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Today Brian Stevens has a very interesting conversation with a Loan Officer.  Tune in to hear his confession.

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additional comments on
"Confession of a Loan Officer"

  1. Andy Sikora says:

    FHA will approved that loan scenario. FHA allows you to reduce his income by the amount of alimony instead of counting it at a debt in his ratios. He will have to pay mortgage insurance but it will be approved.

  2. Dan says:

    FHA will also take up to a 55 ratio. This would certainly have compensating factors to make that approvable.

  3. Ed hoffman says:

    Have the Ex cosigner or go FHA

  4. FHA will go up to 58% DTI, but the loan should be structured to take the alimony from the income, not setup as the alimony being a liability.

  5. Mark Brown says:

    Can't see where DU would deny this. Plug in FHA as scenario. He can afford the MI.

  6. Frederic Guitton says:

    We have dealt with this scenario and reduced the income as it was paid pre-tax in that scenario. 95% ltv conforming.

  7. Torres Ramey says:

    I wonder what the FHA loan limit is in his area, that was too high for mine. Although with 20 % down he would probably be OK.

  8. Chris Kerr says:

    I can do that all day on a portfolio product! Send that one my way 🙂

  9. Jeff Nunley says:

    Fortunately FHA has figured this out. The new way is much more fair

  10. Divedude says:

    Was he denied by a computer? When does the common sense kick in? This is why local credit unions are getting a larger market share.

  11. michael dececco says:

    depends on the classification of the 22K. if it is child support (doubt it would be that high) then, yes, he is in trouble. what ever component of the 22k that is alimony should be taken off income versus put in as back end debt.

  12. really? Ill can get him a loan.

  13. Nick Krehnke says:

    Just like a couple folks said below, post as negative income not as liability. Approved easy. under 20% dti

  14. US Bank will "deduct Alimony and Child Support" from Gross Income, thus giving him 22K a month of Income to Qualify.

  15. Don Kab says:

    I need to refinance a house from my coorporation to my name or do I leave it under the cooporation? Who can do this?

  16. send me this borrower's contact info… It's not regulation, it's the LO's not understanding the lending business. Please allow me to contact this borrower immediately and will get this taken care of.

  17. Dave Greene says:

    Hi Don – there are programs available to keep it in the Corporate, LLC name.
    – Dave Greene NMLS 241601 DGreene@ccmclending.com 949.3754446 Cherry Creek Mortgage

  18. Don Kab says:

    Dave Greene I will email you my information

  19. Dave Greene says:

    I think DU would deny this because the alimony has to be plugged in as a liability so that DU can then stipulate for the proper divorce decree documentation

  20. Thomas Jandt says:

    that LO is a knucklehead…that loan can be done, no problem.

  21. Seriously? Actually, there ARE loan programs for this gentleman's particular scenario via some of the smaller, more flexible Lenders in California. I do not know what state he is in, nor can I lend in another state, however, this is a very doable California loan for me and many of my Lenders and the rates are great!! So, IF his loan is in California and he needs assistance, I am happy to help…

  22. Is he a Veteran?

  23. I am consistently seeing FreddiMac / LP approvals well above 50 TDTI, even with less than 20% down. Perhaps this LO needs to find a new company.

  24. Les Pruitt says:

    If the 22k is child support- go to FHA, if it is alimony which can be deducted from your taxable income
    that would leave him with a $22,000 qualifying income– you don't have to send it to a specialty lender. It can go to Freddie or Fnma.
    The loan officer and Brian should be embarrassed by their answers. Go back to basic mortgage 101 and the underwriter should be ashamed as well.

  25. Greg Cross says:

    FHA will let you deduct the alimony from the income before calculating the debt ratio

  26. BP22 says:

    So many proponents of FHA? Really? They’re program sucks. A community bank with a portfolio would do this deal all day long.

  27. Eric Morgenson says:

    WHAT?? Angel Oak Mortgage Solutions can do this and much more aggressive scenarios. It’s all about ATR; this scenario sounds like he has it covered. What a softball loan scenario….bring on the 580 FICO, 50 DTI $1,000,000 purchase at 80% LTV. Yep, Angel Oak can do that!

  28. So stupid. I'm glad to see people pointing out the errors in this video. It should be approved based on what is said in the video if the alimony is tax deductible. Cross reference the IRS guidelines here: https://www.irs.gov/taxtopics/tc452.html and then you'll know if you have a deal. Rookie LO's!!!

  29. How can the debt to income ratio be over 50% for a borrower who makes $22,000/mo buying a home for $380,000 with 20% down and no debt?

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