the viability of these payments coming back into the future. Most importantly, they are checking to avoid having a first payment default, where, after we close on a loan, the borrower is unable to make their first payment and goes into forbearance.

It's devastating to us when that happens. As a result, underwriters are doing the best they can to make sure that that all the numbers look like they’re in place and, moving forward, the income looks like it's going to be consistent. They may be asking for things like a year-to-date profit loss statement, or maybe a profit and loss broken down on a monthly basis over this year. We might even need a statement covering last year if we don't have taxes from last year to show that we have everything right. They may be asking for documentation at the very last minute to make sure we’re up to date.

We wanted to let you that there will be some temporary changes. We are going to be asking for more documentation than ever before. It's just because of the the times that we're in right now. We're not expecting to be doing this forever, but if you hear us asking for things that sound unusual, they probably are, and it's because we're in some unusual times. It’s not just you, or your loan. Everyone is being scrutinized more closely to make sure we’re all on track.

If you have any questions, reach out to me or my team. We're here to help, and we’d glad to answer any questions you have. Remember: We’re still here to get you home!