Citibank “acknowledges” credit worthy borrowers having “difficulty getting loans

by sfishome on February 3, 2011

According to a National Association of Realtor’s podcast found here, Citibank “acknowledges” credit worthy borrowers are having difficulty getting mortgages. 

WOW, this is news? 

I have a buyer with 75% down and his loan has been in underwriting for over 2 months.  I’ve heard the craziest stories with the craziest requests for documentation that often comes in at the last second – usually just to delay the purchase (or in the above case, continuously delay the purchase) but sometimes to kill it when the Seller or Buyer cancels the contract in frustration.  One such story was a renter buying a condo and after proving in multiple ways that they had always paid their rent on time and in full, the underwriter noticed that their rent had just increased by $30.  The Close of Escrow was delayed for a full week while the buyers proved, with their landlords help, that they paid the new rate in the final rent payment.

So yes, the “pendulum has swung” from the mortgage market where a dead person could get a loan, to now when 75% cash on a condo purchase is held up for 2 months and we STILL don’t know if it will get approved.

So hats off to Citibank for “acknowledging” this problem.  Sort of akin to getting hit by a mack truck and saying “honey, did you hear something?”

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