Flagstar Wants Industry Workers to go Full Doc

January 24, 2008 No Comments »

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, mortgage broker, real estate agent, 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 income 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 underwriting 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 mortgage lenders are doing the same?

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