Cashout refi turndown

5 Replies

Tried doing a cash-out refinance with Quicken to find another deal and this is the response I got: Unfortunately when I submit this through the electronic underwriting system I don't get the thumbs up. Your credit is great and your income is fine but due to the smaller loan amount the state won't let me approve it based on its current guidelines (not a Quicken rule). This is disappointing. I’m not sure what else to do. Any suggestions
Originally posted by @Shantelle Evans :
Tried doing a cash-out refinance with Quicken to find another deal and this is the response I got:

Unfortunately when I submit this through the electronic underwriting system I don't get the thumbs up. Your credit is great and your income is fine but due to the smaller loan amount the state won't let me approve it based on its current guidelines (not a Quicken rule).

This is disappointing. I’m not sure what else to do. Any suggestions

 The latest releases of the two big automated underwriting systems do (to me, at least) appear to have heightened their irrationality a bit. Approving case-files with a few minor tweaks that I wouldn't have expected to get approved no matter what, and declining ones that seem solid no matter what I try.

If you feel you're in that latter category (intuitive expectation = yes, but AUS is declining), only suggestion I can offer is to try working with a lender that'll try doing 10 or 20 tweaks to see if it'll give a "yes." Maybe FNMA is "no" but FHLMC will be "yes." Maybe changing the loan amount or LTV A little bit. Maybe FHLMC doesn't like you no matter what, but FNMA will go for it if your retirement account assets are included in reserves.

In this brave new world where automated software rules the roost, I for one welcome our new automated underwriting system overlords

Originally posted by @Shantelle Evans :
Tried doing a cash-out refinance with Quicken to find another deal and this is the response I got:

Unfortunately when I submit this through the electronic underwriting system I don't get the thumbs up. Your credit is great and your income is fine but due to the smaller loan amount the state won't let me approve it based on its current guidelines (not a Quicken rule).

This is disappointing. I’m not sure what else to do. Any suggestions

More than likely, you're running into a high cost problem.  If the loan amount is too small, the amount of fees is throwing the loan into high cost.