I am discovering that our underwriters are more than ever scrutinizing the down payment of purchases.  For example, I recently closed a loan where the borrowers were putting down 20% cash to a new loan. The borrower was self employed and transferring money a small amount of money from his business account to add to other funds for the down payment.

You can’t believe the trouble this caused, and I almost lost the deal. The business funds were not allowed, and our underwriting geniuses tried to argue the money transferred from his business to his personal account actually tainted the money already in his personal account. Granted, there is no logic to this reasoning whatsoever, but logic often times is completely thrown out the window.

Well, the deal closed last week but not without a whole lot of stress and fighting to inject just a little bit of common sense.  We had to provide proof of other funds. It wasn’t fun, and I am becomming increasingly frustrated with irrational calls that always go against the borrower.

Fortunately, I usually prevail and my loans close, but not without a whole lot of arguing and frustration. This job used to be a lot more fun than it is today, and I can’t figure out what is really going on.