All Forum Posts by: Emily Wiu

Thank you Theresa! I finally closed!

Thank you guys for all the information and advice. After talking to my loan processor a bit more, I think I could piece together what happened: she did indeed jumped the gun and told all parties involved that we were cleared to close when she did not receive the actual file, and the underwriters admitted they overlooked my documents and didn't follow up with some questions until last minute, thus delaying the closing.

The good news is that I received another clear to close email on Friday, and hopefully this time there will be no more hiccups and I can get my keys on Monday.

Looking at the bright side, now I know better about the actual loan process, and in the future I will know the right questions to ask/the right people to ask for.

Thank you everyone!

Emily

I am getting the loan through a 3rd party loan officer, so I don't really have contact with the Penny Mac. I actually called Penny Mac yesterday but they couldn't find my information in their system.

Could you elaborate on having a second set of eyes on the deal? how can I achieve that?

I don't believe so. Since I am moving from my current house to this new house, my understanding is that they don't believe that I am actually moving. We started the loan process on March 29th with the reason I gave is that I wanted to have a house closer to my boyfriend's place of work. They didn't question the reasoning until April 30th, and asked me to sign a document elaborate on why I want to be closer to my boyfriend and a copy of the rental lease on April 30th, and proof of security deposit on May 1st. In my opinion, if they had any questions, they should have taken care of it weeks ago, knowing that my closing date is scheduled on 5/1. They had over a month to sort out these problems.

 I hear you. The loan officer is recommended by my agent who closed 6 houses for my partner and I within the past 18 months. My partner also worked with the loan officer before, didn't have this problem. The loan officer has been contacting the underwriters everyday and she told me she had never experienced anything like this before.

Is there anything I can do on my part right now? I would love to bug the underwriters or their managers but I am not allowed to contact them directly. 

My loan officer (not Penny Mac employee) is working with Penny Mac to secure me a loan on a primary home purchase. We started the process in late March, and we always provided everything they requested within 24 hours of they asking. I provided documents for them easily 15+ times during the whole process. After not asking for any additional documents for over a week, and receiving a "clear to close" email from my loan officer on 4/29, the underwriters requested an additional statement on the morning of 4/30, which is the day before my closing, and I provided the document right away. My loan officer told me that the underwriters would contact her back within the end of the day. That never happened. We did not hear back from the underwriters until after the closing time the next day. The underwriters requested additional documents and refused to give us a date or time to reschedule the closing. My loan officer has been in contact with the underwriters and the managers every day since 4/29, was always promised things that were never delivered. I want to talk to the underwriters but my loan officer told me that she can't legally give me the contact number due to conflict of interest! What options do I have right now? I have to move in 10 days and I don't even have a closing date! 

Thank you Chris, I think you have answered my questions. According to the Home Owners Protection Act of 1998 Summary, 

"Borrower-Requested Cancellation 

Based on the Mortgage's current UPB and the current value, the LTV ratio must be:

*75% or less, with at least 2 years, but less than 5 years, having elapsed since the Origination Date of the Mortgage; OR 

*80% or less, with either: 

    -At least 5 years having elapsed since the Origination Date of the Mortgage; OR 

    -No required minimum period having elapsed since the Origination Date of the Mortgage, if substantial improvements to the Mortgaged Premises have increased the market value of the Mortgaged Premises since the Origination Date of the Mortgage"

I purchased a house 2 years ago with 3% down. The mortgage comes with a hefty PMI per month, and the original lender had sold the mortgage to Dovenmuehle as soon as my house was closed. Since I have been paying extra on the principal amount aggressively and the house value has increased quite a lot, my LTV ratio will be less than 80% with a new appraisal. However, when I reached out to Dovenmuehle I was told that my two options are 1: pay down enough principle that the LTV ratio on the original appraisal is less than 80%, or 2: have the LTV ratio on the new appraisal be less than 75%. Is that legal? I thought I only need LTV ratio on the new appraisal to be less than 80%. I also read somewhere that I should look into my original loan documents, but since the loan has been sold to Dovenmuehle, I'm not sure if the original loan documents are still applicable.

Thank you!