Smart Loan Officers Won’t Sell You A Stated Income Loan Program Anymore. They don’t relish having permanent Insomnia
I discovered this after interviewing a mortgage company president a couple of weeks ago. I have subsequently found that some smart mortgage bank loan reps are spreading the word.
The word, “sell a stated income loan and get insomnia.” How so? Stated Income means just that, you state your income on a loan application. It is a fast and easy way to avoid documentation. Sometimes you make income that doesn’t qualify, but you do make it. For example, I had a real frustrated Seattle Seahawk apply for a loan with me. He had one year remaining on his contract. His income didn’t qualify as he needed to prove 3 years remaining on his contract. It was early in my loan career, I didn’t work for a bank that had non conventional products. So, he gave me the boot, found another lender.
David Porter received a lot of press this summer by coining the term “liars loan”, regrading stated income loans.
If you needed to make $15,000 a month, just go stated income. Of course it backfired when you said you were a school teacher making that salary. What school district is that anyway the underwriters would ask as the denied the loan.
Liars loans worked for a lot of liars. Uh, lets see, I am a contract military expert consultant. I make $15,000 a month thanks to the pentagon. That is liars speak for I am in the reserves and I lied on the application. Legal right? Wrong.
My first bank manager warned me, write a loan with crime in it, and you will get the blame. When the Feds swoop in on a fraudulant loan the borrower liars all say the same thing. “The loan officer told me to do it.” Guess who goes to prision? “The borrower and the loan officer.” Sounds like a movie title doesn’t it?
That is why my friend in the mortgage business says his company is through writing stated income. He wants to sleep at night. So do I. As we are days from being back as a mortgage broker, Neighborhood Network Mortgage Inc., I too don’t want insomnia.
So look at it as a health issue. If your loan office won’t sell you a stated income loan, undestand he or she is merely looking after their health. Sleep is important for ones health you know. Larry Cragun
Larry in regards to your comment on the mortgage consultant making $10,000 on a loan is too much. Well first off, who are you to decide that, and secondly you are pointing fingers at the wrong people. I have seen realtors take over $30,000 in equity for simply showing it. Usually they don’t do much work and defintely don’t do more work and take on less risk than loan officers. So logically loan officers should get paid more than real estate agents, but that is not the fact. Also, let it be known that with out loan officers there would be no loans, people could not buy house, they could not cosolidate high cost debt, and real estate agents would not have anyincome either.
Thanks for your comment. You actually posted on another article I wrote. I will bring it forward for others to find what you are talking about. Lar