BlownMortgage offered up a depressing story about life during the peak of the mortgage boom, presented by TheTruthAboutMortgage.com
It turned out the borrower was actually employed as a loan processor, undoubtedly making less than $240,000 a year (sure some may have been making that during the boom, but that was not the case here).
In any event, you would think the loan would be dead, considering the borrower lied about their income and employment on a legal document.
Well, not the case in the mortgage industry. Instead of the file being declined, it was uplined to the VP of Underwiting who massaged the loan, probing and searching for some way to make sense of a lie. After all, the loan was worth $1.5 million, so clearly the company had no intention of throwing it away. And if it could be cleaned up a bit and sold to the investor, no one would be the wiser.
After some research, it came to the VP’s attention that the borrower was a licensed real estate agent, and just like that the 1003 was miraculously changed to state that the applicant was a loan processor and a real estate agent, earning the originally stated $20,000 a month.
It would seem money was growing on trees.