Here’s an interesting bit of news a friend brought to my attention.
Flagstar’s SISA guidelines say, “Any borrower employed in the mortgage lending industry (IE: loan officer, Realtor, appraiser, builder) is not eligible for the SISA program.”
Talk about having no faith in your own people.
It is believed that the same rule applies to all stated loans, and that industry folks must provide full documentation if they wish to apply for a loan with Flagstar wholesale.
From what I’ve heard, the guideline was put in place a while back because deteriorating conditions in the mortgage industry were clearly impacting the earnings of anyone involved.
Still rather shocking that one group has been singled out…curious if other lenders are doing the same?
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