Post Closing Lender Audit?

Question

I'm currently buying multi-family properties with the goal of leaving my 9-5 office job.  Should I be concerned about the lender doing a post-closing audit and accelerating the loan once they discover that I've left my secure IT desk job (which was my only source of income and the cornerstone of my mortgage application when I started buying)?  Has anyone been in this situation?  What are the chances of a post-closing audit from the lender 3 months after closing? 6 months?  A year?

Chris Mason · Answer

Hi @Pete Hathaway,

As of loan funding and closing, there must be no indication that you have any intention to leave gainful employment. So if we do our last-minute verification of employment 2 days before the loan funds, and you've put two weeks notice in, or if the person who answers is Sally the receptionist who you told of your plan to quit your job around the water cooler last week and she tells the assistant underwriter this, then the loan will not fund at all (or, best case, it'll close late and be a stressful week or two, as you've by this point typically released all contingencies).

Post closing audits are about the snapshot in time immediately prior to, and at, loan funding. A typical finding might be that page 6 or 6 of a bank statement says "this page intentionally left blank," but that page was not included in the file for whatever reason, and now you have to go find page 6 of 6 of your bank statement from 5 months ago that says on it "this page intentionally left blank."

Incidentally, post-close audits & collecting the post-close conditions is the least fun part of our job.

Pete Hathaway · Answer

Thanks @Chris Mason

I just finished signing yesterday and I see that the post closing audit referred to quality control within a short window of time at or after closing.  I had read online about someone's load being accelerated from one of these audits but my loan agrees not to ask for the entire balance at any point.

Steven Torrez · Answer

I've never heard of this. Not sure it exists.

I'll be curious to hear other people's input.

@Pete Hathaway