We were sourcing a borrowers’ loan through a wholesale lender, taking advantage of a new No Pay Stubs, No Bank Statement loan program. The idea behind the loan program is to reduce some of the documentation and streamline the process.
Noble causes to be sure and we were excited about the possibilities for the program and our customers. I mean who wouldn’t be excited about less paperwork and a quicker process? But after submitting the completed application for underwriting our borrower was contacted by the wholesale lender and asked to provide their bank account number.
The borrower was a little surprised they were contacted, as were we. Actually surprised may be an understatement. Random, unexpected calls from a wholesale lender and/or underwriter to the borrower in the middle of the loan process makes us nervous.
After confirming the request was legitimate the borrower provided their account information and the loan proceeded without incident. This, however, left us with a question regarding the No Pay Stubs, No Bank Statement loan program and what would be best for borrowers.
For all the initial promise it didn’t seem to save any time or effort. So we put it to you; if it was an option, which would you prefer?
For more information contact Aaron Walker or Jay Rapson at Aaron Lending, LLC.