Mortgage Originator Questionnaire

Started by ThomasP13 • 9 replies • 219 views

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ThomasP13 (Ohio)
Posts: 87

Posted:

I've received an email from someone who says shes a "Residential Mortgage Loan Originator" with a rather detailed questionnaire about our Association attached. She says she's working on financing for an owner here, but doesn't say who.

May I require finding out who the owner is so I can verify this is a legitimate request, especially since this is at least 1/2 hour of work?

MaxB4
Posts: 3,513

Posted:

Yes

KerryL1 (California)
Posts: 14,550

Posted:

I'm guessing this is about the fact that lenders are sending such forms to (multi-story?) condo buildings all over the USA. My understanding is this is a result of the Surfside tragedy, which has prompted lenders to want a lot of reassurance about the loans they approve. I've heard they ask a lot of questions including % funded of such properties' reserves.

I haven't seen such letters myself.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Sounds like the 25 question HUD form have to fill out for certain loan types. Mostly with like FHA loans or federally related ones.

Yes it is a real form the HOA President may fill out before a closing. Most people do not know about it. The seller or buyer do not. It is HOA and lender.

It is like an HOA appraisal. This is where the rubber meets the road when rental numbers, liens, HOA foreclosure, lawsuits, and collection rates are evaluated.

This is the form I talk about often ...

Former HOA President

KerryL1 (California)
Posts: 14,550

Posted:

These recent forms are from lenders who're not backing FHA loans, Melissa.

ThomasP13 (Ohio)
Posts: 87

Posted:

Thanks, Max. A nice three-letter answer to the question I asked.

It's not a HUD form. It's a mortgage-originator-specific questionnaire because the building isn't 100% owner-occupied, but rather the developer still owns a unit, and the recent buyer, now owner, is looking at financing options and the mortgage originator, iiuc, is looking to cast a wide net.

This forum really needs an ignore feature.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

FYI Kerry the HUD form is expanding that other lenders are using them. It just mostly FHA more than others.

Former HOA President

DouglasK1 (Florida)
Posts: 2,046

Posted:

Quote:

Posted By ThomasP13 on 03/17/2022 10:38 AM

This forum really needs an ignore feature.

That would make the forum rather boring.

Escaped former treasurer and director of a self managed association.

MaxB4
Posts: 3,513

Posted:

I handle 2 or 3 escrow requests per day, all have some sort of questionaire, a few will ne lender specific. I have software that does it automatically, one price for a general inquiry and a higher price for a lender specific form.

You asked one question, whether you could ask for which unit and my answer was YES.

KerryL1 (California)
Posts: 14,550

Posted:

From Davis-stirling.com, a site by CA HOA attorneys. I believe this fits into Thomas' general topic:

"As a result of tightening lending standards arising out of the tragic condominium tower collapse in Florida last year, xxxx law firm has been inundated with requests for help regarding new lender questionnaires asking open-ended questions about deferred maintenance, unsafe conditions, and other potential problems. For good reasons, boards and managers may be reluctant to answer the questions for fear of incurring potential liability. XXX held a webinar discussing whether boards should answer the questions and, if so, how to minimize potential liability. Nearly 600 attendees took away a ton of valuable insight."

I pasted this in case there are other readers who're being 2nd degreed by lenders in this way.

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