Subject: Loans Secured by Financial Assets - tip
of the day
Good Morning.
Today is Monday, January 30, 2012
All wholesale staff is available.
Current turn times are 24 hours.
Tip of the day – Borrowed funds for closing:
Per FNMA, Loans Secured by Financial Assets
When
a borrower uses his or her financial assets—life insurance policies, 401(k)
accounts, individual retirement accounts, certificates of deposit, stocks,
bonds, etc.—as security for a loan, the borrower has a contingent liability.
The
lender is not required to include this contingent liability as part of the
borrower’s recurring monthly debt obligations provided the lender obtains a
copy of the applicable loan instrument that shows the borrower’s financial
asset as collateral for the loan. If the borrower intends to use the same asset
to satisfy financial reserve requirements, the lender must reduce the value of
the asset (the account balance, in most cases) by the proceeds from the secured
loan and any related fees to determine whether the borrower has sufficient
reserves.
Per FHA
4155.1
5.B.7.a Collateralized Loans
The
borrower may obtain a loan for the total required investment, as long as
satisfactory evidence is provided that the loan is fully secured by assets such
as investment accounts or real property. These assets may include stocks,
bonds, and real estate other than the property being purchased.
Certain
types of loans secured against deposited funds, where repayment may be obtained
through extinguishing the asset, do not require consideration of repayment for
qualifying purposes. The asset securing the loan may not be included as
assets to close, or otherwise considered available to the borrower. The
deposited funds can be used for
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• |
signature
loans on certificates of deposit |
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• |
loans
on the cash value of life insurance policies, or |
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• |
loans
secured by 401(k) accounts. |
Reference: For
more information on collateralized loans, see HUD 4155.1 5.B.7.b.
An independent third party must provide the borrowed funds for
collateralized loans.
The seller,
real estate agent or broker, lender, or other interested party MAY NOT provide such
funds.
Unacceptable
borrowed funds include
|
• |
unsecured
signature loans |
|
• |
cash
advances on credit cards |
|
• |
borrowing
against household goods and furniture, and |
|
• |
other
similar unsecured financing. |
Thank
You!
Neil
Johnson
Gateway
Mortgage Group
National
TPO Operations Manager
4201
N. State Hwy 161
Irving,
TX 75038
Office:
972-908-3390 ext. 118
fax#
918-858-8392