Mayram Aram was on Hedgecock today

[CMcG]

ucodegen —

Back in the mid-eighties, my spouse and I were both self-employed and wrote off a lot of our income. I told our CPA at tax time that we wanted to buy our first home but were afraid we wouldn’t qualify. He said, “Here’s how a lot of people do it — they have two sets of tax returns made — one for lenders and one for the IRS. I recommend it.” This shocked me. We ended up not buying till one of us got a regular W-2 job. I think this is why nowadays, as it says in a link that another poster offered earlier in the thread, lenders often require that the IRS provide the tax return, not the borrower.

Rustico–

I think you are right that the caller to Aram probably didn’t have enough in reserves. I forgot to mention in my original post that the caller said he and his wife both have excellent credit, so I am assuming FICOs of at least 700.

[(former)FormerSanDiegan]

There are sometimes other reasonably valid reasons to do stated income other than self-employment.

True story … (The names have been changed to protect the innocent)

Joe Blo transferred with his company to a different city and Mrs. Blo switched jobs in the process. She essentially had one lined up, but obviously could not show income with check stubs because she hadn’t started yet. Her income from the old job would not pass muster for underwriters for a full-doc loan because they were buying a home several hundred miles from her current job. The Blo family did a stated income loan that actually reflected their actual income on what is commonly referred to as a liar’s loan. Sometimes I think they are the only suckers who did this.

[(former)FormerSanDiegan]

There are sometimes other reasonably valid reasons to do stated income other than self-employment.

True story … (The names have been changed to protect the innocent)

Joe Blo transferred with his company to a different city and Mrs. Blo switched jobs in the process. She essentially had one lined up, but obviously could not show income with check stubs because she hadn’t started yet. Her income from the old job would not pass muster for underwriters for a full-doc loan because they were buying a home several hundred miles from her current job. The Blo family did a stated income loan that actually reflected their actual income on what is commonly referred to as a liar’s loan. Sometimes I think they are the only suckers who did this.

[(former)FormerSanDiegan]

There are sometimes other reasonably valid reasons to do stated income other than self-employment.

True story … (The names have been changed to protect the innocent)

Joe Blo transferred with his company to a different city and Mrs. Blo switched jobs in the process. She essentially had one lined up, but obviously could not show income with check stubs because she hadn’t started yet. Her income from the old job would not pass muster for underwriters for a full-doc loan because they were buying a home several hundred miles from her current job. The Blo family did a stated income loan that actually reflected their actual income on what is commonly referred to as a liar’s loan. Sometimes I think they are the only suckers who did this.

[(former)FormerSanDiegan]

There are sometimes other reasonably valid reasons to do stated income other than self-employment.

True story … (The names have been changed to protect the innocent)

Joe Blo transferred with his company to a different city and Mrs. Blo switched jobs in the process. She essentially had one lined up, but obviously could not show income with check stubs because she hadn’t started yet. Her income from the old job would not pass muster for underwriters for a full-doc loan because they were buying a home several hundred miles from her current job. The Blo family did a stated income loan that actually reflected their actual income on what is commonly referred to as a liar’s loan. Sometimes I think they are the only suckers who did this.

[(former)FormerSanDiegan]

There are sometimes other reasonably valid reasons to do stated income other than self-employment.

True story … (The names have been changed to protect the innocent)

Joe Blo transferred with his company to a different city and Mrs. Blo switched jobs in the process. She essentially had one lined up, but obviously could not show income with check stubs because she hadn’t started yet. Her income from the old job would not pass muster for underwriters for a full-doc loan because they were buying a home several hundred miles from her current job. The Blo family did a stated income loan that actually reflected their actual income on what is commonly referred to as a liar’s loan. Sometimes I think they are the only suckers who did this.

[patientrenter]

FSD, I don’t know that the case you cite is an argument to preserve stated income loans.

In the case you cite, the borrowers felt pretty strongly that their income would be enough to support the loan, taking all the facts and circumstances into account.

Why couldn’t they have gone to the lender and laid it all out, with full documentation? Why would the full-doc lender not reach the same positive conclusion the borrowers did? And why isn’t it the lender’s prerogative to make that judgment, whether positive or negative?

By going stated income, it just seems that the borrowers were allowed to self-underwrite. Regardless of the outcome of the underwriting on each case, I think I want to live, and be a saver, in a society where the lenders are in competition, but are in full control of the loan underwriting.

Patient renter in OC

[patientrenter]

FSD, I don’t know that the case you cite is an argument to preserve stated income loans.

In the case you cite, the borrowers felt pretty strongly that their income would be enough to support the loan, taking all the facts and circumstances into account.

Why couldn’t they have gone to the lender and laid it all out, with full documentation? Why would the full-doc lender not reach the same positive conclusion the borrowers did? And why isn’t it the lender’s prerogative to make that judgment, whether positive or negative?

By going stated income, it just seems that the borrowers were allowed to self-underwrite. Regardless of the outcome of the underwriting on each case, I think I want to live, and be a saver, in a society where the lenders are in competition, but are in full control of the loan underwriting.

Patient renter in OC

[patientrenter]

FSD, I don’t know that the case you cite is an argument to preserve stated income loans.

In the case you cite, the borrowers felt pretty strongly that their income would be enough to support the loan, taking all the facts and circumstances into account.

Why couldn’t they have gone to the lender and laid it all out, with full documentation? Why would the full-doc lender not reach the same positive conclusion the borrowers did? And why isn’t it the lender’s prerogative to make that judgment, whether positive or negative?

By going stated income, it just seems that the borrowers were allowed to self-underwrite. Regardless of the outcome of the underwriting on each case, I think I want to live, and be a saver, in a society where the lenders are in competition, but are in full control of the loan underwriting.

Patient renter in OC

[patientrenter]

FSD, I don’t know that the case you cite is an argument to preserve stated income loans.

In the case you cite, the borrowers felt pretty strongly that their income would be enough to support the loan, taking all the facts and circumstances into account.

Why couldn’t they have gone to the lender and laid it all out, with full documentation? Why would the full-doc lender not reach the same positive conclusion the borrowers did? And why isn’t it the lender’s prerogative to make that judgment, whether positive or negative?

By going stated income, it just seems that the borrowers were allowed to self-underwrite. Regardless of the outcome of the underwriting on each case, I think I want to live, and be a saver, in a society where the lenders are in competition, but are in full control of the loan underwriting.

Patient renter in OC

[patientrenter]

FSD, I don’t know that the case you cite is an argument to preserve stated income loans.

In the case you cite, the borrowers felt pretty strongly that their income would be enough to support the loan, taking all the facts and circumstances into account.

Why couldn’t they have gone to the lender and laid it all out, with full documentation? Why would the full-doc lender not reach the same positive conclusion the borrowers did? And why isn’t it the lender’s prerogative to make that judgment, whether positive or negative?

By going stated income, it just seems that the borrowers were allowed to self-underwrite. Regardless of the outcome of the underwriting on each case, I think I want to live, and be a saver, in a society where the lenders are in competition, but are in full control of the loan underwriting.

Patient renter in OC

[NotCranky]

Rustico–

“I think you are right that the caller to Aram probably didn’t have enough in reserves. I forgot to mention in my original post that the caller said he and his wife both have excellent credit, so I am assuming FICOs of at least 700.”

If they have the FICOs and really can handle the money they want, they need to hire someone who knows what they are doing.

This is not what I did, but it is legit ,depending on upon principles :),and could get them the loan. I have seasoned reserves. It is way better than faking tax documents in any case. They could dump available credit card balances into a checking or I believe even CD’s for reserves and let them season, while making good payments and keeping percentages of total available balance low for FICO maintenance. I don’t know exactly where the balance need to be, less than 70% rings a bell. Right now if they want to state 5k income they need to dump 15k and maintain it for 2 months, depending on the lender I guess, the reserve requirements probably vary. If they have been responsible enough to get into a position to do this I don’t think they are going to go out and do something stupid with borrowed money and obviously, at least it seems to me, the lenders are not telling the underwriter to flag it for those reasons.

The lender needs this kind of person to make loans to very badly right now. It is the same principle, that in theory would get someone a 0% credit card but even better for the lender. There is a small premium on rate and the pool of loans looks better based on the FICOs and LTV ratios and the have “GOOD ASSET” for collateral.If all loans were done like that we would not have a “shitty asset crisis” as davelj has correctly taught us to see it as. I guarantee that now when the lenders are sending appraisers out they aren’t ready to exchange any winks when he or she comes back with a finished appraisal. These loans are still possible to get sold on the secondary market to. I think fairly readily but I am not sure,

A good mortgage broker can tell someone how to do that stuff. . Arams probably wouldn’t want to discuss it on the radio even if he knows how to do it, which he probably does because more “principled” types would Jump all over it. That is not a zinger aimed at anyone. I think it was beneficial to this thread that the “principle” challenge came up.

[NotCranky]

Rustico–

“I think you are right that the caller to Aram probably didn’t have enough in reserves. I forgot to mention in my original post that the caller said he and his wife both have excellent credit, so I am assuming FICOs of at least 700.”

If they have the FICOs and really can handle the money they want, they need to hire someone who knows what they are doing.

This is not what I did, but it is legit ,depending on upon principles :),and could get them the loan. I have seasoned reserves. It is way better than faking tax documents in any case. They could dump available credit card balances into a checking or I believe even CD’s for reserves and let them season, while making good payments and keeping percentages of total available balance low for FICO maintenance. I don’t know exactly where the balance need to be, less than 70% rings a bell. Right now if they want to state 5k income they need to dump 15k and maintain it for 2 months, depending on the lender I guess, the reserve requirements probably vary. If they have been responsible enough to get into a position to do this I don’t think they are going to go out and do something stupid with borrowed money and obviously, at least it seems to me, the lenders are not telling the underwriter to flag it for those reasons.

The lender needs this kind of person to make loans to very badly right now. It is the same principle, that in theory would get someone a 0% credit card but even better for the lender. There is a small premium on rate and the pool of loans looks better based on the FICOs and LTV ratios and the have “GOOD ASSET” for collateral.If all loans were done like that we would not have a “shitty asset crisis” as davelj has correctly taught us to see it as. I guarantee that now when the lenders are sending appraisers out they aren’t ready to exchange any winks when he or she comes back with a finished appraisal. These loans are still possible to get sold on the secondary market to. I think fairly readily but I am not sure,

A good mortgage broker can tell someone how to do that stuff. . Arams probably wouldn’t want to discuss it on the radio even if he knows how to do it, which he probably does because more “principled” types would Jump all over it. That is not a zinger aimed at anyone. I think it was beneficial to this thread that the “principle” challenge came up.

[NotCranky]

Rustico–

“I think you are right that the caller to Aram probably didn’t have enough in reserves. I forgot to mention in my original post that the caller said he and his wife both have excellent credit, so I am assuming FICOs of at least 700.”

If they have the FICOs and really can handle the money they want, they need to hire someone who knows what they are doing.

This is not what I did, but it is legit ,depending on upon principles :),and could get them the loan. I have seasoned reserves. It is way better than faking tax documents in any case. They could dump available credit card balances into a checking or I believe even CD’s for reserves and let them season, while making good payments and keeping percentages of total available balance low for FICO maintenance. I don’t know exactly where the balance need to be, less than 70% rings a bell. Right now if they want to state 5k income they need to dump 15k and maintain it for 2 months, depending on the lender I guess, the reserve requirements probably vary. If they have been responsible enough to get into a position to do this I don’t think they are going to go out and do something stupid with borrowed money and obviously, at least it seems to me, the lenders are not telling the underwriter to flag it for those reasons.

The lender needs this kind of person to make loans to very badly right now. It is the same principle, that in theory would get someone a 0% credit card but even better for the lender. There is a small premium on rate and the pool of loans looks better based on the FICOs and LTV ratios and the have “GOOD ASSET” for collateral.If all loans were done like that we would not have a “shitty asset crisis” as davelj has correctly taught us to see it as. I guarantee that now when the lenders are sending appraisers out they aren’t ready to exchange any winks when he or she comes back with a finished appraisal. These loans are still possible to get sold on the secondary market to. I think fairly readily but I am not sure,

A good mortgage broker can tell someone how to do that stuff. . Arams probably wouldn’t want to discuss it on the radio even if he knows how to do it, which he probably does because more “principled” types would Jump all over it. That is not a zinger aimed at anyone. I think it was beneficial to this thread that the “principle” challenge came up.

[NotCranky]

Rustico–

“I think you are right that the caller to Aram probably didn’t have enough in reserves. I forgot to mention in my original post that the caller said he and his wife both have excellent credit, so I am assuming FICOs of at least 700.”

If they have the FICOs and really can handle the money they want, they need to hire someone who knows what they are doing.

This is not what I did, but it is legit ,depending on upon principles :),and could get them the loan. I have seasoned reserves. It is way better than faking tax documents in any case. They could dump available credit card balances into a checking or I believe even CD’s for reserves and let them season, while making good payments and keeping percentages of total available balance low for FICO maintenance. I don’t know exactly where the balance need to be, less than 70% rings a bell. Right now if they want to state 5k income they need to dump 15k and maintain it for 2 months, depending on the lender I guess, the reserve requirements probably vary. If they have been responsible enough to get into a position to do this I don’t think they are going to go out and do something stupid with borrowed money and obviously, at least it seems to me, the lenders are not telling the underwriter to flag it for those reasons.

The lender needs this kind of person to make loans to very badly right now. It is the same principle, that in theory would get someone a 0% credit card but even better for the lender. There is a small premium on rate and the pool of loans looks better based on the FICOs and LTV ratios and the have “GOOD ASSET” for collateral.If all loans were done like that we would not have a “shitty asset crisis” as davelj has correctly taught us to see it as. I guarantee that now when the lenders are sending appraisers out they aren’t ready to exchange any winks when he or she comes back with a finished appraisal. These loans are still possible to get sold on the secondary market to. I think fairly readily but I am not sure,

A good mortgage broker can tell someone how to do that stuff. . Arams probably wouldn’t want to discuss it on the radio even if he knows how to do it, which he probably does because more “principled” types would Jump all over it. That is not a zinger aimed at anyone. I think it was beneficial to this thread that the “principle” challenge came up.

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