Revdex.com
1005 La Posada Dr.
Austin, TX 78752
Re: Compliant ID [redacted]
In response to the customer's allegations:
The customer has not contacted us regarding this complaint.
The customer is entitled to a refund of the Appraisal Fee in the amount of $400.00 and we are...
mailing a check to his home address.
Customer did indeed apply for a VA loan to refinance his conventional loan as an owner occupied property indicating that he did live in this property. His application was taken on June 26 and sent to him via Lone Star Overnight delivery. The loan package was not returned to our office until July 18th (22 days later). It was at this time we received actual documentation to validate and document the information he provided in the loan application. There were a number of misrepresentations by the customer regarding current income and occupancy. None of these issues could be resolved. During this process, it was discovered that the subject property for the loan had been a rental property for several years and was just vacated by the last tenants. The customer had not even turned on utilities in his name until June 30th (after the application date).
None of his identifying documentation reflected this property to be his home address. We had several addresses in Washington State, his brother's address in Texas, a mailing address that was actually a Golf course Club as well as Seoul, Korea. The customer was not willing to change his mailing address on any documentation, including his driver's license to reflect the subject property. Numerous different mailing addresses are a Red Flag in our industry and must be resolved to meet lender/investor requirements. He was not willing to do this. Rather than taking the time to deal with proper documentation, the customer wanted to change the loan to an investment property, even though he was now living in the home. This is classified as "occupancy fraud" in the mortgage industry and is prohibited.
The customer also over stated his income pertaining to hi S current employment as well as his rental property income. The customer did provide two years of tax returns and W-2 statements that reflected his prior earnings for 2011 & 2012 (2013 W-2s). However, in 2014 his primary employment was reduced to Part-time - on call as needed. His last assignment with employer paid out in April with no new current assignments. Declining income is another red-flag in our industry, so this income was not valid qualifying income. Most of rental properties were recently acquired IN 2014 and not reflected in his tax returns. Hi S stated rental income included units that were vacant at the time he purchased them and were still vacant at the time of his application. We could not use any rental income for these vacant units that he or his property managers had not leased out. At best, we can only use 75% of the gross rents less his mortgage payments. He expected us to use 100% of the rents he had stated in his application. Most all the leases he did provide were expired leases - some back to 1986 (long before he owned the properties). Although he indicated WA State law does not require him to update any of these leases, it is a requirement of our lenders. And it is pretty common and customary for a landlord to put new leases in place showing they are the new owner, once the old owner's leases have expired. The customer was not willing to do update any leases for fear the tenants would vacate the properties.
The Foreign income was both a surprise and an issue for a VA loan. VA prohibits the use of foreign income to qualify for the loan. VA requires owner occupancy for a period of at least 12 months. The IRS requires that the customer reside in the country of income for a full 12 months out of the year. The customer's tax returns indicated that he lived in Korea year round. The customer then stated this would continue thru the 2014 tax year. Initially we had been told the Korean income was not continuing and was now a hobby. Then later told the Korean Income was related to his primary employer. This information conflicts with the subject property being owner occupied while he is maintaining a residence in another country for tax purposes. And also conflicts with employer stating he was now only a part-time on call employee.
Due to the conflicting data on residency, numerous different mailing addresses and declining income, we were not able to do this loan. The customer was not willing to do the necessary items to cure the problems. The loan was declined on 7/25 - within 6 days of his returning the application package to us.
His actual credit report fees totaled $32.21 of which he paid $28.96. We did not bill him for the difference since we declined his loan although we had to pay the full amount to the credit reporting agency. We are not refunding the credit report fee.
[redacted] [redacted]
[redacted]
RMLO/NMLS
Revdex.com
1005 La Posada Dr.
Austin, TX 78752
Re: Compliant ID [redacted]
In response to the customer's allegations:
The customer has not contacted us regarding this complaint.
The customer is entitled to a refund of the Appraisal Fee in the amount of $400.00 and we are...
mailing a check to his home address.
Customer did indeed apply for a VA loan to refinance his conventional loan as an owner occupied property indicating that he did live in this property. His application was taken on June 26 and sent to him via Lone Star Overnight delivery. The loan package was not returned to our office until July 18th (22 days later). It was at this time we received actual documentation to validate and document the information he provided in the loan application. There were a number of misrepresentations by the customer regarding current income and occupancy. None of these issues could be resolved. During this process, it was discovered that the subject property for the loan had been a rental property for several years and was just vacated by the last tenants. The customer had not even turned on utilities in his name until June 30th (after the application date).
None of his identifying documentation reflected this property to be his home address. We had several addresses in Washington State, his brother's address in Texas, a mailing address that was actually a Golf course Club as well as Seoul, Korea. The customer was not willing to change his mailing address on any documentation, including his driver's license to reflect the subject property. Numerous different mailing addresses are a Red Flag in our industry and must be resolved to meet lender/investor requirements. He was not willing to do this. Rather than taking the time to deal with proper documentation, the customer wanted to change the loan to an investment property, even though he was now living in the home. This is classified as "occupancy fraud" in the mortgage industry and is prohibited.
The customer also over stated his income pertaining to hi S current employment as well as his rental property income. The customer did provide two years of tax returns and W-2 statements that reflected his prior earnings for 2011 & 2012 (2013 W-2s). However, in 2014 his primary employment was reduced to Part-time - on call as needed. His last assignment with employer paid out in April with no new current assignments. Declining income is another red-flag in our industry, so this income was not valid qualifying income. Most of rental properties were recently acquired IN 2014 and not reflected in his tax returns. Hi S stated rental income included units that were vacant at the time he purchased them and were still vacant at the time of his application. We could not use any rental income for these vacant units that he or his property managers had not leased out. At best, we can only use 75% of the gross rents less his mortgage payments. He expected us to use 100% of the rents he had stated in his application. Most all the leases he did provide were expired leases - some back to 1986 (long before he owned the properties). Although he indicated WA State law does not require him to update any of these leases, it is a requirement of our lenders. And it is pretty common and customary for a landlord to put new leases in place showing they are the new owner, once the old owner's leases have expired. The customer was not willing to do update any leases for fear the tenants would vacate the properties.
The Foreign income was both a surprise and an issue for a VA loan. VA prohibits the use of foreign income to qualify for the loan. VA requires owner occupancy for a period of at least 12 months. The IRS requires that the customer reside in the country of income for a full 12 months out of the year. The customer's tax returns indicated that he lived in Korea year round. The customer then stated this would continue thru the 2014 tax year. Initially we had been told the Korean income was not continuing and was now a hobby. Then later told the Korean Income was related to his primary employer. This information conflicts with the subject property being owner occupied while he is maintaining a residence in another country for tax purposes. And also conflicts with employer stating he was now only a part-time on call employee.
Due to the conflicting data on residency, numerous different mailing addresses and declining income, we were not able to do this loan. The customer was not willing to do the necessary items to cure the problems. The loan was declined on 7/25 - within 6 days of his returning the application package to us.
His actual credit report fees totaled $32.21 of which he paid $28.96. We did not bill him for the difference since we declined his loan although we had to pay the full amount to the credit reporting agency. We are not refunding the credit report fee.
[redacted] [redacted]
[redacted]
RMLO/NMLS