Share post
member profile picture
Posts: 181
Credits: 0

Can anyone that may be in the mortgage industry explain to me CLEARLY how the loan mod works. When they talk ratios i.e. 31% of your income is where the payment needs to be.. is that on net? gross? How do they figure that out? When you submit your paperwork to them, in our case a profit and loss sheet b/c we are self do THEY come up with the numbers for your income. Shouldn't they look at your retained income? Our home loan people are telling us it is a no go b/c our income is $203.00 a month. WHAT!!! Ok we are not rolling in it by any means but we sure the heck make may way more than that! Then going over it with the REP she agreed with us and said I have no idea how they came up with this. It doesn't look like they have even looked or considered your retained income. Our retained income is $43,000. This is AFTER exspenses. Something seems very wrong here. So they are suppose to have an underwriter call us. What are the chances of that happening??? Who the heck are these underwriters anyway that NO ONE can ever talk to, you can't leave them messages, write them letters, fax them anything..what the heck...ANY INSIGHT FROM ANYONE IN THE MORTGAGE INDUSTRY WOULD BE GREAT! Is there anyone here that has ever had a job as an underwriter or is one..would love to have a conversation. Thanks.

I have no background in mortgage industry but I think that the lender calculates the income based on the documents provided by you.

Sub: #1 posted on Thu, 03/25/2010 - 04:49


That is the frustrating they DID NOT use the numbers we provided.

Sub: #2 posted on Thu, 03/25/2010 - 07:21

luckin10 luckin10

(Posts: 181 | Credits: )

I do know someone that works in the mortgage industry and works specifically with the HAMP program. When it comes to self employed borrowers, the main income is determined by the tax returns. While they may ask for an update P&L statement, you probably filled out a form 4506-T, which allows the company to get a copy of your filed return directly from the IRS. So they probably did not use the income information you provided. It is very common, for self-employed borrowers to fudge P&L statements.

Sub: #3 posted on Sat, 04/24/2010 - 05:06

Mary Adkins Matthews Mary Adkins Matthews
Moderators Cum Industry Expert
(Posts: 755 | Credits: )

Page loaded in 0.222 seconds.