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This is not the first time I've read that mortgage's through credit unions go smoothly. I'm guessing you have to be a member of that credit union?
I recently went to work for a credit union. The CU I work for is an "easy access" CU ( if you don't meet the regular membership requirements, you can join by joining an association). There are also closed membership credit unions, credit unions you can't join unless you meet a narrow set of qualifications.
My job experience reflects over 25 years working for portfolio lenders. The new legislation has decimated portfolio lending with traditional banks. ATR (ability to repay) and QM (qualified mortgages) had banks running for cover. One employer went as far to hire me, knowing I accepted based on their portfolio lending that they ceased lending on the Friday before I started. (These lenders - banks- are desperate to hire honestly). I also found out they made a conscious decision to keep the discontinuation of portfolio lending from me before I started.
I knew immediately I would not be staying at this bank, but I took my time looking. Exploring credit unions, their rules and regulations became my pet project. If anything I write in this post sinks in, this is the key: Credit Unions are not-for-profit. Banks have stockholders they must report to and produce earnings. Mortgage companies and brokers are businesses for profit on a smaller scale. Credit unions report to their members and all profit is returned to members with lower rates and fees.
Most of our loans are manually underwritten. We work with foreign nationals, some who may not have a credit score or a low score (due to lack of credit and NOT due to poor money management). We don't charge premiums due to the subject property being a condo or co-op, nor do we charge a premium for an 80/10/10. We will do cash-outs at an 80% LTV up to $1M. Because we are manual (and if it makes sense), we can issue an approval with just one year's tax return on self-employed. We only require one year part time history to count the income from that job. And then one of my CU competitors offers 100% no money down with no PMI. Another CU competitor finances up to 850K with no MI with 5% down.
There's also a misconception that loan officers at CU are 9 - 5. Not so, mortgage banking personnel are making the move to credit unions, understanding real estate transactions usually occur after typical work hours.
I'm still going to ask for the same documents. What is apparent is no one in this industry is fully explaining to borrowers why certain documentation is required. It's the law. The Anti-Money Laundering Act (an offshoot of the Patriot Act) requires bankers to document every dime in a transaction. We don't think it's drug money, but we are required to prove it is not. Additional reading: 404 Page Not Found - CFTC. (The link works for me despite the 404 code)
Or, to really read up on it, Google "bank secrecy act/anti-money laundering examination manual." I think it's possible once someone realizes that an estimated 5% of the world's gross earnings are thought to come from criminal activity, there could be good reason to request the documentation, AS LONG AS WE ASK THE SAME OF EVERYONE (equal treatment and all that).
I recently went to work for a credit union. The CU I work for is an "easy access" CU ( if you don't meet the regular membership requirements, you can join by joining an association). There are also closed membership credit unions, credit unions you can't join unless you meet a narrow set of qualifications.
My job experience reflects over 25 years working for portfolio lenders. The new legislation has decimated portfolio lending with traditional banks. ATR (ability to repay) and QM (qualified mortgages) had banks running for cover. One employer went as far to hire me, knowing I accepted based on their portfolio lending that they ceased lending on the Friday before I started. (These lenders - banks- are desperate to hire honestly). I also found out they made a conscious decision to keep the discontinuation of portfolio lending from me before I started.
I knew immediately I would not be staying at this bank, but I took my time looking. Exploring credit unions, their rules and regulations became my pet project. If anything I write in this post sinks in, this is the key: Credit Unions are not-for-profit. Banks have stockholders they must report to and produce earnings. Mortgage companies and brokers are businesses for profit on a smaller scale. Credit unions report to their members and all profit is returned to members with lower rates and fees.
Most of our loans are manually underwritten. We work with foreign nationals, some who may not have a credit score or a low score (due to lack of credit and NOT due to poor money management). We don't charge premiums due to the subject property being a condo or co-op, nor do we charge a premium for an 80/10/10. We will do cash-outs at an 80% LTV up to $1M. Because we are manual (and if it makes sense), we can issue an approval with just one year's tax return on self-employed. We only require one year part time history to count the income from that job. And then one of my CU competitors offers 100% no money down with no PMI. Another CU competitor finances up to 850K with no MI with 5% down.
There's also a misconception that loan officers at CU are 9 - 5. Not so, mortgage banking personnel are making the move to credit unions, understanding real estate transactions usually occur after typical work hours.
I'm still going to ask for the same documents. What is apparent is no one in this industry is fully explaining to borrowers why certain documentation is required. It's the law. The Anti-Money Laundering Act (an offshoot of the Patriot Act) requires bankers to document every dime in a transaction. We don't think it's drug money, but we are required to prove it is not. Additional reading: 404 Page Not Found - CFTC. (The link works for me despite the 404 code)
Or, to really read up on it, Google "bank secrecy act/anti-money laundering examination manual." I think it's possible once someone realizes that an estimated 5% of the world's gross earnings are thought to come from criminal activity, there could be good reason to request the documentation, AS LONG AS WE ASK THE SAME OF EVERYONE (equal treatment and all that).
Do you have a number I can call you at? You can PM me
thanks
I just closed a few months ago and it was just a tad painful. I did have to send in my documents several times and did feel at time like a criminal when they had me write letters of explanation of this deposit and that deposit. Especially in the small ones my mom makes to my account for me to buy my kids presents for every holiday, good grades, birthdays etc. Omigosh I didn't realize how many she does and I had to explain ALL of them. lol
I also had a small issue where the seller's closing costs contribution toward closing exceeded my actual closing costs. They were able to fix it with applying the excess toward prepaying a home warranty and taxes/insurance etc.
We just made our application today........3 hours and we still didn't have everything they demanded. Bank statements had to have ALL pages, even the blank ones. And of course one month isn't good enough. And the explanations of every "large" deposit is stupid. etc. etc. etc. We sold a bunch of collectibles last July for $6000 cash........no receipt. Can't wait to hear what they say about that.
It's not like this is our first mortgage. This is our 4th house, both in our early 60s, planning on selling current house as it gets closer to closing (houses sell fast in our community), both have credit scores well above 800. I was waiting for them to ask for a blood sample. Would probably have been easier if we had been crooks. But us honest people get raked over the coals. I mean really........if I was laundering money, would I be applying for a mortgage???? I would just use cash! If they start asking for things 3 or 4 times I will scream.
They will. I'm still waiting to close. I applied in September. Now in fifth month.... The sellers must be saints... I cannot imagine how anyone can not crack under this kind of pressure. Please pray for me.
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