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Mortgage Broker News | 01 Mar 2016, 05:00 AM Agree 0
Enough is enough, argue some industry players, as lenders increasingly request proof of the source of a down payment
  • Broker | 01 Mar 2016, 09:15 AM Agree 0
    90 days of giftors account?

    I agree this is useless. If a giftor (mom/dad etc) wants to use a LOC or borrowed funds in order to help their child into home ownership, it shouldn't matter. The parents are not on the deal, they are not on title, and their borrowed money has no ties to the property.

    Now that we know the borrowed funds dont matter, why would they ask to see 90 days? The very worst case that 90 days can prove, is that the funds were borrowed, but if the giftor borrowing the funds has no change to the borrower or the subject property, then why would they be asking?

    Many conditions spawn from lender policies being created by people that actually dont fully understand lending. Sometimes they think they are doing what is right but when in reality they are requesting documents that have no relevance for the application.
  • LanceH | 01 Mar 2016, 09:19 AM Agree 0
    It's gone WAY too far. I for one, keep pushing back. I just had a client, bought her house cash 9 mos ago using a settlement to pay for it. She decided to do a credit line. The lender wanted triple confirmation of the settlement, proof of purchase (my Purview not enough?),
    Proof of transfer of funds from ins co to her, then her to her lawyer, then the lawyer to the seller. And no, there wasn't any "red flags" on this file. I had 2 lenders on separate files demanding T1's, NOA's on top of job letters and paystubs for a long term salary employees. To say they've gone WAY overboard is an understatement! They need to grow a spine and stop running scared like frightened little children!! FSCO is not forcing this on them. They're forcing it on themselves!
  • John Martin | 01 Mar 2016, 09:21 AM Agree 0
    These comments above are beautiful. It's all agreed then that it's the money laundering issue the lenders are concerned about. Let's be more specific as to the lenders, primarily the big banks. Let some thing important be explained. Reality check here. There is Billions sitting in accounts already in these same institutions that has come from you know where. Give you a glue a considerable amount is floated into Vancouver and Toronto real estate. So as for the banks this attempt to do what is mentioned above is all just smoke and mirrors. There is reality again!
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