How To Commit Fraud And Get Loans Approved

So you all know that they signed the bailout bill last Friday, right? The provisions in the bill include measures that are supposed to help owners avoid foreclosure. But the bill isn’t exactly what I wanted to write about today.

Instead, I wanted to share this with you.

I went back to one of my favorite real estate blogs, BusinessWeeks’s Hot Property, and found an interesting little post. Peter Coy, who wrote JPMorgan’s “Cheats & Tricks”, uncovered an older article that speaks volumes about the mentality that got us into this mortgage mess. There was a memo that got sent through JPMorgan Chase’s email system. The memo details how loan representatives can get Zippy (the Chase loan underwriting system) to approve loans that otherwise would be denied to applicants.  Well, the alleged author did get fired (she maintains her innocence in the article) and JPMorgan did issue a statement that the memo was not representative of corporate policy. However, it’s easy to see why so many homeowners are in such a financial mess with friendly mortgage brokers to help along in the process of spending beyond their means.

OK. Just go ahead and read the memo. Feel free to let me know what you think.

ZiPPY Cheats & Tricks…

If you get a “refer” or if you DO NOT get Stated Income / Stated Asset findings…. Never Fear!! ZiPPY can be adjusted (just ever so slightly)

Try these steps next time you use Zippy! You just might get the findings you need!!

• Always select “ALTERNATE DOCS” in the documentation drop down.
• Borrower(s) MUST have a mid credit score of 700.
• First time homebuyers require a 720 credit score.
• NO! BK’s OR Foreclosures, EVER!! Regardless of time!
• Salaried borrowers must have 2 years time on job with current employer .
• Self employed must be in existence for 2 years. (verified with biz license)
• NO non-occupant co borrowers.
• Max LTV/CLTV is 100%

Try these handy steps to get SISA findings . . .

1) In the income section of your 1003, make sure you input all income in base income. DO NOT break it down by overtime, commissions or bonus.

2) NO GIFT FUNDS! If your borrower is getting a gift, add it to a bank account along with the rest of the assets. Be sure to remove any mention of gift funds on the rest of your 1003.

3) If you do not get Stated/Stated, try resubmitting with slightly higher income.
Inch it up $500 to see if you can get the findings you want. Do the same for assets.

It’s super easy! Give it a try!
If you get stuck, call me . . . I am happy to help!

Tammy Lish
(503) 307-7079
tammy.d.lish@chase.com