• Employment verification • Gaps in employment Letter of Explanation (LOX) • Homeowner's insurance contact and policy information
• Late Payment Letter of Explanation (LOX) • Proof of source of funds in the bank account Credit Score Challenges
Instead of discouraging consumers from applying, loan officers need to be clear about what the credit requirements are for a particular loan instrument. Consumers then should make the decision to apply or not apply based on this. If a discouragement like this is made, an adverse action notice would need to be sent and a review should be conducted by an underwriter to confirm the applicant does, in fact, not qualify.
Tax Liens
A tax lien is when the government places a claim on a person’s property when that person fails to pay their taxes. It doesn’t mean the property was seized, but it means that the government will take that person’s property if seizure becomes necessary. You must resolve the lien before closing on the sale. If the lien is ignored and the information emerges at the closing, the transaction is going to be deferred or if the lien cannot be resolved the transaction may be cancelled. State tax liens present similar obstacles and must be resolved.
Bankruptcies
If you have undergone a bankruptcy let the loan officer know at the beginning of the process so that they can determine (based on the type of bankruptcy) which programs require how much time to have elapsed before you are eligible for financing.
Foreclosure
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