[quote=briansd1][quote=SD Realtor]There is no problem with BofA. The problem is with the buyer or the home. Underwriting guidelines are not soft and squishy. When someone does not get a loan it is never the banks problem. While guidelines vary with lenders when somebody has to do start from scratch that can be a red flag. [/quote]
The title of this thread implies BofA did something unethical. I’m all for blaming the banks when they deserve the blame, but not in this case.
The problem all along was too much easy credit to unqualified borrowers.[/quote]
Maybe, but I think it’s also a case of the pendulum swinging too far back in the other direction. Lenders are now hyper-critical and will sneeze at anything that is not 100% perfect.
I spoke with the realtor in depth about WHY the buyer got denied. I don’t have a denial letter yet, but I do believe the realtor is telling the truth. Bottom line, the person that is buying my home is in the TV business (a news anchor, actually) – and their employment is based on contracts. Their current contract is up w/i the next 6 months. Despite the fact that this particular anchor has approximately a 0% chance of not having their contract renewed, BofA balked.
In this case, I think BofA really is “at fault” – though just in the sense of being irrationally hyper-conservative. The realtor said they are escalating the loan w/i BofA to see if they can get a higher up to review it.
