Stated Income = Stated Fraud?

[Sharon]

Thank you for your information.

[Greg]

Sharon No Ratio is your solution. Thanks. Pricing is about the same as stated.

[Sharon]

thank you Greg

[Greg]

Also if your borrower is sub-prime bank statements might work.

[Secret!]

You would be surprised at how clueless many of them are Erik - ya know they turn a blind-eye as long as the production numbers stay high ... then they'll say "what me worry?"

[Sharon]

Thank you Greg for your assistance. I will try that for the customer so she can get out of this arm loan and not have to worry anymore.

[Greg]

Secret I did not see Erik make a post after your last post.?

So what is your stance on bank statements or a no ratio program?

Is it safe to say we can add Stated Income, No Ratio, and No Doc to the list of Secret's do not do's a long with referrals do not work and direct mail does not work?

What did I miss?

This program is a tricky one to debate about I think.

Yes Sharon we would hate for her to stay in the 2 year arm and have the payment adjust so drastically at this point.

[anthonyt2325]

Lenders wouldn't keep offering stated income and no doc products if they continously lost money on them. There is a need for these products which is why they are still available.

Example for Stated - A borrower who works off the books and cannot provide w2's and paystubs. The employer is willing to complete a VOE. This is a stated deal to me.

Example for No Doc - Borrower who has a major gap in employment (3-6 months) who is now working and does not have much in reserve because he/she was living off of reserves in order to keep up with the bills. Borrower is now back on his/her feet and needs to refi.

As far as macp's post is concerned... houses in NY are just as just as high as in CA. Going stated because "most need to get a house and will make it work" is bull. There are other viable options to a SFR such as condo's and coop's. Most people just want what they want and instead of getting honest advice and guidance from their LO get stated deals where the stated income is $1,000 more a month than the borrower can actually afford.

As far as Greg's post is cocerned $3300 a month stated is ethical, especially with a lender that does not allow border income. If the borrower is advised that the son's income is being used to qualify for the mortgage and the borrower is aware that if he/she does not get the money from the son on a monthly basis there is going to be a problem and the borrower is ok with it.. I say roll with it.

[Secret!]

Originally Posted by Greg

Secret I did not see Erik make a post after your last post.?

So what is your stance on bank statements or a no ratio program?

Is it safe to say we can add Stated Income, No Ratio, and No Doc to the list of Secret's do not do's a long with referrals do not work and direct mail does not work?

What did I miss?

This program is a tricky one to debate about I think.

Yes Sharon we would hate for her to stay in the 2 year arm and have the payment adjust so drastically at this point.

Bank statement programs have their place, they're called Full Doc by most wholesalers - I have done many of them. The others, Stated, No Ratio, No Doc were all also designed with a certain customer in mind (and worthwhile for those FEW people that were intended to be utilized by), those kind of programs have been mostly abused by LO's & AE's so they can increase their own commissions unfortunately.

As to my feelings on referrals, over time I know they can't work, due to the serious mistakes the various service providers frequently make, which results in the originator looking bad (which frequently kills many referral relationships). So I recommend against that method, plus, that's a sure fire way to stay a tiny operation, I have seen.

On direct mail, my own company experimented with direct mail. We had a 10,000 piece mailer we mailed out each month for 120+ months in a row - before I decided there were better ways to attract custoimers ... so no I don't have a negative on that method.

In fact Greg, in our training CD Lesson 98 Ways to Find Customers - we speak about these methods